‘PAGC complaint vs PEA board members without basis’

Administrative charges filed by the Presidential Anti-Graft Commission (PAGC) against former board directors of the Public Estates Authority (PEA) are baseless, former board member Rodolfo Tuazon said yesterday.

Additional costs incurred in the construction of the President Diosdado Macapagal Boulevard (PDMB) were allowed by President Arroyo, according to Tuazon.

The PAGC noted in its charge sheet that PEA officials, including some of its ranking managers, committed a patent violation of the construction agreement when "all additional works... were performed/executed and completed without the condition sine qua non approval" of the President.

Tuazon, however, said that under Executive Order 109 issued by Mrs. Arroyo, presidential approval was no longer required for contracts costing lower than P50 million.

These additional costs to the project, broken down into cost overruns and additional work, did not go above the price ceiling established by the executive order, he added.

Tuazon and other PEA board members, who reportedly have all been considered by the President as resigned, have been given up to Nov. 22 to answer the administrative charges against them. Among those named as respondents in the administrative complaint instituted by PAGC is Sulficio Tagud Jr., the PEA director who blew the whistle on the alleged road scam.

"It is only right that Tagud should be included in the complaint because he (is) one of the signatories authorizing the additional costs. He should also explain to the PAGC," Tuazon said.

He added that he was glad PAGC had instituted the complaint, giving him and other PEA directors a chance to prove their innocence.

"As a congressman for three terms, I want to show my constituency that I am innocent of the charges made against me and other members of the board," Tuazon said.

He voluntarily resigned because he did not want his constituents to believe he is clinging to his post.

"They told me that resigning is not an admission of guilt," he said.

Tuazon said the PAGC was "misinformed" when it concluded that the construction cost of PDMB was fixed at P584 million. He added that the same contract provided for additional costs in cases of cost overruns and additional works.

He noted that the PAGC is wrong in concluding that the payment for additional costs due to the cost overruns, such as increases in the cost of materials, as well as additional works, are irregular. He claimed these were authorized under the original contract given to J. D. Legaspi and Construction (JDLC).

Among those named in the charge sheet are PEA board of directors chairman Ernesto Villareal; general manager Benjamin Carino; board members Joemari Gerochi, Martin Sanciego, Rodolfo Tuazon, Angelito Villanueva, and Sulficio Tagud; deputy general managers Manuel Berina Jr., Theron Lacson, and Bernardo Viray; senior corporate attorney Ernesto Enriquez; and assistant general manager Jaime Millan. Despite their resignation, Tuazon said they will still answer the administrative charges.

Administrative charges may or may not be followed by criminal charges before the Sandiganbayan, he added.

A separate case charging PEA directors with plunder has been filed by Tagud before the Office of the Ombudsman. Respondents in the case have been given up to Nov. 21 to answer the charges.

Tuazon also disputed statements attributed to PAGC chief Dario Rama that the contract awarded in 1999 by the old PEA board to J.D. Legaspi Construction (JDLC) to build the President Diosdado Macapagal Boulevard was fixed at P584 million.

According to the contract agreement signed by the old PEA board and JDLC, changes in quantities and additional works are allowed, Tuazon said.

The additional cost in the PDMB road project includes P42 million in contract price adjustment and variation orders amounting to P200 million.

He also disputed Rama’s statement that the additional works were made without the required approval of the President.

"Rama probably forgot that upon assumption into office by President Arroyo in March 2000, she issued Executive Order 109 wherein presidential approval was no longer required for contracts below P50 million," Tuazon said.