Palace: DPWH to ban 60 ‘bad’ contractors
More than 60 “bad” contractors may be barred from doing business with the government for their involvement in anomalous flood control and infrastructure projects, according to Malacañang.
At a briefing on Tuesday, Palace press officer Claire Castro said the contractors may potentially be blacklisted by the Department of Public Works and Highways (DPWH), barring them from bidding for any of the agency’s infrastructure projects.
Castro added that the Philippine Contractors Accreditation Board (PCAB) is in the process of blacklisting 16 contractors.
Four other companies already had their licenses revoked by the PCAB. Malacañang, however, did not identify the firms.
“However, the President said that even if some contractors are blacklisted, this will not affect the continuous implementation of infrastructure projects in the country because there are still many good contractors which have done their work properly,” Castro said.
President’s promise
During a meeting with his economic team last Friday, President Marcos ordered the immediate release of payments to contractors “of good standing” who have properly delivered on their projects, as a way to boost the country’s economy this year.
“So contractors and those in the construction industry need not be afraid to negotiate or transact with the government because the President’s promise is that all contractors who perform their work properly will be paid,” Castro said.
The PCAB is one of the implementing boards in the Construction Industry Authority of the Philippines, which is under the Department of Trade and Industry.
Under Republic Act No. 4566, as amended by Presidential Decree No. 1746, no contractor shall engage in the business of contracting without first securing a PCAB license to participate in the bidding of government projects, including those under the DPWH.
In September last year, the PCAB revoked the licenses of nine companies owned or controlled by Cezarah “Sarah” Discaya, who cornered over a three-year period more than P30 billion worth of government flood control projects, some of which allegedly turned out to be “ghost” or nonexistent.
These construction companies were St. Gerrard Construction General Contractor and Development Corp.; Alpha and Omega General Contractor and Development Corp.; St. Timothy Construction Corp.; Amethyst Horizon Builders and General Contractor and Development Corp.; St. Matthew General Contractor and Development Corp.; Great Pacific Builders and General Contractor Inc.; YPR General Contractor and Construction Supply Inc.; Way Maker OPC; and Elite General Contractor and Development Corp.
As a result, these companies lost their “platinum membership” to bid for government projects. Their records have since been removed from the registry of the electronic procurement system, effectively barring them from future bids.
Alpha & Omega and St. Timothy were two of the 15 contractors identified by President Marcos as having bagged P100 billion, or 20 percent of the entire P545-billion budget for flood mitigation projects undertaken by the DPWH from 2022 to 2025.
Still accredited
Also in September, Public Works Secretary Vince Dizon ordered the “perpetual blacklisting” of Syms Construction and Wawao Builders, two firms that officials say were behind “ghost” flood control projects in Bulacan province.
Their licenses, however, have yet to be revoked by the PCAB on its website.
The contractor license of Sunwest Inc., which was cofounded by resigned Ako Bicol Rep. Elizaldy Co, has yet to be blacklisted as well by the PCAB.
In October last year, at the height of the flood control controversy, President Marcos ordered the lifetime disqualification of contractors, suppliers, and consultants involved in anomalous public infrastructure projects.
The Department of Budget and Management was directed to strictly implement the blacklisting provision under Republic Act No. 12009, or the New Government Procurement Act of 2024.
Under the law, contractors, suppliers and consultants who have committed at least three violations of the procurement regulations will be penalized with a lifetime disqualification and banned from transacting for any government project.
