Senate Pushes for Reform on Construction Industry Authority
Senate Minority Leader Vicente “Tito” Sotto III has called for urgent amendments to the Construction Industry Authority of the Philippines (CIAP) and the Philippine Contractors Accreditation Board (PCAB) Law. This move comes amid growing concerns over rampant material misrepresentation within the construction industry.
Sources reported that Sotto’s appeal follows allegations involving questionable ownership structures among several construction firms tied to Pacifico and Cezarah Rowena Discaya. These concerns surfaced in the CTA Case No. 10472, St. Timothy Construction Corporation versus the Bureau of Internal Revenue.
Questionable Corporate Ownership Raises Red Flags
Records indicate that the implicated corporations are owned, managed, and represented by Pacifico Discaya, Cezarah Rowena Discaya, Pacifico Discaya II, Ma. Roma Angeline Rimando, and Darryl Mark Pesigal. Officials confirmed that such arrangements constitute material misrepresentation in corporate ownership and registration, as validated by the PCAB.
Community members noted that some contractors exploit loopholes by establishing new corporations or sole proprietorships whenever their licenses are revoked or denied. This strategy allows them to sidestep regulatory oversight and continue operations unchecked.
PCAB Executive Director Affirms Material Misrepresentation
Herbert Matienzo, PCAB’s Executive Director, affirmed that these practices likely fall under material misrepresentation, complicating efforts to enforce existing regulations. Local leaders highlighted the additional challenge posed by companies using multiple addresses, which hinders tracing and holding them accountable.
Call for Stronger Powers and Coordination
Sotto emphasized the urgent need for enhanced authority, improved coordination, and clearer enforcement measures between the Department of Public Works and Highways (DPWH) and the Department of Trade and Industry (DTI). These reforms aim to close loopholes and prevent ongoing abuses in the construction sector.
Officials reported that the Senate Blue Ribbon Committee is actively investigating allegations of substandard flood control projects. Moreover, concerns have been raised about the disproportionate awarding of contracts to a small group of favored contractors.
Legislative Overhaul Expected from Blue Ribbon Probe
“We are hoping that this precisely will be the result of the (Blue Ribbon Committee’s) probe–the legislation that we need to do with PCAB, we need to overhaul PCAB,” Sotto said, underscoring the importance of legislative action following the ongoing investigations.
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