PRESS RELEASE

May 23, 2014

Reference: Manuel P. Mejorada (0939-9207947)

Ombudsman seeks COA help in Esplanade II graft case

The Office of the Ombudsman-Visayas has asked the Commission on Audit (COA) in Region
VI to undertake an audit of the P33.9-million contract to build the Esplanade II project along
the Iloilo River which is alleged to be overpriced and the public bidding rigged.
In a 1st Indorsement dated May 6, 2014, Deputy Ombudsman Pelayo Apostol forwarded the
complaint of Iloilo journalist Manuel Boy Mejorada against Senate President Franklin
Drilon and key officials of the Department of Public Works over alleged violations of the
government procurement reform law and the anti-graft and corrupt practices act.
Apostol addressed the request to COA VI regional director Evelyn P. Reyes. A copy of the
transmittal letter was furnished Mejorada as the complainant.
In his complaint, Mejorada said the DPWH Bids and Awards Committee made a mockery of
R.A. 9184 which established guidelines on the conduct of public biddings for government
procurement.
Mejorada said that on the face of the information he obtained from the website of the
Philippine Government Electronic Procurement System (PhilGEPS) on the contract, the
bidding process was rigged with the winning contractor submitted an offer which is only
0.12% below the approved budget for the contract.
The DPWH had set an ABC of P33,950,000 for the development of a 700-meter long
embankment on the Molo side of the Iloilo river.
Roprim Construction, which had also been awarded the contract for Esplanade I, submitted a
bid of P33,908,791.50, which is just P41,208.50 lower than the ABC.
Mejorada said the public bidding was apparently manipulated to favor Roprim Construction,
which he described as a favored contractor of Drilon.
Moreover, the contract price for the project is overpriced by about P20 million, he said.
In addition to these glaring anomalies, Mejorada said the DPWH violated the revised
implementing rules and regulations of R.A. 9184 with its failure to post the notices of award
and to proceed to the contractor within the prescribed number of days.
He said this was done to hide the contract from other interested bidders.
Mejorada said Drilon is being implicated in this case because he is the prime mover for the
development of the project. The project was funded from the controversial Development
Acceleration Program (DAP) of the Aquino administration, he said.
The Ombudsmans request for an audit is intended to establish the veracity of Mejoradas
claim that the contract is overpriced and that the bidding was rigged.
Aside from Drilon, Mejorada included DPWH regional director Edilberto Tayao and the entire
Bids and Awards Committee of the DPWH Region VI as respondents.
The complaint was filed before the Office of the Ombudsman-Visayas Iloilo field office on
March 27, 2014.