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Manila Bulletin devider Philippines devider National devider DPWH, IC enforce performance bond claims on irregular flood control projects

DPWH, IC enforce performance bond claims on irregular flood control projects

Published Oct 15, 2025 08:12 pm

At A Glance

  • DPWH and Insurance Commission formalize initiative to enforce performance and surety bonds linked to irregular flood control projects.
  • Memorandum of agreement signed in Manila sets up a data-sharing system for closer monitoring and enforcement.
  • Government can claim up to 30% of the contract value for projects found to be anomalous.
  • First focus: flood control projects in Bulacan's first district, linked to graft complaints against officials and contractors.
  • Bond claims will proceed alongside the investigation of the Independent Commission on Infrastructure (ICI).
DPWH Secretary Vince Dizon and Insurance Commissioner Reynaldo Regalado hold a signed memorandum of agreement at the Insurance Commission Office in Ermita, Manila on October 15, 2025, formalizing a joint initiative to enforce performance and surety bonds for irregular flood control projects. (Photo courtesy of DPWH)
DPWH Secretary Vince Dizon and Insurance Commissioner Reynaldo Regalado hold a signed memorandum of agreement at the Insurance Commission Office in Ermita, Manila on October 15, 2025, formalizing a joint initiative to enforce performance and surety bonds for irregular flood control projects. (Photo courtesy of DPWH)
The Department of Public Works and Highways (DPWH) has signed an agreement with the Insurance Commission (IC) that will pave the way for the enforcement of performance and surety bonds linked to flood control projects flagged for irregularities.
DPWH Secretary Vince Dizon and Insurance Commissioner Reynaldo Regalado signed a memorandum of agreement establishing a data-sharing system for closer monitoring, validation, and enforcement of bonds in all government procurement.
Dizon said the government can claim up to 30 percent of the contract value for projects found to be anomalous.
The initiative will first focus on performance bonds tied to flood control projects in Bulacan’s first district.
These projects were the subject of a graft complaint filed by the DPWH last month against 20 officials and four contractors.
The complaint includes key agency figures and contractors involved in the alleged anomalies, highlighting the government’s effort to hold accountable those responsible for irregularities.
Dizon said the DPWH and IC will pursue bond claims in coordination with the investigation of the Independent Commission on Infrastructure (ICI), ensuring that irregularities are addressed even before criminal proceedings are concluded.
Regalado described the agreement as an “institutional response to the very real and pressing need to address irregularities and potential abuses in our flood control and other infrastructure projects.”
“By aligning our systems and sharing critical information, we aim to close the gaps that allow anomalies and corruption to persist,” he added.
Dizon also urged insurance firms of flood control contractors to cooperate and voluntarily return the 30 percent performance bonds.
“Nanawagan na rin ako para sa insurance companies na makikita naman nila na hindi ginawa ng tama ang mga proyekto na ito… Magkusa na sila at ibalik na nila yung claim na ‘yun ng gobyerno… ‘Wag na sana natin paabutin sa korte ito (I am also calling on insurance companies, as they can see that these projects were not properly executed. They should take the initiative and return the government’s claim. Let’s not bring this matter to court),” he said.

Related Tags

DPWH IC performance bonds surety bonds flood control projects Bulacan graft complaints
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