Overview
The Senate Blue Ribbon Committee convened to investigate alleged irregularities and corruption in flood control projects, focusing on budget insertions, questionable procurement processes, and contractor practices in the Philippines. Key testimonies highlighted systemic flaws, specific anomalies, and alleged extortion involving politicians, government officials, and private contractors.
Attendance and Acknowledgements
- Senators, government officials, DPWH representatives, contractors, and other stakeholders were present.
- Some invited officials, such as Mayor Benjamin Magalong and former Undersecretary Eugenio Pipo, did not attend and provided varying reasons.
Budget Process and Insertions
- Testimony detailed how budget insertions occur in both BICAM and small committee settings, often without adequate documentation or transparency.
- Four key members typically comprise the small committee responsible for allotting insertions post-second reading, often bypassing full plenary scrutiny.
- Alleged practices of “parking” and “sagasa” (fund re-allocation with or without district congressman’s consent) were described.
- Discrepancies were found between NEP requests and final appropriations, with certain districts receiving inexplicably large increases.
Flood Control Project Anomalies: Mindoro Case
- Governor Dolor reported flood control funds ballooning from 12B in the master plan to 30B in the GAA, yet persistent flooding remains.
- Projects were criticized for poor design, lack of consultation, overpricing (up to 1M per linear meter), substandard work, and “ghost” or incomplete projects.
- Contractors and DPWH officials allegedly demanded and received kickbacks (up to 25% or more).
Contractor Testimony on Corruption
- Owners of St. Gerard Construction and others attested to systemic bribery and extortion by DPWH officials and politicians, including named congressmen and engineers.
- Failure to comply with bribe demands led to company exclusion from projects or fabricated contractual issues.
- Voucher and ledger records exist documenting cash payments totaling up to 25% of project value.
Procurement Process Issues
- Early procurement or “bidding short of award” is limited to NEP-approved projects; insertions are not supposed to undergo such processes.
- No proper regulatory or payment mechanisms exist for congressional insertions, contrary to what some officials claimed.
Committee Proceedings and Recommendations
- Calls were made for submission of all bidding documents related to “short of award” projects to the committee.
- Resource persons were instructed to provide evidence and clarifications; some requested to testify under the Witness Protection Program.
- Committee members advocated for implementation of legal project consultations and adherence to procedural requirements per the Local Government Code.
Decisions
- Allow excusal of absent officials with valid justifications (e.g., Magalong, Dizon).
- Prioritize testimony of key present witnesses to accommodate schedules.
- Require submission of specific bidding and procurement documents to the committee.
- Accept sworn testimonies and evidence from contractors for the record.
Action Items
- ASAP – Usec Cathy Cabral (DPWH): Submit all bidding documents for projects bidded out “short of award.”
- ASAP – Rep. Toby Tianko: Forward insertion data files to DPWH and Senate committee.
- TBD – Contractors: Provide full voucher/ledger evidence of bribe payments to the committee.
Questions / Follow-Ups
- Clarify the actual process and legality of bidding for congressional insertions.
- Verify and scrutinize detailed records of Mindoro flood control budgets and disbursements.
- Investigate anomalous increases and proponent attributions in select districts.
- Further probe allegations against named officials and mechanisms of extortion.