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Manila Bulletin devider Business devider Trade & Industry devider Roque revamps construction boards amid 'license-for-sale' scandal

Roque revamps construction boards amid 'license-for-sale' scandal

Published Sep 8, 2025 12:01 am  |  Updated Sep 6, 2025 01:45 pm
Trade Secretary Cristina A. Roque
Trade Secretary Cristina A. Roque
The Department of Trade and Industry (DTI) is revamping its key construction regulatory bodies following the abrupt resignations of top officials amid a widening investigation into alleged corruption.
Trade Secretary Cristina A. Roque has named Doris U. Gacho as acting executive director of the Construction Industry Authority of the Philippines (CIAP) and Sergie T. Retome as acting executive director of the Philippine Contractors Accreditation Board (PCAB).
The appointments, announced Saturday, Sept. 6, are part of a “major revamp” to clean up both agencies, which Roque has placed under her direct supervision.
The shake-up follows the resignation of three high-ranking PCAB officials, including Executive Director Herbert Matienzo, who was tagged by lawmakers in a House of Representatives investigation as the alleged mastermind of a “registration for sale” scheme.
Matienzo tendered his resignation on Wednesday last week, citing “personal reasons,” and it was accepted the same day by Roque.
Also resigning were board members Arthur Escalante and Erni Baggao. Baggao cited “personal and health reasons,” while Escalante’s three-year term had expired. Both were criticized by Senator Panfilo Lacson for also being presidents of their own construction companies, which Lacson said gave them an unfair advantage in securing government contracts and revoking licenses.
Just days before their departure, Escalante and Baggao signed a resolution to revoke the licenses of nine firms owned by contractor Sarah Discaya.
The PCAB, an attached agency of the DTI, is responsible for accrediting contractors to ensure they are qualified to operate, especially on government infrastructure projects.
The resignations and subsequent overhaul come amid intense scrutiny over the alleged scheme, which reportedly required contractors to pay up to ₱2 million for license renewals.
To ensure accountability, Roque has established an Oversight and Fact-Finding Management Team within the DTI to coordinate investigations and recovery efforts.
“This mechanism will safeguard public interest, ensure accountability, and maintain stakeholder confidence,” Roque said in a statement.
Roque said the investigation into the former officials will continue despite their exit.
The DTI is also awaiting turnover documents from Matienzo to release a full list of companies facing potential license revocation, which will include 15 contractors named by President Ferdinand R. Marcos Jr. for allegedly cornering a significant portion of a ₱545 billion budget for flood control projects.

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