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  • Writer's pictureDiego C. Cagahastian

Senate building: from P8.9B to P26.6B


“Do I not destroy my enemies when I make them my friends?” 

― Abraham Lincoln

 

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Tensions shot up through the roof and incendiary vitriolic insults were hurled at the Senate hearing about the unfinished new Senate building in Bonifacio Global City, leading to an Ethics committee complaint filed by Sen. Nancy Binay against Sen. Alan Peter Cayetano.  The bone of contention was the true cost of constructing and furnishing the controversial building.  It turned out that the quarrel was not worth it, as both senators were wrong in their estimates.

 

A subsequent Senate hearing established that the total project cost to construct the new Senate building would hit P25 to P27 billion due to the more expensive cost of construction materials caused by inflation.

 

The Department of Public Works and Highways (DPWH) provided the correct figure, through DPWH Undersecretary for Convergence Project Antonio Molano Jr.  Note that the figures quoted are as of this week, the second week of July, 2024.

 

He told the Senate Committee on Accounts that the cost of materials will roughly increase by 20 to 25 percent due to inflation.

 

“To my estimate… from the (time that the) project was bidded out, more or less 20 to 25 percent (na ang itataas) … Aabutin ng P25 billion to P27 billion, including the cost of land, plus inflationary cost, kasama po (It may now cost around P25 billion to P27 billion, including the cost of land plus inflationary costs),” Molano disclosed.

 

Cayetano said he asked about the updated construction cost because the DPWH project cost that he has was dated March 2023.  The project started in 2021, during the term of former Senate President Vicente “Tito” Sotto with then Committee on Accounts chairman Sen. Panfilo Lacson. Last week, the DPWH said the project is already 852 days delayed.

 

Agreeing with Molano, Cayetano noted that the average rise in the cost of materials since the construction started could have been more than five percent since there were a number of factors to be considered, such as the ongoing Russia-Ukraine war, prices of oil in the world market, and the booming of the construction industry.

 

Cayetano said from the original cost of P8.9 billion to the last figure of P23.3 billion, the costing will now reach a conservative estimate of P26.6 billion.

 

It is plain to see now that escalation in the building’s project cost was due to several changes or adjustments in the design and other amenities of the structure.  Cayetano noted that the estimates now are between P25 billion to P27 billion, and that may still change because of the RDAED (redesigning) that can still entail additional costs.

 

Holding on to both outdated figures, Senators Cayetano and Binay engaged in a heated argument after the latter said the construction of the building would only cost P21.7 billion, while the former said it would reach P23.3 billion.

 

Binay last Monday filed an ethics complaint against Cayetano, citing the latter’s supposed unparliamentary actions during the hearing.  

 

In all this mess, the Filipino people who dutifully pay their taxes are seen to be left holding the bag, the perennial loser in the game the politicians play.  They ask:  are the senators so insensitive to pursue this expensive and luxurious project amid the poverty and squalor that is very evident around the country?

 

But what will the Senate do with its unfinished building?  Will they look the other way and finish the project by pouring more of the people’s money in a manner like pouring cement-and-gravel mix? 

 

Or will they take the side of the people, admit that it is the height of arrogance and greed to pursue the project, and find ways to salvage what has already been spent?

 

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A columnist previously pointed out that mayors in the Philippines are among the most powerful officials in the country.  They control business activities through the business permit, the sanitation permit, the fire safety certificate, traffic and excavation rules and ordinances.

 

Sometimes as in the case of Porac, Pampanga, local officials feign not to notice illegal acts committed inside the POGO establishments.

 

In another incident, this time in Banga, South Cotabato, the mayor even launched a crackdown on Small Town Lottery (STL) outlets to limit their operation.

 

South Cotabato Gov. Reynaldo Tamayo, Jr. even had to remind the mayor and other local officials that local government units cannot regulate the operations of the Small Town Lottery.

 

STL is the exclusive domain of the Philippine Charity Sweepstakes Office (PCSO), a national government agency.

 

Tamayo said the operation of STL is pursuant to the national law and only the PCSO has the authority to suspend, cancel or revoke their franchise.


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