Senator Tulfo to File Resolution on Contractors’ License Law
Senator Erwin Tulfo announced plans to file a resolution this Monday seeking a thorough review of the Contractors’ License Law, officially known as Republic Act 4566. This law established the Philippine Contractors Accreditation Board (PCAB), the regulatory body responsible for licensing contractors nationwide, officials reported.
The senator emphasized the need to examine whether the law requires amendments, especially its clause that restricts membership on the PCAB board exclusively to contractors. He also raised the possibility that the entire licensing agency might need to be abolished, depending on the findings of the review.
Concerns Over Board Composition Raise Conflict of Interest
Senator Tulfo expressed disbelief about the provision mandating that only contractors may serve as PCAB board members. “I cannot imagine how such a law was passed when some of its provisions are clearly self-serving, especially the qualifications for becoming part of the Board of Directors,” he said.
He questioned how contractors could effectively regulate and oversee construction projects when they are also participants in the industry. “How can they monitor, oversee, and regulate construction projects in the country, whether these are done properly, are not substandard, or are not ghost projects, if they themselves are also contractors? Clearly, there is a conflict of interest here!” community members noted.
The senator further asserted that the Contractors’ License Law has become a gateway for corruption rather than a safeguard for public interest. “It is time to reform or abolish the PCAB law, because instead of protecting the public from corruption, it has become a gateway for it,” he added.
Resignations Shake the Philippine Contractors Accreditation Board
Recent developments have intensified scrutiny on the PCAB. On September 3, PCAB member Erni Baggao resigned amid rising controversies. Baggao also leads EGB Construction Corp., identified by government sources as one of the firms that secured most flood control projects since 2022.
Additional resignations followed, including those of PCAB board member Arthur Escalante, who heads AN Escalante Construction Inc., and lawyer Herbert Matienzo, the executive director of both the Construction Industry Authority of the Philippines (CIAP) and the PCAB.
CIAP and PCAB Leadership Changes to Ensure Continuity
The CIAP, an agency under the Department of Trade and Industry, is tasked with promoting and regulating the construction industry’s growth. The PCAB functions as one of its implementing boards. Trade Secretary Cristina Roque announced the appointments of Doris Gacho and Sergie Retome as acting executive directors of CIAP and PCAB, respectively. She assured that these appointments “will ensure continuity of operations during the revamp,” local leaders noted.
Looking Ahead: Reform or Abolish the Licensing Law?
As Senator Tulfo prepares to push for the resolution, many stakeholders await the outcome of the review of the Contractors’ License Law. The debate highlights the urgent need for transparency and reform in how contractors are licensed and regulated to protect public welfare and prevent corruption.
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