Contractors Under Dual Scrutiny — Dateline Philippines

MANILA, Philippines — Government contractors are facing intensified scrutiny on two fronts: their political contributions and the execution of major infrastructure projects. The Commission on Elections (COMELEC), Congress, and the executive branch are pursuing overlapping investigations, prompting arrest orders, contract suspensions, and calls for independent inquiries.

 

COMELEC Reviews 2022 Contractor Donations

COMELEC confirmed that at least 31 firms holding government projects may have contributed to national candidates in the 2022 elections. The review, led by the Political Finance and Affairs Department, remains ongoing, with no final rulings yet issued.

Senate President Francis “Chiz” Escudero acknowledged receiving a campaign contribution from Lawrence Lubiano, president of Centerways Construction & Development, Inc. Lubiano told lawmakers he donated ₱30 million in his personal capacity, not through the company. Escudero confirmed the donation but denied any intervention in Centerways’ government projects.

Similarly, Sen. Joel Villanueva disclosed a ₱20-million contribution from New San Jose Builders, Inc. (NSJBI), which had secured a ₱2.147-billion housing contract in 2021. While no formal charges have been filed, watchdog groups have noted that such donations may raise questions under Section 95 of the Omnibus Election Code, which prohibits government contractors from contributing to candidates.

Senate Cites Flood-Control Contractors in Contempt

The Senate Blue Ribbon Committee issued contempt citations against Ma. Roma Angeline D. Rimando, owner-manager of St. Timothy Construction Corporation, and Eumir S. Villanueva, president of Topnotch Catalyst Builders Inc., for failing to appear at hearings on alleged irregularities in flood-control projects.

Committee Chair Sen. Rodante Marcoleta, supported by Sen. Ronald “Bato” dela Rosa and Senate President Pro Tempore Jinggoy Estrada, said the citations were intended to compel testimony. Senate President Escudero had previously authorized subpoenas after multiple contractors failed to attend hearings.

Lawmakers are reviewing reports of “ghost” or substandard projects and the clustering of flood-control contracts among a small circle of firms. According to a dataset from the Philippine Center for Investigative Journalism (PCIJ), 9,855 flood-control projects worth over ₱545 billion were approved between July 2022 and May 2025, with politically connected companies receiving a disproportionate share.

Expanding Oversight and Public Pressure

Recent developments have intensified scrutiny of contractors:

  • Arrest Orders Enforced: The Senate ordered the arrest of Rimando and Villanueva after repeated failures to attend hearings.
  • House Subpoenas Issued: The House Infrastructure Committee subpoenaed five contractors, including Sarah Discaya, linked to substantial contract awards.
  • Luxury Assets Questioned: A televised Senate hearing highlighted a contractor’s ownership of 28 luxury vehicles, prompting public and religious leaders to demand accountability.

Executive and Audit Actions

The executive branch and auditing agencies have also taken action:

  • Leadership Shake-up: The Public Works Secretary resigned amid the controversy. His successor, Vince Dizon, suspended bidding for all locally funded flood-control projects and pledged to blacklist contractors linked to irregularities.
  • Independent Commission Planned: President Ferdinand Marcos Jr. announced plans for an independent commission to investigate anomalies, complementing congressional inquiries, emphasizing the need for full accountability in infrastructure spending.
  • COA Fraud Audit: The Commission on Audit (COA) launched a fraud audit in Bulacan, ordering technical inspections, geo-tagging, and physical verification of projects approved from January 2022 to July 2025.

Ongoing Developments

COMELEC stressed that any ruling on campaign finance violations must come from the Commission en banc or the courts. Both the Senate and House indicated their investigations will continue, even as civic and business groups push for an independent inquiry into what they describe as “excessive corruption” in infrastructure spending.

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