Senators flag ‘revolving door’ licensing, press PCAB reforms

Senate building (File photo: Senate of the Philippines/Facebook)

By Wilnard Bacelonia, Philippine News Agency

MANILA – Senators on Monday raised alarm over the alleged “revolving door” licensing of contractors blacklisted in government projects, pressing the Philippine Contractors Accreditation Board (PCAB) to strengthen its oversight and coordination with the Department of Public Works and Highways (DPWH).

During the continuation of the Senate Blue Ribbon Committee inquiry on flood-control anomalies, Minority Leader Vicente “Tito” Sotto III cited the cases of St. Gerrard Construction and St. Timothy Construction, both owned by Sarah Discaya.

Sotto revealed that St. Gerrard was suspended in 2015 and blacklisted by the DPWH in 2020, yet its PCAB license remains valid until January 2026.

St. Timothy, meanwhile, was linked to deficiencies in a PHP96.4-million Bulacan River Project in 2023 but was also granted a new license valid until 2027.

Sotto said the situation underscored the need to amend Republic Act No. 4566, or the Contractors’ License Law of 1965, to enhance PCAB’s authority and institutionalize closer coordination with the DPWH.

“I want to amend the law creating the PCAB, to put more power and strong coordination with the DPWH and not just with the DTI,” he said.

Senator Erwin Tulfo accused the PCAB of allowing blacklisted firms to simply create new companies and continue participating in government projects.

“Na-blacklist itong kumpanya na ito, gagamit ng ibang pangalan para makapasok ulit. You hear that but you don’t investigate (When a company is blacklisted, it just uses another name to get back in. You hear that but you don’t investigate),” Tulfo told PCAB chairperson Pericles Dakay.

Dakay countered that PCAB is a quasi-judicial body that conducts investigations and has already summoned 15 contractors identified by the President in anomalous flood-control projects.

He added that the board has preventively suspended the contractors’ authority to bid for flood-control projects while hearings are ongoing.

“We are seriously investigating and conducting hearings at PCAB,” Dakay said.

Still, lawmakers expressed frustration over what they described as PCAB’s lack of decisive action.

Tulfo pointed out that despite years of complaints and findings, no licenses of the identified firms have been revoked.

Discaya, who was also present during the hearing, was questioned by senators over her ownership of multiple construction companies despite earlier claims of divestment.

Senate Deputy Minority Leader Risa Hontiveros noted that nine firms could be traced back to her, while Tulfo pressed her on whether the licenses were being rented out to other parties.

The Blue Ribbon inquiry, chaired by Senator Rodante Marcoleta, is investigating alleged irregularities in flood-control projects under the theme “Philippines Under Water.”