A local contractor has called on Pasig City Mayor Vico Sotto to disclose the contract and findings related to the P9.6-billion new Pasig City Hall project, raising concerns over transparency in the bidding process.
Selwyn Lao, a structural engineer and construction firm owner based in Pasig City, questioned the bidding process and urged the city government to reveal more details, including the contract and the findings of the consultant hired to conduct the structural analysis of the old city hall.
"How can they claim transparency when until now, they refuse to release their documents?" Lao told DAILY TRIBUNE in a Filipino-language interview on Saturday.
"First, they should release their contract with that company. Second, they should release the results and recommendation of that company," he added.
Lao, a contractor for 40 years, also questioned the feasibility study prepared by the city.
"In short, that’s an unsolicited proposal. It's not really a project initiated by Pasig City Hall because I believe they don’t have the capability to create feasibility or project studies for something as big as P9.6 billion," he said.
"All of Mayor Vico Sotto’s people involved in the project should first show their credentials to prove they have the capacity and authority to design a project of that scale. A P9.6 billion project is already quadruple-A level — this is likely a consortium," Lao added.
Lao asserted that his experience in construction gives him a strong grasp of proper procedures.
"If Mayor Vico would just say one thing, I would understand everything. But I have one simple request for him: release the findings and recommendation of the consultant on the old city hall," he said.
He noted that industry colleagues recommended retrofitting the old building rather than demolishing it. According to Lao, the old Pasig City Hall is composed of two connecting buildings — a smaller front structure and a larger one at the back.
"The front portion did tilt slightly, meaning there was some settlement in its foundation," Lao said.
He attributed the tilting to a collapsed detention tank, saying, "The cause of the tilting was the fault of their city engineers who dug and designed a detention tank without proper expertise. That happened during the Eusebio administration. When the detention tank collapsed, cracks appeared in both the old and the new buildings, and they panicked."
Lao said he knew this because he was involved in designing and constructing the relocated detention tank at Rainforest Park.
"They panicked when their detention tank collapsed, so they stopped, covered it again, and relocated it to the Rainforest," he added.
As a structural engineer, Lao said Mayor Sotto could consult the Department of Public Works and Highways (DPWH) on retrofitting projects.
"The Pasig City Hall doesn’t need to be demolished. The tilt is not severe. It can still be retrofitted using various techniques. Spending P9.6 billion is unnecessary," he said.
Lao also questioned the timing of the project, suggesting political motives.
"I suspect they timed this project with the election. I noticed the project amount of P9.6 billion matches their plans — maybe they are preparing Mayor Vico for a vice presidential or senatorial run," he said.
He argued that a proper Swiss Challenge process should have been implemented to allow other companies to offer lower bids.
"This city hall project should have undergone a Swiss Challenge because it came from an unsolicited proposal by MTD," Lao said.
"The whole bidding process was questionable. No contractor could submit a proper bid because crucial information was hidden. How can a contractor like me submit an accurate bid if information was withheld?" he added.
Lao criticized the process from the start, noting that MTD Philippines Inc. — the Malaysian firm that submitted the unsolicited proposal — eventually won the contract.
"From the unsolicited proposal alone, there were already red flags. The same company that made the proposal ended up winning the bid. That’s an anomaly right there," Lao said.
He pointed out that contractors would typically need at least six months to study such a large project, but bidders were allegedly given only 45 days.
"If you only give contractors 45 days, what does that mean? You’ve already favored MTD. The one who designed and recommended the plan ended up as the contractor," Lao said.
He further alleged that MTD does not hold a Philippine Contractors Accreditation Board (PCAB) license and has no record of withholding tax filings with the Bureau of Internal Revenue (BIR).
Lao also criticized the P855 million cost for preliminary and detailed engineering design, saying it should only be around P50 million under Philippine standards.
He said the city should have commissioned its own feasibility studies rather than relying on a foreign firm.
In response, Mayor Vico Sotto said the contract has been available on the Pasig website.
"Parts of the engineering consultant’s report have been presented in reports to the public; it can also be requested via FOI request, rather than yet another press release," Sotto said in a statement sent to DAILY TRIBUNE.
Sotto clarified that the project covers a two-hectare redevelopment site, not just one building.
Sotto also clarified that the said project is not only one building, but a 2-hectare redevelopment project that includes 3 towers, a large plaza, a medical facility, interior roads, and more.
"While structural issues and public safety are the top concerns, we must also now maximize the city hall compound’s land value," he added.
Sotto said he is open to showing Lao the project firsthand.
"If Mr. Lao is sincere in his queries, I would be more than willing to tour him on-site, so that he may understand both the scope and value of this project," the mayor said.