The construction firm linked to former Ako Bicol party-list Rep. Elizaldy ‘Zaldy’ Co is among the subjects of a bid-rigging complaint referred by the Department of Public Works and Highways (DPWH) to the competition body for possible case filings.
For its part, the PCC said its preliminary inquiry on this case was already underway against Co-linked firms and four other companies as well as former DPWH officials.
Sunwest Inc., which was founded by Co, is listed as a respondent in one of the two bid-rigging and bid-manipulation cases forwarded by the DPWH to the Philippine Competition Commission (PCC) on Friday.
The agency also said officials and employees of DPWH Regional Office IV-B are allegedly involved.
‘Despite irregularities surrounding flood control projects in Oriental Mindoro, regional officials failed to act and, instead, continued the projects awarded to Sunwest, Inc.,’ the DPWH said in a statement.
This is in addition to the Independent Commission for Infrastructure’s move asking the Office of the Ombudsman to recommend filing graft complaints against Co and 17 others, including DPWH officials and Sunwest, over an allegedly substandard flood control project in Oriental Mindoro valued at P289.5 million.
Co was accused of receiving billions of pesos in kickbacks from contractors and DPWH officials who testified in congressional inquiries into flood control projects. He vehemently denied the allegations.
He has since resigned from the House of Representatives, citing a ‘real, direct, grave and imminent threat’ to himself and ‘the lives of my family members.’
In a separate complaint, the DPWH named Wawao Builders, IM Construction Corporation, SYMS Construction Trading, St. Timothy Construction Corporation, and officials and employees of the DPWH Bulacan 1st District Engineering Office over alleged irregularities in flood control projects in the province uncovered during congressional hearings.
According to the agency, preliminary evidence-including the admissions of contractor Pacifico Discaya and former DPWH Undersecretary Roberto Bernardo before the Senate Blue Ribbon Committee-‘also suggests collusion among the involved contractors and officials,’ which violates Section 14, Chapter III of the Philippine Competition Act.
The measure prohibits certain anti-competitive agreements between competitors.
PCC said the DPWH’s submission includes inspection reports, bid documents, and other relevant documents that may support the PCC Competition Enforcement Office’s (CEO) ongoing preliminary inquiry into possible bid-rigging and collusion among contractors.
PCC-CEO Director Christian Loren De Los Santos said that the competition body is currently gathering evidence, including bid submissions and possible communication exchanges, to determine whether violations of the PCA occurred.
If found guilty, the PCC may impose fines of P110 million for a first offense and between P110 million and P250 million for subsequent offenses on the named firms.
The DPWH said the PCC has also confirmed that penalties may be applied on a per-incident basis and that public works officials and employees could face liability as facilitators.
Meanwhile, the PCC reiterated that individuals or entities ‘involved in cartel conduct’, such as bid-rigging, price fixing, market allocation, or output restriction, may avail of its leniency program, which offers immunity from suit or a reduction of administrative fines to those who voluntarily disclose their participation in anti-competitive agreements and cooperate fully with the commission’s investigation.
‘Only one applicant per violation may be granted full immunity, so early disclosure is encouraged,’ the PCC said in a statement on Friday. /mcm