The Supreme Court has cleared former board members of the Public Estates Authority (now the Philippine Reclamation Authority) and its private contractor of graft charges filed against them in connection with the alleged P532-million overpriced construction of the President Diosdado Macapagal Boulevard (PDMB) in the cities of Pasay and Parañaque.
In a 69-page decision penned by Associate Justice Jhosep Lopez, the SC’s Second Division reversed and set aside the September 16, 2015 ruling of the Sandiganbayan which sentenced the petitioners to a maximum of eight years in prison.
The Sandiganbayan decision found the petitioners 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 violating the provisions of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.
The High Court, in reversing the ruling, even lauded the timely completion of the project, saying this has benefitted the government with “the increase in value of the land surrounding the area, as well as the public who continue to reap the benefits of having alternate routes that would let them avoid traffic congestion.”
In acquitting the former PEA board members and Legaspi, the SC noted the findings of the Commission on Audit that there was no overpricing in the implementation of the said project.
“Considering that the COA, the constitutionally bound auditor of government funds, declared that no overpricing occurred, such findings should be given considerable weight,” the SC said.
“This further shows that no injury was proven to have been caused to the government; neither any manifest partiality in favor of a party was given. As part of the elements of violation of R.A. No. 3019, failure to prove these would be tantamount to a failure to prove violation of the law, beyond reasonable doubt,” the high tribunal added.
The SC also agreed with the contention of the petitioners that they had to rely on the list of contractors provided by the DPWH since the Philippine Contractors Accreditation Board or PCAB masterlist was not yet available then.
“Nowhere from the evidence presented by the prosecution was it shown that JD Legaspi or any of the bidders was unqualified or had no competence to undertake the PDMB Project because the PEA relied on the DPWH list,” the High Court said.
On the contrary, the SC said JD Legaspi, as the winning bidder, was able to perform its part of the contract.
“The circumstances that led to PEA’s action in utilizing the DPWH therefore negates the presence of manifest partiality, evident bad faith or gross inexcusable negligence under Section 3(e) of R.A. No. 3019,” the SC said.
In 1995, then-President Fidel Ramos initiated the Boulevard 2000 Framework Plan to address the problem of flooding in the area, alleviate traffic congestion along Roxas Boulevard, and link the reclamation with the circumferential and radial road system of Metro Manila.
The PEA Board in 1998 approved the construction of the road project as well as the P1 billion loan facility in the form of convertible notes to finance the same.
In October 2002, Sulficio Tagud, a former member of the PEA Board filed a complaint-affidavit with the Ombudsman against officers and members of the 2001-2002 board directors and other accused.
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