the 20 cases - cases involving ethical issues in civil engineering profession

8/10/2019 The 20 Cases - Cases involving ethical issues in Civil Engineering Profession

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Technological University of the Philippines

College of Engineering

Department of Civil Engineering

CE 522

CE Laws, Contracts, Specification & Ethics

THE 20 CASESA Compilation of Ethical Issues in Civil Engineering Profession

Submitted by:

Fesalbon, Mayson R.

BSCE 5A

Submitted to:

Engr. Teodinis Petalcorin Garcia

December 17, 2014


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THE20CASESA Compilation ofEthical Issues in Civil Engineering Profession

Mayson R. FesalbonTechnological University of the Philippines Manila


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INTRODUCTION

Engineering ethics is the field of applied ethics and system of

moral principles that apply to the practice of engineering. The

field examines and sets the obligations by engineers to society, to

their clients, and to the profession.

The compilation consists of 20 cases of ethical issues in the field of Civil

Engineering. Issues like breach of contract, misconduct, insufficient design,

corruption and many more are some of the main issues.

In the local scenes, 10 cases were introduced by means of news articles

obtained from the internet. Some of these issues are the controversial

Makati City Hall Building II, Torre de Manila and Ozone Disco. On the other

hand, another 10 cases were introduced in the international scene. Some of

which are the Rana Plaza Building, Hyatt Regency Hotel Wlakway and Ronan

Point.

Also, a copy of the Code of Ethics for Civil Engineers from the Philippine

Institute of Civil Engineering (PICE) is included.


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CODE OF ETHICS

FOR CIVIL ENGINEERS

It shall be considered unprofessional and inconsistent with honorable anddignified bearing for any registered Civil Engineer:

To act for his clients* in professional matters otherwise than as a faithful agent or

trustee, or to accept any remuneration other than his stated charges for servicesrendered to his clients.

To attempt to injure falsely or maliciously, directly or indirectly, the professionalreputation, prospects, or business of another Engineer.

To attempt to supplant another Engineer after definite steps have been takentoward his employment.

To compete with another Engineer for employment on the basis of his professionalcharges, by reducing his usual charges and in his manner attempting to underbidafter being informed of the charges named by another.

To review the work of another Engineer for the same client, except with theknowledge or consent of such Engineer, or unless the connection of such Engineerwith the work has been terminated.

To advertise in self-laudatory language, or in any other manner derogatory to thedignity of the Profession.

To use the advantages of a salaried position to compete unfairly with Engineers inprivate practice.

To act in any manner or engage in any practice which will tend to bring discredit onthe honor or dignity of the Engineering Profession.

Adopted in September 2001 as part of the Manual of Professional Practice for Civil EngineersPublished by the Philippine Institute of Civil Engineers.


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CODE OF ETHICS

FOR CIVIL ENGINEERS

FUNDAMENTAL PRINCIPLES

Civil engineers uphold and advance the integrity, honor and dignity of the civil

engineering profession by:

1. Using their knowledge and skill for the enhancement of human

welfare and the environment;

2. Being honest and impartial and serving with fidelity the public, their

employers/employees and clients;

3. Striving to increase the competence and prestige of the civilengineering profession; and

4. Supporting the professional and technical societies of their

disciplines.



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CODE OF ETHICS

FOR CIVIL ENGINEERS

FUNDAMENTAL CANONS

1. Civil Engineers shall hold paramount the safety, health and welfare of the publicand shall strive to comply with the principles of sustainable development in theperformance of their duties.

2. Civil Engineers shall perform services only in areas of their competence.

3. Civil Engineers shall issue public statements only in an objective and truthfulmanner.

4. Civil Engineers shall act in professional matters for each employer or client as

faithful agents or trustees, and shall avoid conflicts of interest.

5. Civil Engineers shall build their professional reputation on the merit of theirservices and shall not compete unfairly with others.

6. Civil Engineers shall act in such a manner as to uphold and enhance the honor,integrity, and dignity of the civil engineering profession.



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TABLE OF CONTENTS

Introduction

Code of Ethics for Civil Engineers

I. Local Cases

Makati City Hall Building II 1

Torre De Manila 6

Manila River Green Residences 9

Irrigation Projects of NIA 12

Paraaque Premier Medical Center 16

Two Serendra 18

Palawan Infrastructure Projects 22

The Eton Residences 27

9 Cebu City Barangays Road & Bridge Projects 31

Ozone Disco 34

II. International Cases

Rana Plaza Building 37

Sampoong Superstore 41

Hyatt Regency Hotel Walkway 44

2000 Commonwealth 48

Ronan Point 53

Autoroute 19 Dela Concorde Overpass 56

Minneapolis I-35W Bridge 58

Tacoma Narrows Bridge 60

Quebec Bridge 64

Stava Dam 70


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LOC L C SES

CE Laws, Contracts, Specifications & Ethics


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Photograph by Rappler.com

Contrary to what bid documents show, one contractor denies

participating in the 2007 bidding for Phase 1 of the controversial Makati

City Hall parking building.

MANILA, Philippines On December 28, 2007, a Friday, the bids and awards secretariat of the

Makati City government was on overtime mode. It was the last working day for the year, and thesecretariat was under time pressure to finish all the scheduled bidding activities for projects that

were to be undertaken the following year.

Covering 16 projects, more than P1.3 billion ($29.5 million) of funds was at stake, including Phase

1 of the controversial Makati City Hall parking building. In fact, with a P400 million ($9 million)

approved budget contract (ABC), it was easily the biggest project in the line-up.

MAKATI CITY HALL BUILDING IIMAKATI CITY, 2014 CASE I


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Documents show that 3 contractors supposedly submitted their bids for the parking building

project Hilmarcs Construction Inc, ITP Construction Inc, and J Bros Construction. These 3 firms

also supposedly participated in another project where bids were also opened that day: Phase 1 of

the P100 million ($2.27 million), 10-story Makati Science High School.

For the City Hall parking building, Hilmarcs price tag of P386, 998,154.20 ($8.79 million) was

considered the lowest bid and was awarded the contract. Before the day ended, it secured its

second project, beating its competitors for the Makati Science High School with a bid of

P99,631,205.15 ($2.26 million). Thus, in less than 24 hours, Hilmarcs Construction cornered almost

half a billion pesos worth of projects from the Makati City government.

This was just the beginning.

The firm, which is one of the top 10 contractors nationwide based on cumulative cost of contracts

from 2009 to 2014, would also bag Phases 2, 3, 4 and 5 of the Makati parking building for a total

contract price of P2.276 billion ($51.7 million) for the entire parking project.

Hilmarcs Construction also cornered Phases 2, 3, 4, 5 and 6 of the Makati Science High School for

a combined price tag of P1.33 billion ($30 million). For the 2 projects alone, Hilmarcs Construction

secured almost P3.5 billion ($79 million) worth of projects from the Makati City government alone.

These were supposed to have been won fair and square, on the merits of competitive bidding.

But there are red flags that raise questions about the integrity of the process foremost of which

was the outright denial of one bidder that it was among those who participated in the bidding.

Collusion among bidders

Documents from the Senate Blue Ribbon committee showed that Hilmarcs Construction was able

to outbid ITP and J Bros Construction for the Makati parking building and the Makati Science High

School with the slimmest of margins.

Table 1: Bids for the Makati parking building (Phase 1)

CONTRACTOR BID

Hilmarc's Construction Php 386,998,154.20

J Bros Construction 387,315,511.37

ITP Construction 387,528,277.11

Based on the above, Hilmarcs Construction beat J Bros Construction for the Makati parking building by a

mere P317, 000 ($7,204) difference in the bids.


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Table 2: Bids for the Makati Science High School (Phase 1)

CONTRACTOR BID

Hilmarcs Construction Php 99,631,205.15

ITP Construction 99,745,601.20

J Bros Construction 99,850,400.80

In the case of the Makati Science High School, Hilmarcs Construction pulled the rug from under

ITP Construction by a margin of only P114,000 ($2,590).

An expert on the Procurement Law, who studied the procurement practices of local government

units in 20 provinces, said that while close bidding happens, it is usually a red flag that a collusion

could be happening.

In a particular project for instance, the favored bidder seeks out other bidders to simulate a

semblance of competitive bidding, the source explained. This favored bidder takes care of

everything from preparing all the required documents to the fees needed for the bidding

process. In some cases, as part of the arrangement, the "winning" bidder taps the complicit

bidders as subcontractors for the project.

On paper, everything appears to be above board. Thats why collusion between or among the

bidders is hard to pinpoint, the source said.

Winner by default?

Former Makati BAC vice chair Mario Hechanova, during a Senate hearing, said bid fixing is usual

practice in Makati.Vice President Jejomar Jojo Binay, in defending the allegedly overpriced

Makati parking building, argued that the city government even saved P200 million in

implementing the project. He said the estimated cost of the project amounted to P2.4 billion but

the total cost amounted to only P2.2 billion. Documents show that the Makati parking building

(from Phase 1 to 5) has a total estimated cost of P2.55 billion. On the other hand, total project

cost awarded to Hilmarcs Construction amounted to P2.276 billion.

Table 3: Makati parking building

BUDGET BID YEAR MAYOR

Phase 1 P400 million P386.998 million 2007 Jejomar Jojo BinayPhase 2 P500 million P499.357 million 2008 Jejomar Jojo Binay

Phase 3 P600 million P599.395 million 2010 Jejomar Junjun Binay

Phase 4 P650 million P649.275 million 2011 Jejomar Junjun" Binay

Phase 5 *P400 million P141.649 million 2012 Jejomar Junjun Binay

TOTAL P2.550 billion P2.276 billion

*(Amount includes appropriations for furniture and fixtures for the Makati City Hall parking building)


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The documents show that for the succeeding phases of the Makati parking building, only Hilmarcs

Construction participated in the invitation to bid, resulting in its being declared as having the

lowest calculated bid.

Its submitted bid also hewed closely to the approved budget for the contract or ABC, whichindicates that the alleged bidding was rigged, lawyer Renato Bondal, in a phone interview said.

Bondal, a losing Makati mayoral candidate and a former ally and family friend of the Binays, has

filed a plunder complaint against the Vice President and his son, Makati Mayor Jejomar Junjun

Binay, before the Ombudsman.

At least in Phases 2, 3 and 4, Hilmarcs submitted bids were only lower by less than P1 million

compared to the projects ABC.

The expert on procurement law said that one potential indicator that bidding was rigged is the

proximity of the bid to the ABC. Contractors will try to maximize profits by placing their bid close

to the ABC.

Bondal pointed out that the practice of awarding contracts which almost approximated the ABC

had been observed in other projects of the Makati City government.

The Makati Science High School contract could be another example.The company was also

the sole bidder for the succeeding phases of the Makati Science High School, winning by default.

However, Phase 3 of the project amounting to P149.5 million was awarded on a silver platter.

Hilmarc's Construction cornered the contract through negotiation with the Makati City

government in 2009. Considering that the contractors past performance was highly

commendable, the (BAC) board unanimously accepted the offer of P149,505 million, which is

lower than the agency (city of Makati) estimate of P149.990 million, the minutes of the

negotiation for Phase 3 showed.

Table 4: Makati Science High School

BUDGET BID YEAR MAYOR

Phase 1 P100 million P 99.631 million 2007 Jejomar Jojo Binay

Phase 2 P175 million P174.508 million 2008 Jejomar Jojo BinayPhase 3 P149.99 million P149.504 million 2009 Jejomar Jojo Binay

Phase 4 P394.140 million 2011 Jejomar Junjun Binay Jr



TOTAL P1.33 billion


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From the above, it can be seen that Hilmarcs bids for Phases 1 and 2 were almost similar to the

Makati parking building where the variance of the bid to the ABC is less than P1 million.

No participation

Perhaps the clearest indicator that the bidding for the Makati parking building was a sweetheartdeal was the confirmation from J Bros Construction that it did not participate in the 2007 bidding

for the Phase 1. In a letter submitted to the Senate Blue Ribbon Thursday, J Bros Construction

chief operating officer Alejandro Tengco denied that the company has ever implemented any

project with the Makati City government since it was established in 1999.

Neither have I nor J Bros Construction ever given any form of consent, whether expressly or

tacitly, for any person or entity to use the firms name, licensein any manner so as to participate

or feign participation in the conduct of any or all public biddings undertaken by the LGU of Makati

City for its infrastructure projects, including the Makati City Hall Parking Building, Tengco said.

In the first place Tengco said that at the time of the bidding for the controversial parking building,

J Bros was not yet qualified to participate since it had not undertaken any project of similar

magnitude as required under the Procurement Law. J Bros Human Resource head Florence Sibal,

in a separate interview, also denied that the company participated in the bid for the Makati Science

High School. For his part, ITP Construction president Antonio Cruz refused to be interviewed when

Rappler sought his side.

Favored contractor?

Based on available data, the Makati City government is a regular client of Hilmarcs Construction.

From 1999 to 2004, data showed it cornered projects amounting to P2 billion. Data scraped from

the Philippine Government Procurement Electronic System (PhilGEPS) showed that from 2009 to

2014, the company bagged some P4.5 billion worth of 12 contracts from government agencies

and LGUs. Of these, 7 were from the Makati LGU, with a total amount of P3.919 billion. The Makati

contracts include the P1.929 billion Emergency Hospital (Ospital ng Makati).

Two months before it cornered the Emergency Hospital project in October 2012, Hilmarcs sister

company, Building Beaver Corporation, bagged a P94- million contract for the construction of an

Ospital ng Makati parking building. Hilmarcs Construction and Building Beaver Construction have

identical addresses.

Reference

Manuel, W. (2014, September 14). Red flags in overpriced Makati infra projects. Rappler.

Retrieved from http://www.rappler.com


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Photograph by mb.com.ph

The construction of Torre de Manila has been hit for violating Manila

City zoning laws.

MANILA, Philippines Senator Pia Cayetano did not mince words in reacting to the allegation of

DMCI Homes that photos taken by media of the controversial Torre de Manila were

photoshopped.

"It is unfortunate that instead of answering the issues head on, DMCI has chosen to trivialize

mounting public protests against Torre de Manila by claiming that all photographs showing its

condo tower photobombing the Rizal Monument were manipulated or merely Photoshopped,

she said in a September 17 statement.

TORRE DE MANILAMANILA, 2014 CASE II
http://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-parkhttp://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-parkhttp://www.rappler.com/nation/69294-carlos-celdran-selfie-challenge-dmci-torre-de-manilahttp://www.rappler.com/nation/69294-carlos-celdran-selfie-challenge-dmci-torre-de-manilahttp://www.rappler.com/nation/69294-carlos-celdran-selfie-challenge-dmci-torre-de-manilahttp://www.rappler.com/nation/69294-carlos-celdran-selfie-challenge-dmci-torre-de-manilahttp://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-parkhttp://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-park


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DMCI Homes had earlier publicized a statement saying to grab public attention, some parties

had taken the unethical approach of virtually juxtaposing pictures of our project right behind the

monument.

Cayetano took it personally, saying DMCIs allegations undermine the integrity of the Senateinquiry she has called to look into the companys possible violations in constructing the tower.

"DMCI's attitude towards this issue insults the intelligence of any self-respecting Filipino. It

questions the reputation of professional photographers and media establishments that have

posted photos and aired video footages of their photobombing tower, she said.

The senator stood by the integrity of her staff and media photographers who documented the

ocular inspection she had conducted on August 27. Photos of the inspection have been used in

recent articles about the Senate inquiry on the 49-storey condominium.

Adjusting to DMCI Homes

She also derided suggestions of DMCI Homes that if one were to stand at a certain angle from

the Rizal Shrine, Torre de Manila would be hidden from sight, thereby allaying concerns that it

would ruin the view and the monuments visual dominance.

It now wants all Filipinos, foreign tourists, dignitaries and practically coming generations from

here on to adopt its preferred 'view' of the Rizal Monument, which until late last year, has stood

there, proud and unchallenged for 100 years. How convenient!

During a September 18 press conference, she made a counter-suggestion.

Why dont they just put an arc near the Shrine so we can tell people to just stay there if they want

an unobstructed view?

To set matters straight, Cayetano said she would once again invite DMCI Homes to attend a

hearing set to take place the following week. She said she would also invite company

representatives to join her in an ocular inspection of the Rizal Monument to show her how the

landmark may be viewed without the tower.

It is similar to the challenge posed by cultural activist Carlos Celdran who dared DMCI Homes

executives to take a selfie at the Shrine to prove the tower did not ruin the view.


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Possible demolition

Aside from its impact on the Rizal Shrine, a National Historical Landmark, the construction of Torre

de Manila has beenhit for violating Manila City zoning laws.

Its floor-to-area ratio far exceeds the limit set for its location, thereby burdening utilities andvehicle capacity of the area.

But DMCI Homes has reiterated that it had all the necessary permits to begin construction, all of

which were obtained during the term of then Manila mayor Alfredo Lim.

After two Senate hearings, Cayetano said she believed that the company was a builder in bad

faithbecause it had proceeded with construction despite opposition from the Manila City Council

and allegations that the permits were hastily issued.

As of August 20, Torre de Manila was already19 floors high.The Knights of Rizal have filed a

petition with the Supreme Court for the demolition of the condominium.

Cayetano also confirmed that the demolition of the building or an imposed height limit may be

part of the recommendations she will make at the end of her Senate inquiry.

Reference

Ranada P. (2014, September 18).Pia Cayetano to DMCI: Dont insult Filipinos. Rappler.

http://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-parkhttp://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.dmcihomes.com/torre-de-manila?construction-updates=15406http://www.rappler.com/nation/68958-torre-de-manila-knights-rizal-supreme-courthttp://www.rappler.com/nation/68958-torre-de-manila-knights-rizal-supreme-courthttp://www.rappler.com/nation/68958-torre-de-manila-knights-rizal-supreme-courthttp://www.rappler.com/nation/68958-torre-de-manila-knights-rizal-supreme-courthttp://www.dmcihomes.com/torre-de-manila?construction-updates=15406http://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.rappler.com/nation/67419-pia-cayetano-dmci-torre-de-manilahttp://www.rappler.com/nation/41092-torre-de-manila-dmci-rizal-park


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Photograph by Pia Cayetanos media team

CDC Holdings, Inc., the developer of the planned Manila Green

Residences located along Pedro Gil between Santa Villas and OB

Montessori, started yet another condominium construction project in

the historical Santa Ana town without undergoing the ArchaeologicalImpact Assessment (AIA).

This information was stated in a letter from National Museum director Jeremy Barns to Manila

Mayor Joseph Estrada stated.

MANILA RIVER GREEN RESIDENCESMANILA, 2014 CASE III
https://www.facebook.com/ManilaRivergreenOfficialhttps://www.facebook.com/ManilaRivergreenOfficialhttps://www.facebook.com/ManilaRivergreenOfficialhttps://www.facebook.com/ManilaRivergreenOfficial


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The letter, dated November 27, 2013, said that the location of the 31-storey condominium was in

proximity of a significant archaeological areas. It also noted that the area of the project covered

the Histo-Cultural Heritage Overlay Zone.

Hence, Barns said an AIA must be performed before the city government can issue a buildingpermit by virtue of Republic Act 10066, or The National Cultural Heritage Act of 2009, Section 30.

The AIA is an important step in determining if an area is an important archaeological site before

excavation or land-moving is performed.

However, the developer pushed through with the project since the permit was issued before the

AIA, De Leon explained. The permit only had a note saying, "subject to AIA." Moreover, its zoning

permit had a different street address, she added.

Although the Santa Ana Heritage Tourism Association (SAHTA) tried to stop the excavation, with

the blessing of the national agencies and the help of the police, CDC Holdings continued the work

saying a building permit was already issued, De Leon said.

A team of experts inspected the site on January 2014. The team found pieces of pottery and other

artifacts, which were already damaged.

CDC Holdings, Inc. was also invited to the Thursday public hearing led by senator Pia Cayetano at

the Rizal Park Visitors' Center in Manila, but no representative showed up.

Heritage zone

The residents of Santa Ana, Manila, led by SAHTA president Sylvia Lichauco-de Leon, presented

the challenges the town is facing as a heritage district during the Thursday hearing.

According to De Leon, a portion of Santa Ana was declared a heritage zone by the National

Historical Commission of the Philippines (NHCP) on May 12, 2014. Prior to this, the government

of Manila classified the town as a Histo-Cultural Heritage Overlay Zone by virtue of City Ordinance

No. 8244 on September 22, 2011.

Following the recent declaration, the Manila City Council, led by councilor Priscilla Marie Abante,

also stated in a resolution issued August 14, 2014 that there must be strict compliance with

national agency-issued guidelines in dealing with the Santa Ana Histo-Cultural Heritage Overlay

Zone.


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Santa Ana's heritage zone is composed of historic houses and structures from the Spanish and

American colonial periods, including the Santa Ana Church complex and Plaza Hugo. Moreover,

the town is known to be an archaeological area.

Once an area has been recognized as a heritage site, it is protected by NHCP. Therefore, anyconstruction should adhere to the guidelines given by the national agency.

Reference

Macas, T. (2014, September 26).Santa Ana, Manila residents cry for help to protect the heritage district.

GMA News Online.Retrieved from http://www.gmanetwork.com


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In June 2013, President Aquino scolded NIA for irrigating only 65% ofits target coverage. A year later, investigations reveal corruption of

alarming proportions.

MANILA, Philippines Corruption cases were filed with the Office of the Ombudsman on Monday

afternoon, August 18, against at least 53 persons for their alleged involvement in multi-million-

peso anomalous projects of the National Irrigation Administration (NIA) in Caraga since 2012.

At the top of the list are Modesto Membreve, former NIA Caraga regional manager; Dexter

Patrocinio, who took Membreve's post in October 2012; Encarnacion Soriano, current NIA Caraga

regional manager; and Gardinel Jimenez, owner of Dungan Constructors and Development

Corporation (DCDC).

IRRIGATION PROJECTS OF NATIONAL IRRIGATION

ADMINISTRATION (NIA)CARAGA, 2014

CASE IV


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Members of the Philippine National Police (PNP), Department of Justice (DOJ), National Bureau of

Investigation (NBI), and the Department of Public Works and Highways (DPWH) filed some 30

bound documents as evidence.

The 53 persons are accused of violating the Anti-Graft and Corrupt Practices Act (Republic Act3091) and the Government Procurement Reform Act (RA 9184), said Police Superintendent Rudy

Lacadin of the PNP Criminal Investigation and Detection Group (CIDG).

The case filed on Monday pertains to alleged corrupt dealings involving 3 NIA-funded projects in

Caraga. They are MAP Irrigation Project Packages 2, 3, 7 worth a total of P53,682,027 (US$1.2

million*).

But the MAP Irrigation Project (MAP IP) has a total of 7 packages worth P119,816,309 ($2.7 million).

Cases for anomalies spotted in the 4 remaining packages will be filed soon, possibly within the

week, said Lacadin.

MAP IP was meant to build canals and other irrigation works in the remote villages of Mat-i,

Ambacon and Pinana-anof in Las Nieves, Agusan del Norte.

The non-implementation of these irrigation projects ultimately affects the more than 240,000

farmers in Caraga, 37,300 of whom are rice farmers dependent on good irrigation, according to

Department of Agriculture (DA) statistics.

The 'anomalous' irrigation projects

The 7 MAP IP packages were bid out and awarded to contractors in 2012 while Modesto

Membreve was NIA Caraga Regional Manager. At least 5 of these were proven by the special

investigation to have been put under the control of Gardinel Jimenez of DCDC, known to

contractors as "James" or "Jim." But on paper, these packages were awarded to 5 different

contractors from Region 3 (Central Luzon): two from Nueva Ecija, two from Pampanga, and one

from Bulacan. DCDC itself is based in Pampanga but with an office in Butuan City.

5 MAP IP Packages allegedly awarded to DCDC dummies:

MAP IP

PackageContractor

Project

Cost

Deadline

for

Completion

Project

Duration

% of

Completion

accdg to NIA

Caraga

Duration in Incomplete

Status Since Deadline as of

March 15, 2014

Package

1

LMG

Construction

(Nueva Ecija)

17,127,325Nov 13,

2012

120

days56.60

1 year, 3 months

(suspended)


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Package

2

WIRO

Construction

(Nueva Ecija)

18,267,093Nov 12,

2012

120

days95 1 year, 3 months

Package

3

MCB Zamora

(Pampanga)14,446,297

Oct 24,

2012

100


Package4

PALMEAConstruction

(Pampanga)

18,256,020 Nov 12,2012

120days

95 1 year, 3 months

Package

7

MG Salazar

(Bulacan)20,968,637

Nov 10,

2012

120


TOTAL: 89,065,372

But onsite inspection by investigators of the 5 canal works in April showed a gross discrepancy

between the reported progress and the actual status of the projects.

For instance, Package 3, awarded on paper to MCB Zamora Construction of Pampanga, involvedthe construction of a 1,300-meter concrete hollow block canal which would connect villages of

Las Nieves to a dam site in the upper region of Agusan del Sur. But the April inspection found the

actual length of the constructed canal to be only 520 meters, far from the 91% completion status

reported by NIA Caraga a month ago.

Yet 91% of the P14.44 million ($328,500) funds for the project (P13.15 million or $299,000) had

already been released.

Contractors 'never visited' the sitesThe investigation revealed that the 5 contractors awarded the MAP IP packages were mere

dummies of DCDC run by Gardinel Jimenez and his wife Corazon. Two sub-contractors hired to

finish 3 of the packages admitted they were hired, not by the contractors on paper, but by James

Jimenez of DCDC. A check with the Securities and Exchange Commission showed that "Dungan

Constructors and Trading Corporation" was registered in June 2005, with office address in San

Fernando, Pampanga.

The contractors from Nueva Ecija (LMG Construction and WIRO Construction) also revealed that

they never even participated in the bidding for MAP IP packages. But they allowed the Jimenez

couple to use their license as contractors in exchange for payment.According to sources, they

told investigators they never even visited the project sites.Aside from NIA Caraga projects they

allegedly controlled through dummy contractors, the Jimenez couple was officially awarded 10

projects.The 10 other projects in total costing P74,380,474 ($1.7 million) were allegedly not

inspected. Seven remained unfinished 4 to 9 months past their deadlines.


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Rigged bids

But the 17 anomalous projects may just be scratching the surface. NIA employees claimed that

the bidding of at least 195 projects were rigged upon the orders of Membreve, who was then NIA

Regional Manager. An Audit Observation Memorandum dated October 2012 reported

"irregularities" in 123 contracts entered into by NIA Caraga under Membreve worth P1.29 billion($29.3 million).

The contracts were not submitted to COA for review, violating COA rules requiring contracts and

other required documents to be submitted within 5 days from the execution of the contract.

Awarding of contracts to companies outside the province was also rampant during Membreve's

time, a violation of the Implementing Rules and Regulations of the Government Procurement Act,

which says companies whose principal office is in the same province should be given an equal

chance to bid for infrastructure projects. But 120, or 80% of the 163 winning contractors in 2012

do not have main offices in Caraga.

'Honest human error'

A November 2012 Audit Observation Memorandum reported that NIA funds totaling P6.4 million

($145,600) paid to two contractors in June 2012 were not properly documented. Disbursement

vouchers submitted by NIA Caraga to COA lacked required documents like statement of work

accomplished, inspection report and pictures of the project site before and during construction.

The memorandum also noted there was "an attempt to conceal the deficiencies" of the

disbursement vouchers.

The two contractors John Arne Construction and Virlo Construction refunded the P6.4 million

in September, 3 months after they received the checks. A month after, Membreve explained to

COA that his office had mistakenly paid the contractors. He blamed "honest human error" by his

staff and the voluminous transactions in his office. But COA asked, "If indeed it was an error, how

come it took them 3 months to correct that human error?" Another audit team report noted: "The

said monies were returned because of COA's findings. What if COA's findings were not divulged?"

Reference

Ranada, P. (2014, Aug 18). EXCLUSIVE: Corruption cases filed vs. irrigation officials. Rappler.Retrieved from http://www.rappler.com


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Photograph by DZMM.ABS-CBNnews.com

We are urging the Department of Labor and Employment to ensure

that both the project owner and contractors of the hospital construction

project are made to face the consequences of their negligence.

GERARD SENO

MANILA, Philippies - A labor group on Monday called on the Department of Labor and

Employment to hold liable the project owner and contractors for an accident at a construction

site in Paraaque City last week, where one worker was killed and eight more were hurt.

PARAAQUE PREMIER MEDICAL CENTERPARAAQUE CITY, 2013 CASE V


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The Associated Labor Unions-Trade Union Congress of the Philippines also condemned the grave

negligence of those involved in the hospital construction project.

"We are urging the Department of Labor and Employment to ensure that both the project owner

and contractors of the hospital construction project are made to face the consequences of theirnegligence," ALU-TUCP executive vice president Gerard Seno said.

A construction worker was killed and eight others were wounded when an improvised scaffolding

collapsed at the Paraaque Premier Medical Center in Barangay San Dionisio.

Seno said project owners and contractors appeared to have ignored indications that the scaffold

materials they are using are sub-standard after a similar mishap in the work site happened days

before the incident.

"Under existing rules and regulations, both the owners and the contractors are equally liable not

only for the death and the injuries sustained by the other workers but also for not enrolling the

workers to SSS, Philhealth and other benefits as revealed by workers interviewed by media. The

DOLE also needs to check if workers received lawful wages," Seno added.

He said that the incident revives the labor group's urgent call for government to approve the

government-labor-management tripartite collaboration in revising current state standards and

regulations governing the use of scaffoldings.

Reference

Carcamo, D. (2013, October 7). Hold owner, contractor liable for Pque mishap. Philstar.

Retrieved from http://www.philstar.com


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As the probe on the cause of the Two Serendra blast continues, residents

raise concerns about gas detectors and lack of safety procedures during

emergencies.

MANILA, Philippines - Whether or not thedeadly explosion at Unit 501B in a posh enclave in

Taguig was caused by agas leak, a bomb, or another source,residents are still concerned about

what they perceive to be lapses in safety protocol days after the May 31 blast.

Serendra residents told Rappler that electrical supply was cut off from some Two Serendra

buildings on the day of the blast, including building B where the explosion took place on Friday.

The power interruption consequently turned off the units' gas detectors, which were attached to

electric outlets.

TWO SERENDRATAGUIG CITY, 2013 CASE VI
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That day, a scheduled annual preventive maintenance of electric facilities cut off electricity from 8

am-5 pm, according to a Serendra circular. During the maintenance, the building provided

emergency power from the property's generator.

One resident, who was cooking and using the gas stove before the electricity was cut off, toldRappler the gas-lit burner on his stove continued to work despite the electricity interruption. This

confirmed that gas continued to flow.

This, despite the gas detector (which detects leaks and comes with a shut-off valve that

automatically stops the flow of gas when the sensors beep) not working, said the resident.

Serendra's maintenance office, however, said that while detectors are not plugged into an

uninterrupted power source (UPS), they should have continued to work. They should be powered

by the generator during preventive maintenance, because they require only low voltage.

But the resident insisted not a single outlet or appliance was working in his apartment during that

time, and expressed concern about the detector and safety valve not being connected to a UPS

a must, he said, so they would continue to work despite any power interruption.

Serendra uses a centralized, piped-in Liquid Petroleum Gas (LPG) system, rather than individual

gas sources in units.

Theinvestigation into the cause of the blast that killed 3 and injured 5 is ongoing,although Interior

Secretary Mar Roxas said the likelihood it was a bomb that triggered the blast is getting slimmer.

Gas has been turned off in all buildings as the probe continues.

Residents' responsibility

Rappler also learned that since the gas detectors are located inside the units, residents have

control over them, whether or not they are plugged.

Residents said the detectors are sensitive they beep even when they detect chemicals from

insecticide or cleaners. Once they beep, residents are asked to call maintenance to check if there's

a leak, and to reset the detector.

At least one resident told Rappler that rather than calling maintenance, he resets the detector

himself when it beeps, because insecticide often sets off the sensor. Maintenance is only alerted

about a possible gas leak if residents, whose detectors start to beep, call their attention.
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While the gas detectors are effective in sensing chemicals, they should be watched too by

residents. In Serendra, however, it is not unlikely that residents leave their units for months at a

time like the owner of Unit 501B.

George Cayton, the listed owner of the unit, is said to have bought the apartment only to have aplace to stay in when he is in Manila.Cayton and his family are based in California.For unit owners

like Cayton, who do not live in their Serendra apartments or are away for an extended amount of

time, Serendra expects them to ask maintenance to turn their gas off, through a service valve

controlled by maintenance and attached to the meter.

This way, when a gas leak occurs while the resident is gone, the shut-off valve attached to the gas

detector can stop the gas flow itself once the sensors beep. Serendra's requirement to install gas

detectors when purchasing a stove is their main safety measure against gas leaks.

Despite a beeping gas detector, however, maintenance men are not allowed to enter the unit

unless called by the resident. It is assumed that residents keep the detectors plugged when they

are away from their unit.

Lack of information

Units in Serendra are also often leased out by real owners, contributing to occupants' lack of

knowledge on what to do in the event of gas leaks.

Cayton's unit, for instance, was being rented for 9 days by a family friend, Angelito San Juan, at

the time of the blast. Cayton's family lawyer, Raymond Fortun, told Rappler that theunit was still

awaiting clearance for leasing, after renovations were made from April to May. Despite this,

Serendra accepted the written request of the Cayton family to allow San Juan to use the unit

temporarily.

Robin Leonard, a lessee in Building A of Two Serendra for over a year, told Rappler he was unaware

of whether the unit he is renting has a gas detector or not. He said he never noticed it before, and

is unsure whether his unit even has one installed. While he was briefed on the location of fire exits,

he said he was not informed of the safety protocol, if any, in the event of gas leaks. Leonard is

one of those whose apartment was damaged in the blast, and who has been relocated to Seda

Hotel by Ayala Land Inc (ALI), developer of Two Serendra, while the probe is ongoing.
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Evacuation woes

But besides these concerns, another Serendra resident, who lives in a unit in the same building

where the blast took place, identified yet another problem. She said she was disappointed about

the lack of assistance from management immediately after the incident.

"There were no marshals or emergency committee that came to guide us to safety. We were

completely alone and clueless on where to go. It made us more afraid and unsafe," said the

resident. She and her young daughter fled their badly damaged unit barefoot. "As we arrived at

the garden, no one approached us to ask if we were okay or hurt. We were on our own not

knowing what to do," she added.

Leonard, whose doors to the unit were jammed by the blast's impact, said he was stuck inside his

apartment after the explosion. The phone line was cut off as well. He said help came about 15-20

minutes later, after he notified his house help, who was outside of the unit when the blast

happened. Leonard expressed relief there was no fire or other effects of the blast, which could

have endangered him. He said he knew of about 3 other units that had their door locks jammed

as well.

Tony Aquino, the president of ALI, also defended Serendra's use of a centralized gas system. In an

interview with ABS-CBN News Channel, he said this universal and environment-friendly system "is

being used by many companies here and abroad without any consequences."

Reference

Gutierrez, W. (2013, June 5). Blast highlights Serendra flaws. Rappler.



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Photograph by Bishop Pedro Arigo

COA only recommended the filing of administrative charges and

unspecified criminal cases against mostly engineers of the

Department of Public Works and Highways (DPWH) district office.

No local official has been recommended for prosecution.

MANILA, Philippines How much, do you think, does the construction of a road that looks like

mashed potato cost?

A total of P20 million, if we will go by the documents showing how a special fund released to then

Palawan Rep Abraham Kahlil Mitra (2nd district) was spent. If this is not enough of an overpricing

for what's practically a dirt road, there were 21 of these roads, according to state auditors. This

means that more than 80% of the P520-M Malampaya fund that Mitra received in 2008 were spent

questionably.

PALAWAN INFRASTRUCTURE PROJECTSPALAWAN, 2012 CASE VII


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This prompted a Palawan-based people's organization to call for plunder charges to be filed

against Mitra, who is now governor of the province and an ally of President Benigno Aquino III in

the Liberal Party.

However, the Commission on Audit (COA), in a recent report, only recommended the filing ofadministrative charges and unspecified criminal cases against mostly engineers of the Department

of Public Works and Highways (DPWH) district office. No local official has been recommended for

prosecution.

Kilusan Love Malampaya (KLM), which presented the COA findings in a press briefing on Tuesday,

October 23, said COA's recommendations were insufficient.

The COA report cited only the lack of invitation for bidding for the projects and deficiencies in the

quality of materials and finished projects, among others. But KLM partner Michaella Ortega said,

We have documents that were not included in the COA report, and wh ich could point to alleged

overpricing.

KLM also presented documents and photos to show classrooms that Mitra's Malampaya fund

allegedly built at P1 million each. There were 100 of these classrooms, the organization said.

Ortega said the parties involved like Mitra and former Gov. Joel Reyes should be made liable

for plunder.

PURING-BULILUYAN, PALAWAN A road that costs P20-M. Photograph by Bishop Pedro Arigo

'Pag tiningnan mo 'yung kalsada, mukhang mashed potato, the young Ortega noted. (If youlook

at the roads, they look like mashed potatoes.) It doesn't take a genius. You don't even have to

be an accountant, you don't even have to be an engineer. You can just be a normal person with


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common sense, and you can see, something is wrong. The money was not put here, she

explained.

The KLM partner is the daughter of the late broadcaster Gerardo Gerry Ortega, who was killed

in 2010 allegedly due to his radio commentaries on how Reyes, his brother, and Mitra had misusedthe local governments' share in the Malampaya funds. She now chairs the Justice for Doc Gerry

Ortega Movement.

Hunted by the Interpol, Reyes and his brother, former Coron mayor Mario Reyes are now

fugitives and evading arrest for allegedly masterminding Ortega's killing.

The Malampaya natural gas production off the island-province of Palawan, which started in 2001,

was initially seen to earn up to US$10 billion in two decades. While the Constitution and the Local

Government Code are clear that 40% of the proceeds should be released by the national

government to the host local governments, Malacaang under President Gloria Macapagal-

Arroyo withheld it.

In a case that reached the Supreme Court, the Palace argued that the site of the operations is not

within the municipal waters of Palawan, and therefore national territory, so the LGUs are not

entitled to a share in the proceeds.

Pending the resolution of the case, Reyes and other local officials entered into an interim

agreement with the Palace so that even a small percentage of their share would be released to

them as "special assistance."

The KLM questioned that interim agreement before the SC. The agreement expired in 2010. Mitra,

newly elected governor by then, was reported to have asked President Aquino to consider another

interim agreement.

Mitra has denied involvement in any anomaly. Ang pondo po ay na-implement po ng Department

of Public Works and Highways. At kung ano man 'yung pamamaraan at findings ng COA, I think

dapat pong masagot 'yan at dapat ma-correct, Mitra said in an interview aired on ABS-CBN on

Monday evening, October 22.

'Unexplained' costs

Ortega, however, is adamant the case is more anomalous than it seems.
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It's not just an administrative oversight.Ang paniniwala natin diyan ay talagang merong ibinulsa.

Talagang merong nawawala. Meron talagang unexplained, Ortega told Rappler. (We believe that

money was actually stolen. Money was gone. There was something unexplained.)

(LEFT) LINAO BRIDGE. A P20-M bridge in Culandanun-Panalingaan crossroad. (RIGHT) CULANDANUM-PANALINGAAN CROSS ROAD.

A P20-M improvement project. Photograph by Bishop Pedro Arigo

One anomaly, according to Ortega, is the lack of project documents that contain the breakdown

of costs. She said available documents only state that each road costs P20 million, without details

like materials to be used and the project's extent.

The KLM, through Ortega, thus urged the Ombudsman to bring to court the parties involved

over the recent report and, especially, a previous report that covers 1999 to 2003. We're asking

the Ombudsman to file those cases already. That has been a long time ago, she said.

She added the COA should reinvestigate the projects given additional documents that did not

make it to the recent audit.

She also urged the Senate Blue Ribbon Committee to investigate the Malampaya funds, which

she noted is a bigger case than the P366-M plunder suit filed against former President Gloria

Macapagal-Arroyo and others.

Arroyo, too

Lawyer Harry Roque, who has helped KLM in its advocacy, said Mrs Arroyo should be held liable,

too.

In 2007, Mrs. Arroyo issued the executive order that authorized the release of half of the 40%

disputed government share in the Malampaya project. In 2008, Roque and other

partiesquestioned the constitutionality of Mrs. Arroyo's order, saying it infringes on Congress'

power of the purse.
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For Bishop Pedro Arigo, apostolic vicar of Puerto Princesa, Palawan, and the bottom line is the

people affected by the alleged Malampaya fund misuse.

"Kung nagamit lamang nang maayos itong perang ito it's a big amount, P3.1 billion eh 'di

sana'y 'yung laging sinasabi ni President Noy, merong better life na na-e-enjoy ang ating mgakababayan, Arigo explained. (If this money was used properly it's a big amount, P3.1 billion

then our countrymen would experience a better life as President Noy would say.)

Milyun-milyon ang kinuha, tapos wala man lang ma-explain , Ortega added. Tapos

napakalantaran, napakagarapal, samantalang ang daming mga Palaweong naghihirap. (They

got millions, yet they left everything unexplained... And it's so brazen, so shameless, while a lot of

Palaweos wallow in poverty.)

Since 2010, COA had been conducting an audit of the Malampaya funds covering a full decade,

but no report has been released yet. It wasn't clear during the KLM press conference if the COA

report covering only the second district of Palawan was part of a longer report.

Reference

Esmael II, P. (2012, October 23). Plunder in mashed potato Palawan roads?. Rappler.



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Photograph by PCAmetro.ph

The investigation into the causes of the accident revealed a scandalous

disregard for the safety of the workers on the part of Eton Property

Group and its subcontractors.

An electric gondola used on the exterior of a high-rise construction in the Makati business district

of the capital Manila collapsed on January 27. It fell 21 stories and landed on protruding metal

rods. Ten construction workers died; one survived but is now in the hospital with numerousfractures and injuries. The tragic death of these workers was completely avoidable. The accident

reveals the appalling working conditions of the construction industry in the Philippines.

The accident occurred at Eton Property Groups luxury condominium construction, Eton

Residences. Eton Residences is a 39-story complex scheduled for completion this year. The

workers had been installing glass windows on the 32ndfloor. News reports vary, but the suspended

electric lift had a maximum carrying capacity of five or six people. There were 11 men crowded

into the gondola. At shortly after 11 am, the ropes on which the gondola were suspended gave

way and it collapsed, falling 21 stories and landing on a safety net that was perforated at numerouspoints by twisted metal bars.

The investigation into the causes of the accident revealed a scandalous disregard for the safety of

the workers on the part of Eton Property Group and its subcontractors. There were no safety

harnesses or lifelines provided for employees. Workers were not supplied any protective

THE ETON RESIDENCESMAKATI CITY, 2011 CASE VIII


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equipment. A photograph of the mangled body of a worker being removed from the wreckage of

the gondola showed that he was wearing tsinelas, a pair of cheap rubber flip-flops, not work boots.

The lift that collapsed had no official operator; any worker was allowed to raise or lower the

gondola. The job site had no permit to be operating a gondola at all.

All of these practices are violations of the safety standards of the Philippine Department of Labor

and Employment (DOLE). Eton Property Groups construction sites, however, are not inspected by

DOLE. Under the Labor Standards Enforcement Framework, the policy of the Philippine

government is that any corporation which employs more than 200 workers should voluntarily self-

regulate its own safety standards. DOLE inspectors only investigate companies that employ less

than 200 workers. Large capitalist firms are entirely unregulated.

The workers had no employment records with the construction firm. This is because they were all

contractual laborers. Not treated as permanent employees by their employer, they received no

social security or medical benefits. As contractual laborers they were prevented from forming a

union. They were paid a daily rate of 260 pesos ($US5.75). The countrys minimum wage is 404

pesos ($US9).

According to a statement issued by the Ecumenical Institute for Labor Education and Research,

1.8 million workers are employed in the construction industry. Of these, 100,000 are considered

permanent employees and 1.79 million are contractual. They share similar circumstances to those

who died in the gondola accident. They are paid less than the minimum wage and receive no

benefits. Job site safety standards are non-existent. Construction work is characterized by a

flagrant disregard for the value of human life. The workers often live on the job site, their makeshift

plywood shelters standing in stark contrast to the towering glass and aluminum structures which

they have built.

Eton Property Group responded to the public outrage over the accident by blaming its

construction subcontractor, CE Construction. CE Construction, in turn, blamed its subcontractor,

Arlo Glass and Aluminum. Arlo Glass and Aluminum blamed its labor subcontractor EM Pion. Not

one of these groups has accepted any responsibility for the death of 10 workers. When questioned

about the appalling conditions, the CEO of Arlo Glass callously and curtly responded, We did not

hire them, they came to us.

All of these companies are complicit in the exploitation and death of their workers. The workers

died because the enforcement of even minimal safety standards would have hampered their

employers rapacious pursuit of profit. Accountability cannot be subcontracted.


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The Philippine government of President Benigno Aquino III has done essentially nothing in

response to this tragedy. Flags flew at half-mast in the Makati business district, in part in response

to a recent bus bombing and in part to the construction tragedy.

Politicians bandied words on the Senate floor. Senator Jinggoy Estrada, son of former presidentJoseph Estrada, called for swift justice to be administered. He made his speech a day after he

personally ordered the eviction of thousands of squatters from land on which he wished to build

a mall and the new San Juan city hall. Forty people were injured in the ensuing violence.

The chief investigator of the Eton Residences accident has said that criminal cases will be filed

against those responsible. It is unclear from any government statement whether anyone will be

held accountable. A scapegoat will no doubt be found, but it is certain that the Philippine

government, which is complicit in the mistreatment and death of these workers, will not see fit to

prosecute Eton Property Group or any other of the very wealthy investors who are responsible for

this tragedy.

Eton Property Group is owned by Lucio Tan. Forbesmagazine lists Tan as the second wealthiest

Filipino. He was a crony capitalist during Ferdinand Marcoss presidency and profited hugely from

the largesse bestowed upon allies by the corrupt dictator. He owns a number of banks, Philippines

Airlines, a tobacco company, a major beer brewery, and the largest unlisted real estate firm in

Hong Kong. Eton Property Group owns luxury condominiums, low-end high-rise housing,

business process outsourcing centers, and several malls. It also own residential and commercial

towers in Hong Kong and China. Eton Property Group invested $US3 billion in the construction of

luxury apartment blocks in Shanghai and Beijing over the past year, adding on to its existing $US6

billion investments in China.

The construction work done by Eton Property Group in the Philippines is contributing to a real

estate bubble. High-rise condominiums are being constructed in Metro Manila at a staggering

rate. Some are lower-end housing, which is purchased on debt at predatory lending rates by

families supported by remittances from overseas workers. These condominiums are being sold by

employees who work on commission in every mallthey thrust fliers promising the good life

into the hands of passers-by.

Other real estate projects cater to the very rich. Eton Residences, where the 10 workers died, is

located between the business district and the ostentatious Greenbelt malls and is being sold to

the Philippine elite and to wealthy foreigners.


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The speculative construction of condominiums and malls has resulted in recently completed

projects standing nearly empty. Many units are purchased as investments, in the expectation that

real estate values will continue to appreciate. The trend of rising real estate values in a market

soon to be flooded with completed skyscrapers and sprawling commercial complexes cannot

continue. This bubble must soon burst.

The classic Tagalog novella written by the former construction worker Edgardo M. Reyes, Sa Mga

Kuko ng Liwanag (In the Claws of Light), captured the condition of these workers aptly, when he

described them at the foot of a skyscraper, their own creation, lugmok, lupaypay, sugatan,

duguan, nagtingala sa kanyang kataasan / prostrate, collapsed, wounded, bloody, faces turned

upwards to its height. The current real estate bubble in the Philippines has been built upon the

backs of the working class, and at times, over their dead bodies.

Reference

Santolan, J. (2011, February 1). Ten worker die in construction accident in the Philippines. World Socialist

Website.Retrieved from http://www.wsws.org


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Photograph by VacationAdvice101.com

At least nine southern Cebu City barangays were found to have used

substandard materials in their infrastructure projects.

Engineers of the Department of Public Works and Highways (DPWH) central office which

inspected the projects recommended corrections made.

The projects include road concreting in the mountain barangays of Babag, Sudlon I and II, Sinsin,Bonbon, Toong, Pamutan; river bank protection, concreting and drainage system rehabilitation in

barangay Kalunasan; construction of covered court in barangay Suba and the drainage system

project in Inayawan.

These barangay projects were among the P156 million worth of projects awarded to E.M. Arante

Construction in 2009. The firm bagged the contracts for 72 projects in 16 barangays. In their

9 CEBU CITY BARANGAYS ROAD & BRIDGE PROJECTSCEBU CITY, 2010 CASE IX


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inspection report, the DPWH engineers said they found cracks in the road projects in Babag,

Sudlon I and II, Sinsin, Bonbon and Toong.

The road project near the Maomawan cemetery in Babag lacked asphalt sealant which caused theweakening of its joints. Major and minor scaling were also found on various parts of the road.

Engineers said that earth was used on the shoulders of the concrete pavement in Bonbon proper

instead of the aggregate base course specified in the contract. The road project in sitio Gila-gila

had poor worksmanship while the booming on its surface was excessive.

Substandard boulders were also found in the riverbank embankment in barangay Kalunasan

instead of hard and durable stones while a single twisted wire was used as mesh to secure its

gabion structures. The required grouted riprap could not also be found above the gabion

structure.

The DPWH inspection team recommended the removal and replacement of substandard materials

to make these projects conform to DPWH standards.

Require the concerned contractor, at his own expense, to institute repair works on the structures

with defects and deficiencies,DPWH engineers said in their report. The DPWH team submitted

their Oct. 6 inspection report to DPWH Undersecretary Raul Asis, a copy of which was furnished

to Cebu South District Rep. Tomas Rep. Osmena.

The DPWH engineers cited the admission of engineer Raul Buscato of the Association of Barangay

Councils (ABC) that no tests (were) conducted on the in-placed materials for all the projects which

resulted in lack of quality control.

Lack of supervision during the implementation of the projects was evident, since only one

engineer from the ABC was available to supervise all the projects of the barangays, the report said.

They DPWH asked the city government to assign more engineers and laboratory technicians to

check the quality of the projects implemented by winning contractors and to establish a quality

control program to make sure the city is not shortchanged.

Osmena, the city mayor when the projects were implemented, had authorized the release of aid

to barangays for the implementation of infrastructure projects in 2009 under the Community

Micro Assistance Program. But shortly after the May election, reports reached Osmena that some

of the projects were substandard, raising suspicions that someone made money from the projects.

Under the micro assistance program, barangays are given funds by the City Hall and allowed to


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bid out their infrastructure projects while the engineering office of the ABC supervises their

implementation. Osmena requested the DPWH central office to evaluate and assess the projects

in question.

The DPWH team included Engrs. Teodulfo Aonuevo, Lino Reynera and Teodoro Viyar Jr. of theQuality Assurance Unit and the Bureau of Research and Standards of the DPWH central office.

They were in Cebu City from Sept. 13 to 17 to inspect the barangay projects.

With the release of the DPWH findings, Osmena said the Ombudsman and the Commission on

Audit (COA) now have the needed evidence to investigate the matter. Osmena said that sending

those involved and found guilty to jail is a good deterrent against irregularities in the future.

Osmena said he smells a conspiracy from the conception of the projects all the way up to their

implementation.

Reference

Bongcac, D. C. (2010, October 24). DPWH finds projects of 9 brgys. Substandard. Inquirer.

Retrieved from http://www.globalnation.inquirer.net


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The Sandiganbayan Fifth Division on Thursday found seven formerofficials of the Quezon City engineer's office and two private individuals

guilty of graft in connection with the deadly fire at the Ozone Disco Club

on March 19, 1996, 18 years after the tragedy claimed 162 lives.

They were sentenced to six to 10 years in jail.

Convicted of graft and corrupt practices are:

City Engineer Alfredo Macapugay Former City Engineer Renato Rivera Jr.

Building Inspector Edgardo Reyes

Chief, Enforcement and Inspection Division, Francisco Itliong

Chief, Processing Division, Feliciano Sagana

Engineer Petronillo De Llamas

Building Inspector Rolando Mamaid

OZONE DISCOQUEZON CITY, 1996 CASE X


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Private respondents Hermilo Ocampo and Ramon Ng, members of the board of directors and

stockholders of Westwood Entertainment Co. Inc. which managed the Ozone disco, were also

found guilty of similar charges.

In a decision penned by Associate Justice Ma. Theresa Dolores Gomez-Estoesta, the court said

that the officials had been remiss in approving the building permit of the disco bar.

Despite having faults in the design and defects in the electrical and safety systems, the authorities

still issued two building permits and a certificate of occupancy to the disco, a report on 24 Oras

that aired on Thursday said.

"There can never be a slapdash approval of a building permit and certificate of occupancy. To

shrink from this duty will certainly run at risk all safety standards contemplated by the National

Building Code," the decision said.

According to the report, the fire broke out from an overloaded circuit from the disc jockey's booth.

The victims, who were mostly celebrating their graduation, were trapped inside Ozone Disco

because there were no emergency exits. Everyone ran to the entrance door, which opened inward

instead of the other way.

Quezon City Administrator Aldrin Cua said Macapugay, Sagana, and Itliong had already retired,

Mamaid was on a medical leave, Rivera was in the private sector, and Reyes had transferred to the

Manila City Hall.

De Llamas wasn't at his office when a team from GMA News dropped by. The team was also trying

to contact Ocampo and Ng for comment but they had yet to respond.

Those convited were given 15 days to file a motion for reconsideration.

TheSandiganbayan in 2007 acquitted Macapugay of criminal liability in the same case.

The Sandiganbayan Third Division at that time said the court was unconvinced about the

culpability of Macapugay, whose office was mandated at the time of the inferno to ensure the

enforcement of building safety regulations.

The Sandiganbayan ruled then that prosecutors failed to prove that Macapugay was guilty of
http://www.gmanetwork.com/news/story/57217/news/nation/update-qc-engineer-in-ozone-disco-fire-acquittedhttp://www.gmanetwork.com/news/story/57217/news/nation/update-qc-engineer-in-ozone-disco-fire-acquitted


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reckless imprudence resulting to multiple homicide and multiple physical injuries for alleged

negligence in verifying the safety of the plans and facilities of the Ozone Disco.

Stricter rules

The city administrator said that even before the Sandiganbayan released its decision, Quezon Cityhad already imposed stricter rules in issuing building permits. Issuing the permits was now the

task of the Office of the Building Official, instead of the Office of the City Engineer as before.

Cua also said that city officials regularly inspected buildings to make sure rules and regulations

were being followed.

"Lahat naman ng nakatayong buildings dito sa Quezon City must submit for annual inspection.

That is also required by the National Building Code to make sure they are structurally safe, (and)

they comply with the provisions ng ating Fire Code of the Philippines," Cua said.

Reference

Chiu, P. D. (2014, November 20). Ex-QC execs face up to 10 years in prison for Ozone Disco tragedy.

GMA News Online.Retrieved from http://www.gmanetwork.com


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INTERN TION L C SES

CE Laws, Contracts, Specifications & Ethics


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Photograph by A.M. AHAD, AP, National Geographic

The substandard construction methods that are suspected of triggering

the deadly collapse of an eight-story building in Bangladesh on are a

common problem in developing countries, where construction

materials can be expensive and building inspections infrequent, experts

say.

The catastrophic collapse happened around 9 a.m. local time in an industrial suburb of the

Bangladesh capital city of Dhaka. Ranza Plaza housed four garment factories, as well as some

shops and a bank. More than 150 people are confirmed dead, and more than a thousand injured.

Many are still trapped in the rubble, buried beneath broken concrete slabs and twisted steel rods.

RANA PLAZA BUILDINGBANGLADESH, 2014 CASE I


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Scenes from the disaster show rescue workers and volunteers digging through the rubble by hand

and clinging to makeshift ropes made from knotted, colorful strips of fabric as they search for

survivors.

Officials have blamed the collapse on shoddy construction methods. The upper four floors of theplaza, for example, were reportedly constructed without permits, and a crack was seen on the

building exterior a day before the collapse. "The building was not built in compliance with the

[safety] rules and regulations," Bangladesh Home Minister Muhiuddin Khan Alamgir told CNN.

"Stern legal actions will be taken against the people who built the structure defying the codes or

laws."

Uneven Footing

The exact cause of the collapse has not yet been determined, but Henri Gavin, a civil and

environmental engineer at Duke University, speculated that the building's foundation was

substandard.

"It could be that one edge of the building was on much softer soil than the other, so that part of

the building settled down a little bit more," Gavin explained. "That could easily lead to an instability

that would precipitate a collapse." Another possibility is that weight on the top factory floors

where the crack was spottedwas unevenly distributed. "If this building had very large open

spaces the way a lot of factories do, and if the floors had long spans without lots of [reinforcing]

columns ... then the building could start to lift one way or the other" if heavy equipment was not

spaced evenly throughout the floors, Gavin said.

When designing a building, engineers are supposed to consider different combinations of how

loads are placed in the structure. "The intention is to require the engineer to consider as many

cases as possible," Gavin said. Such modeling is easy to doif one has the right computer and

software. In developing countries such as Bangladesh, however, calculating different load

distributions can be a time-consuming process, and as a result might be skipped.

Construction Problems

Poor building design is only one part of the problem, however. The best building design in the

world is for naught if a construction firm doesn't follow the plans precisely. That may have been

the case with Ranza Plaza, which appears to have been built largely out of concrete. Concrete

buildings require large amounts of reinforcing steel, called rebar, to prevent excessive cracking.

Depending on the country, steel can be costly.

"In developing countries, steel is relatively expensive in comparison to the labor and concrete,"

said Dan Jansen, a civil engineer at California Polytechnic State University."In the U.S., steel is not


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that huge a factor. It's easy to add more steel to make [the building] more ductile and stronger,

and so we do it here." But in developing countries, less steel is often used than is recommended

because of the cost. "Reducing or changing the reinforcing steel without the building official's

approval is never acceptable whether you're in a developing country or the U.S.," Jansen said.

From looking at photos of the collapse, Jansen said he suspects not enough rebar was used in thebuilding's construction. "The way it collapsed, and the fact that so much of it came down, suggests

there was a lack of redundancy," he said. "The amount of reinforcing steel used didn't allow it to

transfer the load from one section to another, and that's why so much of it came down." In

addition to possibly being under-reinforced, the concrete mix may not have had enough cement,

said Gavin of Duke University. "Many of the casualties from the 1999 Kocaeli earthquake in Turkey

were in medium-rise concrete apartment buildings," he added. "Investigations following this

earthquake revealed that the concrete had more sand and less cement than required by typical

design standards."

A Fatal Crack?

Whether it was the rebar or the cement that was insufficient, a crack was indeed spotted on Rana

Plaza's seventh floor by workers on Tuesday, a day before it collapsed. Upon hearing the news,

managers at the factories supposedly told workers not to report to work on Wednesday, but later

reversed the order, according to CNN. But a crack in a concrete building by itself is not necessarily

a cause for alarm, said Ben Fischetti, a senior engineer at the California-based engineering

firm Penfield & Smith.

"There's a saying: There are two kinds of concrete, there's cracked concrete and concrete that

hasn't cracked yet," Fischetti said. "Concrete cracks ... but generally cracks are not a cause for

concern unless you can see it moving over time or it seems to be excessive."

In the U.S., building codes set a minimum standard for the use of rebar in the construction of

concrete buildings as a means of creating structural redundancy and controlling failure

mechanisms. "The number one thing that structural engineers in the U.S. are trying to avoid is

sudden, catastrophic failure. We design structures to fail, but they must fail in a controlled

manner," Fischetti said.

"Concrete structures that include an adequate amount of rebar are more likely to yield in a ductile

behavior, rather than folding like a deck of cards." If Ranza Plaza lacked redundancy because it

was built with insufficient rebar, then the building would have been a disaster waiting to happen.

"When concrete without reinforcing steel cracks, you better run," Fischetti said. If the crack was

big enough, it could have been enough to precipitate the overall collapse of the building, experts

say. "It could be that the top floor fell on the floor beneath," Gavin said, "and that impact was too

strong for the lower story to withstand, and the entire structure collapsed."


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From photos of the scene, it also appears as if sections of the plaza were still under construction

when the disaster happened. Some floors lacked walls, for example, and exposed columns with

protruding rebar are visible on the upper levels. "It looks like the building was partially built and

used," Jansen said. "Occupying a building under construction is just a recipe for disaster."

Illustration from Progress Bangladesh.com

Reference

National Geographic News, 2013


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Photograph from KoreaStandardTime.tumblr.com

The collapse of the Sampoong Superstore in Seoul, South Korea,

represents an example of a structural collapse attributed in large part

to corruption.

The late 1980s were an exciting time in Seoul and the rest of South Korea. In 1988, Seoul hosted

the summer Olympic Games. The games gave South Korea an opportunity to show off itstechnological advances, and the nation took full advantage.

The Sampoong department store opened in December 1989. It was a nine-story building with

four basement floors and five above grade. The building was laid out in two wings (north and

south) connected by an atrium lobby. By the mid-1990s the store's sales amounted to more than

CASE IISAMPOONG SUPERSTORE

SOUTH KOREA, 1995


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half a million U.S. dollars a day. Unfortunately, the store had been built on a landfill site that was

poorly suited to such a large structure. Woosung Construction built the foundation and basement

and then passed the project on to Sampoong's in-house contractors. Woosung had apparently

resisted some proposed changes to the building plans, such as the addition of the fifth floor.

Sampoong made significant changes to the structure. The most important was the conversion of

the original use as an office block to that of a department store. Other changes included changing

the upper floor from a roller-skating rink to a traditional Korean restaurant. Stricter standards had

to be met for fire, air conditioning, and evacuation. Although the structure apparently met all

building code requirements, the revised design was radically different from the original.

The Building Was Put Into Service

"For five and a half years business thrived. In June 1995 the store passed a regular safety

inspection. But within days there were signs something was seriously wrong: cracks

spidering up the walls in the restaurant area; water pouring through crevices in the ceiling.

On June 29 structural engineers were called in to examine the building. They declared it

unsafe. Company executives who met that afternoon decided otherwise. They ordered the

cracks on the fifth floor to be filled and instructed employees to move merchandise to the

basement storage area."

Some employees heard rumors of the structural damage and impending collapse but remainedin their departments to work. At 6:00 p.m. on June 29, the center of the building collapsed, similar

to a controlled implosion, in about 10 s. The five-story north wing, about 91 m (300 ft) long, fell

into the basement, leaving only the faade standing.

Customers were concentrated in the basement and in the fifth-floor restaurant. The customers

and employees had no time to run. Some survivors were found in the wreckage, and one was

brought out 17 days after the collapse. The overall death toll was 498.

The Result of the Investigation

The final report was delivered by the Seoul District Prosecutors Office, entitled The Final White

Book of Finding Out the Real Truth of the Collapse of the Sampoong Department Store. The public

was outraged. In particular, the news that the senior executives had fled the building without

warning others was disturbing. The report on the collapse, as well as earlier structural and


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construction failures, suggested a widespread pattern of corruption in the country's c