Republic of the Philippines

SENATE OF THE PHILIPPINES

Committee on Accountability of Public Officers and Investigations

(Blue Ribbon)
Pasay City, Metro Manila

IN RE: INVESTIGATION INTO THE OVERPRICE AND OTHER

ANOMALIES IN THE ILOILO CONVENTION CENTER

TO:

HON. TEOFISTO TG GUINGONA III

Chairman

SUBJECT:

DEED OF DONATION IS ILLEGAL; BEST EVIDENCE OF

OVERPRICE; COSCOLLUELA ARCHITECTURAL SERVICES AND
OTHER VIOLATIONS OF LAW, POLICY, RULES AND
REGULATIONS

MEMORANDUM
May I submit, for the consideration of the Honorable Blue Ribbon Committee, this
Memorandum on violations of law, policy and rules and regulations in the planning, funding,
procurement and implementation of the Iloilo Convention Center project now under
investigation.
With the indulgence of this august body, I wish to establish that the Iloilo Convention Center
project is fraught with irregularities and outright violations of law from its inception. The
principal characters in this transaction willfully disregarded, and violated, the law in the pursuit
of this project in the guise of promoting tourism and economic development. The
transgressions of the law began with its inception, continued into the funding, procurement
and implementation. And there is now a high-level conspiracy to cover-up the misfeasance and
malfeasance that have transpired.

DEED OF DONATION IS INVALID, HENCE, VOID

1. In entering into an agreement with Megaworld Corporation to accept the donation of a

1.7-hectare piece of property situated in the Iloilo Business Park, Mandurriao, Iloilo City,
to be developed as site for the Iloilo Convention Center, Department of Tourism (DOT)
Secretary Ramon Jimenez, Jr. acted in excess of his authority to enter into contracts and
bind the Government;
2. Executive Order No. 423, series of 2005, stipulates the legal bases for authority to enter
into Government Contracts and bind the Government;
a. Section 7 of E.O. No. 423, series of 2005, lays down the Governing Law for
Government Contracts, to wit:
i. Contracts for the Procurement of Infrastructure Projects, Goods, and
Consulting Services shall be governed by Republic Act No. 9184 and its
Implementing Rules and Regulations;
ii. Contracts for Acquisition of Right-of-Way, Site or Location for National
Government Infrastructure Projects shall be governed by Republic Act No.
8974 (Section 5[n], Republic Act No. 9184);
iii. BOT Contracts shall be governed by Republic Act 6957 as amended by
Republic Act No. 7718 and its Implementing Rules and Regulations;
iv. ODA-funded Contract shall be governed by Republic Act No. 4860, as
amended, Republic Act No. 8182, as amended by Republic Act No. 8555,
and Republic Act No. 9184 and its Implementing Rules and Regulations;
b. On the face of the Deed of Donation1, the pertinent law that would govern the
same would be Republic Act No. 8974 and its IRR concerning the Acquisition of
Right-of-Way, Site or Location of National Government Infrastructure Projects;
i. Department Memorandum Circular No. 55, series of 2001, of the
Department of Public Works and Highways (DPWH) established the
Implementing Rules and Regulations of Republic Act No. 8974;
ii. Section 4 of the Implementing Rules and Regulations defines Donation
as a mode for acquiring right-of-way, site or location for national
government infrastructure projects and the ground rules to be followed:
Section 4. Donation Any Implementing Agency, which requires the
acquisition of ROW for its projects, may explore, as its first option, the
donation by the private property owners concerned of the needed
portion or whole of their affected properties, i.e., lots with or without
improvements. If the property owner agrees to donate his property to be
acquired by the government as ROW, the deed of donation shall
1

Deed of Donation dated November 12, 2012 by and between Megaworld Corporation and Department of
Tourism, photocopy of certified true copy issued by the Registry of Deeds of Iloilo City on December 1, 2014,
attached as Annex A.

immediately be prepared. The deed of donation shall be simple and

unconditional, and contain clauses to the effect that the donation is not
made to defraud the donors creditors, and that the donor has, if
necessary, reserved for himself enough property for his familys
subsistence, sustenance, and support. The donation must be accepted by
the donee, i.e. the Implementing Agency, and this shall be so indicated in
the deed. Entry to the property may be effected after registration of the
deed of donation with the proper office of the Register of Deeds.
(Underscoring mine for emphasis);
c. The Deed of Donation by and between Megaworld Corporation and the
Department of Tourism violated the Implementing Rules and Regulations of
Republic Act No. 8974 because it contained a number of conditions;
d. Section 5, Paragraph 3, of Executive Order No. 423, series of 2005, provides:
All Government contracts entered into in violation of the provisions of law,
rules and regulations, and of this Executive Order shall be considered contracts
entered into without authority and are thus invalid and not binding on the
Government.

The Deed of Donation itself acknowledges that its legal basis is questionable, as
paragraph e, ii of the document impose a condition for the Department of Tourism
to secure the issuance of a favorable opinion from the Office of the Solicitor General
authorizing and/or ratifying its execution of this Deed under the terms and conditions
hereof if necessary or desirable; (Underscoring mine for emphasis)
4. Having acted in excess of his authority under Executive Order No. 423, series of 2005,
Secretary Jimenez is also liable for violation of Article 177, 2nd paragraph, for
Usurpation of Public Functions;
3.

DEED OF DONATION A FRAUDULENT DISGUISE FOR TRUE CHARACTER OF

ILOILO CONVENTION CENTER AS A JOINT VENTURE
5. There was fraudulent misrepresentation on the parts of the principal players involved in
the Iloilo Convention Center project to disguise its true character as a joint venture
between Megaworld Corporation and the Tourism Infrastructure and Enterprise Zone
Authority (TIEZA);
6. The Guidelines and Procedures for Entering Into Joint Venture Agreements Between
Government and Private Entities issued by the National Economic Development

Authority on 16 April 20082 pursuant to Executive Order No. 423, series of 2005, define
Joint Ventures as A contractual arrangement whereby a private sector entity or a group
of private sector entities on one hand, and a Government Entity or a group of
Government Entities on the other hand, contribute money/capital, services, assets
(including equipment, land or intellectual property), or a combination of any or all of the
foregoing;
7. The donation, which is invalid and void in the first place, made by Megaworld
Corporation is only a camouflage to avoid having to comply with the guidelines and
procedures set down by the National Economic Development Authority (NEDA),
especially on the need for a competitive selection process;
8. The Deed of Donation executed by and between Megaworld Corporation, represented
by Mr. Andrew Tan, and Department of Tourism, represented by Secretary Ramon
Jimenez, Jr., snugly fits the definition of a Joint Venture under Section 5.4 under the
Guidelines for Joint Venture Agreements Between Government and Private Entities,
which provides;
5.4 Joint Venture - A contractual arrangement whereby a private sector entity or a
group of private sector entities on one hand, and a Government Entity or a group of
Government Entities on the other hand, contribute money/capital, services, assets
(including equipment, land or intellectual property), or a combination of any or all of
the foregoing. Parties to a JV share risks to jointly undertake an investment activity
in order to accomplish a specific, limited or special goal or purpose with the end
view of facilitating private sector initiative in a particular industry or sector, and
eventually transferring ownership of the investment activity to the private sector
under competitive market conditions. It involves a community or pooling of interests
in the performance of the service, function, business or activity, with each party
having a right to direct and govern the policy in connection therewith, and with a
view of sharing both profits and losses, subject to agreement by the parties. A JV
may be a contractual JV, or a corporate JV.;
9. The construction and operation of tourism-related infrastructure projects is the
mandate of the TIEZA represented by its Chief Operating Officer, Mark Lapid;
10. As such, it falls under the coverage of the Guidelines for Joint Venture Agreements
Between Government and Private Entities which states:
4.0 Coverage

On 3 May 2013, the NEDA Board issued the Revised Guidelines for Joint Venture Agreements Between
Government and Private Entities

4.1 These guidelines shall apply to all government-owned and/or controlled

corporations (GOCCs), government corporate entities (GCEs), government
instrumentalities with corporate powers (GICPs), government financial
institutions (GFIs), state universities and colleges (SUCs), as defined under
Section 5.0 and which are expressly authorized by law or their respective
charters to enter into JV Agreements. Local Government Units (LGUs) are not
covered by these Guidelines.
11. The manner by which the Deed of Donation and agreement to embark on the Iloilo
Convention Center project violates Section 7.3 (Section 7.5 in the Revised Guidelines
for Joint Venture Agreements Between Government and Private Entities issued on 3
May 2013) of the same Guidelines for Joint Venture Agreements Between
Government and Private Entities, which states:
7.3 Modes of Selecting a JV Partner
a. Competitive Selection The process for the conduct of Competitive Selection,
contract award and approval shall be stipulated under Annex A of these
Guidelines. In the conduct of the Competitive Selection process, the Government
Entity shall ensure the following:
i. All activities during the competitive selection, award, and approval are
conducted in a transparent and competitive process that promotes
accountability and effiiciency;
ii. The competitive selection parameters are clearly defined and shall include
the parameters as approved by the Approving Authority;
12. By their own admissions, the donation made by Megaworld Corporation to the
Department of Tourism was made upon the instance of Senate President Drilon without
undergoing a transparent and competitive selection process mandated by Section 7.3 of
the Guidelines for Joint Venture Agreements Between Government and Private
Entities;
13. Senate President Drilon, Secretary Jimenez and Mr. Lapid took it upon themselves to
bind the Government to enter into a contract that patently gave Megaworld
Corporation unwarranted benefits because its hotels, Richmond Hotel and Marriot Inn,
would reap the biggest benefits from the construction and operation of the Iloilo
Convention Center;
14. Time and again, Senate President Drilon spoke about the Iloilo Convention Center as a
classic Public-Private Partnership;

a. During the unveiling for the project on November 23, 2012, Senate President
Drilon enthusiastically said3 that the public-private partnership for the socioeconomic development of Iloilo and Western Visayas is exemplified in the ICC;
i. This is a classic PPP, Senate President Drilon was quoted as saying;
b. In an interview over ANC on November 18, 20144, Senate President Drilon again
reiterated that the Iloilo Convention Center is a PPP:
It is a classic PPP (Public-Private Partnership). They donate a property, we build
a convention center, they profit from the flow of people attracted to the
conventions, they gain from the enhanced value of the properties .
15. Senate President Drilons own statements establish the fact that the Iloilo Convention
Center is a PPP, or at least a Joint Venture, that should be governed by either Republic
Act 6957 as amended by Republic Act No. 7718, or Executive Order No. 423, series of
2005, and the Guidelines for Joint Venture Agreements Between Government and
Private Entities issued on 16 April 2008 which was in effect at the time of the
agreement;

DEED OF DONATION IS BEST EVIDENCE OF OVERPRICING

16. In the preceding paragraphs, it was established that the Iloilo Convention Center is in
reality a Public-Private Partnership, or more appropriately, a Joint Venture, in the
context of our laws;
17. Hence, the contract for the project is the Deed of Donation itself, its defects and
infirmities notwithstanding;
a. It is the law between the parties;
18. The contract therefore provides us a detailed account of what the parties intended to
accomplish in this enterprise, their agreement on what each was obliged to do under its
terms and conditions;
19. It is crystal clear from the face of the document that the Department of Tourism had
obligated itself to build a convention center on the property containing an area of
17,371 square meters, more or less;
20. And to guarantee the fulfillment of that obligation, the Department of Tourism, through
the Tourism Infrastructure and Enterprise Zone Authority (TIEZA), undertook to:
3. The DONEE accepts this DONATON and in so accepting, binds itself to:

Megaworld to hasten P25-B devt project, The Daily Guardian, November 24, 2012, print out of online report
hereto attached as Annex B
4
Transcript of interview, November 18, 2014, Annex C

a. Earmark, raise, and/or appropriate through the Tourism Infrastructure and

Enterprise Zone Authority (TIEZA) and/or available government funding, and in
accordance with applicable Philippine laws, Two Hundred Million Pesos
(P200,000,000.00) for the construction and development of the Iloilo Convention
Center within two (2) years from the time this Deed takes effect, to be released
and paid, as follows:
(i) Philippine Pesos Fifty Million (Php50,000,000.00) upon execution of
this Deed of Donation or within a reasonable time thereafter; and
(ii) Philippine Pesos Fifty Million (Php50,000,000.00) every six months
thereafter until fully paid.
b. Undertake or cause to undertake through another government agency, the
construction and development of the Iloilo Convention Center, in accordance
with the proposed conceptual design of the DONOR and applicable laws and
regulations;
c. Offer to the public, either directly or through another government agency at
DONEEs option, the Operation and Maintenance of the Iloilo Convention Center
in accordance with government procurement law and regulations; xxx
21. There can be no mistaking the object of the contract --- the construction and
development of the Iloilo Convention Center;
22. Both parties agreed to pool their resources, with Megaworld providing the land as
project site while TIEZA provides the funds amounting to P200 million to build the Iloilo
Convention Center;
23. There is nothing in the contract that would suggest that the P200 million is merely a
seed fund to kick start the construction of the project;
24. The contract envisioned a completed Iloilo Convention Center with the fulfillment of
TIEZA and DOT end of the agreement, and it even set a timetable for its completion by
February 2015;
25. The contract itself set the budget for the construction of the Iloilo Convention Center,
i.e. P200 million, with a schedule for the release of tranches of P50 million to ensure the
smooth implementation of the project;
26. Hence, any amount in excess of the P200 million constituted and OVERPRICE, especially
because it is based on Megaworld Corporations own proposed conceptual design;
27. Not only does any amount of public funds in excess of P200 million an OVERPRICE, but
the disbursement constitutes malversation of public funds as it was made without legal
basis;

28. Those responsible for raising the cost of the Iloilo Convention Center over and above the
original budget of P200 million must explain their actions before the Honorable Blue
Ribbon Committee, and to the Filipino people;
29. The amount of the overprice and disbursed illegally exceeds the threshold level of P70
million for PLUNDER under R.A. 7080;

FUNDING WAS MADE WITHOUT THE REQUIRED APPROVAL OF THE

INVESTMENT COORDINATION COMMITTEE (ICC)
30. Pursuant to Section 6 of Executive Order No. 230 series of 1987, the Investment
Coordination Committee (ICC) was vested with the powers to:
(i)Evaluate the fiscal, monetary and balance of payments implications of major national
projects and recommend to the President the timetable of the implementation of these
projects on a regular basis; and
(ii)Recommend to the President a domestic and foreign borrowing program updated
each year, and subsequently submit to the President a status of the fiscal, monetary and
balance of payments implications of major national projects.
31. As such, the ICC is the highest decision making body in the Executive Branch that
approves Major Capital Projects (MCPs).
32. In the ICC Guidelines and Procedures as of 4 March 2005, it is provided that:
ICC review/decisions cover:
1. Programs/projects of national line agencies with total cost of Php 500 million and
above, regardless of financing.xxx; (underscoring mine)
33. This cost floor was increased to Php 1 billion in a Memorandum dated 29 April 2013
issued by Hon. Cesar Purisima and Hon. Arsenio Balasican in their capacities as chair and
co-chair of the ICC;
34. Messrs. Ramon Jimenez and Mark Lapid violated this regulation prescribed pursuant to
E.O. 230, series of 1987 requiring ICC review and approval for national agency projects
costing P500 million and above;
35. It must be noted that this project was conceived upon the signing of a Deed of Donation
by and between Megaworld Corporation, represented by its President, Andrew L. Tan,
and the Department of Tourism, represented by Secretary Jimenez, on 13 November
2012 in the City of Pasay, Philippines;
36. As its equity for the project, the Department of Tourism committed to allocate P200
million as funding for the project;

37. Senate President Drilon also allocated P200 million from his Priority Development
Assistance Fund (PDAF) and subsequently obtained an additional P100 million from the
Disbursement Acceleration Program (DAP);
38. By his own admission, Mr. Singson said that based on the architectural and engineering
designs submitted by the architect, W. V. Coscolluela and Associates, the project cost
for the project was P708 million5, excluding the pile foundation works required for the
project;
39. Hence, at the inception of the Iloilo Convention Center project, Senate President Drilon,
Secretaries Jimenez and Singson disregarded the requirement for review and approval
of the Investment Coordination Committee even with their knowledge that the
estimated project cost was a minimum of P708 million (granting this to be true in light
of paragraphs 16 to 26 of this Memorandum);
40. It was covered by the ICC review/decision power because at the time it was conceived,
the cost floor was P500 million;
41. In a letter dated November 28, 20146, NEDA Region VI regional director Ro-Ann Bacal
confirmed that the Iloilo Convention Center project was funded without NEDA Board ICC
approval;

RESPONDENT DRILON SHOWED MANIFEST PARTIALITY AND BIAS TOWARD

MEGAWORLD CORPORATION TO GIVE IT UNWARRANTED BENEFITS
42. Senate President Franklin Drilon has displayed manifest bias in favor of and partiality
toward Megaworld Corporation;
a. In the first quarter of 2011, it was Senate President Drilon who persuaded and
convinced Megaworld Corporation to kick-start the development of its Iloilo
Business Park;
b. Megaworld Corporation had not made any moves to start the development of
the Iloilo Business Park, the property it bought from the National Government
for P1.2 Billion, because it prioritized on-going developments in the Newport City
in Pasay City and other properties in the National Capital Region;
c. In his speech during the ground breaking ceremonies for the Richmonde Hotel
on May 6, 2011, Senate President Drilon boasted that Mr. Andrew Tan
accelerated the development of the property because of his naggings;

SINGSON: Ang original estimate po ni W.V. Coscolluela and Associates and done by a qualified quantity surveyor,
Pacific Orient Corporation, 704 million excluding the pile foundation as against our estimate of 747 million, all in.
Ngayon, pag dinagdag nyo po iyong pile foundation which is about 117 million, lalagpas na po iyan sa 821 million
as against our estimate of 747. TSN, Blue Ribbon Committee, Sglrobles, VII-1, November 13, 2014, page 43
6
Letter of NEDA VI Regional Director Ro-Ann Bacal dated November 28, 2014, Annex D

d. I have personal knowledge of the foregoing circumstances because I was present

during the event and I even wrote a blog article about it entitled, Megaworld
bets big on Iloilo7 on May 7, 2011;
e. In that event, Megaworld had targetted the completion of the Richmonde Hotel
and Towers in the 3rd quarter of 2012;
f. But the pace of development slowed down in 2012, and it wasnt until the 2 nd
quarter of 2013 when the work on the Richmonde Hotel resumed;
g. The development work for Richmonde Hotel resumed only after the Iloilo
Convention Center project was advertised for public bidding by the DPWH;
h. Common sense and logic would tell us that there is a relationship between the
move of DPWH to start the procurement process for the Iloilo Convention Center
and the resumption of work on the Richmonde Hotel;
i. It was only in 2014 when the construction of the Marriot Inn on the other side of
the site for the Iloilo Convention Center started;
j. In short, the construction of the Iloilo Convention Center, upon the intervention
of Senate President Drilon, that triggered the renewed thrusts to undertake
development work in the Iloilo Business Park;
k. Senate President Drilon thereby gave Megaworld Corporation, which he had
influenced into advancing the timetable for the Iloilo Business Park in 2011, a
huge favor in securing funding for the Iloilo Convention Center and getting DOT
and DPWH to start its construction;
43. With this in mind, Senate President Drilon had the motive to use his power and
influence to give Megaworld Corporation undue advantage in its property development
and hotel business by pushing TIEZA and DOT into putting up a convention center in its
Iloilo Business Park;

DEED OF DONATION SHROUDED IN SECRECY IN VIOLATION OF

TRANSPARENCY POLICY
44. The transaction between Megaworld Corporation and the Department of
Tourism/Tourism Infrastructure and Enterprise Zone Authority was shrouded in secrecy,
and no details about the Deed of Donation was publicly disclosed except for the area
of 1.7 hectares;
45. It was only during the hearing conducted by the Blue Ribbon Committee of the Senate
of the Philippines was it revealed that the donor, Megaworld Corporation, imposed
certain conditions in exchange for the donation;
7

Print out of Megaworld bets big on Iloilo published in the Blog, Iloilo: past and future Queen City on
Wordpress.com, attached as Annex E

46. The public was kept in the dark about the conditions imposed in the Deed of Donation,
which, as have been pointed out, are illegal;
47. Until now, there is no copy of the Deed of Donation that is available to the public for
scrutiny;
48. On November 17, 2014, I wrote a letter to Secretary Jimenez asking for a copy of the
Deed of Donation as well as an email containing the same request;
49. In a letter dated November 27, 20148, Atty. Eugene T. Kaw, Assistant Secretary and Chief
of Staff, wrote in behalf of Secretary Jimenez informing me that the Department of
Tourism is constrained from submitting the same in deference to the said proceedings
(Blue Ribbon Committee and the Ombudsman);
a. I received this letter on December 1, 2014;
50. It was only on December 1, 2014 when I was able to obtain an official copy from the
Register of Deeds of Iloilo City;
51. The actions and behavior of Secretary Jimenez run contrary to the Constitutional
mandate that all public transactions must be transparent, and constitutes dishonesty
and grave misconduct;

DONATION OF ARCHITECTURAL SERVICES IS ILLEGAL

52. There is no dispute by now that the engagement of W. V. Coscolluela and Associates to
prepare the architectural and engineering services for the Iloilo Convention Center did
not undergo a competitive public bidding;
53. Secretary Jimenez, in his testimony before the Honorable Blue Ribbon Committee,
claimed that the Deed of Donation between Megaworld Corporation and the
Department of Tourism imposed a condition that the architectural and engineering
plans and specifications drawn up by W. V. Coscolluela and Associates be used in
building the Iloilo Convention Center;
JIMENEZ: xxx So it was with great pride that the Department of Tourism and its
infrastructure arm, the TIEZA, received the land donation in the name of the province,
the city and the country. The occasion was made even more memorable because the
vision of the state of the art Iloilo Convention Center, now with the land donation came
with an outstanding architectural and engineering design by W.V. Coscolluela and
Associates. Architect Willy Coscolluela himself presented the donated design and even
the engineering plans.xxx --- TSN, Blue Ribbon Committee hearing, November 13, 2014,
page 18, CFDriz (Undescoring mine for emphasis)

Letter dated November 27, 2014 from Atty. Eugene T. Kaw, Assistant Secretary and Chief of Staff, Office of
Secretary Jimenez, photocopy of which is attached as Annex F.

54. The statement of Secretary Jimenez was echoed by Senate President Franklin M. Drilon
and Secretary Rogelio Singson;
55. This statement is a patent lie;
56. Paragraph d of the Terms and Conditions for the Donation states:
d. This DONATION shall be effective upon the acceptance by the DONEE. To ensure
consistency and compatibility with the overall design and development of the
surrounding areas, the DONEE shall use the DONORs proposed conceptual design of the
Iloilo Convention Center, in the terms of reference of technical specifications for the
public bidding that will be conducted for the construction and development of the Iloilo
Convention Center; (Underscoring mine for emphasis)
57. A proposed conceptual design is not the same thing as the architectural and
engineering plans and specifications which Secretary Jimenez, along with Senate
President Franklin Drilon and Secretary Singson, want us to believe;
58. Precisely because it is a conceptual design, it refers only to a preliminary drawing9
showing an artist sketch or perspective on how the Iloilo Convention Center should look
like to ensure that its appearance would be consistent and compatible with the over-all
development of the Iloilo Business Park where it will be built;
59. The National Aeronautics and Space Administration (NASA)10 defines conceptual design
to mean the same thing as the preliminary design phase or architectural design.
60. It involves bold strokes of the paint brush or pencil to give form and appearance to a
building as differentiated from detailed architectural and engineering design;
a. Concept design is the initial big picture or macro design. It shows us what
problems the product will solve, how it will solve them, and what it will feel like
as it is solving them. Arguably the most creative stage of product development,
concept design is stickies slapped on whiteboards, ink and wash, napkins and
crayons even. It calls on us to consider sweeping ideas and all the various
possibilities. The more the better. In concept design lies the very soul of
innovation11.
b. Conceptual design, along with need identification and analysis, make up the
initial stage of the design process. Need analysis transforms the often vague
statement of a design task into a set of design requirements. Conceptual design
encompasses the generation of concepts and integration into system-level
solutions, leading to a relatively detailed design12;
9

What is Conceptual Design? downloaded from www.oregon.gov/OSMB/BoatFac/docs/ print out attached as

Annex G
10
Preliminary Design Overview, Annex H downloaded from http://www.hq.nasa.gov/
11
PTC Creo, What is Concept Design? A Product Development Perspective, Annex I
12
Innovative Concept Design: Theory and Application of Parameter Analysis, by Ehud Kroll, Sridhar S. Condoor
and David G. Jansson, Cambridge University Press, 2004.

61. These public officials peddled a blatant lie, a perjury, in making this claim about the
architectural and engineering plan and specifications prepared by W. V. Coscolluela and
Associates as being imposed as a condition in the Deed of Donation;
62. These statements are vain attempts to cover up the violation committed in engaging W.
V. Coscolluela and Associates without undergoing a competitive public bidding as
required by RA 9184 and its IRR;
63. If we are to believe them, there is no contractual relationship between W. V. Coscolluela
and Associates and the Department of Tourism, as the architectural plans were
donated;
a. The National Architecture Code requires that there should be a written
agreement between an Architect and the Owner for the former to legally and
validly perform services for the latter;
64. This Honorable Blue Ribbon Committee might deem it proper to require W. V.
Coscolluela and Associates to present the written agreement which was the basis for the
performance of services for Megaworld or Department of Tourism;
65. Their actions and demeanor smack of dishonesty, perjury and grave misconduct in the
face of evidence unmasking the wrongdoing in the transaction;

DOT, DPWH VIOLATED REPUBLIC ACT NO. 9184 AND ITS IRR (ANNEX A)
AND THE DPWH INFRASTRUCTURE RIGHT-OF-WAY (IROW) MANUAL,
AMONG OTHERS
66. The DPWH neglected to conduct Detailed Engineering prior to the procurement and
implementation of the Iloilo Convention Center as mandated in Annex A of the
Implementing Rules and Regulations of Republic Act No. 9184;
67. The conduct of the Detailed Engineering would have ensured that the plans and
specifications for the Iloilo Convention Center were prepared in accordance with
existing laws, rules and regulations, and that all PERMITS have been obtained prior to
the procurement;
68. Under Section 2.2 of the DPWH Infrastructure Right-of-Way (IROW) Manual published
on 1 April 2003, it is clearly stated that an Environmental Compliance Certificate (ECC)
should be obtained before the detailed design stage could begin;
2.2 Environmental Impact Assessment
As stipulated in D. O. No. 5, Series of 2003, Environmental Compliance Certificates
(ECCs)for projects shall be secured before the Detailed Design stage. However for
projects costing over P300M, the ECC shall be secured before NEDA/ICC approval.

69. What happened in the Iloilo Convention Center is a case of having the cart before the
horse;
70. The Environmental Compliance Certificate (ECC) for the Iloilo Convention Center project
was issued by the Environmental Management Bureau (EMB) of the Department of
Environment and Natural Resources (DENR) only on 11 September 201413;
a. The ECC was issued not only AFTER the detailed design for the project was
prepared, but TEN (10) months AFTER construction work on the Iloilo
Convention Center had started;
71. The ECC is also a requirement in the application for a building permit in accordance with
the National Building Code;
72. It would be logical to conclude that at the time the construction of the Iloilo Convention
Center had commenced, DPWH and/or DOT had not yet filed an application for, and
obtained, a Building Permit in violation of the National Building Code;
a. On November 8, 201414, I wrote the City Engineer of Iloilo City, Engineer Roberto
Divingracia, requesting for a copy of the Building Permit for the Iloilo City as well
as other pertinent clearances prior to its approval and issuance;
b. In a letter dated November 21, 201415, City Engineer Divinagracia responded
with the information that he had referred my request to the Iloilo City Legal
Office for recommendation and legal opinion xxx;
c. City Engineer Divinagracia attached a copy of his 1st Indorsement16 to Atty.
DANIEL P. DINOPOL, City Legal Officer, Iloilo City dated November 17, 2014
asking if it is appropriate to furnish Mr. Mejorada of his request of the abovestated documents;
d. Until this date, City Engineer Divinagracia has failed to provide me with the
requested documents;
e. To my mind, this is an effort to cover-up the failure of the DPWH and/or DOT to
apply for, and secure, a Building Permit in compliance with the National Building
Code;
73. Unless evidence to the contrary is shown by the Building Official of Iloilo City, the
circumstances lead to me conclude that the construction of the Iloilo Convention Center
started without the requisite Building Permit in accordance with the National Building
Code;

CONCLUSION
13

Environmental Compliance Certificate No. ECC-R6-1408-0290-5010 dated 11 September 2014, Annex J

Letter dated November 8, 2014 to City Engineer Roberto Bobby Divinagracia, Annex K.
15
Letter dated November 21, 2014 signed by City Engineer Roberto Divinagracia, Annex L
16 st
1 Indorsement to Atty. Daniel Dinopol, Iloilo City Legal Officer, dated November 17, 2014, Annex M
14

74. The foregoing facts and circumstances establish that the following laws, policies, rules
and regulations were violated by the proponents and implementing agencies of the
Iloilo Convention Center:
a. The Plunder Law, Republic Act No. 7080;
b. Republic Act No. 9184 and its Implementing Rules and Regulations;
c. Republic Act No. 8974 and its Implementing Rules and Regulations;
d. Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act;
e. Republic Act No. 6713, or the Code of Conduct and Ethical Standards for Public
Officials and Employees and its Implementing Rules and Regulations;
f. Presidential Decree No. 1586 Establishing an Environmental Impact System;
g. Executive Order No. 230, series of 1987 and its Guidelines on ICC
Review/Approval;
h. Executive Order No. 423, series of 2005;
i. Perjury under Art. 183, Revised Penal Code (on the parts of Senate President
Franklin Drilon, Secretary Ramon Jimenez and Secretary Rogelio Singson);
j. Art. 177 of the Revised Penal Code Usurpation of Public Functions (on the part
of Secretary Ramon Jimenez);
k. DPWH Infrastructure Right-of-Way (IROW) Procedural Manual;
75. The principal characters in this complex fraud against the Government and the Filipino
people devised an evil scheme to systematically plunder the national treasury in the
guise of bringing progress and development, especially in the tourism sector;
76. The principal characters broke the law in order to give Megaworld Corporation undue
advantage and unwarranted benefits with the construction of the Iloilo Convention
Center at government expense;
77. The principal characters in this project also employed devious schemes to COVER UP the
misfeasance and malfeasance they have committed in order to bring it to fruition, acts
that constitute betrayal of public trust, dishonest and grave misconduct among the
highest officials of this Government;
78. The violations of the Countrys laws, policies, rules and regulations as enumerated
herein constitute the highway through which the corruption in the Iloilo Convention
Center was carried out --- a robbery in broad daylight;
79. To let these transgressions go unpunished would make a travesty of the rule of law in
the country, and set a dangerously bad precedent that those in power and authority
could violate the law at will without being accountable for their acts; and
80. The Blue Ribbon Committee is mandated by law to bring the truth into the open by
compelling these public officials to answer questions about the issues raised herein in a
transparent public hearing without regard to political alliances and positions of those
accountable.

I am making this submission as a Resource Person before this Honorable Blue Ribbon
Committee to testify on my knowledge on the anomalies in the Iloilo Convention Center. All
these statements are being made under the same oath I took before this Honorable Blue
Ribbon Committee on November 13, 2014. I am ready to face its Honorable Members and
answer questions pertaining to the foregoing statements.
Respectfully submitted.
Pasay City, Metro Manila, Philippines, 3 December 2014.

MANUEL P. MEJORADA