President Marcos Commands Sweeping Revamp Philippine Contractors Accreditation Board
President Ferdinand Marcos Jr. has directed the Department of Public Works and Highways (DPWH) and the Department of Trade and Industry (DTI) to undertake a sweeping revamp Philippine Contractors Accreditation Board (PCAB). The board is responsible for licensing construction firms allowed to bid on government infrastructure projects.
Newly appointed Public Works Secretary Vince Dizon disclosed this directive amid ongoing investigations into corruption-tainted flood control projects. Officials reported the president’s urgent call for a major cleanup at PCAB to restore integrity in the construction sector.
License Revocation for Corrupt Contractors
Alongside the revamp, Dizon plans to recommend to Trade Secretary Ma. Cristina Roque the revocation of licenses issued by PCAB to contractors implicated in anomalous flood control projects. Such an action would bar these firms from participating in any DPWH projects.
“Back at the Department of Transportation, I am already used to revoking driver’s licenses, perhaps we should also start revoking the licenses of unscrupulous contractors and imposing perpetual bans against them,” Dizon said during a Malacañang briefing.
PCAB’s Role and Current Leadership
PCAB operates under the Construction Industry Authority of the Philippines (CIAP), which falls under the DTI. It is tasked with issuing, suspending, and revoking licenses to ensure only qualified and reputable contractors work on projects nationwide.
Currently, PCAB is chaired by Pericles Dakay, president of Dakay Construction and Development Corp., with Arthur Escalante and Erni Baggao as board members. Both members own construction firms that have secured government contracts, raising questions about potential conflicts of interest.
Conflict of Interest Allegations and Denials
Senator Panfilo Lacson earlier called for an investigation into possible conflicts involving Escalante and Baggao. Community members noted that their companies continued to receive government contracts while they served on the board.
In response, Escalante stated he saw no conflict, citing Republic Act No. 4566, which requires PCAB board members to be contractors with at least 10 years of experience. The law does not mandate divestment from their companies upon appointment.
PCAB also denied accusations of an “accreditation-for-sale” scheme allegedly charging P2 million for licenses, local leaders said.
Addressing Unethical Practices
CIAP convened on August 29 to confront recent allegations of irregularities and unethical conduct linked to flood control projects and PCAB’s licensing system. Officials confirmed that the board will summon EGB Construction to investigate claims of unethical behavior.
The CIAP board instructed PCAB to enforce strict ethical standards among its employees and conduct a thorough review of its licensing and monitoring processes. To enhance transparency, CIAP approved hiring a third-party agency to independently investigate the allegations.
“These actions reflect the CIAP Board’s determination to serve as a vigilant partner of [the] government in fighting corruption, strengthening oversight, and restoring public trust in the construction sector,” officials reported.
Lifetime Blacklisting of Corrupt Contractors
President Marcos granted Dizon authority to impose lifetime blacklisting on contractors found guilty of executing nonexistent or substandard flood control projects. “When we find that a contractor is involved in a ghost or substandard project, there will be no need for any complicated process or an investigation, automatically it will be blacklisted for life,” he said.
Currently, DPWH suspends blacklisted contractors from bidding for one to two years, after which they may reapply unless the ban is extended by the Government Procurement Policy Board. The new directive aims to close this loophole.
The DPWH will forward findings on erring contractors to an independent commission, which will recommend administrative or criminal charges to the Office of the Ombudsman or Department of Justice.
Targeted Contractors and Vigilance Against Evasion
Dizon confirmed plans to blacklist contractors involved in projects inspected by President Marcos in Bulacan and Benguet. These include St. Timothy Construction Corp., SYMS Construction Trading, and 3K Rock Engineering.
When asked about contractors potentially registering under new names to evade bans, Dizon said, “the government should just have to be more vigilant.” Both DPWH and PCAB will scrutinize ownership and incorporator records of blacklisted firms to prevent circumvention.
Dizon expressed confidence that the independent commission’s findings would hold those responsible accountable and prevent them from securing future government contracts.
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