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19-11 La Belle St.

Deca Homes, 5001 Pavia



October 29,2A12

HON. JED PATRICK E. MABILOG City Mayor Iloilo Citv 7th Floor, New Iloilo City Hall Bldg. Plazalibertad, 5000 Iloilo City
Dear Mayor Mabilog:

I am writing in connection with the contract signed by you in representation of the Iloilo City
Rotary Park, on October 1,2012.
and maintenance of a ferry terminal complex at the Parola point, or better known as the Old

Govemment and the Double Dragon Properties Corp. for the design, development, construction

violation of Republic Act No. 6957, as amended by Republic Act No. 7718, or othertwise known as the "Revised BOT Law of the philippines,, based on the following:
Under the Implementing Rules and Regulations of the above-cited law, the design, development, construction and maintenance of a ferry terminal cortrrplex do not fall ond", the prqjects eligible for Unsolicited Proposals that may be pursued lirough a negotiated procurement. Rule X of the IRR states that only 'onew technology dr newconcepts,, are eligible for this mode of procurement. Definitely, a ferry terminal oomptex cannot be categorized as "new technology" under the definition of the term ufidei Section 10.2, Rule X, of the IRR. Rather, it falls under the list of eligible projectd under Section 2.2 of the IRR, specifically paragraph..d,, therein. 2. In view of the foregoing, the use of the'oswiss Challenge" as the mode of procurement tol llil- qt-o.J.""t is legally infirm. This project should haie been subjected t6 a competitive public,bidding, and should have been treated as a "solicited proposal". The entire proceedings undertaken for this contract are null and void ab iniiio, and for the parties to this contract to proceed with its implementation would make them liable for violation of Republic Act No. 3019, otherwise known as the *Anti-Graft and Comrpt practices Act,. 3. There are other aspects of this contract which constitute violations of the Revised BOT Law of the Philippines under which the project finds legal basis and justification. I will not dwell into each of them. *!,"--*B-**+.*-.,-.*.-..-.^--_,u,

Please be aware that the contract is a


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M1f I request you to rescind this contra&t and undertake the necessary steps to correct the legal infirrrities above-cited. Let me state that I ara entirely in support of this undertaking. But I consider it my civic duty to point out the defeets and transgressions of tfie law which I have
discovered in this transaction

might serve our pulpose better if your Office submits the contract and other pertinent documents concerning this project to the Commission on Audit for its review and evdluation.

I Think you.
Very truly yours,




Hon. Jose Espinosa III Vice Mayor, Iloilo City

The Honorable Members Sang$miang Panlungsod

Iloilo City
Ms. Ofelia T. Demegillo State Auditor fV, Commission on Audit Iloilo Crty Double Dragon Properties Corp. Iloilo City



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