Senators question PCAB renewals for Discaya-owned firms

The Senate Blue Ribbon Committee hearing held Monday exposed multiple issues involving government officials and contractors in the controversial flood control projects.

The debriefing included 15 contractors, along with former DPWH Secretary Manuel Bonoan.

Another government wing involved was the Philippine Contractors Accreditation Board (PCAB), which was questioned for renewing the licenses of Discaya-owned firms — St. Gerard Construction and St. Timothy Construction.

St. Gerard was said to be suspended back in 2015 for submitting a falsified tax clearance certificate, which was confirmed as fraudulent by the Bureau of Internal Revenue (BIR). Fast forward to 2020, they were blacklisted by the DPWH for failing to complete a school building project in Cavite, resulting in over 15% negative slippage.

In spite of this, the company’s PCAB license was renewed, valid from 2 July 2023 to 28 January 2026.

As for St. Timothy, it was revealed that the P96.4 million Bulacan river project in 2023 was deemed completed. Despite the substantial budget, over 200 meters of planned revetment were not constructed.

Senator Tito Sotto castigated the PCAB for allowing these firms, owned by just one entity, to operate, and sought amendments to the laws that created the department.

“I want to amend the law creating the PCAB, to put more power and strong coordination with the DPWH and not just with the DTI,” Sotto said.

According to Sotto, the PCAB was created under Republic Act No. 4566, or the Contractors’ License Law of 1965, to regulate and license contractors.

It was later placed under the Construction Industry Authority of the Philippines (CIAP) through Presidential Decree No. 1746 in 1980, and CIAP itself was attached to the Department of Trade and Industry (DTI) under Executive Order No. 133 in 1987, making PCAB an accrediting body under the supervision of the DTI.

Senator JV Ejercito said, “bagging projects through license and not a good track record," prior to the alleged selling of licenses for contractors by P2 million.

Amid these matters thrown at PCAB, the question is: who are the people behind this agency?

PCAB officials

Dr. Pericles P. Dakay is the chairperson of PCAB, which serves as the regulatory gatekeeper of the country’s construction industry, ensuring that only qualified contractors can legally undertake projects. Its main task is to issue licenses, classify contractors based on financial capacity, technical expertise, and manpower, and monitor compliance with laws and standards.

By enforcing these regulations, PCAB aims to protect the public interest, prevent substandard work, and maintain integrity in both government and private projects.

Ironically, Dakay also serves as president and CEO of Dakay Construction and Development Corporation (DCDC), one of the country’s largest construction firms, which holds a AAA PCAB license — the highest accreditation granted to contractors.

Another board member of PCAB, Engr. Erni G. Baggao, is also a contractor who owns EGB Construction, which was notably part of the top 15 firms.

Engr. Arthur N. Escalante is the owner of A.N. Escalante Construction Inc.

This was called out during the hearing by Senator Erwin Tulfo, pointing out the integrity of the department given their related firms.

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

Since 1995, Dakay has taken over the construction company, bringing technological advancements and a dynamic approach, and was later listed as the chair of the PCAB starting in 2016, as confirmed by official PCAB documents. He continued to hold the post in subsequent years, even signing board resolutions in 2018 and being cited in news reports as chair as recently as 2022 and 2025.

He has been repeatedly reappointed under the CIAP, suggesting continuous leadership at the board for nearly a decade.