Accreditation for sale, fake contractors in flood control projects - Lacson

Metro Manila, Philippines - Senator Panfilo “Ping” Lacson has exposed more corrupt practices in flood control projects, including irregularities in the accreditation process, and competitor collusion to manipulate the bidding process.

During the interpellation on his privilege speech on Wednesday, Aug. 27, Lacson responded to questions from Minority Leader Vicente “Tito” Sotto III, who raised concerns over how billions of projects seem to be “monopolized by a few.” Sotto asked whether any agency is responsible for monitoring such practices.

Lacson pointed to the Philippine Contractors Accreditation Board (PCAB) under the Department of Trade and Industry (DTI), which accredits contractors.

“Pero it seems na medyo nahaluan na rin yata ng kaunti — o hindi lang kaunti — na katiwalian pagdating sa flood control projects,” Lacson said.

[Translation: But it seems it has also been tainted with corruption when it comes to flood control projects.]

Lacson revealed that some private contractors told him about an "accreditation for sale” in PCAB.

“They had this experience of being offered accreditation by PCAB na sila na yung bahala sa bank certificate and other requirements, for a fee of, I think P2 million, for a start,” Lacson said.

“Ganito na kasama talaga yung kalakaran sa ating bureaucracy,” he added.

[Translation: They experienced being offered accreditation by PCAB, where personnel would take care of the bank certificate and other requirements - for an initial fee of around P2 million. This just shows how deep seated corruption is in our bureaucracy.]

He noted that he plans to raise these issues with PCAB during the Senate Blue Ribbon committee’s second hearing, tentatively on Sept. 1.

In another interpellation with Senator JV Ejercito, Lacson revealed a collusion among contractors, where they pay so-called “sahod” or fee to other groups to fake competition in the bidding process.

He said the payments reach hundreds of millions of pesos.

“Babayaran na lang sila para magpatalo. Para maging legit lang yung bidding, kailangan may mga kasaling iba,” Lacson shared.

{Translation: They are simply paid to lose. To make the bidding appear legitimate, other companies have to be involved.]

Ineffective blacklist

Sotto, meanwhile, pushed for stricter penalties for blacklisted contractors, calling the current one-year ban “too lax” and proposing an extension of up to five years.

Deputy Minority Leader Risa Hontiveros also pointed out that some contractors evade blacklisting by creating new firms or changing company names.

“How can we impose a true, effective blacklist kung saan yung mga abusadong contractors hindi na talaga makakuha ulit ng kontrata [whereby abusive contractors will no longer be able to obtain contracts]?” Hontiveros asked.

Lacson emphasized the need for closer coordination between PCAB, the Securities and Exchange Commission, and the Department of Public Works.

“Kung blacklisted, maski iba yung pangalan,ma-trace nila na pareho rin pala yung mga incorporators, huwag na lang nila i-register as a corporation sa SEC,” Lacson said.

[Translation: If a contractor is blacklisted, even if they use a different name, they can be traced through the same incorporators. The SEC should simply refuse to register them as corporations.]