Lacson sees ‘conflict of interest’ in contractor licensing board
Sen. Panfilo Lacson on Saturday called for an immediate investigation of the possible conflicts of interest involving two of the three members of the Philippine Contractors Accreditation Board (PCAB), whose construction companies had secured government contracts while they were serving on the board.
In a statement, Lacson noted that EGB Construction Corp., owned by engineer Erni Baggao, and AN Escalante Construction Inc., owned by Arthur Escalante, have bagged government projects while the two were sitting on the PCAB, which licenses government contractors.
EGB Construction Corp. was one of the 15 contractors named by President Marcos as having cornered the bulk of the country’s government flood control projects from 2022 to 2025. Baggao, a former acting general manager of Isabela II Electric Cooperative, was reappointed to the PCAB in 2023.
AN Escalante bagged at least one contract for an academic building in Mati City, Davao Oriental, worth over P9.8 million in 2022. Escalante was a PCAB member at the time and is currently serving on a holdover capacity as his three-year term had expired.
The PCAB, an agency under the Department of Trade and Industry (DTI), is in charge of issuing, suspending and revoking licenses to ensure only qualified and reputable contractors can operate in the country. It is also in charge of investigating violations of construction laws.
No divestment required
In a phone interview with the Inquirer, Escalante said that he saw no potential conflict of interest as the law that created the PCAB, Republic Act No. 4566, requires that board members be contractors for at least 10 years.
The same law also has no explicit provision requiring them to divest from their companies once appointed to the board.
“If you divest from your firm, then you’re not qualified to sit on the board, because you’re not a contractor anymore,” he said.
“Just like all the members of the board before us—(David) Consunji (of DMCI), all of us are contractors,” Escalante said. “We’re hoping that the Senate hearing on Monday will shed more clarity on the issue.”
PCAB Chair Pericles Dakay, president of Dakay Construction Corp., will attend the hearing on behalf of the board.
Just one gov’t deal
Escalante added that since he sat on the PCAB board, his firm has bagged only one government contract—the Mati building—as they mostly engage in private construction.
The Inquirer tried to reach out to Baggao but failed to get a response.
Lacson believes that Escalante and Baggao have “undue advantage” over other contractors since the PCAB could investigate potential rivals or suspend or revoke their licenses.
The senator cited Section 9 of RA 6713, the Code of Conduct and Ethical Standards for Public Official, which decrees that a public official “shall avoid conflicts of interest at all times” and when a conflict of interest arises, he shall “resign from his position in any private business enterprise 30 days from his assumption of office, and/or divest himself of shareholdings or interest within 60 days from such assumption.”
‘Accreditation for sale’
The same law states that public officials during their incumbency shall not own, control, or manage any private enterprise regulated or licensed by their office, nor engage in the private practice of their profession.
The senator’s statement came after the PCAB refuted his earlier allegations that the board engaged in an “accreditation-for-sale” scheme that allowed contractors to get licenses for a P2-million fee.
“Instead of an outright denial to project themselves as ‘lily-white’ and ‘pure as the driven snow,’ the PCAB should at least look into allegations against their own people’s improper conduct,” Lacson said.
He challenged the DTI and the Construction Industry Authority of the Philippines to immediately investigate the two PCAB officials and file the necessary criminal and administrative charges.
