PCC refers flood control bid-rigging case to DOJ

MANILA, Philippines — The Philippine Competition Commission (PCC) has referred its initial findings of bid-rigging in flood control projects in Bulacan to the Department of Justice (DOJ) for evaluation.

In a statement yesterday, the antitrust agency said its Competition Enforcement Office referred its initial findings of bid-rigging in flood control projects in Bulacan to the DOJ on Nov. 14.

Last month, the PCC received referrals from the Department of Public Works and Highways (DPWH) on the alleged anti-competitive conduct in the procurement of flood control projects involving companies St. Timothy Construction Corp., Wawao Builders, IM Construction Corp., SYMS Construction Trading and Sunwest Inc., along with officials and employees of the DPWH Bulacan First District Engineering Office (DEO) and Regional Office IV-B.

In its evaluation of the referral and information provided by the DPWH on the flood control projects, the PCC found possible violations of Section 14(a)(2) of the Philippine Competition Act (PCA), which prohibits bid-rigging.

Bid-rigging takes place when bidders collude to manipulate the outcome of public procurement.

“Such conduct undermines competition, deprives the public of fair value and wastes government resources,” the PCC said.

Based on the evidence gathered, the PCC said contractors agreed to rig and manipulate the bidding process by having pre-determined winning and losing bidders.

It also said that evidence indicated that DPWH First DEO-Bulacan officials facilitated the bid-rigging arrangement.

Under the PCA, contractors found to have engaged in bid-rigging may face fines up to P275 million, depending on the number of offenses.

Following the PCC’s referral, the DOJ will conduct an evaluation and recommend either the conduct of further case build-up or proceed to preliminary investigation.