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Flooded Gates of Corruption: From Congressmen-Contractors to PCAB Directors-Contractors

Instead of an outright denial to project themselves as “lily-white” and “pure as the driven snow,” the Philippine Contractors Accreditation Board (PCAB) should at least look into allegations against their own people’s improper conduct. Aside from reports of corruption in their ranks, there is potential conflict of interest involving at least two board directors in violation of the Code of Conduct and Ethical Standards for Public Officials and Employees, or Republic Act 6713.

With these words, Senator Panfilo M. Lacson called on the Department of Trade and Industry (DTI) and the Construction Industry Authority of the Philippines (CIAP) to immediately conduct an investigation and file the necessary criminal and administrative charges against at least two members of the PCAB Board for overlapping and conflicting positions as owners of construction companies while serving as members of the board of PCAB and bagging government contracts.

Lacson raised this issue as he exposed the apparent conflict of interest of at least two board members – Engineers Erni Baggao and Arthur Escalante.

“Paging PCAB – Instead of an outright denial, you should at least look into allegations against your own people’s improper conduct. Aside from reports of corruption in your ranks, there is potential conflict of interest involving your 2 board directors in violation of RA 6713,” Lacson said in a post on X.

In Filipino: Baha ng Katiwalian: Mula sa mga Kongresistang Kontratista hanggang sa mga Direktor-Kontratista ng PCAB

He noted public records show both Baggao and Escalante signed contracts with the Department of Public Works and Highways (DPWH) as presidents of their own construction companies for government projects – while sitting on the PCAB board.

Baggao was reappointed for a three-year term as PCAB board member in September 2023, while remaining as an authorized managing officer of EGB Construction, a contractor for government projects. Escalante meanwhile, while sitting a a board director in PCAB is the owner of A.N. Escalante Construction Inc.

The PCAB Board’s duties include limiting the operations of constructors to the bounds of their classifications and/or restrictions; and investigating violations of the law. Baggao and Escalante thus had undue advantage over other contractors, as they can investigate potential rivals, or even suspend or revoke their licenses.

On the other hand, Section 9 of RA 6713, the Code of Conduct and Ethical Standards for Public Officials, decrees that a public official “shall avoid conflicts of interest at all times” and when a conflict of interest arises, he shall “resign from his position in any private business enterprise 30 days from his assumption of office, and/or divest himself of shareholdings or interest within 60 days from such assumption.”

Under Section 7 of RA 6713, public officials during their inumbency shall not own, control, or manage any private enterprise regulated or licensed by their office; nor engage in the private practice of their profession.

Violations of Sections 7 to 9 of RA 6713 shall be punishable with imprisonment of up to five years, and/or a fine of up to P5,000 – and possible disqualification from public office.

Records since 2024 of the PCAB showed Baggao was a signatory to the regular contractor’s licenses issued by the PCAB as one of its board members. But during this same time, DPWH records showed he was a signatory to contract agreements with the DPWH, as president of EGB Construction.

Image: From PING LACSON on X

Meanwhile, records also showed Escalante penned and signed a message in the PCAB’s 2022 annual report as one of the agency’s board members – while signing a contract with the DPWH on May 20, 2022 on behalf of A.N. Escalante Construction Inc., a company based in Davao City.

Image: From PING LACSON on X

Earlier, Lacson cited information reaching him that the PCAB is involved in “accreditation for sale,” based on information given to him by private contractors who said the PCAB will take care of the paperwork, for at least P2 million.

PCAB immediately issued a statement denying the reports reaching Lacson’s office while claiming such activities were the work of scammers, but the senator said it still has to explain how some contractors got their accreditation after paying up.

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Baha ng Katiwalian: Mula sa mga Kongresistang Kontratista hanggang sa mga Direktor-Kontratista ng PCAB

Sa halip na agad-agad na mag-deny para ipakita ang sarili bilang “lily-white” at “pure as the driven snow,” dapat man lang ay tingnan ng Philippine Contractors Accreditation Board (PCAB) ang mga alegasyon tungkol sa hindi tamang pag-uugali ng kanilang sariling mga tao. Bukod sa mga ulat ng katiwalian sa kanilang hanay, may malinaw na posibilidad ng conflict of interest na kinasasangkutan ng hindi bababa sa dalawang direktor ng board, na lumalabag sa Code of Conduct and Ethical Standards for Public Officials and Employees o Republic Act 6713.

Sa pamamagitan ng mga salitang ito, nanawagan si Senador Panfilo M. Lacson sa Department of Trade and Industry (DTI) at Construction Industry Authority of the Philippines (CIAP) na agad magsagawa ng imbestigasyon at magsampa ng mga kaukulang kasong kriminal at administratibo laban sa hindi bababa sa dalawang miyembro ng PCAB Board dahil sa sabayang paghawak ng magkakasalungat na posisyon bilang mga may-ari ng construction companies habang nakaupo sa PCAB board, at nakakuha pa ng mga kontrata mula sa pamahalaan.

Itinaas ni Lacson ang isyung ito matapos niyang ibunyag ang lantad na conflict of interest ng hindi bababa sa dalawang miyembro ng board – sina Engineer Erni Baggao at Arthur Escalante.

“Paging PCAB – Instead of an outright denial, you should at least look into allegations against your own people’s improper conduct. Aside from reports of corruption in your ranks, there is potential conflict of interest involving your 2 board directors in violation of RA 6713,” pahayag ni Lacson sa isang post sa X.

Binanggit niya na ipinapakita ng mga public record na parehong sina Baggao at Escalante ay lumagda ng mga kontrata sa Department of Public Works and Highways (DPWH) bilang mga presidente ng kani-kanilang construction companies para sa mga proyektong pamahalaan — habang nakaupo bilang mga miyembro ng PCAB board.

Muling itinalaga si Baggao para sa tatlong taong termino bilang miyembro ng PCAB board noong Setyembre 2023, habang nananatili rin bilang authorized managing officer ng EGB Construction, isang kontratista para sa mga proyektong pamahalaan. Si Escalante naman, habang nakaupo bilang direktor ng PCAB, ay siya ring may-ari ng A.N. Escalante Construction Inc.

Kabilang sa tungkulin ng PCAB Board ang paglilimita sa operasyon ng mga kontratista batay sa kanilang klasipikasyon at/o restriksyon; at ang pag-imbestiga ng mga paglabag sa batas. Dahil dito, nagkaroon ng di-makatarungang kalamangan sina Baggao at Escalante laban sa ibang kontratista, dahil maaari nilang imbestigahan ang kanilang mga posibleng kakumpitensya, o kahit suspindihin o bawiin ang kanilang lisensya.

Samantala, nakasaad sa Section 9 ng RA 6713, ang Code of Conduct and Ethical Standards for Public Officials, na ang isang public official ay “shall avoid conflicts of interest at all times” at kapag nagkaroon ng conflict of interest, siya ay magre-resign “from his position in any private business enterprise 30 days from his assumption of office, and/or divest himself of shareholdings or interest within 60 days from such assumption.”

Ayon naman sa Section 7 ng RA 6713, ipinagbabawal sa mga public official habang nasa kanilang panunungkulan ang pagmamay-ari, pagkontrol, o pamamahala ng anumang pribadong negosyo na nire-regulate o binibigyan ng lisensya ng kanilang opisina; gayundin ang pagsasagawa ng pribadong praktis ng kanilang propesyon.

Ang mga paglabag sa Sections 7 hanggang 9 ng RA 6713 ay maaaring parusahan ng pagkakakulong ng hanggang limang taon at/o multa na hanggang P5,000 – at posibleng diskwalipikasyon sa paghawak ng posisyon sa gobyerno.

Ipinapakita ng mga record mula 2024 ng PCAB na si Baggao ay lumagda bilang signatory sa mga regular contractor’s license na inisyu ng PCAB bilang isa sa mga board members nito. Ngunit sa parehong panahon, ipinakita rin ng mga record ng DPWH na siya ay lumagda sa mga kontrata kasama ang DPWH, bilang presidente ng EGB Construction.

Image: From PING LACSON on X

Samantala, ipinapakita rin ng mga record na si Escalante ay sumulat at lumagda ng isang mensahe sa PCAB 2022 annual report bilang isa sa mga board members ng ahensya — habang lumagda rin siya ng kontrata sa DPWH noong Mayo 20, 2022 sa ngalan ng A.N. Escalante Construction Inc., isang kumpanyang nakabase sa Davao City.

Image: From PING LACSON on X

Noong una, binanggit ni Lacson ang impormasyong nakarating sa kanya na ang PCAB ay sangkot sa “accreditation for sale”, batay sa impormasyon mula sa mga pribadong kontratista na nagsabing ang PCAB ang aasikaso ng mga papeles kapalit ng hindi bababa sa P2 milyon.

Agad namang naglabas ng pahayag ang PCAB na itinatanggi ang mga ulat na nakarating sa tanggapan ni Lacson at iginiit na gawa lamang ng mga scammer ang ganitong gawain. Subalit sinabi ng senador na dapat pa rin nilang ipaliwanag kung paano nakakuha ng accreditation ang ilang kontratista matapos magbayad.

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