THE Philippine Supreme Court (SC) has ordered the Department of Public Works and Highways (DPWH) to pay a construction firm more than P5 million plus interest for rehabilitation work on the Abacan Project that was damaged by the eruption of Mt. Pinatubo in 1991.
In a 12-page ruling penned by Justice Antonio T. Kho, Jr., the high court agreed with rulings of the Regional Trial Court (RTC) of San Fernando City, Pampanga Branch 46, and the Court of Appeals in ordering DPWH to settle its P5.36 million debt to Gonzales Construction.
It also imposed a 6% interest rate per annum on the unpaid balance from the date of the RTC decision on July 17, 2014, until full payment is made.
“Gonzales Construction should be paid what is due to them; otherwise, this would amount to unjust enrichment to the State at the expense of Gonzales Construction, which this Court cannot countenance,” the top court said in a decision publicized on Sept. 27.
The construction firm finished the Abacan River Control Cut-Off Channel and Gumain-Porac Division Channel in Pampanga in the 1990s.
Despite the two projects’ completion, only over P1.18 million was paid representing partial payment for the Abacan Project, leaving an unpaid amount of over P9.7 million for the two projects.
The RTC in 2014 ruled in favor of Gonzales, finding that 90.61% of the Abacan Project had been completed and ordered DPWH to pay over PHP 5.36 million.
DPWH did not immediately respond to a Viber message seeking comment. — Chloe Mari A. Hufana
