The Department of Public Works and Highways (DPWH) has ordered the cancellation of 19 questionable flood-control projects amounting to P934 million, approved two weeks before former President Gloria Macapagal-Arroyo stepped down.
The projects did not undergo public bidding and were signed even before funds were properly allocated, said DPWH Secretary Rogelio Singson.
“The contracts were signed June 18 and the SARO (Special Allotment Release Order) which is the allocation from the DBM (Department of Budget and management) came (on) June 25," Singson said in GMA News’ “24 Oras" newscast.
“Awarded na, yung iba pinapaumpisahan na, even without the SARO (They were already awarded, and others already being allowed to commence, even without the SARO)," he added.
Instead of going through public bidding, the projects went through negotiated contracts, as was the usual practice in the department, Singson explained.
He said, however, that this mode of procurement will no longer be allowed in the current administration.
Three contractors got most projects
Of the 19 projects, three contractors have clinched more than one project: Northern Builders, L.R. Tiqui Builders Inc. and Tokwing Construction.
Northern Builders, for example, acquired four projects amounting to P375 million, or more than a third of the total cost of all the projects in question.
L.R. Tiqui Builder Inc. meanwhile had three projects, while Towking Construction had two.
The 19 cancelled projects are: La Trinidad, Bokod, Itogonon and Bugilas, Benguet Sabangan, Mt. Province and Tabuk, Kalinga worth P53,065,412.74 under contract with Ferdstar Builders Contractors Ilocos Norte; P35,111,912.02; A. De Guia Construction Sitio Departe Barangay Bantog, Asingan, Pangasinan; P91,493,729.45; Tokwing Construction Sitio Bato, Barangay San Vicente, San Manuel, Pangasinan; P228,749,682.31; Northern Builders Camalaniogan and Sta. Praxedes, Cagayan; P25,845,331.01; M.M. Construction Paitan Section Bay and Bambang, Nueva Vizcaya; P68,617,154.18; Royal Crown Monarch Construction and Supply Sta. Fe, Kayapa and Dupax Del Sur, Nueva Vizcaya; P27,416,017.95; Christian Ian Construction Corp. Paombong and San Jose Del Monte City, Bulacan; P9,139,201.72; P.O.N. Construction Province of Bulacan; P41,114,825,65; Northern Builders San Felipe and Iba, Zambales; P42,542,444.58; Tokwing Construction San Marcelino, Zambales; P19,195,055.26; Arrowhead Construction Arayat, Pampanga; P77,315,428.96; L.R. Tiqui Builders, Inc. Candaba, Pampanga; P78,714,659.59; Northern Builders Barangay Bodega Section, Floridablanca, Pampanga; P27,447,484.14; Northern Builders Guagua and Lubao, Pampanga; P16,451,747.20; L.R. Tiqui Builders, Inc. Moncada and Bamban, Tarlac; P32,015,365.91; R.A. Pahati Gravel and Sand and LSD Construction and Supplies Aliaga, Nueva Ecija; P18,292,974.84; L.R. Tiqui Builders, Inc. Bungabon and San Leonardo, Nueva Ecija; P19,191,123.52; Royal Crown Monarch Construction and Supply Balayan and Lemery, Batangas; P22,388,000; A.D. Construction
A four-member team, headed by DPWH Undersecretary Jaime Pacanan, has been formed to investigate the people behind the cancelled projects.
Funds from Japan loan
According to Singson, the cancelled projects were among the anomalous transactions involving 86 contracts worth P3.5 billion funded by a loan from the Japan International Cooperation Agency (JICA).
The funds were supposed to be used for dikes, roads and bridges damaged in last year’s destructive cyclones Ondoy and Pepeng, which damaged crops, livestock and farm structures amounting to as much as P12 billion.
The province of Pangasinan was set to get the largest allocation from the loan, followed by Pampanga.
About P78 million were earmarked to repair the dikes in Candaba surrounding the Pampanga River, which protect five nearby towns.
"Kapag sumabog ito, aabot ang tubig sa Mexico, Sta. Ana, San Fernando. Talagang malaking tubig. Lulubog ang buong town ng San Fernando," said Candaba Mayor Jerry Pelayo in the GMA newscast.
(If the dikes are breached, the water will reach Mexico, Sta. Ana, San Fernando. Really big flood. The entire town of San Fernando will be submerged.)
Pelayo added they are amenable to the conduct of a public bidding for the projects, but asked that the process be expedited so that the dikes could be repaired before the start of the rainy season.
"Pagdating sa bidding, wala kaming pakialam diyan, negotiated man. Ang importante, magawa lang. Tingnan din at paspasan ang pag-review, pag-evaluate," Pelayo said.
(When it comes to whether bidding or negotiated contract, is not our business. What’s important is to do the project. They should see to it that the review and evaluation are done quickly.)
Singson, however, said he is not keen on allowing any more negotiated contracts, and insisted that government transactions will now have to go through public bidding.
"I will not rush into it and just negotiate without any clear indications whether tama ba ang presyo (the price is right or not). Medyo pasensyahan na lang muna (They’ll have to be a bit more patient this time), this will just have to go through public bidding. Yun lang naman ang point namin (That is the only point we want to make)," he explained.
He added they will try to finish the review of and bidding for the cancelled projects within 60 days.—Jerrie M. Abella/JV
