‘No overpricing’: SC acquits former reclamation execs in Macapagal Boulevard case

MANILA, Philippines – The Supreme Court (SC) cleared former board members of the Public Reclamation Authority, previously known as the Public Estates Authority (PEA), of graft charges linked to the allegedly overpriced construction of Macapagal Boulevard.

The SC’s decision reversed an earlier Sandiganbayan ruling in 2015 that found Cristina Amposta-Mortel, Theron Victor Lacson, Leo Padilla, Manuel Berifia Jr., Jaime Millan, Bernardo Viray, Raphael Pocholo Zorilla, Daniel Dayan, Frisco Francisco San Juan, Elpidio Damaso, Carmelita Chan, and contractor Jesusito Legaspi guilty of graft. 

In its decision, the SC considered the findings of the Commission on Audit (COA), which found no overpricing in the project’s implementation.

“Overpricing should [be] proven to have been committed with deliberate corrupt ways before one can be indicted for violation of [Republic Act] No. 3019,” the High Court said. “In this case, the Special Audit Report of the COA found that there was no overpricing in the portion of the contract awarded to Legaspi.”

Because of this, the SC said there was a “failure to prove violation of the law, beyond reasonable doubt.” The Court even praised the construction process, pointing out “the increase in value of the land surrounding the area,” as well as the “alternate routes that would let [the public] avoid traffic congestion.”

History of the ‘overpriced’ road

President Diosdado Macapagal Boulevard, which crosses through the cities of Pasay and Parañaque, first opened to the public in 2002. The project has since been hounded by allegations of anomalous bidding and overpricing.

Private contractor JD Legaspi Construction was said to have overpriced the construction by P532 million, pushing the road’s total cost to P1.1 billion. According to a complaint-affidavit filed with the Ombudsman, PEA board members conspired to approve the contractor’s requests for price adjustments.

A year after the complaint was sent, the Ombudsman found probable cause to file graft charges against the PEA officials for allegedly giving unwarranted benefits, advantage, and preference to JD Legaspi despite the contractor’s lack of compliance with mandatory bidding procedures and requirements.

In 2015, the Sandiganbayan convicted the PEA officials and JD Legaspi for violating the anti-graft law. They were sentenced to 6 to 8 years in prison, with perpetual disqualification from holding public office. The accused were also ordered to pay more than P170 million for the supposed improper contract price adjustments and irregularities. – Lance Spencer Yu/Rappler.com