Ombudsman to investigate losing bidders getting 3% of project cost

Even losing bidders in government flood control projects make huge profits because they get 3% of the project cost, Ombudsman Jesus Crispin "Boying" Remulla said Wednesday.

Remulla said he got hold of the information after he met with officials of the Philippine Competition Commission today, October 22, inside the Office of the Ombudsman.

“The PCC was here, and we're looking at the different problems emerging from flood control. And the Philippine Competition Commission is looking at the bid-rigging angle," Remulla said in a press conference.

"They were able to identify the person who is always the losing bidder and has made a living out of being a losing bidder,” he added.

“We are investigating that. Three percent of the project cost is given to the losing bidders. That’s it. They call it for the boys. Hinahati-hati yan sa losing bidders…at meron pang ibang binibigyan. Dating gawain na ‘yan sa DPWH,” Remulla said.

Under the scheme, a rigged P100-million project means P3 million for the losing bidders to divide among themselves. 

“There’s even a bigger largesse for the other staff of the DPWH. The situation is, everybody happy. Ang balita ko diyan, hanggang janitor, meron," Remulla said.

"It's really something that we have to change in the culture. Kasi ito na nangyari, parang tinanggap na natin na iyon na yung kalakaran at walang masama doon,” he added.

“E hindi po. Hindi po naaayon sa batas ‘yan,” Remulla said.

In the same press conference, Remulla said the Anti-Money Laundering Council (AMLC) is seeking a freeze order on the assets of nine individuals, including former and incumbent elected officials in connection with the flood control mess.

“They (AMLC) communicated to me that there are nine persons [covered by the freeze order]. Some of them are formerly elected officials or elected officials. And some, just personalities. The freeze order is being sought. It's happening,” Remulla said. –NB, GMA Integrated News