The Commission on Audit (COA) has submitted four new Fraud Audit Reports (FARs) to the Independent Commission for Infrastructure (ICI), uncovering more ghost and mismatched flood-control projects in Bulacan’s 1st District Engineering Office (DEO) under the Department of Public Works and Highways (DPWH).
The latest batch – worth almost P360 million in total – covers projects implemented by M3 Konstract Corp., SYMS Construction and Trading, and Amethyst Horizon Builders and General Contractor and Development Corp.
Cracked, mismatched project
The first project, ‘Construction of Riverbank Protection Structure at Barangay San Roque, Baliuag, Bulacan,’ worth P96,499,936.68, was found built in a different site from the approved location.
COA said DPWH-Bulacan 1st DEO personnel ‘pinpointed COA to a site different from the approved project location’ and gave no explanation. Inspectors also found an existing but defective structure ‘for a different project altogether,’ while the approved site also contained a structure tied to another project.
Auditors bared that the district office failed to submit critical documents and even produced conflicting papers on contract cost, variation order amount, and contractor name.
Those found liable include District Engineer Henry C. Alcantara, Assistant District Engineer Brice Ericson D. Hernandez, and several engineers, along with Louis Raphael DG. Tiqui and other officers of M3 Konstract Corporation.
Unfinished and ghost projects
Two projects under SYMS Construction and Trading were also cited by state auditors. SYMS has been named in both the Senate and House probes into the flood-control corruption scandal; its owner, Sally Santos, earlier told senators she withdrew P457 million in cash tied to flood-control contracts.
The first, ‘Construction of Flood Control Structure (Revetment), Purok 3 to Purok 4, Barangay Manatal, Pandi, Bulacan,’ worth P92,671,196.24, had no structure at the approved site.
DPWH representatives pointed to a different area-again without explanation-where COA saw an unfinished revetment with exposed steel bars and no workers or equipment.
COA said the DPWH-Bulacan 1st DEO failed to provide any of the necessary and critical supporting documents for project validation.
Even before the inspection, the DPWH COA Audit Team had already issued a Notice of Disallowance to the district office for paying the entire contract cost despite the absence of any real accomplishment.
The second SYMS project, ‘Construction of Riverbank Protection Structure along Balagtas River, Barangay San Juan (Purok 4), Balagtas, Bulacan,’ worth P74,111,867.46, was also a ghost project.
COA said the original site had no flood-control structure, while the alternate location showed a substandard wall built with unsuitable materials and exposed rebar. The project was still marked ‘on-going’ in the DPWH database even after full payment, prompting another disallowance.
Those found liable for the two SYMS projects include Alcantara, Hernandez, Ernesto Galang, John Michael E. Ramos, Lemuel Ephraim SD. Roque, Jolo Mari V. Tayao, Irene DC. Ontingco, Jefferson S. Buendia, Michelle C. Cruz, and Santos.
Non-matching structure
The fourth project, ‘Construction of Riverbank Protection Structure along Balagtas River, Barangay Dalig, Balagtas, Bulacan,’ worth P96,499,605.25, was undertaken by Amethyst Horizon Builders and General Contractor and Development Corp.
While a flood control structure existed at the approved site, COA said DPWH-Bulacan 1st DEO ‘pinpointed the project at another location’ where the structure ‘did not match the approved plan.’ Again, ‘no justification was offered’ for the change.
COA concluded that the ‘alleged flood control project is another ghost project.’
Those found liable include Alcantara, Hernandez, Galang, Ontingco, Ramos, Jaypee D. Mendoza, Cruz, Jasmine Jean I. Gonzaga, and Rochelle R. Campos of Amethyst Horizon Builders, as well as the company’s officers and board members.
Possible graft, falsification cases
According to COA, the individuals involved may face cases for graft and corruption, malversation, and falsification of documents, as well as violations of COA Circular No. 2009-001 and the Government Procurement Reform Act.
The agency, however, clarified that ‘the initial list of liable persons is not final and may expand as the audit progresses.’
The latest batch of reports forms part of 21 Fraud Audit Reports transmitted so far – nine to the Office of the Ombudsman and 12 to the ICI, including the four additional reports on the flood control projects mentioned above.
This latest set, the state auditors said, reinforces its ‘continuing efforts to hold erring officials and contractors accountable for misuse of public funds.’
‘Today’s filing sends an unequivocal message: COA remains relentless in its mandate to safeguard the people’s money and uphold public trust,’ the agency said.