Contractor board reforms underway

MANILA, Philippines —  A major overhaul is ongoing in the Philippine Contractors Accreditation Board (PCAB), the agency tasked with certifying legitimate contractors, which became embroiled in controversy over “accreditation for sale.”

Trade Secretary Cristina Roque revealed this yesterday, saying the overhaul includes prohibiting new members of PCAB from owning construction firms.  PCAB is an attached agency of the Department of Trade and Industry.

Senators have chastised PCAB for its alleged “accreditation for sale” scheme, wherein contractors applying for licenses to take part in government projects are paying P2 million in grease money to secure accreditation.

They made the accusation at the height of legislative investigation on anomalies in flood control projects perpetrated by some public works officials and legislators in cahoots with private contractors.

The controversy triggered the resignation of PCAB executive director Herbert Matienzo and board members Arthur Escalante and Ernie Baggao. Sergie Retome took over Matienzo’s position as acting executive director.

Roque briefed the Independent Commission for Infrastructure (ICI) yesterday on developments in PCAB.

She said the ICI has recommended an investigation on some contractors, but she did not divulge their identities.

For now, PCAB is investigating whether to blacklist the top 15 contractors that bagged the most flood control deals nationwide, as well as a “growing number of contractors,” which she also did not identify.

So far, PCAB has stripped of their licenses nine firms linked to Sarah and Curlee Discaya due to allegations of bid-rigging: St. Gerrard Construction General Contractor and Development Corp., Alpha and Omega General Contractor and Development Corp., St. Timothy Construction Corp., Amethyst Horizon Builders and General Contractor and Development Corp., St. Matthew General Contractor and Development Corp., Great Pacific Builders and General Contractor Inc., YPR General Contractor and Construction Supply Inc., Way Maker OPC and Elite General Contractor and Development Corp.

Tighter rules

Roque said she has instituted tighter rules for board members. “A board member cannot own a construction company because it’s a conflict of interest,” she said. “They should have a construction background, meaning they could be an engineer, they could be engineers that are part of a construction firm, but they don’t own a construction company.”

Contractors applying for PCAB accreditation will also have to undergo a two-level assessment – first by the DTI secretary and later by PCAB members.

The PCAB will also take note of their assets.

Meanwhile, the Philippine National Police said it will provide technical and investigative support to the ICI.

The Bureau of Customs has promised not to go after the new owners of the vehicles of contractor-couple Sarah and Curlee Discaya once they are auctioned off.