Title
PEA Officials Guilty of PDMB Project Irregularities
Law
Administrative Order No. 53
Decision Date
Dec 13, 2002
A case involving alleged irregularities in the construction of President Diosdado Macapagal Boulevard leads to the guilty verdict of the respondents for violating Republic Act No. 3019, resulting in the imposition of penalties including perpetual disqualification from re-employment in the government service.

Q&A (ADMINISTRATIVE ORDER NO. 53)

The Presidential Anti-Graft Commission (PAGC) was responsible for investigating the irregularities in the construction of the PDMB.

The respondents were imposed the penalty of perpetual disqualification from re-employment in the government service, an accessory penalty inherent in the penalty of dismissal.

The respondents were found guilty of violating Section 3 (i), (g), and (e) of Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act.

The PBAC is mandated to conduct prequalification, bidding, evaluation of bids, and recommend the award of contracts with a specific composition of members to ensure transparency and proper procedure in government contracts.

No, the creation of the Ad Hoc Committee was unauthorized and irregular as it did not conform to the required composition and procedures under the IRR of PD 1594 for the PBAC.

Yes, prior approval from the Office of the President is required for contract price adjustments and variation orders, as stipulated in the Construction Agreement and affirmed by orders from the Office of the President.

The contract between PEA and JD Legaspi Construction was a fixed-price, lump-sum contract, not a unit-price contract.

No, the absence of Presidential approval is a serious violation reflecting disregard of legal requirements and cannot be excused as a mere administrative lapse.

No, under Section 7 of EO 12 and Supreme Court rulings, the PAGC retains jurisdiction to continue investigations and recommend penalties even after the official's resignation.

The PBAC must include a chairman (at least the third-ranking official), a legal officer as executive officer and secretary, a technical member, at least two provisional members experienced in the type of project, and two non-voting members from recognized private sector organizations to ensure bidding transparency.

They may face dismissal from government service and other penalties such as cancellation of eligibility and forfeiture of benefits, as prescribed under the classification of grave offenses in EO 292.

Such awards are irregular and illegal, causing undue injury to the government, and may lead to administrative liability for the officials involved under RA 3019 and related laws.

Because the contract was fixed-price and the justifications offered were unsupported, unexplained, and contradicted by certifications from other contractors who did not request price adjustments for the same project site.

Board members are trustees who must exercise care, diligence, and utmost good faith to protect government interests and avoid manifestly unlawful or disadvantageous transactions.

Dismissal carries cancellation of eligibility, forfeiture of retirement benefits, and perpetual disqualification from reemployment in the government service unless otherwise provided.


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