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It is one thing for lawmakers and contractors to gorge on public infrastructure funds, but another matter entirely for the state’s top auditors, sworn to protect taxpayer money from such vultures, to take part in the feast.

Of the many names mentioned during the blockbuster Senate inquiry on public works corruption that has sparked a political firestorm and enraged a nation, that of Commission on Audit (COA) Commissioner Mario G. Lipana stands out as a literal anomaly. The reason is obvious: His alleged entanglement in the flood control scandal belies his commission’s long-standing reputation as the people’s last bastion against plunder.

Now, the public must confront a discomfiting question: Who audits the auditor?

Conflict of interest, it is often said, is corruption in waiting. In Lipana’s case, the conflict of interest is clear as day, and any benefit of the doubt seems to be of no use to him in the face of the bare facts. His wife, Marilou Laurio Lipana, heads Olympus Mining and Builders Group Philippines Corp., a company that has reportedly secured at least nine ongoing contracts with the Department of Public Works and Highways (DPWH) in Bulacan worth P326.6 million, on top of previously completed projects amounting to P178.5 million.

Impeachable offense

These contracts sat at the center of the Senate blue ribbon committee’s hearings, where former DPWH district engineer Henry Alcantara testified that Lipana requested a list of flood control projects in 2022, leading to alleged budget insertions of P1.4 billion spread across three years.

Sen. Francis Pangilinan described such conduct, if proven, as an impeachable offense. ‘A COA commissioner who is peddling flood control projects in your district of Bulacan. Is that right? Because you are being audited by COA, right? How can there be a truthful audit if a project is being asked from you?’ he asked Alcantara.

The logic is inescapable: who would trust a watchdog that accepts a bone from the same intruders it’s supposed to keep out?

The Office of the Ombudsman, pressed during plenary debates by ACT Teachers party list Rep. Antonio Tinio, confirmed that a fact-finding investigation was underway on the allegations against Lipana. But as Tinio correctly observed, delicadeza alone should have compelled the COA commissioner to resign as soon as his vested interests came to light.

Instead, Lipana has been conveniently absent from work, reportedly undergoing medical treatment in Singapore. Meanwhile, neither he nor his family has offered a word of excuse, while the public examines the damning paper trail of contracts in their name.

Twin temptations

The 1987 Constitution states that no member of a constitutional commission shall be ‘financially interested, directly or indirectly,’ in any government contract, a provision so designed to insulate these bodies from the twin temptations of patronage and power.

Lipana, an appointee of former President Rodrigo Duterte and a career auditor who should have known better, violated not just the letter but the spirit of that safeguard the moment his wife’s company began bagging projects from an agency COA is mandated to scrutinize.

His profile on the COA website describes Lipana in glowing terms as ‘a career official who rose from the ranks’ and who ‘has acquired more than 38 years of experience and expertise as Auditor of both local and international audits covering financial and compliance audit.’

How tragic for a technocrat with such credentials to have lacked, at best, the common sense not to risk his career in exchange for familial benefits, or at worst, the moral compass to reject corruption outright.

The larger tragedy, however, is the fallout on COA itself. For decades, the commission has been the country’s most reliable check on corruption, exposing irregularities across administrations and earning a name for itself as a bulwark of transparency.

Public’s faith

Lipana’s case erodes that trust, because state auditors who cannot meet the standard they demand of others forfeit the moral authority that gives meaning to their fiscal independence. Even granting him the presumption of innocence, the appearance of impropriety is overwhelming. By remaining in office, Lipana undermines the credibility of the entire audit system.

Therefore, COA’s next step is clear. For this body to retain the public’s faith, its leadership must enforce the principle it expects of other agencies: accountability begins at home.

This scandal is but a glimpse into how deep corruption runs in the bureaucracy, seeping into the very walls built to keep it out. For the sake of the institution he has served for nearly four decades, Lipana should audit himself and step down. And when all is said and done, COA must perform, as other agencies are doing, lifestyle checks and a long overdue internal cleansing of its ranks, from the top down, for this constitutional office to preserve its honor as the nation’s conscience.

Senator Risa Hontiveros on Tuesday criticized the Government Service Insurance System (GSIS) for failing to proactively evaluate the social costs of its investments, particularly in online gambling, before committing funds.

This developed after Hontiveros, during a Senate panel hearing, asked the GSIS if it included the social costs of online gambling in calculating risks before investing P1 billion in the online gambling platform DigiPlus.

GSIS President Jose Arnulfo ‘Wick’ Veloso, for his part, responded that the agency considered DigiPlus to be a legal and listed corporation under the Philippine Stock Exchange.

‘We can see that this qualifies under the three points of our management: profitability, safety, and liquidity. So we saw that it meets the requirements, and that’s why we invested,’ Veloso explained.

Hontiveros then asked Veloso if the GSIS was ‘completely agnostic’ to the documented social costs of online gambling.

But Veloso maintained that the GSIS bases its investment decisions primarily on financial factors unless the Congress or a law specifically mandates otherwise.

Further stressed if this meant the GSIS did not, in fact, consider social costs as one of the qualifications before investing, Veloso responded:

‘The social costs you’re referring to are something we also want to learn how to integrate into our analysis of these kinds of businesses,’ said Veloso. ‘.That is why, Your Honor, we would like to seek the wise guidance of this committee and your chamber. Because we are merely following, and if this is the will of the people, then let us amend the law so that we may be properly guided,’ he added.

Senator Mark Villar, who chaired the hearing, acknowledged the concerns, but pointed out that while externalities like social costs are ‘not easily quantifiable,’ they should still be considered in government investments.

‘Perhaps when we talk about government money, we should be more diligent with learning about these externalities that are associated with these investments, be it in whatever sectors,’ said Villar.

‘It’s not easily quantifiable, but I hope this is something we can discuss in this committee and maybe make a part of the GSIS’ decision-making process,’ he added.

Hontiveros then pointed out that public health professionals could easily quantify the social costs, if need be.

She also pointed out that the social costs of online gambling have been documented well before the GSIS made the investment.

‘Our society and certain sectors of it-including the GOCCs-already recognize this, even in the case of online gambling. And yet, with all due respect, it seems too easy to simply say, ‘Let Congress first tell us what to do.’ You should be able to factor this in more quickly, because in truth, you can act much faster than we can,’ she said.

The senator then asked if GSIS would support the crafting of a legislation that would require government financial institutions to factor in social impacts before investing, to which Veloso answered in the affirmative.

Yet Hontiveros expressed disappointment that the GSIS was unwilling to take a more proactive stance.

‘You don’t have to wait until a new committee report or a new law is approved to take action,’ she said, noting that the pension fund made its P1-billion DigiPlus investment without congressional instruction.

‘You could very well be more proactive, and in fact show a good practice . guiding us in showing how our GOCCs can, over time, become increasingly selective in placing funds, especially when these involve the contributions of our public sector unions.,’ she added.

Hontiveros then said that she wishes they could have gone farther in this direction.

‘But if that is all the GSIS can say to the public, then I won’t be the only one disappointed,’ she said. /cb

Senate President Vicente ‘Tito’ Sotto III attended the first full meeting of the Legislative-Executive Development Advisory Council (LEDAC) for the 20th Congress held at Malacañan Palace, presided over by President Ferdinand ‘Bongbong’ Marcos Jr., together with House Speaker Faustino ‘Bodjie’ Dy III and other officials.

The meeting tackled the alignment of priority bills of the Senate, the House of Representatives, and the Executive branch, alongside the adoption of the Common Legislative Agenda presented by Secretary Arsenio Balicasan, PhD of the Department of Economy, Planning and Development (DEPDEV) and Head of the LEDAC Secretariat.

Discussions focused on improving healthcare and education, promoting inclusive agriculture and livelihood, strengthening the energy sector, and pursuing governance, digital, and financial reforms to spur economic growth and deliver efficient public service.

‘These priorities reflect our collective effort to ensure that policies are both responsive to the immediate needs of the people and consistent with our long-term development goals,’ Sotto said.

Other members of the Senate who were present included Senate Majority Leader Juan Miguel F. Zubiri and Senator Sherwin Gatchalian.

The LEDAC serves as the highest consultative and advisory body to the President on socio-economic development, strengthening coordination between the Executive and Legislative branches of government.

The specific bill ni SP included in the Common Legislative Agenda is the Freedom of Information Bill.

This bill provides for full public disclosure of all government records involving public interest, and upholds the constitutional right of people to information on matters of public concern.

Pia Wurtzbach graced the runway of the show of a French beauty brand at the Paris Fashion Week, joining the likes of Kendall Jenner, Eva Longoria, Helen Mirren and Simone Ashley, among others.

The Miss Universe 2015 titleholder looked radiant in a shiny red off-shoulder, high-slit gown while on the fashion stage, as seen in the video she shared on her Instagram page on Tuesday, Sept. 30.

‘Back on the Le Défilé runway with [L’Oreal] and it feels so empowering!’ she said.

Wurtzbach first graced the brand’s Paris runway in 2024 and became the first Filipina to do so.

‘To walk alongside women from all over the world and carry the [Philippines] with me? That’s the real honor,’ she said. ‘The theme ‘Liberty, Equality, Sisterhood’ says it best. When we walk together, we walk stronger.’

‘Always proud to remind every Filipina: we are seen, we are celebrated, and yes.we are ALWAYS worth it,’ she underscored.

Praises for the beauty queen filled the comments section, with fellow celebrities Megan Young, Gabbi Garcia, Isabelle Daza and Saab Magalona admiring Wurtzbach.

Prior to the Paris Fashion Week, Wurtzbach was also in attendance at some shows at the Milan Fashion Week, as per her earlier Instagram posts

Pure Energy Holdings Corp. (PEHC), backed by businessman Dexter Tiu, and Quadwater Corp. are set to secure a majority stake in listed Coal Asia Holdings for P220.9 million.

In a disclosure on Monday, Coal Asia said five of its stockholders signed a share purchase agreement with PEHC, Pure Water Corp. (Pure) and Quadwater. This is for the sale and purchase of 28.67 billion common shares of the company.

That translates to 71.68 percent of the group’s total issued and outstanding capital stock.

Breaking down, PEHC will get 12.48 percent with the acquisition of 4.99 billion shares.

Both Pure and Quadwater, meanwhile, will secure 29.60 percent each. The three firms are acquiring a total of about 23.68 billion shares in Coal Asia. They expect to close the deal before the year ends.

Coal Asia did not disclose details on the allocation of the proceeds from the transaction.

‘The transaction provides the buyers with the opportunity to acquire a significant interest in the company,’ said PEHC president Eric Peter Roxas. He is also one of the selling shareholders.

‘It also facilitates the reallocation of shareholdings among the parties in a manner that supports their respective investment objectives,’ Roxas added.

Common directors

Pure is a subsidiary of PEHC. The two companies and Coal Asia have interlocking directors, namely Tiu, Roxas, and Gertim Chuahiong.

Quadwater, on the other hand, is not affiliated with either PEHC or Pure. However, Pure and Quadwater have interests in Tubig Pilipinas Group Inc.

PEHC has a presence in the renewable energy space through Repower Energy Development Corp. (REDC). It has mini-hydropower projects clustered in Laguna, Quezon, Camarines Sur, Bukidnon and other provinces under development. These have a combined capacity of 124 megawatts.

PEHC also leads NexGen Energy Corp., a listed clean power producer, focused on the solar and wind business.

Earlier this year, the company said its four wind projects worth P300 billion secured a ‘green lane’ status, allowing the firm to avoid bureaucratic bottlenecks. INQ

Gleer Codilla, a former Manila Arena security guard who was charged in 2022 in a Manila court over the missing ‘sabungeros’ (cockfighting enthusiasts), submitted an affidavit to the Department of Justice (DOJ) on Monday in support of the police complaint against businessman Charlie ‘Atong’ Ang and several others.

Senior Assistant State Prosecutor Charlie Guhit said Codilla, who is considered a witness in the DOJ proceedings, filed the affidavit backing the complaint submitted by the Philippine National Police against Ang and company last month to the justice department.

‘With respect to the submission of the other affidavits, they are witnesses. Particularly, I remember Gleer Codilla,’ Guhit said in an ambush interview after the second preliminary investigation conducted by the DOJ.

The PNP complaint accuses Ang, celebrity Gretchen Barretto, and more than 50 other respondents of multiple counts of murder, kidnapping, and serious illegal detention, among other charges.

Separate case

Codilla, along with whistleblower Julie Patidongan, is a respondent in the kidnapping and serious illegal detention case filed with a Manila court in 2022 over the alleged abduction of sabungeros John Claude Inonog, James Baccay, Marlon Baccay, Rondel Cristorum, Mark Joseph Velasco, and Rowel Gomez.

One of the witnesses in that case, Denmark Sinfuego, alleged that he saw Codilla with the victims as they were being moved from their designated cockhouse to the arena’s basement, where they were forced to board a gray van.

Sinfuego further testified that he saw Patindongan, Codilla, and fellow Arena guard Mark Zabala with victims Velasco, Gomez and Cristorum. Behind them, other Arena guards identified as Johnry Consolacion, Roberto Matillano, and Virgilio Bayog carried the victims’ personal belongings.

According to Guhit, the PNP-Criminal Investigation and Detection Group submitted copies of flash drives containing evidence to the panel of prosecutors on Monday, which were viewed by the parties during the hearing.

‘I will not anymore disclose what are the contents of the USB because that will be part of the resolution of the case of this preliminary investigation,’ Guhit said.

The preliminary investigation will continue on Nov. 3, with prosecutors requiring Ang to personally appear and swear to his counter-affidavit. INQ

CIBI Information Inc., the Philippines’ first credit reporting agency, warned of a rise in hiring fraud that could expose companies to steep losses unless they adopt more rigorous verification systems.

The firm pointed to a mix of economic pressures, intensifying competition and the easy availability of online tools as factors that have made it simpler for job seekers to misstate or embellish their qualifications.

Common tactics include falsifying academic records, inflating work experience, inventing technical skills and, in some cases, manipulating personal identities to secure an advantage in the hiring process, CIBI said.

It added that companies risk hiring underqualified employees, which could lead to productivity setbacks, wasted recruitment investments, compliance issues and even reputational damage if third parties are affected.

‘Growth is important, but it must go hand in hand with integrity,’ Pia Arellano, president and CEO of CIBI, said in a statement on Monday.

‘By embedding proactive verification into hiring, businesses protect themselves, their people, and ultimately the strength of the country’s labor market. Integrity in hiring is more than just a business process; it’s a public service,’ Arellano added.

Steep losses

Citing a global study by the Association of Certified Fraud Examiners, CIBI said organizations could lose an estimated 5 percent of annual revenue to fraud. In a fast-moving labor market like the Philippines, the credit agency said such losses could increase costs and disrupt daily operations.

These risks, CIBI said, highlighted the need for stronger and more proactive safeguards in the hiring process, adding that traditional background checks and interviews alone no longer suffice as validation for applicant information.

‘Employers require more reliable ways to ensure that new hires truly possess the qualifications and integrity their applications suggest,’ it said.

‘Beyond protecting businesses, stronger verification systems also safeguard honest candidates who may otherwise be disadvantaged in a hiring market clouded by fraudulent claims,’ it added.

MREIT Inc. plans to double its portfolio to one million square meters (sq m) of gross leasable area (GLA) by 2027 by targeting the retail assets of its sponsor, Megaworld Corp.

MREIT disclosed on Monday they wanted to take advantage of continued growth in consumer spending and strong momentum in mall leasing.

‘Our goal is to diversify our portfolio and expand our revenue base,’ MREIT chair Kevin Tan said in a statement. ‘So while the country is experiencing an impressive growth in consumer activities, we want to tap into these opportunities.’

Megaworld currently has 500,000 sq m of retail GLA that may potentially be infused into MREIT. Once these assets are injected into MREIT, its portfolio would reach one million sq m.

According to MREIT, foot traffic at Megaworld Lifestyle Malls has already surpassed prepandemic levels. This was mainly due to strong leasing activities from both local and international brands.

Mall occupancy reached a record-high 93 percent in the first semester. This helps make the retail sector an attractive investment opportunity.

MREIT’s portfolio is spread across Megaworld’s townships. These include Eastwood City, McKinley Hill, McKinley West, Iloilo Business Park and Davao Park District.

In the first six months of the year, MREIT’s distributable income surged by 26 percent to P1.86 billion. This was driven by gains from six newly acquired properties and better occupancy levels.

Its revenues likewise swelled by 28 percent to P2.7 billion.

3 million square meters

At the same time, Megaworld plans to grow its office GLA to 2 million sq m and its retail GLA to one million sq m by 2030. This would bring its total leasing portfolio to 3 million sq m.

Megaworld also recently sold P2.24 billion worth of its shares in MREIT. This makes room for possible asset infusions in the future.

This raised MREIT’s public ownership level to 40 percent. It is above the 33.33-percent minimum requirement for real estate investment trusts.

According to MREIT, Mactan Newtown in Cebu will get P830 million of the total proceeds. Paragua Coastown in Palawan will be allocated P845 million, while the Bacolod township will be allocated P537.92 million. INQ

‘There is no turning back here.’

This was what the lawyer of Pacifico ‘Curlee’ and Cezarah ‘Sarah’ Discaya said after the contractor couple attended the hearing of the Independent Commission for Infrastructure (ICI) in connection with the flood control anomalies on Tuesday, September 30.

The Discaya couple separately arrived at the ICI office in Taguig City on Tuesday morning at around 9 a.m. to attend the investigation, which lasted until around 2:30 p.m.

The contractor couple refused to give any statement to the media. Instead, their lawyer, Atty. Cornelio Samaniego III, was the one who answered questions in an ambush interview.

According to Samaniego, just like before the Department of Justice, the Discayas also told everything to the commission during its proceeding on Tuesday.

‘About money, about the particular persons mentioned in the affidavit, what the transaction is, what the history is.. we were ‘tell-all’ [during the probe],’ the counsel said.

‘There is no turning back here,’ he emphasized.

When asked for the names that the Discayas mentioned at the ICI hearing, Samaniego refused to answer, saying instead that ‘it’s already in the affidavit.’

He said the Discaya couple decided to reveal everything they know on the flood control anomalies after flood survivors and environmental groups threw mud and rocks, and wrote ‘magnanakaw’ (thief) and ‘ikulong’ (jail them), on the gates of their residence in Pasig City earlier in September.

The Discayas are currently under investigation for alleged involvement in anomalies in flood control projects. /apl

The Philippine Institute of Volcanology and Seismology (Phivolcs) has issued an advisory for possible minor sea-level disturbances following a magnitude 6.9 earthquake that struck Cebu Tuesday evening. In its advisory, Phivolcs urged the public to be on alert for unusual waves, noting that people should ‘stay away from the beach and not go to the coast’ of the following provinces until the advisory is lifted:

Leyte

Cebu

Biliran

‘People whose houses are located very near the shoreline of these provinces are advised to move father inland,’ the Phivolcs said.

‘Owners of boats in harbors, estuaries, or shallow coastal water of the above-mentioned provinces should secure their boats and move away from the waterfront. Boats already at sea during this period should stay offshore in deep waters until further advised,’ it added.

The Phivolcs earlier said that the center of the magnitude 6.9 quake, which occurred at 9:59 p.m. and was initially reported as magnitude 6.7, was located 21 kilometers northeast of the City of Bogo, Cebu, at a depth of 5 kilometers.

The agency added that aftershocks are expected and property damage may occur./mcm