No more business as usual

Nearly two years ago, the World Bank debarred three Filipino companies and four Chinese contractors after detecting “fraudulent practices” and collusion in bidding for three WB-funded road projects worth $33 million.

Filipino contractor E.C. de Luna Construction Corp., owned by Eduardo de Luna, was debarred permanently. Cavite Ideal International Construction and Development Corp. and CM Pancho Construction, Inc. were debarred for four years. The Chinese contractors were China Geo-Engineering Corp., China Road and Bridge Corp., China State Construction Engineering Corp. and China Wuyi Co. Ltd. 

The seven contractors were debarred from WB-funded projects; were they allowed to participate in other projects of the DPWH?

That scandal apparently failed to put an end to questionable deals involving foreign-funded projects at the Department of Public Works and Highways. The DPWH has consistently ranked in surveys as one of the most corrupt government agencies.

If anomalies are established in the DPWH flood control projects amounting to P3.5 billion that were canceled recently, the case will show that impunity in the previous administration manifested itself not only in unexplained killings but also in corruption.

Those who awarded those 86 flood control projects without public bidding, and then released funding amounting to P934 million for 19 of the projects just five days before the change of government, clearly believed they could get away it. A single contract in Pangasinan amounted to P228,749,682.31.

Yesterday we were told that new DPWH Secretary Rogelio Singson had summoned contractors and told them that it would no longer be business as usual in the department.

If Singson proves true to his word, contractors should welcome this development. A level playing field and the eradication of commissions should be welcome news for any legitimate businessman.

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When the World Bank debarred those seven contractors, its four-page report said the firms’ fraudulent practices included “participation in a collusive scheme, also involving politicians and government officials, whereby awards were directed to particular contractors in exchange for bribes, kickbacks and payments to designated losing bidders.”

Filipinos hoped but were realistic enough not to expect to learn the identities of at least some of those politicians and government officials.

Some reports linked Eduardo de Luna in particular to influential people. The new DPWH leadership can revive the case as it investigates the award of those flood control projects.

As we saw in the broadband deal with ZTE Corp., the weakness of transparency requirements in foreign-funded projects makes them prone to corruption.

The Supreme Court reinforced that state of affairs when it effectively turned executive privilege, as invoked by Romulo Neri in the government-to-government ZTE deal, into a refuge for scoundrels.

This time, the DPWH chief himself appears not to be worried about the diplomatic repercussions of dragging JICA into a corruption probe. The Japanese, who are used to public officials resigning immediately or even committing hara-kiri on mere accusations of wrongdoing, would themselves probably want a thorough probe into the way their official development assistance is used by beneficiaries.

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If these DPWH cases are pursued to their legitimate conclusion, we may finally see an end to substandard roads and other public works projects.

Driving in Metro Manila after a downpour will give you an indication that taxpayers have been shortchanged in road construction and repair.

People have often wondered why the older sections of Roxas Boulevard, built many decades ago, do not disintegrate even after heavy rains. Was asphalt sturdier in the past?

Look at our roads under construction and civil engineers will point to areas indicating that someone has cut corners: scrimping on metal support, a thin layer of concrete, the absence of curbs.

Apart from our road networks looking like a moonscape after heavy rain, they also look like a patchwork quilt, with asphalt pavement changing into concrete from one city block to the next and the road levels uneven.

Near Christmas, before the school opening and before the official start of an election campaign, streets that are still in good condition are dug up and repaved, dug up and repaved, section by section, tying up traffic.

When the rains come, the same road sections keep disintegrating and constantly require repair.

In his inaugural speech, President Aquino said contractors would henceforth be made responsible for the quality of the roads, bridges and buildings that they construct. The new DPWH chief should see to it that this inaugural vow is carried out.

Singson can try to clean up the DPWH. But imposing discipline on contractors would be easier if P-Noy can get his political allies to sing his tune.

Politicians are among the biggest coddlers of erring contractors. In picking companies that will undertake projects to be funded using their pork barrel allocations, there are politicians who disregard qualifying requirements set by the DPWH and other government agencies.

The principal requirement for these politicians to endorse a contractor is the right amount of commissions.

In the previous administration, certain lawmakers and DPWH officials also reportedly received calls regularly from influential individuals to make sure favored contractors won deals, and never mind bidding procedures.

Will this administration have its own set of influential individuals? If this happens, it will mean it’s still business as usual, and not just in the DPWH.