The Department of Public Works and Highways (DPWH) has filed multiple bid-rigging and bid manipulation cases against top government contractors and former officials of the Bulacan First District Engineering Office before the Philippine Competition Commission (PCC).
Before signing a memorandum of agreement with the Philippine Regulation Commission (PRC) on Friday, October 3, the Department of Public Works and Highways (DPWH) turned over case files and documentary evidence for the PCC’s review.
Twelve cases of bid manipulation and rigging were filed against five contractors. The firms include Wawao Builders, IM Construction Corp., Syms Construction Trading, Discaya-owned St. Timothy Construction Corp. and Sunwest Inc. – all of which have been flagged for substandard projects.
DPWH Undersecretary Ricardo P. Bernabe III said that despite being flagged for irregularities by the agency’s internal audit service, some contractors were still awarded projects, which he said was a clear indication of bid-rigging.
Here is the breakdown of the per-contract violation the DPWH filed:
3 – Wawao Builderes
2 – IM Construction Corp.
2 – Syms Construction Trading
2 – St. Timothy Construction Corp.
3 – Sunwest Inc.
Public Works Secretary Vince Dizon said penalties for a first violation could reach P110 million per contract, while subsequent violations may climb to P250 million per contract. If the PCC confirms collusion and bid manipulation, total penalties could amount to P2.3 billion, which would have to be paid and returned to the government.
As an example, Dizon showed the number of flood control projects that Discaya-owned companies secured from 2016 to 2025, finding 1,214 projects worth a total of P77.934 billion, based on contract IDs. With the cases now recommended to the PCC, the Discayas could face estimated penalties of P300 billion to be returned to the government.
“Wala pa diyan ‘yung iba’t ibang kasong ifa-file,” he said, reiterating the president’s call for the misused public funds to be returned to the government. (That does not even include the other cases to be filed.)
Dizon also said that all contracts of the nine Discaya companies have been terminated after their licenses have been revoked. This, he explained, allows the government to seize their surety bonds and warranties to ensure the projects are properly completed.
The DPWH cases also named Bulacan district and project engineers, along with other officials from its engineering office, together with officials and employees of the DPWH Regional Office in Mimaropa over the anomalous Oriental Mindoro flood control project linked to Sunwest Inc.
DPWH previously filed a case before the Ombudsman against around 20 of its former engineers and officers for alleged corruption, falsification, malversation and violations of the Government Procurement Reform Act.
Dizon said the 20 engineers will be covered in the cases they referred to the PRC, which will be responsible for reviewing the licenses of professional engineers and contractors and determining if they should be revoked.
“So it’s not just about accountability, but it’s also about safeguarding the institutions and the projects that the DPWH is doing from now moving forward. So 20 kaagad dito sa unang binigay namin sa PRC ngayon macocover ng MOA natin,” he said, noting this is just the first case.
Dizon said the evidence submitted by the DPWH to the PCC included fraud audit reports from the Commission on Audit and the agency’s internal audit service.
While careful not to preempt the PCC’s ruling, the DPWH chief said he expects a faster resolution since the department has already submitted substantial evidence, including the Discayas’ own admission during congressional probes that they took part in bid rigging.
Since the agency just filed the cases, Undersecretary Ricardo P. Bernabe III said there will be a period for preliminary inquiry and case build-up, which may take as long as three months before proceeding to deal with the actual case.