Named respondents in the complaint were former PTA General Manager Mark T Lapid and its board members — former Tourism secretary Ramon Jimenez Jr, former Public Works secretary Rogelio Singson, Luwalhati Antonino, former Environment secretary Ramon Jesus Paje, Carlos Honorio Estepa Jr, Vivian Otaza and Lucas Nunag.
PTA officers Teresita Verde, Lydia Cosuco, Edgar Bocar, Joy Bulauitan, and Miguelita Mariano were also included in the charge sheet.
The PTA was renamed Tourism Infrastructure and Enterprise Zone Authority (Tieza).
Also charged at the Office of the Ombudsman were Tieza board members former Tourism Secretary Wanda Tulfo-Teo and husband Roberto Teo, Marco M Bautista, Pocholo JD Paragas, Department of the Interior and Local Government Officer in Charge Eduardo M Ano and Assistant Secretary Epimaco Densing, Environment Secretary Roy A Cimatu, Analizah
R Teh, Public Works Secretary Mark A Villar, Karen Olivia
V Jimeno, Anthony Edsel Conrad F Tupaz, Maximilian Anthony E Fernandez, and Tourism Promotions Board Chief Operating Officer Cesar Montano, Datu Abul Khayr D Alonto, Elizaldy S Co, Roy B Martin, Maria Vida H Stoifl and Catherine B Turvill.
Boracay Island Water Company (BIWC) incorporators Virgilio C Rivera Jr, Luis Juan B Oreta, Frank Beaumont, and former Energy Secretary Jose Rene D Almendras were impleaded as respondents.
In their complaint, Boracay Island residents Rod G Padilla and Roberto V Gelito accused the respondents of violating Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.
The complainants claimed that the respondents connived to give MWCI “unwarranted benefits, advantage or preference through manifest partiality” by rigging the process in selecting MWCI as its joint venture partner for the project. Based on the complaint, the PTA and MWCI entered into a joint venture agreement on April 21, 2009 “to establish a joint venture for the development, financing, design, engineering, construction, upgrade, testing, commissioning, operation, management and maintenance of the BWSS facilities and operation and maintenance of drainage facilities.”
The PTA and MWCI then incorporated the BIWC. On December 17, 2009, the PTA and BIWC executed a concession agreement.
The complainants alleged that BIWC was given unwarranted benefits, advantage or preference “when PTA granted BIWC the sole and exclusive right to operate and manage the BWSS system despite the constitutional prohibition on exclusivity of franchises or authorisations in the operation of public utilities.”
“Through the said JVA, the respondents made it appear that the capital contribution or equity of the PTA to the Joint Venture Company (JVC) or Boracay Island Water Company (BIWC) is only P60,000,000 or 20% of its authorised capital stock, hence, compliant with the provisions of the 2008 Joint Venture Guideline, when in truth and in fact, for reason or reasons only known to the respondents, they unlawfully did not consider the contributions of the PTA, particularly its investments in the existing water rights; its investments in the BWSS water supply and waste water facilities, including the existing PTA/Boracay drainage facilities…In short, these facilities were given to BIWC for free or without cost,” they added.The PTA, they said, was deprived of income, particularly the concession fees equivalent to 5% of the JVC’s gross income.
They alleged that the JVA “authorised MWCI to advance payment of the Concession Fee to the PTA in the amount equal to the subscription payment of P60,000,000, which is obviously a loan of the PTA from the MWCI, the amortisation payments of which should be offsetted against PTA’s Concession Fees equivalent to 5% of the annual gross revenue within the period of ten (10) years from the signing of the Concession Agreement or
until paid.”
