COA: Bulacan engineers, 3 contractors liable for fraud

MANILA, Philippines — Several district engineers of the Department of Public Works and Highways (DPWH) and three contractors are liable for fraudulent flood control projects in Bulacan worth P342.66 million, according to the Commission on Audit.

COA Chairman Gamaliel Cordoba yesterday transmitted to the Office of the Ombudsman fraud audit reports covering five flood control projects implemented by the DPWH Bulacan 1st District Engineering Office.

The reports will aid the ombudsman in its ongoing probe into anomalous infrastructure projects nationwide, the COA said.

“The COA’s findings shall form part of the evidentiary record... and may be used as basis in the determination of administrative and/or criminal liability, including possible charges for graft and corruption, against the persons involved,” they said.

Identified as liable for ghost and substandard flood control projects were 13 former officials of the DPWH Bulacan 1st District Engineering Office, namely district engineer Henry Alcantara, assistant district engineer Bryce Ericson Hernandez, project engineers Paul Jayson Duya and Merg Jaron Laus, construction section chief Jaypee Mendoza, planning and design chief Ernesto Galang, maintenance section officer-in-charge chief Lorenzo Pagtalunan, quality assurance chief Norberto Santos, accountant Juanito Mendoza and engineers Jolo Mari Tayao, Lemuel Ephraim Roque, John Michael Ramos and Arjay Domasig.

Executives of three private contractors were found liable, namely Mark Allan Arevalo of Wawao Builders, Maria Roma Angeline Rimando and officers and board members of St. Timothy Construction Corp. owned by the Discaya family and Sally Santos of SYMS Construction Trading.

Covered by the audit reports are the construction of flood mitigation structures in Barangays Frances and Sta. Lucia in Calumpit town, with a total contract cost of P77.199 million and P74.041 million, respectively, both bagged by Wawao Builders.

Rehabilitation of the river protection structure in Barangay Bulusan in Calumpit, with a total contract cost of P96.498 million awarded to St. Timothy Construction Corp., was also covered by the report.

Another project flagged by the COA was the flood control structure covering Barangays Buguion, Sergio Bayan, Balite, San Marcos and Palimbang, also in Calumpit, with a total contract cost of P39.193 million, awarded to St. Timothy Construction Corp.

State auditors also flagged the construction of a reinforced concrete river wall supposedly located in Barangay Piel in Baliuag town, with a total contract price of P55.731 million awarded to SYMS Construction Trading.

Anomalous

In Barangay Frances, inspectors found “shoddy workmanship issues” in a project declared as 100-percent complete, the COA stressed.

“Another key finding was that Wawao Builders was paid an additional P3,130,041.22 without any documentation explaining why costs went up, contrary to the provisions of the Government Procurement Reform Act,” it added.

In Barangay Sta. Lucia, inspectors saw the dike “tilting, misaligned and riddled with cracks.”

The COA said the project was declared almost 90 percent complete, “but auditors could not confirm this onsite.”

In Barangay Bulusan, state auditors found a massive P38.493-million discrepancy in the project cost and evaluated cost.

“Auditors also noted there was a cost increase linked to an undated variation order worth P2,893,365.79, which did not have any details/location in the as-built plan,” they said.

In Barangays Buguion, Sergio Bayan, Balite, San Marcos and Palimbang, the contractor only installed 24,232 kilos of steel plates even though the DPWH paid for 48,465 kilos, resulting in an overpayment of P3.034 million.

In Barangay Piel, auditors said “no construction was found at the site.”

“There is a clear indication that the project has not commenced implementation. Yet, based on records, SYMS Construction Trading has been fully paid as of June 30,” the COA said.

COA, DPWH coordinate

Newly appointed Public Works Secretary Vince Dizon also transmitted to acting Ombudsman Dante Vargas a separate investigation report by the DPWH Internal Audit Service.

The IAS is “working closely” with the COA fraud audit team in probing other flood control projects, Dizon said.

“There will be more (investigation reports) in the coming days,” he noted.

Accompanied by Dizon at the ombudsman, Cordoba said 20 percent of flood control funds went to Central Luzon, half of which went to Bulacan.

DPWH Usec Cabral to face Senate

Public Works Undersecretary Maria Catalina Cabral has submitted her courtesy resignation, Dizon said yesterday, but he has not yet accepted it for lack of a replacement.

Cabral allegedly contacted senators and congressmen and solicited budget insertions in the National Expenditure Program of the DPWH, according to Sen. Panfilo Lacson.

Dizon said he ordered Cabral to appear before the Senate.

DPWH Central Luzon project engineer Duya will be dismissed due to his involvement in the ghost and substandard flood control projects in Bulacan, Dizon noted. — Rainier Allan Ronda