The Commission on Audit has a sensible suggestion to the Department of Public Works and Highways: it should sue, penalize and blacklist contractors who deliver substandard goods and services. The DPWH, now under new management, should seriously consider the COA’s suggestion if it wants to get rid of its tag as an agency perceived by the public as one of the most corrupt.
COA records show that as early as 2007, state auditors had already alerted the DPWH about companies that had defaulted on their contracts involving public works projects amounting to more than P1 billion. Most of the projects were not completed within the time specified in the contract. The projects included construction projects for roads, bridges and school buildings in Southern Tagalog and Mindanao.
In 2009, state auditors again called the attention of the DPWH for failure to recover P54.717 million advanced to companies whose contracts were either rescinded or terminated for abandoning the projects. A total of P44.8 million was advanced to contractors for projects in Central Visayas that were never even started, according to the COA report.
How can contractors get away with swindling the government of millions of pesos? One speculation is that a number of contractors are protected by influential politicians or are close relatives of prominent public officials. DPWH officials have complained that politicians, particularly lawmakers utilizing their pork barrel allocations, compel the department to award contracts even to companies that do not meet requirements set by the DPWH. These companies are among the most notorious in constructing or repairing roads that disintegrate in a downpour and other substandard infrastructure facilities.
The failure of the DPWH to take the COA’s advice reinforces perceptions that department officials and employees are in collusion with the erring contractors. It seems the more repairs undertaken, the larger the kickback. Now that the DPWH has a new man at its helm, who is the alter ego of a president espousing good governance, perhaps the department will finally heed the COA’s suggestions.