Agusan water system stalled as Discaya firm license revoked

NECESSARY INFRA Santa Josefa town in Agusan del Sur province awaits completion of its water supply system after a construction firm of controversial contractor-couple Pacifico “Curlee” and Cezarah “Sarah” Discaya lost its license to do government infrastructure, stalling the project. —SANTA JOSEFA MUNICIPAL PLANNING AND DEVELOPMENT OFFICE PHOTO

SAN FRANCISCO, AGUSAN DEL SUR—The smallest town of Agusan del Sur province is feeling a direct impact of the ongoing controversy surrounding anomalous flood control projects in the country.

Work on Santa. Josefa town’s P144-million water system project has been stalled after the Philippine Contractors Accreditation Board (PCAB) revoked the licenses issued to nine firms owned by couple Pacifico “Curlee” and Cezarah “Sarah” Discaya.

According to Santa Josefa Councilor Dicken Otero, a former town mayor, work on the project was actually done by Davao City-based Crown Works Development Corp. but the contract was under St. Gerrard Construction and Development Corp., one of the companies owned by the Discayas.

Crown was involved in laying pipes for nine of the town’s 11 barangays.

Otero said Crown, which has a Class A license from PCAB, was forced to “rent” St. Gerrard’s license because the P144-million project needed a Class AAA accreditation.

CONTROVERSY St. Gerrard Construction, its offices in Pasig City shown in this Sept. 4 photo, is among the Discaya family’s companies that lost their government accreditation. —NIÑO JESUS ORBETA

Set for completion

On Sept. 1, PCAB revoked the license of St. Gerrard, along with eight Discaya-owned firms, following revelations they undertook questionable practices in relation to its multibillion-peso projects with the Department of Public Works and Highways.

PCAB said the Discayas’ practices indicated collusion and the use of schemes that undermine fair procurement processes, violating licensing and procurement laws.

A PCAB license is mandatory for all government infrastructure contractors in the country, certifying to their compliance with national standards of expertise and competency.

Because of this, Otero said Mayor Richard Plaza was expected to issue a work stoppage order and terminate the contract with St. Gerrard.

Local officials were also exploring other options on how to continue the project now that its contractor’s license was revoked. Among those being studied is pursuing a negotiated procurement and claiming the P43-million performance bond from the contractor.

Otero noted that the project’s work progress had been reported at 75 percent.

Funded through a loan from the Development Bank of the Philippines, the project aims to provide piped water to the town’s over 6,000 households. It is originally scheduled for completion in November this year.