Firm constructing COA building linked to Commissioner Lipana, says group

A coalition advocating for freedom of information has flagged Commission on Audit (COA) Commissioner Mario Lipana for his alleged connection to the New COA building's construction, citing a possible conflict of interest. 

In a document titled “The Watcher Entangled, Conflict of Interest at COA's Doorstep,” the Right to Know, Right Now (R2KRN) Coalition showed that on November 26, 2021, the Department of Public Works and Highways (DPWH) awarded a contract for the New COA Building to a joint venture between R.U. Aquino Construction & Development Corp. and Le Bron Construction.

The contract amounted to P959.9 million. 

It was signed for the joint venture by a certain Moises Nicdao Jr., authorized managing officer of Le Bron, who is also among the incorporators of Iron Ore, Gold, and Vanadium Resources (Phils.) Inc. 

According to R2KRN’s findings, Lipana’s wife, Marilou Lauro Lipana, was identified as president of Iron Ore. 

R2KRN sought an explanation from COA to ensure that DPWH awarded the contract to Le Bron without Lipana’s influence.  

"Mga katanungan ito na sana sagutin din ng COA at linawin kasi overdrew na yung contract, COA building na bago, at may agam-agam ang mga tao na baka hindi lang Le Bron ito, baka yung kanilang relasyon with Olympus Mining and Builders meron din connection,” R2KRN co-covenor Malou Mangahas said during a press briefing. 

(These are questions that COA should also answer and clarify, especially since the contract for the new COA building has already been overdrawn. People are beginning to have doubts that it might not just involve Le Bron but Olympus Mining and Builders.)

During the COA’s budget hearing last September, it was revealed that Marilou is the president and general manager of Olympus, a construction firm that won at least P326 million worth of government flood control contracts in the Angat River.

More connections

R2KRN said Mario held a position in COA in 2021 before being appointed commissioner in January 2022.

“Although Mario Lipana was not yet a commissioner at that time, he was then already a senior COA official. His official profile indicates that he had served as Supervising Auditor of the City of Manila,” R2KRN said in the document. 

“Yet it still stands that the new headquarters of the nation’s audit institution was awarded to a contractor that had a business association with the family of one of its senior officials. This betrays the deeper institutional entanglements that now confront COA. Indeed, while a new home for the country’s supreme audit institution was being built, the very foundations of its independence were being eaten away like wood by termites from within,” it added. 

The coalition also pointed out that Marilou uses her maiden name, Marilou Laurio, in her construction dealings with DPWH.

She is the listed owner and president of Gembar Enterprises, which secured a contract worth over P700 million with the Bureau of Fire Protection National Headquarters to buy firetrucks.

R2KRN also flagged that Gembar has another name: Gembar Incorporated Enterprises Inc., which was listed in the Philippine Government Electronic Procurement System, but is suspended.

Meanwhile, Gembar Enterprises is in a platinum status, which means it has completed all legal, technical, and financial compliance requirements. 

Escalation of projects

Presenting R2KRN’s document, Mangahas said Olympus started having infrastructure projects with DPWH in 2023 when Mario became commissioner. 

“Mula 2016 to 2022, walang DPWH projects yung Olympus. Nagkaroon lang noong 2023 to 2025, ito yung nagtutugma doon sa pag-akyat bilang Commissioner ng Commission on Audit ni Mr. Mario Lipana,” Mangahas said. 

(From 2016 to 2022, Olympus had no DPWH projects. These only started coming in from 2023 to 2025, which coincides with Mr. Mario Lipana's appointment as COA commissioner.)

Another showed that Marilou secured over P1.89 billion worth of infrastructure projects from 2023 to 2025, including flood control projects, road systems, roadway lights and safety devices, waterways improvement, and a building.

The DPWH Engineering Offices that Awarded Contracts to Olympus Mining and Builders Group and Joint Venture Partners, By Year and Contract Cost, 2023 to 2025 (Photo from R2KRN Coalition)

R2KRN urged the following government agencies to take the following actions: 

For the COA, Independent Commission for Infrastructure (ICI), and the Office of the Ombudsman to investigate the issues presented in the two documents related to their offices.

For the DPWH to conduct an internal fraud and performance audit of all infrastructure projects awarded to Olympus, Le Bron, and their joint ventures. 

For the Securities and Exchange Commission, to allow R2KRN researchers and other concerned groups and citizens to access necessary documents, such as the general information sheets and the annual audited financial statements of the personalities indicated in their document, for the past three years.

R2KRN said the two documents were submitted to COA, ICI, the Ombudsman, the DPWH Secretary Vince Dizon, and SEC chairperson Francis Lim. 

GMA has reached out to Mario Lipana on the matter. —LDF/VBL, GMA Integrated News