PEA abolition to push thru despite COA findings

President Arroyo wants the Public Estates Authority (PEA) disbanded even after the Commission on Audit (COA) has ruled that the 4.9-kilometer, P1.1-billion Diosdado Macapagal Boulevard in Pasay City was not overpriced, Malacañang said yesterday.

Executive Secretary Alberto Romulo said Mrs. Arroyo will discuss with leaders of Congress the immediate passage of a bill seeking the agency’s abolition during the Legislative-Executive Development Advisory Council meeting in Malacañang today.

"The President has made this commitment to abolish the PEA and that is what she exactly did although it would take time before the legislation by Congress is passed into law," he said.

"We will see if this bill could be passed into law within this month before Congress adjourns sine die this June 6."

The PEA was created under Presidential Decree 1084.

Meanwhile, Romulo said Mrs. Arroyo issued Executive Order 199 last April 21, transferring the PEA from the Office of the President to the Department of Public Works and Highways (DPWH).

"The transfer of the PEA to the DPWH is already a fait accompli," he said.

Romulo said former PEA board members and officials could seek relief from the courts while the bill seeking the agency’s abolition is pending in Congress.

"They can go to court but we would proceed with the PEA abolition unless otherwise stopped by the court," he said.

In a report to the Senate Blue Ribbon Committee, the six-man COA team said "technical evaluation of the project shows that the total project cost, including the price adjustments, is reasonable and therefore not overpriced" by P600 million as alleged.

The allegations of overpricing were made by former PEA board member Sulficio Tagud Jr.

Last Dec. 13, Romulo signed Administrative Order 53 "by authority of the President," affirming the report of the Presidential Anti-Graft Commission (PAGC) that found guilty seven PEA officials and recommended their perpetual disqualification from government service.

The seven PEA officials are: board chairman Ernest Villareal, general manager and ex officio board member Benjamin Cariño, and board members Rodolfo Tuazon, Angelito Villanueva, Martin Sanciego Jr., Joemarie Gerochi, and Tagud.

According to AO 53, the penalty of dismissal from government service could no longer be imposed because they have already resigned.

Romulo ordered the PEA to carry out the PAGC’s recommendations regarding the culpability of non-presidential appointees for their dismissal from service and imposition of accessory penalties.

The case was also filed before the Ombudsman for their prosecution in court.

These PEA officials are: assistant general manager Jaime Millan, deputy general managers Manuel Berina Jr., and Theron Lacson, deputy manager Bernardo Viray, and senior corporate attorney Ernesto Enriquez.

According to PAGC findings, the old PEA board awarded the contract to JD Legaspi Construction based on "unjustified simplified bidding process" in violation of the law.

The former PEA board members are: Frisco San Juan, Carlos Doble, Carmelita de Leon-Chan, Daniel Dayan, Salvador Malbarosa, Leo Padilla and Elpidio Damaso. –Marichu Villanueva