'Conflict of interest': Lacson tells DTI, CIAP to file raps vs 2 PCAB members who bagged gov't contracts
By Dhel Nazario
At A Glance
- Senator Panfilo "Ping" Lacson urged the DTI and CIAP to investigate and file charges against two PCAB members for alleged conflict of interest and corruption, as he cited evidence that they secured government contracts through their construction firms while holding regulatory positions.
Senator Panfilo "Ping" Lacson has called for an immediate investigation and filing of the necessary criminal and administrative charges against at least two members of the Philippine Contractors Accreditation Board (PCAB) for overlapping and conflicting positions as owners of construction companies while serving as members of the board and bagging government contracts.
Senator Panfilo "Ping" Lacson (Senate PRIB photo)
Lacson made the call to both the Department of Trade and Industry (DTI) and the Construction Industry Authority of the Philippines (CIAP).
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.
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.
Baggao was reappointed for a three-year term as PCAB member in September 2023, while remaining as an authorized managing officer of EGB Construction, a contractor for government projects. Escalante, meanwhile, while sitting as board director of PCAB, is the owner of A.N. Escalante Construction Inc.
The PCAB'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 an undue advantage over other contractors, as they could 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 incumbency 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.
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.
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.
"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," Lacson said.
In an interview on Usapang Senado over DWIZ, Lacson shared that Senate Minority Leader Vicente "Tito" Sotto III told him that President Marcos will look into this.