BREAKING: Mayor Isko, COA agree: Joint venture agreement with BBraun Avitum ‘disadvantageous’
-Chief of staff Chavez: Manila did not pay BBAPI’s claims worth P53.8 million
-It was Mayor Isko who requested a special audit into the joint venture agreement
-Manila ‘heeded’ COA recommendation to take over procurement for dialysis operation
Manila City Mayor Francisco ‘Isko Moreno’ Domagoso agreed with the Commission on Audit (COA) that the joint-venture agreement with BBraun Avitum Philippines, Inc. (BBAPI) under the previous administration in 2014 was “disadvantageous.”
Domagoso earlier made a request from COA to conduct a special audit into the joint-venture agreement in 2014 for the operation of the dialysis center at the Gat Andres Bonifacio Memorial Medical Center.
The Mayor’s Chief of Staff, Cesar Chavez, said that the local government did not enforce the 75-25 sharing scheme which was in favor of BBAPI and did not pay the claims worth P53.8 million since Domagoso assumed office.
The joint-venture agreement was flagged by the City Legal Office (CLO) during the onset of Domagoso’s administration.
“Simula nang umupo si Mayor Isko, hindi nagbayad ang Manila LGU sa hemodialysis supplies (consumables) worth P53.8M na sinisingil ng BBAPI. They cannot show the basis of the claim. Kaya naka-hold ito,” Chavez told reporters.
“Manila LGU under Mayor Isko is not enforcing it. It was the Manila LGU, under Mayor Isko, that requested COA to conduct special audit/review on that. ‘Yan ang lumabas, disadvantageous nga,” he said.
Chavez said the local government “heeded COA’s initial recommendation that the city take over procurement of the items which are not directly used or not standard items used or required for the dialysis treatment.”
“The city took over the procurement of hemodialysis supplies and stopped the payment for all supplies billed by BBAPI as per the JVA,” the chief of staff said.
“The Mayor also instructed the City Legal Office to look into the provisions of the contact to increase the City’s share in the revenue of the JV commensurate to its investment and made it clear that if BBAPI is not amenable to the changes as per COA’s recommendation, CLO shall initiate the immediate termination of the contract,” he added.
Likewise, Chavez said the city’s legal team is proposing a new sharing scheme which would be “advantageous” to Manila.
“Per Joint Venture Agreement with the past Administration, it’s 75-25 in favor of the BBAPI. The City Legal Office is proposing a 60-40 sharing scheme. We believe this is coable and advantageous to the government,” he said.