Senator Win Gatchalian on Thursday has called on the Department of Public Works and Highways (DPWH) to identify the members of its bids and awards committee responsible for greenlighting what he described as “questionable” infrastructure contracts awarded to undercapitalized contractors.
Gatchalian, who chairs the Senate Finance Committee, expressed strong dismay over the approval of multi-billion-peso flood-control projects given to firms with insufficient financial capacity.
"Submit to us the exact names. We need to know who these people awarded the projects. We demand accountability," Gatchalian told DPWH officials in a recent Senate inquiry, emphasizing the need for transparency in the procurement process.
The senator pointed out the risks of awarding large-scale projects to financially weak contractors, lamenting that this often leads to cost-cutting and poor-quality results.
He specifically cited a case in which a contractor with only P1.2 million in capitalization was awarded a P1.5-billion government project.
"Some people are clearly manipulating the pre-qualification stage. There is some form of collusion or corruption involved. How does an underfunded contractor end up securing a billion-peso contract?" Gatchalian asked DPWH Secretary Manuel Bonoan.
He also questioned the department’s guidelines in determining the minimum capitalization requirement for contractors bidding on public infrastructure projects.
"Who reviews the capability and capitalization of these companies? How is eligibility even assessed?" he further asked.
Gatchalian cited the growing scrutiny of government infrastructure spending, with other lawmakers seeking stricter safeguards to ensure projects are awarded only to capable and properly vetted contractors.