Flood control scandal: PCAB under fire over “leniency”

CEBU, Philippines — The Philippine Contractors Accreditation Board (PCAB), chaired by Cebuano contractor Pericles Dakay, came under heavy scrutiny during the Senate Blue Ribbon Committee hearing yesterday as senators questioned its failure to investigate and sanction contractors allegedly involved in anomalous flood control projects.

Dakay was grilled over PCAB’s handling of blacklisted firms and its perceived leniency toward repeat violators.

Senator Erwin Tulfo cited Section 29 of Republic Act 4566, which empowers PCAB to suspend or revoke licenses based on verified reports. “It’s in your hands,” Tulfo said. “Why aren’t you investigating? Maybe some of your people are being negotiated and paid?”

Tulfo also raised concerns that blacklisted contractors could simply reapply under new corporate identities, pointing to what he called a pattern of “corporate recycling.”

Dakay’s defense

Dakay defended PCAB, saying the agency had begun investigations after President Ferdinand Marcos Jr. publicly named 15 contractors dominating flood control projects nationwide.

He said PCAB requested project data from the Department of Public Works and Highways (DPWH) on August 18 and summoned the contractors for hearings shortly after. He added that PCAB had “preventively suspended” the Allowable Range of Contract Cost for flood control projects involving the firms.

But senators remained unconvinced.

Senate Minority Leader Vicente Sotto III revealed that contractors previously suspended or blacklisted by DPWH—including Saint Gerard and Saint Timothy Construction Corporations, owned by controversial businesswoman Cezarah Rowena “Sarah” Discaya—had their licenses renewed by PCAB.

“This is a violation of Section 3.3 of the IRR,” Sotto said. “Misrepresentation is not just unethical—it’s unlawful.”

Sotto also questioned Dakay’s decision to defer inquiries to PCAB Executive Director Atty. Herbert Matienzo. “You come in with very strong credentials. Friends of mine say you’re a man of integrity. Why are you pointing to your executive director?” he asked. Dakay replied that Matienzo handles PCAB’s day-to-day operations.

Tulfo pressed further, citing Discaya’s ownership of Saint Gerard, Saint Timothy, and Alpha & Omega General Contractor—all previously sanctioned.

“Tatlo na po ang kompanya, isa lang may-ari. ‘Pag na-blacklist, apply ulit. So ibig sabihin po ba kung may kompanya ako, maba-blacklist, gagamit lang ako ng ibang pangalan, mag-a-apply ako, pwede na naman?” he asked, underscoring how shell corporations could easily re-enter the system.

Senator Joel Villanueva, whose home province of Bulacan was affected by an incomplete multi-million river project, expressed alarm over PCAB’s screening lapses. Senator JV Ejercito warned that compromised accreditation undermines infrastructure goals.

“We are investing heavily in flood control and connectivity, but if accreditation is compromised, the entire system collapses,” he said.

Committee Chair Senator Rodante Marcoleta questioned PCAB’s coordination with DPWH, asking how investigations could proceed without the requested data. Dakay admitted the agency had yet to receive a response but insisted hearings were ongoing.

Tulfo, however, remained skeptical: “Pinaikot-ikot lang tayo nitong PCAB. Pinapatagal ninyo, pinapaligoy-ligoy ninyo itong proseso.”

The hearing has reignited calls to amend Republic Act 4566 to stop shell corporations from exploiting loopholes and to strengthen PCAB’s enforcement powers. Lawmakers also pushed for greater transparency, inter-agency coordination, and accountability in flood control spending.

Blacklisting

Meanwhile, newly appointed DPWH Secretary Vince Dizon ordered the immediate and permanent blacklisting of contractors found guilty of “ghost” and substandard projects, signaling a sweeping anti-corruption crackdown.

In a Palace press briefing yesterday, Dizon said contractors proven to have delivered non-existent or substandard projects will face lifetime bans and criminal charges.

“Ang mga contractor nitong mga ghost projects na ito, unang-una, mag-i-impose po ako ng lifetime blacklisting, ban immediately,” Dizon said.

He emphasized that confirmed fraudulent or substandard projects will no longer undergo prolonged review. “Kapag ang isang project ng isang contractor ay ghost o napatunayang substandard, wala na po itong proseso, wala ng imbestigasyon. Automatic po blacklisted for life ang contractor na iyan. At siyempre may kaakibat din pong kaso iyan,” he added.

Dizon said the DPWH will forward its findings to an independent commission to be created by President Marcos, tasked with investigating corruption-tainted projects and filing legal action against contractors and complicit DPWH officials.

“Sila po ang mag-iimbestiga at magpa-file ng mga karampatang mga kaso laban sa mga kawani ng DPWH, sa mga contractors, at sa iba pang mga kasama dito sa mga project na talaga naman ‘tinapon na lang sa ilog,’ para gamitin ko lang ang salita ng ating Pangulo,” Dizon said.

The DPWH chief noted that thousands of complaints have already been submitted via the sumbongsapangulo.ph platform, showing widespread public concern over questionable projects. He vowed to overhaul internal protocols that delay sanctions.

“Kung ang mga proseso po ngayon sa DPWH ay hindi nag-a-allow para sa automatic (blacklisting) at mayroon pang mga proseso, kahit ghost na ang proyekto, babaguhin po natin ang mga prosesong yan. Hindi na po natin kailangan mag-imbestiga kung ang project ay ghost,” Dizon said. — (FREEMAN)