Pangilinan: Punish failed flood project contractors with penalties, warranties

Senator Francis "Kiko" Pangilinan on Wednesday, 10 September, said the government must claim multi-million — if not billion — worth of warranties, penalties, and surety bonds from contractors of the failed flood control projects.

Pangilinan raised the possibility of imposing immediate monetary punishment on the erring contractors, which he pointed out "repeatedly endangered the lives of Filipinos."

"Based on what we have found out so far, shouldn't our government take action to enforce these warranties on the numerous projects that we have uncovered that are substandard or ghost projects?" the senator said in Filipino.

"This is a remedy — penalties and warranties — that the government can run after the contractors," he added, pointing out that insurance companies and guarantee corporations would also have to shoulder the liabilities.

Insisting that the “monetary punishment” will be “fast and immediate” compared to the filing of criminal cases against the contractors.

Pangilinan added that they would have to reach out to the newly appointed Department of Public Works and Highways Secretary Vince Dizon on how to enforce the warranties and penalties.

"So with these warranties, the government, public works, can go after these contractors, their surety companies to collect, at least recover some of the money that was squandered," he said.

The senator said that penalties can range up to 30 percent of the total cost of the project that was proven to be substandard within one year of the date of project completion.

In August, President Ferdinand R. Marcos Jr. revealed that only 15 contractors cornered P100 billion, or 20 percent of the entire P545-billion flood control projects across the country.