Expressway developer denies contract anomaly

Coastal Road Corp. (CRC) vehemently denied yesterday that the Office of the President had a hand in the transfer of the P5.4-billion Manila-Cavite Toll Expressway project to the firm.

CRC was reacting to claims by a private lawyer that President Estrada had "a personal stake and interest" in the Coastal Road project, which grants the firm "the right to collect toll in the total projected amount of P209 billion for 35 years."

The allegations are included in a supplemental motion filed by lawyer Ernesto Francisco Jr., who is asking the Supreme Court to stop the collection of the P27 toll for vehicles using the expressway.

CRC explained that the project was initially a joint venture between the Public Estates Authority (PEA) and United Engineers Malaysia-Majiis Amana Rakyat (UEM-MARA) to transform the Coastal Road in to a modern six-lane expressway.

In 1999, CRC purchased 283,744 shares in UEM-MARA for P950 million, a sale approved by the Toll Regulatory Board.

In a press statement, CRC clarified that no transfer of contract took place as claimed by Francisco.

"This was simply a sale of shares by one private company to another, At no time did the Office of the President intervene in this purely private transaction," CRC said.

The firm likewise refuted the lawyer’s claim that CRC is owned by banker Manuel Zamora, the brother of Executive Secretary Ronaldo Zamora.

"CRC’s articles of incorporation on file with the Securities and Exchange Commission will show that Mr. Zamora does not own a single share of stock in CRC," the firm said.

The company likewise contested Francisco’s other claims, including those on authorized capital stock, track record and the collection of fees.

CRC said the allegations were clearly intended "to exploit the people’s passions over recent political developments."

"We deplore this resort to fabrication," the firm stated.

CRC noted that the person quoted in the reports is the same lawyer who has been sued for libel by Presidential Adviser Roberto Aventajado.

As this developed, Francisco filed before the Ombudsman yesterday a plunder suit against the President in connection with his "unilateral granting of the toll expressway contract to alleged cronies."

Apart from the President, those included in the complaint include the Zamora brothers and a nephew of former Prime Minister Cesar Virata. They were likewise sued for violation of the Anti-Graft Law. – With Delon Porcalla