NEA Acknowledges Flood-Control Contracting Issue
The National Electrification Administration (NEA) recently confirmed its awareness that the general manager of an Isabela electric cooperative was involved in flood-control contracting. However, officials reported that there is no legal basis to demand his resignation or removal unless a court ruling compels such action.
During a House committee hearing on appropriations, NEA Administrator Antonio Mariano Almeda shared that he personally questioned Engineer Erni Baggao, general manager of Isabela Electric Cooperative II (ISELCOII), about the flood-control contracting controversies surrounding EGB Construction Corporation.
Background on the Flood-Control Contracting Controversy
Owned by Baggao, EGB Construction Corporation is among 15 companies awarded flood-control projects totaling P100 billion since 2022, as disclosed by President Ferdinand Marcos Jr. This raised concerns over potential conflicts of interest involving the electric cooperative’s leadership.
Almeda provided context, stating, “Erni Baggao was the former president of ISELCOII. He applied for the general manager position two years ago. It was further disclosed that he owned a construction company, which he has operated for over 30 years.”
He added, “During the interview, it was also revealed that he was a member of the Philippine Contractors Accreditation Board (PCAB), serving as an independent director representing the Contractors Association.”
Baggao’s Role and Intentions
Before assuming his role as ISELCOII general manager, Baggao explained in his final interview that his application was motivated by a desire to give back to his hometown in Isabela, community members noted.
Calls for Investigation Over Potential Conflicts of Interest
Over the weekend, Senator Panfilo Lacson urged an immediate inquiry into possible conflicts of interest involving two PCAB members. Both were found to have construction companies that secured government contracts while serving on the board.
According to a statement, Lacson pointed out that EGB Construction Corp., owned by Baggao, and AN Escalante Construction Inc., owned by Arthur Escalante, won government projects during their tenure at PCAB, which licenses government contractors.
NEA’s Clarifications on Baggao’s Involvement
Upon learning about EGB Construction’s alleged flood-control project involvement, Almeda promptly contacted Baggao for clarification. “I immediately called and asked him: Are you the one with the EG Baggao Construction? He said: Yes, I am the owner of that EGB. I asked: Are you involved? He said he does not do any ghost projects and admitted to me that he was a contractor of DPWH regarding flood control,” the NEA official recounted.
Almeda further revealed, “The reason why he is all over the country is because he has this special equipment that the DPWH is using for them to keep the projects.”
No Grounds for Resignation Without Court Ruling
Despite the revelations, NEA officials emphasized that there is currently no legal ground to request Baggao’s resignation or removal from his post. “Not unless we have a court decision finding him guilty of something that would render his continued qualifications invalidated,” Almeda concluded.
For more news and updates on flood-control contracting, visit Filipinokami.com.
