Lacson slams widely opened 'floodgates' of corruption

Senator Panfilo “Ping” Lacson on Saturday sounded the alarm on what he called “flooded gates of corruption” within the Philippine Contractors Accreditation Board (PCAB), revealing that at least two board members may be violating the law by holding lucrative government contracts while serving in regulatory positions.

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

“Paging PCAB – Instead of an outright denial, you should at least look into allegations against your own people’s improper conduct,” Lacson posted on X (formerly Twitter).

“Aside from reports of corruption in your ranks, there is potential conflict of interest involving your 2 board directors in violation of RA 6713,” he added.

Regulators, contractors in one

Lacson revealed that both Baggao and Escalante were signatories to public infrastructure contracts as heads of their respective private construction companies, even while sitting 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 Department of Public Works and Highways (DPWH).

Meanwhile, 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, making their dual roles 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 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 lamented 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.

‘Accreditation for sale’ 

Lacson also reiterated earlier claims that PCAB may be involved in an “accreditation for sale” racket, where private contractors allegedly 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 stressed that 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.