Department of Public Works and Highways (DPWH) Secretary Vince Dizon on Thursday filed two complaints of bid rigging against two contractors and DPWH personnel over ‘ghost’ and ‘substandard’ flood control projects in La Union and Davao Occidental.
The DPWH said that the complaints, filed before the Philippine Competition Commission (PCC), involve St. Timothy Construction Corporation, Silverwolves Construction Corporation, and DPWH officials and employees from the two provinces. The agency noted that this filing is for the PCC’s preliminary inquiry.
‘The president said that those responsible must be held accountable and jailed, and the stolen public funds must be recovered. As long as we have evidence, we will continue to recommend filing of charges,’ Dizon said in Filipino in a statement.
Dizon also said that approximately P3.13 billion worth of penalty may be fined to those who will be proven to have violated Chapter III Section 14 of the Philippine Competition Act.
The DPWH recently signed a memorandum of agreement with PCC to fast track the referral of fines against contractors involved in bid rigging and other violations under the Philippine Competition Act.
Last October 23, the DPWH filed complaints before the Office of the Ombudsman against the same contractors and several DPWH officials. Dizon earlier said they were charged with malversation of public funds through falsification of public documents for separate flood control projects in the two provinces.
The filing of separate cases came after Dizon inspected what he described as ‘substandard’ and ‘ghost’ flood mitigation structures in the two provinces.
Last September 16, Dizon inspected two flood control projects along the Bauang River Basin in La Union worth P89.7 million each, which were awarded to Silverwolves Construction Corporation. However, Dizon found out that the projects were substandard despite being fully paid already.
Ombudsman Jesus Crispin Remulla earlier tagged Benguet lone district Rep. Eric Yap as the ‘person of interest’ behind Silverwolves Construction Corporation.
Remulla said that while Yap divested from it years ago, ‘there’s still reason to suspect that he’s still the beneficial owner of the company so there’s clear conflict of interest punishable under Republic Act 3019.’
Yap previously denied any involvement in alleged kickbacks in government infrastructure projects.
Meanwhile, Dizon also personally assessed what he described as a ‘ghost’ flood control work in Davao Occidental worth P96.5 million. He said that this project was awarded to Discaya-owned St. Timothy Construction Corporation, and was already fully paid after the contractor promised to complete the project.