COA chair sees 'potential conflict of interest' in construction firm of commissioner's wife

Commission on Audit chairman Gamaliel Cordoba on Thursday said there is a potential conflict of interest in Commissioner Mario Lipana being a member of the constitutional body while his wife is the president of a construction company.

ACT Teachers party-list Rep. Antonio Tinio said Lipana's wife is the president and general manager of Olympus Mining and Builders Group.

At the hearing of the COA's proposed budget for 2026, COA Assistant Commissioner Martha Sese said the corporation has six projects involving flood control structures, river walls, and road dikes on the Angat River and has received total payments amounting to P326 million.

During the hearing, Tinio asked Cordoba if Lipana had a financial interest in the contracts of his wife.

“Bilang kanyang asawa, meron po siyang financial interests,” Cordoba answered.

(As her husband, he has financial interests.)

Tinio also asked the chairperson if there was a violation of the Constitution.

“Medyo meron,” Cordoba said. (There is somewhat of a violation.)

'Potential conflict of interest'

He added that there is a “potential conflict of interest.”

"Kapag po siya ay nakialam doon sa auditors sa baba na gumagawa ng kanilang trabaho, then that's a potential conflict of interest," Cordoba said.

(If he would intervene with the auditors on the ground, then that's a potential conflict of interest.)

Cordoba, however, said that resigning is up to Lipana. He said that the COA chairperson does not have disciplinary authority over its commissioners. 

“Hindi ba dapat mag resign na ang commissioner?” Tinio said.

(Shouldn’t the commissioner resign?)

Tinio urges resignation

“Ang gusto ko lang po idiin ay mukhang kailangan po talagang harapin ang tanong, no? Dapat mag resign na ang commissioner na ito,” he added.

(I just want to stress that he needs to face the question. This commissioner should resign.)

Tinio cited Article 9, Section 2 of the Constitution, which states that “no member of a Constitutional Commission shall, during his tenure, hold any other office or employment. Neither shall he engage in the practice of any profession or in the active management or control of any business which in any way be affected by the functions of his office, nor shall he be financially interested, directly or indirectly, in any contract with, or in any franchise or privilege granted by the Government…”

GMA News Online is trying to get Lipana's comment and will publish it as soon as it is available.

Lipana was not present at the budget hearing. He was said to be on medical leave.

'Impeachment proceedings'

For her part, Mamamayang Liberal Representative Leila De Lima advised Cordoba to talk to Lipana once he reports back to the office.

“Otherwise, one of us or some of us may initiate impeachment proceedings against him. Because this clearly falls under one of the grounds [of] betrayal of public trust and also, even graft and corruption,” she said. 

Meanwhile, Kamanggagawa Party-list Representative Elijah San Fernando asked COA to conduct an internal investigation into Lipana.

For its part, COA said other auditors have issued notice of disallowances relevant to the transactions of the wife.

COA has a budget allocation amounting to P15 billion for 2026. This is divided into P13.8 billion for the agency-specific budget and P1.19 billion for retirement and life insurance premiums.

The House Committee on Appropriations terminated the budget hearing. –NB, GMA Integrated News