The Commission on Audit (COA) has validated Meralco Energy Incorporated's (MEI) claim against the Makati City government for expenses related to power restoration at the Ospital ng Makati (OsMak) following a fire in 2016.
In a recent en banc decision, COA found that the city government did not dispute the delivery and installation of new feeder wires, which permanently restored power to the hospital.
Background of the Incident
The fire in March 2016 severely damaged OsMak's main building and disrupted its power supply. Meralco initially provided a temporary electrical connection at the hospital's request, but this was inadequate for full operations.
Meralco's team was authorized to proceed with permanent power restoration on July 21, 2016, but despite completing the work, the city government failed to compensate them.
City Government's Response
In September 2019, the Makati City government denied MEI's claim, citing the lack of a formal contract and non-compliance with procurement laws. They advised MEI to bring the matter before the COA.
It is undisputed that the new feeder wires were delivered and installed since the power supply of OsMak was permanently restored by MEI.
COA ruling
While the COA acknowledged the absence of a formal contract, it emphasized the city's admission that Meralco had successfully restored the hospital's power supply.
However, the COA adjusted the compensation amount from P9.757 million to P7.819 million, excluding legal interest as it lacked a legal basis.