The Department of Public Works and Highways (DPWH) has flagged flood control projects in Oriental Mindoro among two cases of alleged bid-rigging now under investigation by the competition watchdog, officials said Friday.
DPWH head office said DPWH regional officials continued awarding contracts to Sunwest, Inc. for Mindoro flood projects despite red flags over procurement irregularities.
“Regional officials failed to act and, instead, continued the projects awarded to Sunwest, Inc.,” the DPWH said in referring the case to the Philippine Competition Commission (PCC).
The agency filed a second case involving contractors and officials from its Bulacan office, where Senate and House investigations uncovered possible collusion in several flood control contracts.
Preliminary evidence suggests coordination between contractors and government officials in both cases, the DPWH said, citing testimony from contractor Pacifico Discaya and former undersecretary Roberto Bernardo during Senate hearings.
The cases come as the government intensifies scrutiny of its multi-billion peso flood control program.
Just 15 contractors secured 20 percent of all flood control projects over three years — contracts worth P100 billion pesos — in what the DPWH described as potential “bid rotation.”
Companies found guilty face fines starting at P110 million pesos for first offenses, with penalties potentially applied per incident.
Government employees who facilitated the schemes could also be held liable.
The PCC confirmed receiving the complaints and inspection reports Friday, adding the evidence would support its ongoing preliminary inquiry into contractor collusion.
The competition body urged potential whistleblowers to come forward under its leniency program, which offers immunity from prosecution or reduced fines to the first party that cooperates with investigators.
The flood control scandal has dominated congressional hearings in recent months as lawmakers probe how major infrastructure contracts were awarded amid the country’s worsening flooding problems.
Photo courtesy of PIA MIMAROPA (for illustration purposes only)
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