PEA ‘jacked up’ contractor’s estimate on road project - Oreta

The Public Estates Authority (PEA) allegedly "jacked up" the cost estimate submitted by contractor J.D. Legaspi Construction Co. (JDLCC) for the additional road widening work on the two-lane, 1.4-kilometer Bay Boulevard project, Sen. Teresa Aquino-Oreta claimed yesterday.

Meanwhile, it was discovered that embattled PEA chairman Ernest Villareal is also the concurrent board chairman and acting president of the PEA Tollway Corp. (PEATC), a subsidiary of the PEA.

Sources told The STAR while this arrangement is not necessarily irregular, it could be described as "not normal." Another source said, "There’s nothing wrong with it, but it’s awful."

The Bay Boulevard, which is adjacent to the 5.1-kilometer President Diosdado Macapagal Boulevard (PDMB), extends from Roxas Boulevard to the Government Service Insurance System building in Pasay City.

In a statement, Oreta said PEA documents would show that while Jesusito D. Legaspi, proprietor of the JDLCC, offered the price of P281,035,563.52 to widen the Bay Boulevard, the PEA board approved a higher amount of P281,703,812.

The amount approved by the PEA board for the Bay Boulevard road widening project was itself "highly questionable" because it accounted for a 48 percent-increase in the original price of the PDMB contract, Oreta said.

"But what is even more irregular is the fact that the PEA even hiked the contractor’s price for this road widening project," she said.

"In infrastructure projects, cases in which the government agency quotes a contract price higher than the amount offered by the contractor are very rare. Instead of asking the contractor to come up with a lower price to provide the government with the best terms possible, PEA even jacked up the price of this highly questionable road-widening project," she said.

"The PEA general manager holds the shares of the PEATC. He’s basically the boss. It is his prerogative to appoint the PEATC president and board chairman and members," the sources said.

As it turned out, Villareal was appointed by PEA general manager Benjamin Cariño to hold both positions.

"Villareal, the PEA board chairman, would now report to the PEA general manager being the PEATC president. It looks funny," the sources said.

Like PEA board members, PEATC board members also receive per diems during board meetings. At least three other PEA board members sit in the board of the subsidiary, the sources said.

The PEA and PEATC boards meet at least once a week on the same day, entitling some of them to receive double per diems.

On the other hand, Villareal said there was "nothing unusual" with his holding of concurrent positions.

He said that had reporters thoroughly checked and verified the alleged new scam, it would be proven that there was no scandal at all.