Crocodiles in Congress have their sensitivity deadened so they do not feel alluded to after President Ferdinand Marcos Jr. blurted out, “Mahiya naman kayo!” (Have some shame), referring to the rampant incidences of corruption in the chamber.
“Insensitive. They weren’t even ashamed. Not even a bit. They should have just kept quiet, but no — they even applauded. That’s how numb they are,” a crusader against corruption said.
The theft of public funds allotted to infrastructure begins with the selection of district or regional engineers by the Department of Public Works and Highways (DPWH).
The choice is left to the discretion of the lawmakers, with flood control projects, particularly those underground, favored because they are easier to manipulate.
For instance, if the technical report says the sheet pile should be 6.3 meters deep, they can make it just 6 meters. Multiply that across thousands of sheet piles, and you’re talking about a considerable amount.
Road-opening projects are also standard conduits for graft, such as asphalt overlays, crash barriers, and solar lights, which are easy to overprice in the Detailed Unit Price Analysis.
Based on the standard operating procedure (SOP), which is the going rate for pork projects, 35 percent to 40 percent is lopped off by the legislators.
Of the 60 percent remaining value of the project, 7 percent is deducted for the value-added tax (VAT) and 1 percent for the insurance bond.
The official of the implementing agency, usually the DPWH, then takes another 10-15 percent or an average of 12 percent. Add a 3 percent contingency fund and another 2 percent for miscellaneous expenses, totaling 55 percent of the project cost, which will be dissipated before actual work begins.
What’s left is 45 percent, from which the contractor will have to raise his profit of about 15 percent, leaving only 30 percent for the actual project implementation.
A rock netting project might be priced at P25,000 per square meter (sqm), for instance, but the real cost is only P4,300, which is a significant difference of P21,000. The overprice is meant to accommodate the massive corruption for the project.
The source said the corrupt practice is ingrained in the government, making it difficult to erase. It’s a highly organized crime.
He noted that the tolerance of this is too apparent, as procurement officials are aware that unit prices are inflated, a fact that can be verified within 30 minutes through a market survey.
A solar light supplier said the actual cost ranges from P35,000 to P46,000 per post, including profit, whereas the approved bid price was P111,000 per post.
It would look odd that members of Congress applauded when the President said he would audit the projects, since they know it will be hard to pin anything on them. Pork barrel recipients don’t sign anything; they get the money, which the source said was “how the syndicate works.”
For a crackdown to be successful, contractors would need to talk and possibly provide affidavits and corroborative evidence.
“It’s something hard. That’s why they were clapping — they know they’re hard to catch,” according to the local official.
The President’s recognition of the cancer of corruption is a good start, as it signals the government’s determination to stamp it out.