State lawyers seek civil damages from ex-PEA execs over overpriced Macapagal Blvd.

STATE lawyers want to recover civil damages from 10 former officials of the defunct Public Estates Authority (PEA) and a private contractor who were involved in the overpriced construction of the President Diosdado Macapagal Boulevard.

In a reply to the opposition of the respondents, prosecutors said the government wants to recover P379 million in civil

liabilities from five former officials who were acquitted and five others who were convicted for the overpriced construction of the 2.3-kilometer section of the 5.1 km asphalt road in Pasay and Parañaque.

Private respondent Jesusito Legaspi who owns JD Legaspi Construction was also convicted for jacking up the price of the project from P731.44 million to P1.1 billion, resulting in a P837-million windfall from the project.

Prosecutors said the “new board” of directors who were acquitted are still liable to pay P126.5 million in civil damages.

“There is a preponderance of evidence that the members of the ‘new’ board were grossly and inexcusably negligent in approving the contract price adjustment… They should have used reasonable skills and diligence in the performance of their official duties,” the prosecutors said.

They are Ernest Frederick Villareal, Joemari Gerochi, Angelito Villanueva, Martin Sanciego, Jr., and Rodolfo Tuazon, who replaced the old PEA board.

Prosecutors also said the “old” board of directors who were convicted are liable to pay P252.95 million in civil damages.

“(They) cannot escape from further liability because they were part of a contract which was illegal from its inception… They should have exercised the diligence required of them,” the prosecutors said.

They are Legaspi, Manuel Virina Jr., Jaime Millan, Bernardo Viray, Theron Victor Lacson, and Rafael Pocholo Zorilla.

Those found guilty were asked to pay civil damages on top of the P100 million in reimbursement for the cost of the improper contract-price adjustment and the cost of Seaside Drive extension totaling P100,016,794.74.

The PEA board members were sentenced to a minimum of 6 years and 1 month imprisonment to a maximum of 8 years, including perpetual disqualification from office.

The construction of the President Diosdado Macapagal Boulevard started in 2000 and was completed on April 5, 2002.

In September 2002, the Philippine Daily Inquirer published a series of exposés on the alleged overpricing of the P1.1-billion highway, a 5.1-kilometer asphalt road at the Manila Bay reclamation area running parallel to Roxas Boulevard.

It has been called by the paper as the “Road to Perdition.”

The Ombudsman ordered the filing of the graft charges against the PEA officials in 2003. AC

Read more...