Adjustments to one contract caused the cost of the construction of the President Diosdado Macapagal Boulevard in Pasay City to balloon from P731.44 million to P1.1 billion. More than P837 million of this amount went to JD Legaspi Construction, one of the three firms that constructed the project.

Critics claimed that the allegedly overpriced construction unduly cost the government P532.92 million at the very least. The alleged overpricing involved the two portions of the 2.3-km. boulevard: Pacific Avenue and the opposite end of Sen. Gil Puyat Avenue which were assigned to JD Legaspi Construction.

The controversy once again brought to center stage the Public Estates Authority (PEA), the government agency that negotiated the controversial reclamation with Amari Corporation during the Ramos administration.

The PEA officials were accused of entering into a contract with JD Legaspi through simplified bidding despite inadequate funds. They were also accused of approving the variation orders, final bill of quantities, and contract price adjustments worth P252 million allegedly without prior approval from the Office of the President.

Following the Senate’s widely publicized investigation of the issue, President Arroyo in 2002 announced that she would abolish the PEA. The promise never materialized. Instead of abolishing the agency, Arroyo transformed it into the Philippine Reclamation Authority in October 2004 to focus on reclamation activities. The agency’s non-reclamation related assets and liabilities were transferred to the Department of Finance.

In June 2003, the Ombudsman filed a case against 16 top PEA executives and officials of the Commission on Audit who had a hand in the approval of the contract as well as private contractor Jesusito D. Legaspi. Among the accused officials was former PEA chair Ernest Villareal, an incorporator of the Bigkis Pinoy Foundation, which is composed of businessmen and Rotary friends of First Gentleman Mike Arroyo.

The case is currently being tried at the Sandiganbayan.

Source of this information is Newsbreak.