Editorial September 16 – 22 Issue

P25.5 MKWD Controversial Pipes

It is to the best interest of the water concessionaires of the Metro Kalibo Water District (MKWD) to know what happened to the P25.5 million controversial pipes. The MKWD Board must inform the concessionaires and the Aklanons what have they done with the Fact Finding Team (FFT) report signed by Atty. Arnaldo M. Espinas – chairman, and Atty. Richard C. Lee and Almer A. Zerrudo – members.
In its investigation, the FFT found the following: a. The uPVC pipes received do not conform to the standard specification of class 150…the thickness is about 10.58% to 15.22% less than required, no proper markings…, b. the weight of the G.I. pipes are lighter by about 13% to 19 % than required. The wall thickness is about 10.34% to 23.53% less than required, c. the pipes fittings are fabricated steel instead of required cast iron, and e. the GM is a liable for signing the Certificate of Final Acceptance inspite of the adverse findings of the WD technical committee.
Having these findings, the FFT recommended that: 1. the supplier to refund the amount representing the differential cost between the price of class 150 vis a vis class 100 pipes, to ban the supplier from participating in any LWUA bidding and to pay P20,000 fine; and 2. for the MKWD Board of Directors to impose disciplinary sanctions to the General Manager.
Did the MKWD Board do something on these recommendations? The public has the right to know such as – how much did the supplier paid as price differential from uPVC class 150 to uPVC class 100? And what disciplinary action is given Mr. Renato Albar, the general manager?
To refresh the memory of our people on the MKWD controversial pipes, an article on the subject published in the Madyaas Pen, December 14–20, 2003 issue is being re-published.

MKWD’s Controversial Pipes

With the number of highly questionable transactions in the Metro Kalibo Water District (MKWD), its manager and the Board of Directors has no more reasons to continue serving as such. It appears there is enough preponderance of evidence in the alleged “anomalous transaction in the implementation of the P25 million water project.”
The components of the Board of Directors came from highly respected sectors of society in the province of Aklan that command high respect and prestige. In the BOD, five (5) sectors are represented which are the civic clubs, business, education, professional and women. They are constituted to serve the clients with utmost honesty, integrity and accountability to the people. There is even a Roman Catholic priest who is mandated as agent of morality in any given situation.
However, for the last few months, members of civil society, professional organizations, civic clubs, legislative bodies of Kalibo, New Washington, Banga and the Sang-guniang Panlalawigan of Aklan have been questioning the actions of the MKWD – BOD and the General Manager of their acts in the MKWD specially the P25 million controversial pipes, fittings and machineries.
And their doubts seem to be true for the latest Commission on Audit Report reveals the truth. This INSPECTION REPORT FOR SUPPLIES, MATERIALS AND EQUIPMENT, dated November 24, 2003, was signed by Engineer Moises T. Padilla and Engineer Jaime R. Ong – Sotto. The report was reviewed by Inocencio V. Cabarus, Jr., Officer in-Charge, COA, Region VI.
The auditors gathered and reviewed 12 reference documents, conducted site visits at Ochando and Estancia MKWD stockyards, pumping stations, reservoir and property office of MKWD. They also visited and interviewed E.J. Tallado Construction and Marketing, Manila and inspected items. Here are their findings:
1. Various sizes of the uPVC pipes delivered were not in accordance with the specifications as quoted and billed for based on Bid Schedules with their corresponding unit cost…with and without proper markings which does not conformed with the approved specifications per contract in the total amount of Php.10,288,313.28;
2. Instead of Cast Iron (C.I.) Pipe Fittings of various sizes, the deliveries were fabricated steel and without markings as to its manufacturer origin; year produced and pressure ratings based on Contract Agreement;
3. Instead of C.I. Valve Box Cover (VBC) 150 mm per contract, the deliveries were fabricated steel in the total amount of Php.45,091.80;
4. Instead of the Pipe Wall Thickness for Schedule 40 G.I. Pipes of various sizes, the actual deliveries were undersized and/or below the required parameter wall thickness of Schedule 40 pipes specifications in the total amount of Php.815,188.56.
5. Documents for goods delivered to project site were not presented or submitted and/or compiled with in violation to Clause 9.4 of the Bid/Contract Documents;
6. The above mentioned goods which were already inspected/tested by the Technical Working Committee on September 26, 2002 failed to conform with the specifications as called for in the Contract Agreement including those Pipe Fittings and Valves as per their Materials Quality Inspection Reports dated April 23, 2003 and May 19, 2003 with the recommendations of non-acceptance of the subject items in question, are the subject for rejection;
7. There was no approval from the purchaser (LWUA) as presented or submitted to the owner, (MKWD) as required by the undersigned (auditors) at the time of inspection, if the subject materials, equipment or tools have undergone factory acceptance test before delivery to the project site;
8.The C.E. number or Notified Body Numbers for Lab. Equipment, re: Water Distilling Apparatus & Sterilizer – 400 were not visible in the subject units as compliance to the requirements imposed by the European Materials Testing/Directives on any unit produced/manufactured in Europe.
9. Some of the materials delivered have no unit markings as to its nominal Pressure and Seal of Approval from an accredited testing laboratory and type of materials for uPVC and HDPE-SDR II Pipes respectively as specified in the bid document; and
10. All the three (3) units Submersible Pumps delivered have no Brochure/Catalog, instruction/maintenance manual, parts book, circuit diagram, shop drawing, nameplates on control panel, hour operation counter and duplicate nameplate to be attached to the discharge elbow of the pump unit as required and must be brand new, of latest model, made in Denmark per contract documents submitted…
Based on the findings of the Commission on Audit inspectors, they strongly recommend the following:
1. Reject the uPVC pipes with sizes 50 mm, 75 mm, 100 mm and 150 mm valued at P10,288,313.28 for not conforming with the approved specifications; reject the fabricated steel pipes fittings of various sizes valued at P547,050.90 and reject the fabricated steel Valve Box Cover worth P45,091.80.
2. Pumps which do not conform with specification must be rejected and or replaced;
3. Compel the supplier to comply with the required documents mentioned in the findings for verification; and
4. The sum of P1,285,569.00 spent for local handling of uPVC pipes, fittings and Valve Box Cover must be refunded. These materials are recommended for rejection for being below standard.
But how can Mr. Renato Albar reject those materials and return it to the supplier as a great portion of it are already buried? How can MKWD implement these COA recommendations?
The best recourse for them to do is to accept their blunders, apologize to the public and submit resignation papers.
This will enable competent persons to assume their work for the good of the people. The P25 million is a mess. What a shame! /MP