Doris Flores Brooks, public auditor of Guam of the Office of the Public Auditor or (OPA), recently signed the order of dismissal on the procurement appeal made by Maeda Pacific Corporation (MPC) against Guam Solid Waste Authority (GSWA).
The decision was made after almost three months of deliberation, appeals, motions and extensive review of the case of both parties (MPA and GSWA). Brooks finds the appeal presented before the OPA has something to do with money owed to or by the government of Guam and therefore the OPA lacks jurisdiction of the said appeal and that both parties were advised to seek a judicial review of the case to the Superior Court of Guam.
Maeda Pacific Corporation (MPC) is a private contractor that was awarded with the Harmon Residential Transfer Station by Guam Solid Waste Authority (GSWA) in November 2012 under contract number GSWA-12-02 with contract amount of $2,410,000.00 and to be completed after 308 days upon signing the agreement.
The dispute started when both parties (MPC and GSWA) are claiming breach of contract over the Harmon Residential Transfer Station. The MPC asserts that it is owed by GSWA the amount of $506.483.39 as payment for the project. GSWA however assessed $663,000 of liquidated damages against the MPC and asserts that the difference between the said amounts of $156,516.61 is payable by the Maeda Pacific Corporation to Guam Solid Waste Authority.
The MPC which is represented by Phillip Torres of the Torres Law Group, appealed over the validity of the contract and the liquidated provision last August 17. The liquidated damages deemed by the GSWA has a total of $3,300 per day for the breach of contract against the MPC for failing, refusing to finish the work in the time as specified in the contract. Under the same provision, the liquidated damages are assessed for each calendar day the contract took effect, that resulted in the amount of $663,000.00 being demanded by GSWA.
The appeal to void the liquidated damages was filed before the OPA by MPC; however, hearing officer/public auditor of Guam, Doris Flores Brooks said OPA does not have jurisdiction over the matter since there is money disputed by both parties involving the government of Guam.
Brooks in a resolution, advised both parties (MPC and GSWA) of their right to judicial review in the Superior Court of Guam of a decision of the Public Auditor under 5 G.C.A. Chapter 5, Article9 of the Guam Procurement Law. Both parties were given fourteen (14) days to either resolve the dispute on their own or present the case before the Superior Court of Guam./The Junction News Team
