DPWH suspends World Bank project contractors for 15 days

The Department of Public Works and Highways (DPWH) ordered yesterday a 15-day suspension of the seven firms earlier identified by the World Bank (WB) as among those allegedly involved in the bid rigging of projects in phase 1 of the National Road Improvement and Management Program (NRIMP).

In a statement, Public Works Secretary Hermogenes Ebdane Jr. said the seven contractors would be suspended from participating in the agency’s biddings for locally-funded and foreign-assisted projects.

By imposing the 15-day suspension, Ebdane said the agency would be able to reaffirm its commitment against corruption.

“We remain committed in the fight against corruption in government procurement and recent efforts have already paved the way for the approval of new WB loan for roads improvement,” he said.

They would be excluded from the bidding for half a month or 15 days, or while the DPWH is waiting for the Office of the Ombudsman to release the results of its fact-finding investigation.

The investigating team hopes to come out with a report by the first week of February to determine if there were government officials who took part in fixing the bidding.

DPWH Undersecretary for Visayas Operations Rafael Yabut said while the DPWH is still waiting for the result of the Ombudsman’s probe, it is also planning to conduct a separate probe.

Yabut added, “I am very sure that the Secretary would order the conduct of a separate probe into this. But as of now, no team has been formed to conduct the investigation… We need documentary evidence, right now we are not privy to the WB report,” he said.

DPWH Undersecretary for Luzon and the National Capital Region (NCR) Ramon Aquino added that the Management Commission (ManCom) would decide who would compose the investigating body.

But before any probe can be done, Aquino said they have to get hold first of the WB report on banning the seven firms.

“We have already asked for a copy of the blacklisted contractors, so that we would also know what we would do in NRIMP phase 2,” Aquino said.

He reiterated the agency’s commitment to fight graft and corruption and said he believes the WB is satisfied with the safety nets that have been put in place, otherwise they would not push through with phase 2 of the NRIMP.

To ensure efficiency and transparency, the DPWH said the procurement process has been enhanced through the implementation of key computerized applications for cost estimation, preparation and evaluation of bidding documents, and bid analysis.

The World Bank blacklisted three Filipino contractors – E.C. de Luna Construction Corp. and its owner Eduardo de Luna, Cavite Ideal International Construction and Development Corp. (Cavdeal) and CM Pancho Construction Inc. – for “collusive practices” involving the bidding for the Philippines’ NRIMP 1.

Today, the DPWH is set to bid the first project under NRIMP 2, which is the reconstruction/rehabilitation of the P978-million Marcos Highway that is 4.7 kilometers in length.

Meantime, administration officials laughed off yesterday allegations from opposition Sen. Panfilo Lacson regarding a P70-million bribe involving a person close to Malacañang by a group of contractors to bag the P1.4-billion EDSA rehabilitation project.

Executive Secretary Eduardo Ermita and Press Secretary Jesus Dureza in separate interviews welcomed the probe pushed by Lacson but said the senator should also present proof of his allegations.

“I don’t know where he (Lacson) got that,” Ermita told reporters after attending the vin d’ honneur or New Year’s toast between President Arroyo and members of the diplomatic corps in Malacañang.

He said the administration has long put in place measures to check against rigging and corruption since the World Bank brought to the government’s attention last year the alleged collusion between Filipino and Chinese contractors on the bidding for the $33-million road project.

Ebdane, for his part, said he was not aware of any project worth P1.4 billion for the rehabilitation of EDSA. – With Paolo Romero