Department of Health

Appeals court orders DOH to pay firm for 270 barangay health stations built

Rappler.com

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Appeals court orders DOH to pay firm for 270 barangay health stations built
'Indisputably, these completed units can be used for the benefit of the government and the public,' the appellate court says

The Court of Appeals (CA) ordered the Department of Health (DOH) to pay construction firm JBros Construction Corporation for the 270 barangay health stations (BHS) it built “in the interest of substantial justice and equity.”

“At this juncture, it should be noted that there are 270 BHS units with certificates of completion as can be gleaned from the consolidated report made by the parties. Indisputably, these completed units can be used for the benefit of the government and the public,” the CA’s Former Fifth Division said in a 51-page decision penned by Associate Justice Ruben Reynaldo Roxas.

The issue stems from the barangay health stations project the DOH implemented during the time of health secretary Janette Garin (now Iloilo congresswoman). The project aimed to establish 5,700 rural health units, with elementary schools identified as sites for the barangay health stations.

JBros Construction Corporation was awarded a P3.5-billion contract to build over 3,000 barangay health stations in 2016.

Two years later, in 2018, the construction firm wrote to terminate the contract with the DOH. It also billed the agency around P2.9 billion for 429 barangay health stations it claimed it had already built.

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When the DOH investigated alleged anomalies in the contract, it learned only 270 barangay health stations had been built, and only 8 had complete documents. The two parties then sought arbitration.

The latest CA decision partially granted the DOH’s petition that questioned the September 2019 final award and October 2019 corrected final award by the Construction Industry Arbitration Commission (CIAC).

The CA set aside the CIAC’s decisions that JBros Construction Corporation validly terminated its contract with the DOH after the agency’s failure to comply with the agreement; and that the construction firm is entitled to more than P1 billion worth of claims.

But the CA directed the Commission on Audit to determine “on a quantum merit basis the compensation due to private respondent.”

“This amount shall be deducted from the mobilization fees and any remaining amount shall be returned by private respondent to petitioner,” the CA added. Records showed the construction firm had already received P668.48 million as mobilization fees for the project. – Rappler.com

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