EDITORIAL - Another PEA scandal

In the scandal over the new avenue named after the late President Diosdado Macapagal, no one seems to be coming out smelling like roses. Yesterday opposing camps in the scandal filed charges against each other. From the tone of the accusations, the controversy boils down to one question: Who received the biggest commission or grease money from the contract to build the new road?

The avenue that runs parallel to Roxas Boulevard is built on land reclaimed from Manila Bay by the Public Estates Authority. The road is smoothly paved and has cut travel time between Vito Cruz in Manila to MIA Road in Parañaque. But reports said the controversy has made President Arroyo consider whether the avenue should continue bearing her late father’s name. A PEA director has alleged that the road, originally called Central Boulevard, was overpriced by as much as P600 million. PEA officials have admitted that the road is probably the most expensive in the country but deny that it was overpriced. They also claim that the accusations arose from a failed attempt to extort P14 million from the contractor.

Early insinuations that First Gentleman Mike Arroyo was involved in the alleged overprice have since been squelched. Meanwhile the whistle-blower has gone on leave, a PEA director has resigned and other officials have been ordered by Malacañang to take a leave. The Presidential Anti-Graft Commission and prosecutors are looking into the complaints.

Despite the mess, this is unlikely to be the last scandal that will hound the PEA. The agency’s entire reclamation project in Manila Bay has been marred from the start by allegations of corruption. The latest scandal will hardly inspire investor confidence in the way business is conducted in the Philippines. Accusations hurled by both camps in the latest scandal strengthen perceptions that one must be prepared to grease palms when doing business in this country. The administration, whose survey ratings can use some improvement in the battle against corruption, can recover lost ground by pushing for a credible investigation of this scandal. At the same time, it must conduct a thorough cleanup of the PEA.