Contractor’s Family Links Surface Amid Flood Control Projects
In a recent House hearing, the president of Centerways Construction and Development Inc. disclosed family connections within local government as his firm secured numerous flood control projects in Sorsogon province. This revelation sheds light on the close relationships entwined with these contracts, raising questions about potential conflicts of interest.
Lawrence Lubiano, who leads Centerways Construction, confirmed to Representative Chel Diokno that he has brothers serving as a town mayor and city councilor in Sorsogon. Although he did not specify their names, officials reported that these family ties coincided with the awarding of over 80 flood control projects to his company in the province. Lubiano also admitted to personally donating P30 million to the campaign fund of then-Governor Francis “Chiz” Escudero during his 2022 senatorial bid.
Centerways Construction’s Project Footprint Across Regions
Centerways Construction is among the top 15 contractors identified by President Ferdinand Marcos Jr. as beneficiaries of the majority of flood control projects nationwide. Community members noted the firm’s significant presence in regions such as Albay, Camarines Sur, Cebu, Masbate, and primarily Sorsogon.
- Albay: 3 projects
- Camarines Sur: 7 projects
- Cebu: 3 projects
- Masbate: 9 projects
- Sorsogon: 42 projects
The company also participated in joint ventures with other firms, including Ascon Construction and Supply, Cheerel Construction & Supply, FS Co Builders and Supply, and L Bros Construction and Supply Inc. These partnerships added several more projects, particularly in Camarines Sur and Sorsogon.
Financial Scale and Undercapitalization Concerns
Since its establishment in 2009, Centerways Construction has secured 85 flood control projects worth approximately P5.4 billion over the past three years. Most of these contracts, totaling 55 projects, are concentrated in Sorsogon province. Notably, in Donsol—the hometown of Lubiano’s brothers—the company received eight projects valued at P419 million.
However, Senator Sherwin Gatchalian previously flagged Centerways for being undercapitalized, with a reported capital of only P45 million, which is low compared to the vast government contracts it holds. This discrepancy has fueled concerns about the company’s capacity to handle large-scale projects effectively.
Political Donations Amid Election Code Restrictions
Lubiano clarified that his P30 million donation to Escudero’s campaign was a personal contribution and not made through Centerways Construction. Under the Omnibus Election Code, candidates are prohibited from receiving contributions directly or indirectly from individuals or entities holding government contracts. This admission has intensified scrutiny over the legality and ethics surrounding campaign financing linked to contractors.
House Investigation into Flood Control Anomalies
The disclosure occurred during the first hearing of a House tri-committee probing anomalous, substandard, and ghost flood control projects under the Marcos administration’s broader anti-corruption efforts. Officials reported skepticism from critics who doubt Congress’s ability to conduct an impartial investigation, citing potential conflicts of interest among lawmakers connected to contractor firms.
Senator Panfilo Lacson previously alleged that at least 67 legislators are either contractors themselves or have family members involved in contracting businesses. Meanwhile, investigative groups published lists highlighting possible conflicts of interest involving some lawmakers.
For more news and updates on flood control projects and government transparency, visit Filipinokami.com.
