Villanueva: Why are flagged contractors still getting projects?

Majority Floor Leader Senator Joel Villanueva questioned the Department of Public Works and Highways (DPWH) and the Philippine Contractors Accreditation Board (PCAB) over why contractors linked to anomalous incidents are still being awarded projects.

In today’s Blue Ribbon Committee hearing, Villanueva specifically cited the case of Sunwest Construction and Development Corporation and the Department of Education’s P2.4-billion laptop purchase, which the Commission on Audit (COA) flagged as “overpriced” and “outdated.”

“Last month, the Office of the Ombudsman ordered the filing of criminal charges in connection with P2.4 billion purchased laptops for public school teachers during the pandemic. Among the respondents are Froilan Demongo from a joint venture that included Sunwest Construction and Development Corporation,” said Villanueva.

“Why insist on awarding contracts to firms like Sunwest involved in corruption cases when there are more qualified and reliable contractors available?” the majority leader asked, noting why a construction firm is involved in the procurement of laptops.

“So clearly, there’s really no mechanism to check? Zero?” he added.

Director Tracy Ann Senico responded that it is the Government Procurement Policy Board (GPPB) that handles such matters.

“It’s under the jurisdiction of GPPB, and usually, blacklisting only lasts for one year. After one year, they can already transact or participate in bidding again,” Senico answered in Filipino.

PCAB Chair Pericles Dakay affirmed the response, noting that blacklisting falls under the authority of the GPPB, which implements Republic Act 9184, or the Procurement Law.

Accreditation for sale

The hearing also tackled allegations that PCAB licenses were being sold to private contractors for at least P2 million. Senator JV Ejercito tagged the practice as “bagging projects through license and not a good track record.”

Dakay admitted that loopholes persist in the agency despite existing safeguards, but assured that a thorough probe will be conducted through a third-party investigation.

Senator Erwin Tulfo also criticized PCAB’s role in the investigation of flood control and related matters, questioning its credibility since some board members were also contractors involved in government projects.

“How can you watch over others if you cannot even watch over yourselves?” Tulfo asked.

Blue Ribbon Chair Rodante Marcoleta also called for a review of conflicts of interest in the flood control investigation, citing the case of EGB Construction Corporation’s Erni Baggao, the head of the country’s sixth top flood control contractor.

He said Baggao is not only a PCAB board member but also serves as general manager of an electric cooperative and president of the general managers’ association of electric cooperatives in Isabela.

“Nobody can be in the same place twice. It is not allowed,” Marcoleta pointed out.

To address this, Minority Floor Leader Senator Tito Sotto proposed an overhaul of the PCAB and a review of whether it should remain under the Department of Trade and Industry.