DPWH probes P250,000-capital firm bagging P5.3-B flood projects
By Trixee Rosel
At A Glance
- MG Samidan Construction declared P250,000 capital in 2019.
- Awarded P5.3 billion in flood control projects this year.
- Ranked 13th among the country's top contractors after securing 60 projects.
- Projects implemented in Abra, La Union, Mountain Province, Benguet, and Pangasinan.
- DPWH to inspect projects for possible use of substandard materials.
A section of flood-control infrastructure in Quezon City is shown on Tuesday, August 12, highlighting river wall reinforcement and drainage improvement projects undertaken by contractors for the Department of Public Works and Highways (DPWH), which is investigating MG Samidan Construction and Development Corp. for securing billions in flood-control contracts despite a low declared capital. (Photo by Santi San Juan | MB)
The Department of Public Works and Highways (DPWH) is now investigating into how a construction company with only P250,000 in capital was able to corner around P5.3 billion worth of flood control projects this year.
DPWH Secretary Manuel Bonoan said the agency will review the records of the construction company which has since risen to 13th place among the country’s top contractors after securing 60 flood control projects across several provinces this year.
“Something is wrong, I must admit, if your capital is P250,000 then suddenly you’re handling P5 billion in projects,” Bonoan said in a DZMM interview, describing the case as questionable.
Documents showed the firm implemented projects in Abra, La Union, Mountain Province, Benguet, and Pangasinan.
Its largest contract was the P148.5-million flood control structure in Abra, which was completed in September 2024.
Bonoan said the DPWH quality assurance unit will inspect the projects to verify if substandard materials were used, such as thin cement or inadequate steel.
“Even during construction, inspections must be conducted to ensure the contractor is doing the right thing,” he added.