Metro Manila, Philippines – If not direct owners, eight sitting or former members of the House of Representatives about to face plunder and multiple corruption and administrative charges have their children, spouses, siblings, and close relatives in control of construction companies that secured billions of pesos in infrastructure projects across two administrations, according to government data.
The latest case referral of the Independent Commission for Infrastructure (ICI) and the Department of Public Works and Highways (DPWH) to the ombudsman stated that at least 1,300 civil works projects equivalent to over P92 billion in contracts were awarded to companies owned and related to eight people – called “cong-tractors” (a coined term for congressman and contractor) from 2016 to 2024.
The agencies said the data was based on the General Information Sheet of the companies from the Securities and Exchange Commission, which was among the evidence submitted to the ombudsman.
Lawmaker-owners, stockholders
Of the eight people recommended for criminal and administrative charges, three either own, hold majority shares, or were listed as incorporator in the companies that bagged projects.
The Constitution and the Code of Conduct and Ethical Standards for Public Officials and Employees generally prohibit government officials from owning, controlling, managing, or accepting employment in any private enterprise under the principle of avoiding conflict of interest.
Officials with substantial shareholdings or interests that may conflict with their duties are required to divest their interests in the business. Divestment must be a complete transfer of title to individuals other than close relatives to avoid indirect links.
The ICI and DPWH stated in their submissions that Tarlac 3rd district Rep. Noel Rivera is a majority stockholder, and chairman and president of Tarlac 3-G Construction and Development Corporation.
Government data showed that Rivera has a 54.84 percent share in the company, while his wife, Evelyn, who is the vice mayor of Concepcion Tarlac, holds around 45 percent.
The company bagged a total of 72 projects or P2.3 billion in contracts from 2017 to 2024. After Rivero assumed office in 2022, the contracts of his company doubled from P135 million to P358.7 million and P312.8 million in 2023 and 2024, respectively.
Also in the recommended charge sheet, Pusong Pinoy party-list Rep. Jernie Nisay has been identified as the sole proprietor of JVN Construction and Trading.
Since Nisay’s election in 2022, DPWH records show that the contracts awarded to JVN doubled from P24.7 million to P49 million. The company had P73.7 million in contracts from 2021 to 2022.
Meanwhile, Cagayan 3rd district Rep. Joseph “Jojo” Lara is the incorporator of JLL Pulsar Construction Corporation, which bagged 241 infrastructure projects from 2016 to 2024, equivalent to over P11 billion.
Lara held 80 percent of the total issued and outstanding shares of JLL, the DPWH and the ICI said in their referral.
In a statement, the lawmaker said he had cut ties with the construction company before entering public service.
Children, spouses in the business
If not direct owners, the “cong-tractors” have children and/or spouses with substantial interests in the businesses.
In the case of Lara, his four children are stockholders of JLL, namely, Joseph Jeremy, Joseph Kyle, Joseph Joshua, and Joseph.
According to data, Lara’s company obtained 113 infrastructure projects of over P5 billion since 2019 when he became congressman.
In the same vein, Construction Workers Solidarity party-list Rep. Edwin Gardiola’s children are on board in one of the three construction firms tied to him that cornered billions of pesos in public works contracts.
According to the DPWH and ICI, each of Gardiola’s children are either stockholders, directors, or officers of S-Ang, which had P9.2 billion in projects from 2016 to 2024. They are: Kim Ann G. Esguerra, Katrina Mara G. Katigbak, Kaila S. Gardiola, Ken Martin S. Gardiola.
The lawmaker’s wife, Judy, is company chairman and a stockholder as well.
‘Cong-tractor’ siblings
Siblings of “cong-tractors” own companies that were also involved in infrastructure deals.
In Gardiola’s case, his two brothers are tied to two construction companies that cornered billions of pesos in projects.
Alberto Elmer Gardiola, the vice president and treasurer of Newington Builders Inc., formerly Gardiola Construction, bagged P13 billion in projects from 2016 to 2024. His wife, Elaine, is nearly the full owner of Newington with 96 percent shares.
The lawmaker’s other brother, Earel Benedicto Gardiola, is an incorporator of Lourel Development Corp., which had P2.1 billion in projects from 2021 to 2023.
In total, the firms tied to Rep. Gardiola had P24.6 billion in infrastructure deals in eight years.
Notably, the amount of contracts awarded to Newington and S-Ang spiked since 2022 when Gardiola took office.
In 2022, Newington secured 36 projects or P3.6 billion in contracts – much higher than the two projects it bagged in 2021 worth P380 million. In the same years, S-Ang projects more than doubled to 29 from 10, with a total P3.8 billion in contracts in 2022.
In a statement, Gardiola denied involvement in the irregularities in flood control projects. He did not address his ties with the companies mentioned in the case referral.
Also flagged for having a sibling taking on infrastructure projects was fugitive and former House appropriations committee chairman Zaldy Co.
Government data showed that Co’s sister, Albay Vice Governor Farida “Diday” Co, is the sole proprietor of FS Co Builders and Supply. The company cornered 40 projects or P3.8 billion in contracts from 2020 to 2024 when Co became a lawmaker.
According to the DPWH and the ICI, “a significant number” of these projects were under a joint venture with HiTone Construction and Development Corporation, founded by Christopher Co, brother of Zaldy.
President Ferdinand Marcos Jr. identified HiTone as among the 15 contractors that cornered the most number of flood control projects in the last three years.
The former AKO BICOL party-list representative is facing graft and a non-bailable malversation charge before the Sandiganbayan over a substandard road dike in Naujan, Oriental Mindoro, contracted by Sunwest Inc., of which he is said to be a beneficial owner.
Co remains at large, as he was out of the country since the flood control scandal blew up.
Extended family
Close relatives of some lawmakers are not far behind in the web of investigation.
Alfonso Tan, chairman and stockholder of government contractors International Builders Corporation (IBC) and Allencon Development Corporation, is the uncle of Uswag Ilonggo party-list Rep. James Ang Jr.
The two companies bagged P36 billion and P4 billion in contracts – the biggest in the DPWH and ICI referral.
IBC’s projects have more than doubled since 2022 when Ang became congressman. In 2024 alone, the company secured P6.9 billion in contracts equivalent to about 75 projects.
In a statement on Nov. 26, Ang said he never used his position for profit and his own interest. “I stand firm on what is true and just. I am ready to face this case in the proper forum,” he said.
Similarly, the nephew of Surigao del Norte 1st district Rep. Francisco Matugas bagged hundreds of civil works deals from 2017 to 2024.
Ronald Matugas Abejo is the majority stockholder of Boomex Development Corp. The construction firm bagged P8.7 billion projects – the biggest in 2022, with almost P3 billion in contracts.
Rep. Matugas was Surigao del Norte governor from 2019 to 2022.
In a translated post on his Facebook page on Nov. 27, the lawmaker said he has nothing to hide and vowed to cooperate with the probe.
Meanwhile, the ICI and DPWH also flagged Bulacan 2nd District Rep. Augustina Pancho with seven relatives who are stockholders of government contractor C.M. Pancho Construction, Inc.
The DPWH said only one contract was awarded to the company, but the project amounted to P1.2 billion.
Other lawmakers have yet to issue public statements on the case recommendation.
The eight officials may face plunder, graft, violations of procurement law, and code of conduct and ethical standards for public officials over conflict of interest.
