DPWH refers flood control bid-rigging cases to the PCC

The Philippine Competition Commission will now handle the two bid-rigging cases involving flood control projects, the Department of Public Works and Highways said on Friday.

In a statement, the DPWH said its “has formally referred two cases of bid manipulation and bid-rigging to the PCC for preliminary inquiry and possible filing of cases under Section 14, Chapter III of the Philippine Competition Act.”

The first case is against Wawao Builders, IM Construction Corporation, SYMS Construction Trading, St. Timothy Construction Corporation and officials and employees of the DPWH Bulacan 1st District Engineering Office.

“Evidence gathered from the Senate and House of Representatives hearings, as well as findings of internal investigations by the DPWH and the Commission on Audit (COA), point to irregularities in the procurement of several flood control projects in Bulacan,” the DPWH said.

Meanwhile, the second case is against Sunwest, Inc. as well as officials and employees of the DPWH Regional Office IV-B. 

“Despite irregularities surrounding flood control projects in Oriental Mindoro, regional officials failed to act and, instead, continued the projects awarded to Sunwest, Inc.,” the DPWH said.

Citing preliminary evidence based on the statements of contractor Pacifico Discaya and ex-DPWH Undersecretary Roberto Bernardo during a Senate hearing, the DPWH said there might be a collusion between the involved contractors and officials, a violation of the Philippine Competition Act.

Another possible violation is that only 15 contractors were awarded 20% of all flood control projects over the last three years worth P100 billion, which is indicative of bid rotation, according to the DPWH.

“If found guilty, the PCC may impose fines of P110 million for the first offense, and between P110 million and P250 million for subsequent offenses,” the DPWH said.

“The PCC has also confirmed that penalties may apply on a per-incident basis, and DPWH officials and employees could face liability as facilitators,” it added.

In a separate statement, the PCC confirmed receipt of the DPWH’s filings concerning the alleged anti-competitive conduct in flood control projects procurement.

“The referrals include inspection reports, bid documents, and other relevant documents that may support the PCC Competition Enforcement Office’s (CEO) ongoing preliminary inquiry into possible bid-rigging and collusion among contractors,” the antitrust body said.

“The referrals follow testimonies presented during recent Congressional hearings on the flood control controversies, which may likewise be used as evidence in the PCC’s investigation,” it said.

The PCC reminded the public that those who will disclose individuals or entities involved in cartel conduct, such as bid-rigging, price fixing, market allocation, or output restriction, may avail of the Commission’s Leniency Program. 

“The program offers immunity from suit or a reduction of administrative fines to those who voluntarily disclose their participation in anti-competitive agreements and cooperate fully with the PCC’s investigation. Only one applicant per violation may be granted full immunity, so early disclosure is encouraged,” the antitrust body said.—Joviland Rita and Ted Cordero/AOL, GMA Integrated News