Why Cebu officials rejected Cedric Lee's project
CEBU CITY -- Officials of Cebu province have denied that businessman Cedric Lee, who is facing a string of cases after allegedly beating up actor-host Vhong Navarro, has a valid contract to build a power plant in the area.
Vice-Governor Agnes Magpale said Lee, the owner of Waste Management Inc. (WMI), sent a representative to her office when she took over as the acting governor when Gwendolyn Garcia was suspended on December 19, 2012.
Lee's representative, Generoso Dungo wanted Magpale to sign a contract that would allow their company to build a power plant that will use waste as fuel at the controversial Balili property in Naga, Cebu.
Magpale said she refused to sign the contract because the land where they wanted to build the power plant was under litigation.
They also discovered alleged irregularities in the project that Lee proposed.
Board Member Alex Binghay, who was the chairman of the municipal property at that time, deferred a resolution that would have allowed the former governor Garcia to sign the memorandum of agreement with Lee's company.
He found out that the total paid-up capital of Lee's corporation only amounted to P62,000, as reflected in Securities and Exchange Commission (SEC) documents.
"It is very much impossible for a multi-billion (peso) project to have such a very small amount of paid up capital," Binghay said.
Based on the MOA submitted by Lee, three companies will handle the project but the two other companies, Bousted Technologies Inc., and Sinova Capital, LLC backed out.
Binghay also found out that WMI has no track record and was registered as a corporation only June 15, 2012, a month after it submitted a resolution to the provincial government of Cebu.