PCIJ flags lawmakers’ links to firms bagging billions in flood control anomalies

Sophia Buenavidez

The Philippine Center for Investigative Journalism (PCIJ) revealed that several senators and congressmen are tied to firms winning billions in government contracts, raising concerns over conflicts of interest in public infrastructure spending in its recent investigation.

Senate President Francis “Chiz” Escudero confirmed that businessman Lawrence Lubiano, CEO of Centerways Construction and Development Inc., donated ₱30 million to his 2022 campaign, as declared in his Statement of Contributions and Expenditures (SOCE).

Lubiano’s firm was among 15 contractors that received 20 percent of flood control project contracts under President Marcos Jr.’s administration. Escudero maintains he had no involvement in contract awards.

Senator Joel Villanueva also declared a ₱20 million donation from New San Jose Builders Inc., whose representatives later won government contracts.

Senator Bong Go, while denying involvement in operations with his father’s and half-brother’s firms, CLTG Builders and Alfrego Builders, was also part of lucrative contracts worth over ₱327 million.

PCIJ uncovered 15 members of the House of Representatives with direct ties to contracting firms.

Among them is former Appropriations Chair Zaldy Co., cofounder of Sunwest Construction, despite claims to have parted ways from the company, still has relatives heading other contractors active in government projects.

Public administration expert Maria Fe Mendoza emphasized the gravity of these revelations, warning that up to 20 percent of public funds may be lost to corruption, resulting in the delivery of low-quality projects and diminished public trust.

“The people should really have trust in the government and its institutions. It’s easy to sustain if many people report wrongdoing. But it should not end with only reporting, there should be a process for the appropriate punishment or sanction, or the problem must be addressed,” Mendoza said.

A Commission on Elections (COMELEC) preliminary review also uncovered 31 contractors linked to campaign donations in the 2022 elections as of August 30.

This review may signify a possible breach of section 95, the Omnibus Election Code prohibits contractors or subcontractors providing goods or services to the government from contributing to “partisan political activity.”

The COMELEC is now focusing on contractors likely involved in the 2022 election campaigns of national candidates since election offenses have a five-year prescriptive period.