BCDA execs face graft, malversation raps over P9.5-B sports facilities project in New Clark City

A private citizen sued Bases Conversion and Development Authority (BCDA) President Vivencio "Vince" Dizon and at least three others before the Office of the Ombudsman for alleged malversation of public funds and graft over the P9.5-billion sports facilities used in the 2019 Southeast Asian Games which allegedly bypassed public bidding.

Also charged was lawyer Elvira Estanislao in her capacity as senior vice president for the Legal Services Group of BCDA and at least two others.

Complainant Diego Magpantay of the Citizens Crime Watch Association Inc. alleged that Dizon, Estanislao, lawyer Elpidio Vega in his capacity as government corporate counsel, MTD Capital Berhad Director Isaac David and other John and Jane Does added the P9.5-billion sports facilities project under the previously signed P4.18-billion joint venture agreement (JVA) between BCDA and Malaysian firm MTD Capital Berhad.

This was even if the construction of sports facilities was under a build-transfer scheme—a scheme that is different from a JVA set up wherein the ownership is only transferred to the BCDA once the JVA expires, he said.

BCDA initially agreed to pay P2.2 billion on an installment basis for five years to its private partner, Malaysian firm MTD Berhad, for the construction of the P8.5-billion worth of sports facilities in New Clark City in Capas, Tarlac.

• Based on the latest Commission on Audit report on BCDA, the state-run corporation ultimately decided to pay MTD Capital Berhad P9.5 billion in cash broken down to: P8.5 billion for cost of sports facilities;
• P579 million payment for one-year financing cost; and
• the remaining amount going to variation orders “made upon the recommendation of the Technical Delegates of the International Association of Athletic Federation (IAAF) and Federation Internationale de Natation (FINA), Philippine SEA Games Organizing Committee (PHISGOC) and Asian Development Bank."

“This proves that the agreement, in so far as the facilities is concerned, is a build-transfer scheme unlawfully embedded in the JVA because the ownership will be transferred to BCDA upon payment of P11 billion and not upon expiration of JVA. The Build Transfer Scheme was unlawfully embedded in the JVA to avoid public bidding,” Magpantay’s complaint read.

“Obviously, the MTD Capital's offered services for the development of sports facilities amounting to P8.5 billion already includes MTD’s profit therein. Otherwise, MTD would not have offered its services at such amount. This is likewise in line with the Build Transfer Scheme where the amount of cost presented by the proponent, in this case MTD, already includes the proponent’s computed profit admitted in the COA report,” Magpantay added.

Further, Magpantay said that the Office of the Government Corporate Counsel’s (OGCC) October 2019 approval of the amended JVA between BCDA-MTC Capital Berhad deal which included construction of sports facilities should not carry weight, considering that the original JVA deal between the two parties did not secure OGCC approval.

BCDA has maintained that its deal with MTD Capital Berhad for the construction of sports facilities used in the 2019 SEA Games is supported by the advice of the Asian Development Bank (ADB) and backed by a favorable opinion issued by the OGCC in October 2018. 

"We welcome this opportunity to explain and we are confident to present our side to the Office of the Ombudsman," the BCDA added. —KG, GMA News