Graft raps filed vs. 35 gov’t officials for Boracay water supply agreement

Thirty-five officials related to what was then the Philippine Tourism Authority (PTA) have been sued before the Office of the Ombudsman for the supposedly anomalous water and sewerage system agreement for Boracay island.

The officials include those appointed under the administrations of President Rodrigo Duterte and former President Benigno Aquino III.

In a complaint received by the Ombudsman on May 8, private complainants Rod G. Padilla and Roberto V. Gelito claimed that the respondents violated Sections 3(e) and (g) of the Anti Graft and Corrupt Practices Act.

The respondents named in the case are:

1.     Mark Lapid
2.     Ramon Jimenez Jr.
3.     Rogelio Singson
4.     Luwalhati Antonino
5.     Ramon Paje
6.     Carlos Estepa Jr.
7.     Vivian Otaza
8.     Lucas Nunag
9.     Teresita Verde
10.     Lydia Cosuco
11.     Edgar Bocar
12.     Joy Bulauitan
13.     Miguelita Mariano
14.     Wanda Teo
15.     Marco Bautista
16.     Pocholo Paragas
17.     Eduardo Año
18.     Epimaco Densing III
19.     Roy Cimatu
20.     Analizah Teh
21.     Mark Villar
22.     Karen Jimeno
23.     Anthony Tupaz
24.     Maximilian Fernandez
25.     Cesar Montano
26.     Datu Abdul Khayr Alonto
27.     Elizaldy Co
28.     Roberto Teo
29.     Roy Martin
30.     Maria Vida Stoifl
31.     Catherine Turvill
32.     Virgilio Rivera Jr.
33.     Luis Juan Oreta
34.     Frank Beaumont
35.     Jose Rene Almendras

Under the Tourism Act of 2009, the Philippine Tourism Authority was replaced by Tourism Infrastructure and Enterprise Zone Authority.

The TIEZA board of directors include the secretaries of the Department of Tourism, Department of Public Works and Highways, Department of Environment and Natural Resources, Department of Interior and Local Government, the chief operating officer of the Tourism Promotions Board, the TIEZA chief operating officer, and five representative directors appointed by the president.

Lapid, Jimenez, Singson, Paje, and Almendras are among the respondents appointed by then-President Aquino.

On the other hand, Teo, Año, Densing, Cimatu, Montano, and Villar are among the appointees of President Duterte.

In 2012, then-Tourism chief Jimenez lauded the partnership between TIEZA and BIWC with the inauguration of a P126-million submarine pipeline in Boracay which sought to improve water service in the island.

The complainants noted that the PTA built the sole sewerage system of Boracay under a loan program from the Japan International Cooperation Agency. The sewerage system is now operated by Boracay Waterworks and Sewerage System (BWSS).

On April 21, 2009, then PTA through then-general manager Lapid entered a Joint Venture Agreement (JVA) with the Manila Water Company Inc. to establish a new company aimed at sustaining tourism growth in Boracay while addressing environmental concerns and infrastructure plans.

The Boracay Island Water Company (BIWC) was the result of the JVA, which was tasked to take over the responsibilities of BWSS in operating the sewerage system in 2010 by virtue of a P300-million capital stock divided into three million shares.

The JVA placed the PTA in charge of the water rights, water supply, and sewerage system while Manila Water was tapped to develop, construct, operate and maintain the BWSS facilities.

The joint venture deal caused undue injury against the government since the BIWC was established as an 80:20 sharing agreement, with the PTA getting a “measly” P60 million while Manila Water’s 80 percent share was worth P240 million, the complainants alleged.

“The ownership structure of BIWC did not accurately reflect the actual value of the BWSS assets and facilities contributed by PTA to the joint venture, which would otherwise increase the ownership of PTA in BIWC,” the complaint read.

The P60-million share of PTA in BIWC was actually advanced by Manila Water, and was to be deducted from the concession fees payable to the PTA account under the concession agreement, the complainants claimed, saying that in effect PTA has  surrendered “... its water rights and water facilities to the joint venture for free.”

“Respondents Lapid, PTA Board Members and Officers, Rivera and the BIWC Incorporators defrauded PTA into paying or contributing for something that it already owns,” the complainants further alleged.

Lapid and his co-respondents “meticulously planned and craftily executed” the rigged process in selecting Manila Water for the project, it claimed.

The JVA gave BIWC the exclusive right over the water and sewerage system of Boracay despite the prohibition under Article XII, Section 11 of the Constitution on the exclusivity of franchise in the operation of public utilities, it said. —VDS, GMA News