Raps filed vs. DOH usec over gov't contracts won by brother's firm; official denies

A group identified as Concerned Health Workers has filed complaints with the Office of the Ombudsman against Health Undersecretary Glen Matthew Baggao over government contracts won by his brother's construction firm.

The group filed complaints for two counts of graft, as well as violation of the Procurement Law and the Code of Conduct for Public Officials and Employees.

The complainants alleged that since Baggao was appointed as the head of the Department of Health’s Universal Health Care–Health Services Cluster (UHC-HSC) in July 2025,  the construction firm owned by his brother Erni, EGB Construction Corp., already secured five government infrastructure projects worth P140.99 million: three of which were Department of Public Works and Highways projects while the other two are Isabela provincial government projects.

“In 2025 alone, EGB Construction secured five health projects worth P140.99 million, including the Maconacon Super Health Center and Divilacan Super Health Center in the respondent's immediate area of influence as head of the UHC-HSC. Respondent is guilty of Section 3(e) of R.A. 3019 (Anti-Graft and Corrupt Practices Act) by accepting a designation that gives him direct control over funding for health infrastructures while his brother, Erni, who owns EGB Construction, aggressively captures contracts within the same sector,” the complaint read.

“As head of the UHC-HSC, Respondent coordinates with LGUs to implement the health sector's eight-point agenda, granting him the power to prioritize funding for facilities in regions where EGB Construction has an established operational foothold,” it added.

EGB Construction is one of the 15 contractors named by President Ferdinand Marcos, Jr. which received 20% of the entire P545-billion budget for flood mitigation projects. 

In addition, the complainants alleged that while Baggao was serving as the chief of the state-run Cagayan Valley Medical Center, his brother’s EGB Construction was awarded a P28.91 million COVID-19 facility through negotiated procurement which establishes “a clear pattern of partiality.”

“By setting specific technical hurdles or localized political requirements, Respondent can effectively "rig" the procurement environment in favor of his brother’s company," the complainants said.

Further, they argued that EGB Construction should not be allowed to bid for the government projects to begin with because the Sangguniang Panlalawigan of Ilocos Norte already passed a resolution recommending that EGB Construction be blacklisted back in March 2019 due to DPWH findings of defects in a section of the Bongo River revetment project in Sarrat, Ilocos Norte, which was built by EGB.

“We raise a red flag and call for action regarding the appointment of Undersecretary Baggao since his appointment threatens the integrity of our nation’s health system and puts billions of pesos at risk,” the complainants said.

“A swift and decisive action is not only warranted but absolutely necessary to protect public funds and ensure that every peso allocated to hospitals truly serves the Filipino people,” they added.

In response, Baggao expressed confidence that the authorities will find his actions above board. 

"I am yet to receive the copy of the complaint. I have just learned of this development but should this indeed be the case, we respect the process before the Office of the Ombudsman and remain confident that we will be able to address the matter at the proper time," Baggao told GMA News Online in a text message. 

"[I am saying this] with assurance that all actions undertaken in the course of our work were carefully studied and carried out in accordance with applicable laws and rules," he added.

Aside from probing Baggao, the complainants also called on Ombudsman Jesus Crispin Remulla to order the revocation of Baggao’s authority over the HFEP to stop the flow of funds to family-linked entities.

They also urged the Ombudsman to issue a preventive suspension on Baggao while the investigation is ongoing. —AOL, GMA News