Dizon refers 2 new flood control bid-rigging cases to PCC

The Department of Public Works and Highways (DPWH) on Thursday referred two new bid-rigging cases involving flood control projects against contractors and personnel of the agency before the Philippine Competition Commission (PCC).

In a statement, the DPWH said Public Works Secretary Vince Dizon filed the bid-rigging and bid manipulation cases against Discaya-led St. Timothy Construction Corporation and Silverwolves Construction Corporation as well as employees of DPWH Davao Occidental and La Union 2nd District Engineering Offices in relation to alleged “ghost” and substandard flood control projects in Barangay Culaman, Jose Abad Santos, Davao Occidental and Bauang, La Union.

The new cases were referred to the antitrust watchdog for preliminary inquiry on possible violations under Section 14, Chapter III of the Philippine Competition Act.

Section 14, Chapter III, of the Competition law lists prohibited anti-competitive agreements such as fixing price at an auction or in any form of bidding including bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation.

In his case referrals, Dizon cited the statements and admissions of bid-rigging during the previous Senate Blue Ribbon Committee inquiries.

“The statements of the Discayas, Undersecretary [Roberto] Bernardo, former District Engineer Henry Alcantara, and former Assistant District Engineer Brice Hernandez before the Senate Blue Ribbon Committee consistently point to the existence of institutional practice of bid-rigging within the DPWH,” the Public Works chief said in his case referrals.

The latest cases followed the similar cases referred to the PCC early last month 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.

A similar bid-rigging case was also filed against Sunwest Inc., as well as officials and employees of the DPWH Regional Office IV-B.

Dizon said the government could slap about P3.13 billion in fines against the contractors involved in bid-rigging and manipulation should they be found guilty of violating the Section 14, Chapter III ng Philippine Competition Act.

Under the Philippine Competition Act (PCA), entities found to have engaged in anti-competitive agreements such as bid-rigging may face administrative fines.

For the first offense, the fine would be up to P110 million. For the second offense, the fine ranges from P110 million to P275 million.

For the third and succeeding offenses, the fine increases to a range of P165 million to P275 million. — RSJ, GMA Integrated News