Raps, counter-raps filed in PEA scandal

A private contractor of the controversial President Diosdado Macapagal Blvd. (PDMB) filed yesterday charges of graft and grave threats against two ranking officials of the Public Estates Authority (PEA) for allegedly extorting from him P18.2 million in December 2001 and March 2002.

Meanwhile, Pelagio La-lap, PEA assistant general manager for finance, filed separate charges of grave coercion, grave threat and unjust vexation against PEA chairman Ernest Villareal, general manager Benjamin Cariño and director Rodolfo Tuazon on Thursday afternoon before the Makati City prosecutor’s office.

The money was intended to facilitate the approval of his "legally" proposed contract price adjustment involving the construction of the Central Boulevard project in the reclaimed area in Manila Bay.

Charged for violations of Section 3, paragraphs d and e of Republic Act 3019, the Anti-Graft and Corrupt Practices Act under the Revised Penal Code, were Pelagio Lalap, assistant general manager of the PEA, and board member Sulficio Tagud Jr.

In a 10-page complaint, Jesusito Legaspi, sole proprietor of J.D. Legaspi Construction (JDLC), said that Lalap and Tagud used their respective positions to extort from him a total of P18,285,190.65 in December 2001 and March 2002 for the approval of his proposed contract price adjustment for the construction of the Central Blvd. project.

Legaspi said that on July 9, 1999, he received an invitation for prequalification to bid from the PEA in connection with the construction of the package I of the Central Blvd. project to be located at the reclaimed area alongside Roxas Blvd.

He said the contract was to be awarded through a simplified bidding process which was authorized by then President Joseph Estrada, through the executive secretary. After pre-qualification and bidding, the JDLC submitted the lowest complying bid in the amount of P584,365,885.05.

On April 10, 2000, Legaspi said that the PEA awarded the Central Boulevard project to his company, JDLC, after a construction agreement between the PEA and JDLC was "reviewed and approved by the Office of the Government Corporate Counsel and by then President Estrada."

"In other words, the construction agreement was duly prepared, reviewed and approved in accordance with law and pertinent regulations. The contract was completely aboveboard and transparent," Legaspi said.

Legaspi said that on May 3, 2001, the JDLC submitted to PEA a proposal to design and build the Bay Blvd. project which is adjacent and contiguous to the Central Blvd. project.

He said that the Bay Boulevard was intended to connect Central Boulevard with Roxas Boulevard

"The PEA management recommended to the board the approval of the proposal made by the JDLC sometime at the end of May 2001. On June 15, 2001, PEA through then general manager Carlos Poble, sent a notice to proceed, directing the JDLC to start preparing the detailed design for the Bay Blvd. project. The JDLC was able to complete the detailed design for Bay Boulevard at a total cost of P7,905,324.70. "Although the PEA management has already approved this detailed design, the JDLC to date, has not been paid for it for lack of funding," Legaspi said.

Legaspi said that on July 24, 2001, the JDLC requested the PEA for a contract price adjustment in the amount of P42,418,493.01 in connection with the Central Boulevard project.

He said that the contract price adjustment was justified and allowed under Presidential Decree 1594 which enables a contractor to a price adjustment in the event that it receives the notice to proceed more than 120 days after the bid date.

"The Commission on Audit, after examination, found the JDLC’s requested contract price adjustment reasonable. The PEA board, however, had yet to approve the funding for the increase," Legaspi said.

Legaspi said that sometime in November 2001, Lalap requested a meeting with him at the Makati Shrangri-La Hotel where he was asked by Lalap if he needed help for the approval of the payment of the contract price adjustment amounting to P42,418,493.64.

He said that during that meeting, Lalap also informed him that Tagud is willing to help him provided that he will pay Tagud 15 percent of his requested contract price adjustment.

"I said no to Lalap’s proposal and I told him that I did not need to resort to these activities, as my business dealings with PEA were regular and lawful. Lalap threatened me that Tagud could get votes of the other members of PEA board. He said that if I did not enlist Tagud’s assistance and pay him accordingly, then Tagud would see to it that the contract price adjustment of the JDLC would never be approved. I did not believe the threat," Legaspi said. — Jose Rodel Clapano, Nikko Dizon