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THE AUTHORITIES have identified 421 “phantom” infrastructure initiatives throughout the Philippines after verifying approximately 8,000 public works, the Department of Public Works and Highways (DPWH) reported on Thursday, signifying one of the most significant corruption warning signs uncovered under the Marcos administration.
“From the 8,000 projects validated nationwide, 421 were confirmed as phantom projects,” Public Works Secretary Vivencio B. Dizon articulated during a livestreamed news briefing. The projects were confirmed by the Armed Forces of the Philippines, Department of National Defense, and Department of Economy, Planning and Development.
These discoveries are part of an ongoing investigation into irregularities concerning flood control projects, which have attracted scrutiny from the Independent Commission for Infrastructure (ICI). The DPWH is collaborating with the ICI, military, and police to trace potential fund misappropriations and ascertain accountability.
ICI Executive Director Brian Keith F. Hosaka stated that the commission is evaluating procurement limits to diminish public fund misuse.
“Currently, the district level has a P150-million cap for civil works procurement, whereas the regional level maintains a P400-million limit,” he expressed during the same briefing. “The ICI recommends halving these limits to enhance oversight of DPWH civil works procurement.”
The audit and examination arise as the Marcos administration amplifies its anti-corruption efforts following public outrage over counterfeit infrastructure projects purportedly financed through congressional insertions.
Mr. Dizon indicated that both entities would strengthen validation processes to avert phantom projects from being authorized or compensated in future budgets.
Meanwhile, Senator Sherwin T. Gatchalian expressed support for dismantling the DPWH and establishing an infrastructure agency, citing the protracted procedure necessary to reform the current department.
In a news conference, the legislator mentioned that the government should contemplate reconstituting the DPWH, inclusive of the termination of all its officials, to eradicate corruption within the agency.
“It’s not limited to Bulacan — it’s happening throughout the entire Philippines,” he commented in Filipino, alluding to fraudulent flood control arrangements in the central Luzon region. “That implies there are corrupt DPWH officials across the nation. How do you rectify that?”
The DPWH is pursuing stricter enforcement and more severe penalties for errant contractors, Mr. Dizon informed reporters earlier this week.
“We must be more stringent and impose heavier penalties for blacklisting, because the current measures remain too lenient,” he stated on the periphery of an event. “We need to make it as stringent as, if not more so, than the World Bank and Asian Development Bank (ADB).”
The World Bank and ADB have a joint agreement to collectively blacklist contractors engaged in deceit or corruption across their projects. In the Philippines, the Department of Budget and Management previously cautioned that contractors, suppliers, and consultants repeatedly breaching procurement regulations could face lifetime blacklisting under the proposed New Government Procurement Act.
The Court of Appeals recently froze another series of bank accounts associated with the flood control scandal, raising the total frozen asset value to P4.4 billion, reported the Anti-Money Laundering Council on Wednesday.
The latest freeze order pertains to 12 additional bank accounts linked to persons of interest, including an entity whose license was allegedly misused for “phantom” infrastructure projects, the council noted in a statement. It did not reveal the account holders’ identities.
In the past month, the appellate court issued five separate freeze orders encompassing 1,632 bank accounts, 54 insurance policies, 163 vehicles, 40 properties, and 12 e-wallets associated with the scheme. Each order is immediately effective for 20 days and may be extended by up to six months.
President Ferdinand R. Marcos, Jr. previously indicated that corruption allegations related to infrastructure expenditure must be supported by solid evidence, cautioning that weak cases could lead to failed prosecutions.
“We must adhere to the law; otherwise, whatever we do is not legitimate,” he remarked in a podcast released by the Presidential Communications Office on Sunday. “We understand many of these individuals are not innocent. But if you intend to bring them to court, you need to have a very robust case.”
He noted that insubstantial evidence could lead to dismissals, which he described as “much, much, much worse.”
The DPWH is facing increasing scrutiny regarding multibillion-peso irregularities in flood control initiatives, where state funds were allegedly appropriated by contractors and officials. — Erika Mae P. Sinaking and A.R.A. Inosante
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