5 top contractors of flood control projects lacked capital - Gatchalian

Metro Manila, Philippines - Senator Win Gatchalian has revealed that five major contractors in flood control projects lacked the financial capacity to undertake billions of pesos in contracts — a situation he attributed to corruption that could lead to substandard infrastructure.

During the Senate Blue Ribbon committee’s first hearing on the matter on Tuesday, Aug. 19, Gatchalian pointed out that under Philippine Contractors Accreditation Board (PCAB) guidelines, a minimum net worth of ₱1 billion is required for contractors handling projects of at least ₱450 million.

However, Gatchalian said five contractors — identified by President Ferdinand Marcos Jr. as among those that cornered about a fifth of all flood control projects — failed to meet the requirement.

QM Builders, for instance, only has a paid-up capital of ₱1.25 million but was awarded 93 projects worth ₱7.38 billion from 2022 to 2025.

Centerways Construction and Development Corp., which began with only ₱1.25 million in paid-up capital and later increased it to ₱45 million, secured ₱5 billion of projects.

Triple 8 Construction and Supply Inc., with an initial capital of ₱5 million, later raised to ₱90 million, bagged ₱3.9 billion in contracts.

Wawao Builders, with ₱50 million in capital, was awarded ₱4.2 billion in projects, while MG Samidan Construction Corporation, with ₱250 million, landed ₱5 billion of contracts.

Gatchalian said the figures are based on documents from the Securities and Exchange Commission.

“In my opinion, there is some form of I think collusion or some form of corruption in awarding the contracts to contractors who are not capitalized adequately,” Gatchalian said.

“Dahil nga kung undercapitalized siya, obviously yung project papalpak ho talaga. Magtitipid siya,” he added.

[Translation: Because if a contractor is undercapitalized, the project will obviously fail. They will cut corners.]

Gatchalian further pointed out that QM Builders has had zero revenue and profits, and has been operating at a loss since 2017.

Allan Quirante, owner of QM Builders, disputed the information, stating that the data may have come from the company’s hardware business, not its construction operations. He said the construction firm actually has a net financial contracting capacity of ₱40 billion and agreed to submit its financial statements.

Quirante admitted that the construction company is currently a sole proprietorship and is in the process of incorporation.

Surprised, Senate Blue Ribbon committee chairman Rodante Marcoleta asked Public Works Secretary Manny Bonoan why a sole proprietor was allowed to undertake government projects worth billions.

Bonoan responded that QM Builders was qualified, having secured a license from the PCAB.