The licensing personnel at the Department of Public Works and Highways (DPWH) have apparently adopted the practice of legislators doubling as contractors to maximize the pilfering of public money through infrastructure contracts.

Senator Panfilo Lacson has urged the Philippine Contractors Accreditation Board (PCAB) to look into allegations of their own people’s improper conduct.

“Aside from reports of corruption in their ranks, there is potential conflict of interest involving at least two board directors in violation of the Code of Conduct and Ethical Standards for Public Officials and Employees, or Republic Act 6713,” Lacson said.

He called on the Department of Trade and Industry (DTI) and the Construction Industry Authority of the Philippines (CIAP) to investigate engineers Erni Baggao and Arthur Escalante, both PCAB board members, for potential conflict of interest and violation of Republic Act 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees.

Lacson revealed in a privilege speech a congressional insertion involving projects in the municipalities of Baco and Naujan in Oriental Mindoro, which he later traced to the province’s congressman, Rep. Arnan Panaligan.

The congressman’s name appeared in a slide presentation Lacson played in the session hall that showed Panaligan’s accomplishment report.

Panaligan’s name appeared alongside an “AGILA” banner, which stands for Aksyon ng Gobyerno at Inisyatibo sa Larangang Lehislatura. The same pattern was found in the PCAB, where regulators and contractors overlap.

Lacson said that both Baggao and Escalante were signatories to public infrastructure contracts as heads of their respective private construction companies, even as they sat on the PCAB board, which regulates contractors and issues licenses.

According to Lacson, Baggao, who was reappointed to the PCAB board in September 2023, is concurrently listed as the authorized managing officer of EGB Construction, which has secured projects with the DPWH.

Escalante, owner of A.N. Escalante Construction Inc., similarly held a board seat at PCAB while signing DPWH contracts, including one dated 20 May 2022, during his term as director.

PCAB board members are tasked with evaluating and approving contractor licenses, as well as investigating and penalizing violators of construction laws, which creates a conflict of interest in their dual roles, potentially making them both inappropriate and possibly illegal.

Legal implications

Under Sections 7 and 9 of RA 6713, public officials are barred from holding interests in private enterprises regulated by their office. They are required to resign from such positions within 30 days of assuming public office and to divest their shares within 60 days.

Violations carry penalties of up to five years imprisonment, fines of up to P5,000, and possible disqualification from public office.

Lacson pointed out how clear the law is in prohibiting public officials from “conflicts of interest at all times,” adding that these roles gave the directors “undue advantage” over other contractors, with the power to approve, suspend, or revoke licenses, including those of potential competitors.

Lacson reiterated earlier claims that the PCAB may be involved in an “accreditation for sale” racket, where private contractors secured licenses by paying as much as P2 million to have their paperwork “taken care of.”

PCAB has since denied the allegations, claiming that any such schemes were likely the work of external scammers. However, Lacson said the agency must go beyond issuing denials and launch an internal investigation into how such transactions could have occurred under its watch.

Lacson urged the DTI and CIAP to immediately file criminal and administrative charges against Baggao, Escalante, and any other officials found violating ethical and legal standards.

Ghosts Baste hates

Meanwhile, Davao City Acting Mayor Sebastian “Baste” Duterte blasted the country’s flood control infrastructure, sharply criticizing the current administration for allegedly allowing “ghost projects” to dominate flood control efforts.

Duterte made the remarks in The Hague, Netherlands, condemning the Marcos administration’s handling of flood control initiatives amid the controversy surrounding the government’s approach to managing these critical projects.

He said the administration has done little to address the pressing issues of flooding, despite claims flood control projects built over the past three years.

According to Duterte, the national government’s track record on infrastructure, including flood control, has been less than satisfactory.

“For the past three years, what has this administration done? That’s why we lack proper infrastructure, and even if there is any, they are underfunded. Flood control projects have turned into ghost projects. Now they’re in chaos, pointing fingers at each other,” he added.