Sunwest yet to receive P14M withheld by DPWH for ‘substandard’ road dike project

MANILA — Sunwest Inc., a construction firm tied to former congressman Zaldy Co, has yet to receive around P14-million retention amounts for the P289-million road dike project in Naujan, Oriental Mindoro, which was found to be “substandard.”

According to the Department of Public Works and Highways (DPWH), retention money is withheld from payments to contractors and “serve to guarantee indemnity for uncorrected discovered defects and third-party liabilities.”

It will be used if the contractor “fails to repair the discovered defects.”  The money is to be turned over on final acceptance of the project.

DPWH Finance Division chief Cecilia Vicquerra was supposed to testify as defense witness during the Sandiganbayan Sixth Division’s continuation of malversation trial against Co and former officials of DPWH-Mimaropa on Thursday.

She was unable to testify on the existence of retention amounts, among other payments and disbursements, since she was unable to execute a judicial affidavit.

Since she was not able to do so, Dustin Jay Condez, counsel of accused DPWH-Mimaropa Project Engineer Felisardo Casuno, requested for stipulations instead.

Condez said the certification, dated September 17 and signed by Vicquerra, indicated that P14 million in retention amounts is still not released to Sunwest. 

The amounts are under the first to third disbursements as there was no retention money for the fourth and fifth ones.

The prosecution and defense stipulated the retention amounts, amount paid to Sunwest, and authenticity of disbursement vouchers, which the amounts were derived on.

Sunwest has been paid P215 million for the project so far.

Casuno’s camp will present three more witnesses, including one who will testify on the absence of construction equipment to verify the depth of the embedded steel sheet piles.

Based on the DPWH inspection last year, only three-meter steel sheet piles were installed instead of the required 12 meters.

The next hearing is set for Sept. 29.

Meanwhile, accused former DPWH-Mimaropa Maintenance Division chief Juliet Calvo remains in a private hospital in Pasig City.

Calvo suffered a brain hemorrhage which has left her partially paralyzed.

Calvo’s counsel, Edwin Labro Jr., said his client is yet to be transferred to the Philippine Heart Center because there is no space for her there yet.

Labro added that PHC prioritizes patients from government hospitals.

Calvo’s family, the counsel said, is looking for an alternative health facility.