DTI files charges vs 8 contractors in flood control scandal
Trade Secretary Cristina A. Roque
The Department of Trade and Industry (DTI) has filed formal charges against eight of the 15 contractors who amassed 20 percent of the ₱545-billion budget for flood control projects since President Marcos assumed office in 2022.
The DTI, citing its regulatory authority, said it has filed charges against the contractor-licensees for their reported involvement in anomalous flood control projects and potential violations of construction industry regulations.
The filing of charges authorizes the DTI to take immediate preventive actions against the construction firms while investigations are ongoing.
The agency said it will suspend licenses and take other necessary measures to ensure that “the law is upheld and the public is protected.”
The eight contractors facing charges are Legacy Construction Corp., Centerways Construction & Development, Inc., Alpha & Omega General Contractor & Development Corp., MG Samidan Construction, L.R. Tiqui Builders, Inc., QM Builders, EGB Construction Corp., and Hi-Tone Construction and Development Corp.
Legacy, Alpha & Omega, and EGB were found to have flood control projects in almost all regions nationwide, alongside St. Timothy Construction Corp. and Road Edge Trading & Development Services.
These construction companies were among the 15 contractors flagged by President Marcos in August for potential irregularities, as they had been awarded 20 percent of his administration’s entire flood control budget.
While Marcos has clarified that the list was not to accuse “anyone of anything,” he said these findings provide his administration with an idea of how the flood control mess has unraveled.
In the following month, Marcos formed the Independent Commission for Infrastructure (ICI) to investigate irregularities and the misuse of public funds in government flood control and related infrastructure projects.
Trade Secretary Cristina Roque said filing charges against the eight contractors reflects the government’s commitment to maintain fairness, accountability, and integrity within the construction sector.
“These actions send a clear message that only those who build with integrity have a place in the Philippine construction industry,” said Roque in a statement.
“The DTI will not allow any contractor to undermine the safety and quality of our nation’s infrastructure. Every project must reflect competence, honesty, and compliance with standards,” she added.
The DTI oversees the regulation of the construction industry through its attached agency, Construction Industry Authority of the Philippines (CIAP).
In pursuit of the administration’s efforts to crack down on corruption in flood control, the DTI is set to file formal charges against another eight contractor-licensees.
The companies include St. Timothy, Road Edge, Triple 8 Construction & Supply, Inc., Topnotch Catalyst Builders, Inc., Sunwest, Inc., SYMS Construction Trading, Wawao Builders Corp., and Royal Crown Monarch Construction and Supplies Corp.
Excluding SYMS, the seven firms comprised the other half of those tagged by President Marcos for cornering a fifth of the flood control funding.
Filing charges against these companies, according to Roque, is part of the DTI’s ongoing efforts to ensure compliance with the law while promoting honesty and fair competition in the construction industry.
Roque said the DTI’s fact-finding team will continue to investigate other contractor-licensees for potential irregularities, in coordination with the ICI.