SBMA execs threaten to sue Palafox

At least 17 members of previous and current bids and awards committees of the Subic Bay Metropolitan Authority have asked architect Felino Palafox Jr. to name the SBMA official who allegedly tried to extort an 18-percent commission from his company.

They also threatened to sue Palafox if their demand were not acted upon in 10 days.

"In the interest of fair play, and appealing to the 'honesty and transparency' you tout, we please demand that you name and identify 'the SBMA executive who was a member of the bids and awards committee' who supposedly asked 'for an 18 percent commission,'" they said in a letter to Palafox.

They said Palafox should name the SBMA official so "innocent members of the BAC and the technical working group may be spared from the unfair imputations on [their] character and integrity, and that we may commence the process of taking the appropriate disciplinary proceedings to cleanse our ranks."

Sought for comment, Palafox said the letter was "part of a strategy to scare me off." He said he would not be cowed.

He mentioned the alleged extortion incident to the Inquirer last week as he expressed fear that this might get in the way of his campaign to save 366 trees on a two-hectare site leased to a Korean firm.

He said he did not know the BAC member because the extortion attempt was first relayed to his company's engineering consultant who, in turn, referred the matter to Palafox's senior associate, architect Chona Ponce. Ponce could not be reached since November 30.

In their letter, the SBMA officials detailed the developments in the bidding for the Subic Bay Freeport Comprehensive Master Plan Project, including results of the detailed evaluation.

The evaluation of the proposals showed Palafox and Associates ranked second after Design Science.

Contradicting what Palafox claimed to the Inquirer that his firm was disqualified, the SBMA officials said: "Your firm lost, placing second to the eventual winning bidder, after all the respective proposals of all qualified bidders were ranked in accordance with the set of criteria formulated under the terms of reference governing the bidding for the project."

"Should you fail to name this alleged person, we shall have no other recourse but to institute the appropriate legal action to vindicate the integrity and name we worked hard to build and which you have recklessly and willfully placed in disrepute," they said.

Edgardo Pamintuan, chairman of the Subic-Clark Alliance for Development Council, said SBMA Administrator Armand Arreza had sacked a BAC chair upon learning of the extortion attempt.

Arreza on Friday confirmed sacking a BAC chair but said this was not related to Palafox's allegation.

SBMA Chairman Feliciano Salonga said Palafox's claim of the extortion attempt was the second he learned this year.

The first incident, he said, was that on Win's Way, a Chinese company that planned to put up a $2-billion facility for processing and handling imported oil.

Salonga said an SBMA official asked for P8 million.

He said in the incidents involving Palafox and Win's Way, a "common denominator" was an SBMA official but he declined to give details.

Salonga began his own investigation into the alleged extortion attempt on December 3. By Tonette Orejas - Inquirer Central Luzon Desk

Palafox’s allegations baseless and absurd

THIS IS IN REACTION TO THE INQUIRER’S Dec.3 editorial and news items on the unfair allegations made by Architect Felino Palafox in connection with the hotel-casino project (Grand Utopia) that a Korean investor proposes to put up at the Subic bay Freeport (SBF).

We are not asking Palafox to prove his allegations of what the editorial called “official extortion”; we are only asking him to produce enough details that would allow us to probe his claims. His inputs—if really meant well to bring this issue to a productive resolution—will help a lot in the investigation the Subic Bay Metropolitan Authority (SBMA) is conducting.

While the editorial sympathized with the “troubling realities” Palafox could be facing now, it overlooked the fact that clamming up after making an expose won’t ferret out the truth from a vague and blanket allegation and do justice to anyone, especially the SBMA.

For the record, we have great respect for Palafox who is “the only Filipino in the top 500 architects in the world.” This was precisely the reason we recommended him to the Korean hotel developer.

However, he did himself a great disservice by making statements that were reckless and absurd. Aside from his yarn about my 10-year-old son asking for an 18-percent commission from his firm, there are no century-old trees at the project site, and as we have categorically stated, no trees would be cut to make way for the project.

We also would like everyone to know that Palafox, through his outfit Palafox and Associates, and its partner firm Woodfields Consultants, made a bid for the SVF Comprehensive Master Plan Project but list.

The SBMA Bidding Awards Committee (BAC) for Consulting Services did not disqualify him. His firms and its partners made it to the final rounds but somebody else submitted a better bid. And while losing bidders always have the option to move for reconsideration of the BAC’s ruling, Palafox did not.

This all happened last August 2008 and so Palafox’s absurd and unsustainable tale of extortion, etc. is now totally off-key and unrelated to this project. His allegations smacks of gross irresponsibility and a misplaced sense of self-importance.

Having made this allegation of extortion, he must in fairness, at least, give us a name from which to start our investigation and clear those who have been unduly maligned.

It is really amazing that Palafox covered so much ground in so short a time in firing off unbelievable allegations. But what is more amazing is that the consummate professional that he is did not bother to check his basic facts.

This is one issue that has sadly and unfairly tarnished the image of the SBMA. But we live in a society that values the clash of ideas—in the hope that only the best would proper and survive for the good of all.

With this, we welcome comments and criticisms that are well-meaning, accurate and fair.

-ARMAND C. ARREZA,
Administrator and CEO,
Subic Bay Metropolitan Authority

Philippine Daily Inquirer