Housing

DPWH corruption task force requires independent views

By Infrawatch PH

October 21, 2020

An infrastructure-oriented thinktank called on Public Works Secretary Mark Villar to include independent experts in the recently created DPWH anti-corruption task force to ‘call anomalies as they see it.’

“While we have absolute faith in the integrity of Secretary Villar, the department’s anti-corruption task force requires independent views to ensure that its findings will be transparent and made with integrity. Anything less will be perceived by the public as a ‘komite de abswelto’ if the task force will be composed of agency officials and personnel.”

This was the statement of Terry Ridon, Infrawatch PH convenor and former urban poor chief of the Duterte administration.

Villar commits to work with advocacy groups

Ridon, who was a colleague of Secretary Villar in the 16th Congress, said he welcomes the commitment of Mr. Villar to work with advocacy groups to ensure transparent proceedings in the task force.

“We appreciate the direct response of Secretary Villar during Teleradyo’s interview that he is willing to work with advocacy groups to stamp out corruption in his agency. It is our commitment to provide him and the agency independent analysis and reporting on corruption allegations on specific public works projects.”

Legal bid rigging

Ridon said the main problem in government projects is what he deems as ‘legal bid rigging’ of government contracts if there are only single bidders in projects.

“A review of infrastructure projects with only single bidders would show that its project prices offer no substantial variation from its approved budget, which is the ceiling price for all projects. In one of the more controversial DPWH projects in Metro Manila, the final contract price of P389-Million only had a 2.04% variance from the approved project budget of P398-Million.”

Ridon said this system allows corruption activities to be syndicated by private contractors and personnel in government agencies.

“Prior to the current public bidding law, government projects always require another bidder before any government procurement proceeds, to ensure the best, lowest prices for government given specific standards. This was removed in R.A. 9184, as it allows sole bidders to proceed with procurement as long the bidder possess all the legal, technical and financial requirements to proceed with the bid. What the law failed to see is that this mechanism allows parties to inflate contract prices through legal means, and it is the public that is left holding the bag.”

P357-Million housing project awarded to contractor with no experience

Ridon also said that in 2017, DPWH funds were used in a P537-Million socialized housing project, even if the project contractor had no background nor experience in the construction of public mass housing.

“During our stint as head of the urban poor commission, we objected to the use of DPWH funds for a housing project that involved a contractor that has not undertaken a single public infrastructure project above P150-Million yet had been awarded a contract to build socialized housing for P537-Million. In fact, the single biggest project undertaken by the said contractor was a P130-Million house construction project — for the owner of the construction company itself.”

Ridon said the contractor even rejected suggestions to engage a joint venture partner in order to comply with relevant rules on project track record and amounts.

“The contractor rejected this, despite its previous record of entering into joint ventures for other projects. Despite our objections, the socialized housing project was still awarded to the contractor. But let it be clear – as these are DPWH funds, this absolute lack of control over P537-Million public funds constitutes graft, if not plunder. The task force should take notice of this and it is our commitment to prosecute all those involved in this project even beyond the term of President Duterte.”