DPWH seeks to collect 30% of contractors’ performance bond

MANILA, Philippines — The Department of Public Works and Highways (DPWH) has signed a partnership with the Insurance Commission (IC) for the speedy processing of insurance claims of the government from erring contractors who have been implicated in substandard and non-existent or ghost flood control projects.

“The government took out insurance contracts to make sure that contractors will perform the projects properly for the DPWH. This way, if they have deficiencies in their project, the government has a way to get back even just a portion of the contract it signed with the contractor,” Public Works Secretary Vince Dizon explained.

“If there is a case with evidence that it is a ghost, or substandard or anomalous (project), immediately we will file an accompanying claim (on the performance bond) under this agreement with the Insurance Commission,” he added.

Dizon said the government can claim as much as 30 percent of the contract value.

“There is a process for that,” he stressed.

“But what is important is we now have an agreement with the Insurance Commission. This is the first of its kind.

And because of this agreement, we will facilitate or speed up that process,” Dizon said.

Insurance Commissioner Reynaldo Regalado said the IC was giving top priority in helping the DPWH make the claims on the erring contractors.

“These contracts are callable on demand. These (insurance) contracts are surety in nature,” Regalado said at a press briefing with Dizon after the signing of the partnership agreement at the IC head office in Manila.

Regalado said they will take quick administrative action on erring companies who will be slow to settle claims filed by the DPWH.

“For us, administratively, we will closely look at the deficiency (of the insurance company) why they will not settle the claim immediately. Because they have to settle the claim immediately, that’s in the government procurement rules, it’s callable on demand,” Regalado said.

“If it’s negligence, undue delay or some other reason that is unjustified, then we can impose penalties, fines or even suspension or revocation of their licenses,” Regalado said.

Chest pain?

Meanwhile, dismissed former DPWH district engineer Henry Alcantara was brought to the hospital on alleged chest pain that was later ruled as spasms.

Alcantara is detained at the Senate with fellow sacked district engineers Brice Hernandez and Jaypee Mendoza and flood control contractor Curlee Discaya, after all of them were cited in contempt for allegedly lying before the Blue Ribbon committee.

Senate Sergeant-at-Arms Mao Aplasca said Alcantara was taken to the Pasay Medical Center on Monday for ECG and other confirmatory tests.

However, the chest pain was diagnosed as muscle spasms, and so Alcantara was given a clean bill of health for continued Senate detention, Aplasca noted.

“He was brought back to the Senate the same day and is very much normal up to today. Every day the Senate medical team is conducting regular checkup on all our detainees to monitor their status,” he said.

The flood control players will remain in Senate detention during the Undas break after their request for house arrest was not acted upon by the Blue Ribbon committee before it adjourned session.

Amid the ongoing probe on flood control corruption, the Blockchain Council of the Philippines (BCP) is keen on undertaking the pilot program to put the DPWH national budget on the blockchain. – Marc Jayson Cayabyab