House sets probe on P2.5-B Mindanao road project

MANILA, Philippines – The House of Representatives is set to conduct an inquiry into alleged anomalies in the implementation of a P2.5-billion road project funded by the Japan International Cooperation Agency (JICA) in Mindanao.

The probe was prompted by letters sent to Speaker Feliciano Belmonte Jr. and other House leaders by anti-corruption watchdogs and officials of Butuan City, capital of Agusan del Norte province.

They alleged that bidding for the project was rigged, citing the disqualification of bidders with international track records for minor technicalities and the awarding of contract to a firm that bid P500 million higher than the ceiling cost of the project.

It appeared that the contract was for a five-year rehabilitation and maintenance of the 123.5-kilometer Surigao-Davao-Surigao (Lipata)-Agusan del Norte road.

Quezon City Rep. Winston Castelo also raised the issue during budget deliberations on the proposed P401.14-billion 2016 budget for the Department of Public Works and Highways (DPWH) last week.

Castelo warned that allegations of corruption among the officials in the DPWH offices of Caraga and Region 10 could jeopardize the country’s standing when seeking foreign funding for major projects.

Public Works Secretary Rogelio Singson told members of the House appropriations sub-committee on public works that he would look into the allegations.

He also promised to submit a list and details of DPWH projects funded by JICA, World Bank and other international institutions.

Castelo explained that based on official letters received by the House leadership and the Office of the Ombudsman, the project had a ceiling cost of P2.5 billion. However, the DPWH awarded the contract to a consortium called Hebei Equi-Parco Construction, which submitted a bid for P3 billion or 20 percent higher than the approved cost.

He said anti-corruption watchdogs have also reported that DPWH officials disqualified other prospective international bidders, which submitted lower costs, even before the bidding process started because of minor technicalities.

“This is very suspicious (not only) because of the premature disqualification of all other companies with international track records, but because no bidder will submit a (bid) price higher than what the government can afford – especially if there are other bidders,” Castelo said. “We, at the House, are very much worried about the case of other foreign-assisted projects because the country could be blacklisted.”

He added that the House leadership decided to take a more active role on government projects and fiscal matters to make sure taxpayers’ money is not wasted.

Castelo stressed the need to implement foreign-funded projects with utmost transparency.