Raps eyed vs. Zaldy Co, Gardiola, other ‘cong-tractors’

The Independent Commission for Infrastructure (ICI) and the Department of Public Works and Highways (DPWH) on Wednesday recommended to the Ombudsman the investigation of former Ako Bicol Rep. Zaldy Co and seven House members for possible plunder and bribery in connection with billions of pesos worth of infrastructure projects from 2016 to 2024.

In a nine-page joint referral, the ICI also asked the Ombudsman to conduct further investigation for possible violations of the Anti-Graft and Corrupt Practices Act, Code of Conduct and Ethical Standards for Public Officials and Employees, Government Procurement Reform Act or the New Government Procurement Act, and Article VI, Section 14 of the Constitution.

ICI chairperson Andres Reyes Jr. referred to the congressmen and congresswoman in the referral as "cong-tractors", saying they appear to have violated the Code of Conduct for Government Officials and the Anti-Graft and Corrupt Practices Act, among others.

“These so-called cong-tractors are those members of Congress or their partners or family members who own construction firms that receive project awards or obtain contracts from the DPWH,” Reyes said

Aside from Co, who reportedly owns FS Co. Builders and Supply, the other respondents include four district representatives and three party-list lawmakers. The House members and the construction firms linked to them are:

• Uswag Ilonggo party-list Rep. James Ang, Jr. - IBC International Builders Corporation; Allencon Development Corporation
• CWS party-list Rep. Edwin Gardiola - Newington Builders, Inc. (formerly Gardiola Construction); Lourel Development Corporation; S-Ang General Construction & Trading, Inc.
• Cagayan 3rd District Rep. Joseph Lara - JLL Pulsar Construction Corp.
• Surigao Del Norte 1st District Rep. Francisco Matugas - Boometrix Development Corp.
• Pusong Pinoy party-list Rep. Jernie Jett Nisay - JVN Construction and Trading
• Bulacan 2nd District Rep. Augustina Dominique Pancho - CM Pancho Construction
• Tarlac 3rd District Rep. Noel Rivera - Tarlac 3-G Construction & Development Corporation

Based on pieces of evidence the ICI gathered, Reyes said the respondents appear to have committed violations of the law.

“Members of Congress are barred from having a financial interest, directly or indirectly, in any government contract, franchise or special privilege during their term of office,” the ICI chairperson said.

“They are also prohibited from intervening in government matters for their own personal gain or where their office could influence the outcome,” he added.

Documentary proof

DPWH Secretary Vince Dizon expressed confidence in the strength of the referral to the Ombudsman, saying these were backed by documentary proof.

“These are based on SEC records,” Dizon said in a press conference, referring to the documents obtained from the Securities and Exchange Commission, which establish lawmakers' links with construction firms.

“These are individuals who are listed in the construction companies’ General Information Sheet…while others have immediate relatives who are listed in the (GIS) or beneficial owners of the construction company,” the DPWH chief added.

Asked why the DPWH, as complainants, are pursuing a plunder charge despite a Supreme Court 2016 decision requiring identification of the main plunderer to prove the said crime, Dizon said he trusted that the Ombudsman would decide on the best case to be filed.

“These are our recommended charges. It does not mean that these are the same cases that will be filed. We trust the Ombudsman in this. What is important here is that we are able to submit evidence and provide recommendations,” he said.

“We have faith in the Ombudsman that they will comprehensively study the evidence and later decide what are the appropriate charges to file,” Dizon added.

The ICI said that 40 projects amounting to P3.8 billion were awarded to FS Co. Builders and Supply. 

It said that FS Co. Builders and Supply is a sole proprietorship owned by Co's sister. 

“A significant number of these projects were undertaken through a joint venture with HiTone Construction and Development Corporation, founded by Mr. Christopher Co, brother of Vice Governor Farida Co and of former Rep. Zaldy Co,” the commission said.

One hundred twenty-three projects worth P13.1 billion were awarded to Newington Builders, 17 projects worth P2.1 billion to Lourel Development, and 71 projects worth P9.2 billion were awarded to S-Ang General Construction and Trading. 

The ICI said that one of Gardiola’s brothers was a treasurer in Newington while another was an incorporator of Lourel. The commission said that the stockholders and directors of S-Ang are Gardiola’s immediate family.  

The ICI also reported that 520 contracts amounting to P36.1 billion were awarded to IBC while 77 contracts amounting to P4.2 billion were awarded to Allencon. It said that Ang is the nephew of the chairman of the board of both Allencon and IBC.

Stockholders, children

Based on the referral, JLL Pulsar Construction Corporation was awarded 242 projects amounting to P11 billion. 

The ICI said that stockholders of the corporation are Lara’s children. It added that Lara is also an incorporator and previously held 80% of the total issued and outstanding shares.

Meanwhile, 135 contracts amounting to P8.7 billion were awarded to Boometrix Development Corp. The corporation’s majority stockholder is the nephew of Matugas, according to the ICI.

A total of 72 projects amounting to P2.3 billion were meanwhile awarded to Tarlac 3-G Construction and Development Corporation.

It said that Rivera is the majority stockholder of the firm and is also its chairman and president.

JVN Construction, which the ICI said is a sole proprietorship owned by Nisay, was awarded three projects amounting to P73.7 million. 

C.M. Pancho Construction was awarded one project amounting to P1.2 billion. The ICI said that its stockholders are all relatives of Pancho.

'Conscience clear'

Sought for comment, lawmakers Ang and Lara disputed the allegations and expressed readiness to be investigated.

“My conscience is clear. I am confident that I will be able to clear my name soon. My resolve for the truth to come out is stronger and clearer. I am ready to face this case in the proper forum,”  Ang said in a statement.

“In my three years in public service, I have never used my position in the government for my own interest and to profit in any way. I hold the trust of the Ilonggos strongly, and will never betray the faith of my kasimanwas in me as their representative since 2022,” he added.

Lara, for his part, said the referral for the filing of criminal charges against him over his links with JLL Pulsar Construction “gives him an opportunity to address the allegations before a proper forum.”

He said that he had divested from JLL Pulsar Construction before he ran for public office and that the firm never participated in government contracts since he was elected as Cagayan 3rd District representative.

“We trust that the truth will prevail,” Lara added.

In a statement on Thursday, Gardiola said he was “disheartened” to learn that his name was mentioned in alleged irregularities in flood control projects.

“I categorically deny any involvement in the acts being alleged. These claims are untrue,” he said.

“To be implicated in such matters is painful, not only for myself, but also for the people I have pledged to serve with integrity,” Gardiola added, adding that his work “has always been guided by service, not self-interest.”

He welcomed the opportunity to clear his name and face the witness who implicated him in the flood control scandal “but in the proper forum and under proceedings” where his constitutional rights are respected.

GMA News Online has reached out to other named lawmakers and will post their response once it is issued.

According to Reyes, the public can expect more names to come out in the following weeks.—MCG/NB/JMA, GMA Integrated News