Senator Erwin Tulfo pressed Wawao Builders General Manager Mark Allan Arevalo on Monday to confirm and elaborate on allegations of a “contractor license-for-hire” scheme linked to ongoing flood control projects under the Department of Public Works and Highways (DPWH).

During the continuation of a Senate probe into corruption in flood control infrastructure, Tulfo asked Arevalo to clarify a previous statement that his company’s contractor license was lent out for bidding on government projects.

“Kanina sinabi mong sapilitan na ginagamit ang inyong lisensya. Sino ang gumagamit ng inyong lisensya? (Earlier, you said that your license was being used forcibly. Who is using your license),” Tulfo, vice chairman of the Senate Blue Ribbon Committee, inquired, referring to Arevalo’s earlier testimony.

Arevalo, whom Tulfo believes is merely a front for the true owners of Wawao Builders, confirmed the allegations, admitting that their license had been used against their will.

“Your Honor, sapilitang ginamit po yung lisensya namin… sa takot po your honor na maapektuhan ang negosyo namin (our license was forcibly used... out of fear, Your Honor, that our business would be affected),” Arevalo said, acknowledging the role his company played in the illegal arrangement.

The general manager further implicated Sally Santos, owner of SYMS Construction Trading, as the one using Wawao Builders’ contractor license to place bids for DPWH projects.

“Pagkakalam ko po kasi, Your Honor. Ang nasa likod po nito ay yung mga nasa loob…ng DPWH (As far as I know, Your Honor, the ones behind this are those inside... the DPWH),” Arevalo added, hinting that officials within the DPWH were complicit in the scheme.

Santos, when questioned, corroborated Arevalo’s testimony, pointing to former DPWH Assistant District Engineer Brice Ericson Hernandez of the Bulacan 1st District Engineering Office (DEO) as the one directing her actions. She claimed Hernandez provided orders for the license to be used in bidding for projects.

However, Hernandez attempted to deflect responsibility, stressing he was just following his “boss” in the Bulacan DEO, referring to former District Engineer Henry Alcantara.

Tulfo, who has long suspected the existence of the “license-for-hire” scheme, noted that the revelations confirmed his prior findings.

“They do not construct — they only have their licenses rented out. Based on the information I received, there is what they call ‘in-house construction.’ The DPWH borrows or even buys the license of a contractor, then proceeds with the project. In some cases, they do not build at all,” Tulfo said in a television interview last week.

During the Senate hearing, Tulfo also confronted Hernandez about an unrelated matter, accusing him of lying about his alleged frequent visits to a casino in Parañaque City.

“Can we just cite this individual Hernandez, in contempt, Mr. Chair? Kasi malinaw pa sa sikat ng araw, nagsi-sinungaling na (It is clear as the sun, he is lying already),” a frustrated Tulfo said, referring to Hernandez’s earlier denial of the casino visits.

Senate Blue Ribbon Committee chairperson Rodante Marcoleta supported Tulfo’s motion and approved the citation for contempt, after confirmation from the casino’s management that Hernandez had indeed visited their establishment multiple times.

Tulfo said the ongoing investigation into the DPWH’s flood control projects continues to unravel layers of alleged corruption.