Palawan gov sued over water utility project

Carolyn Bonquin, ABS-CBN News

Posted at Dec 14 2016 06:44 PM

MANILA - Palawan Governor Jose Chavez Alvarez is facing a complaint before the Office of the Ombudsman in connection to an allegedly anomalous water utility project contract in Cagayan De Oro.

The complaint stemmed from the contract between Rio Verde Water Consortium, Inc. (RVWCI) and Cagayan De Oro Water District for the water supply in Cagayan De Oro in 2004.

Alvarez was the incorporator, officer, and director of RVWCI at the time.

The complainant, Michelle Fox, a resident of San Vicente, Palawan, pointed out supposed anomalies in the contract.

Based on the Commission on Audit report attached to the complaint, the CDO board of directors approved the contract despite amendments in the bidding documents. 

A separate letter also told the Ombudsman that Alvarez borrowed P500 million from the Development Bank of the Philippines for the construction of a filtration plant which was bigger than the project specifications. Alvarez also allegedly "insisted" on oversupplying and over billing CDOWD.

Also named respondents in the complaint are RVWCI representative Fiorella Azure, and incorporators and directors Bienvenido Santos, Roberto Lozada and China Alvarez.

Also allegedly involved are Cagayan Water District Francisco Mendez, Chairman/Board of Director; Federico Gapuz, vice chairman; Raymundo Java, secretary; Sarah Borja, treasurer; and Sandy Bass, Jr., assistant secretary/treasurer.