Senator Panfilo M. Lacson has called on the Department of Trade and Industry (DTI) and the Construction Industry Authority of the Philippines (CIAP) to immediately investigate alleged conflicts of interest and corruption within the Philippine Contractors Accreditation Board (PCAB).
In a statement, Lacson pointed to at least two sitting board members—Engineers Erni Baggao and Arthur Escalante, who are allegedly owners of construction firms while also serving as regulators, a clear violation of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.
“Paging PCAB – Instead of an outright denial, you should at least look into allegations against your own people’s improper conduct. Aside from reports of corruption in your ranks, there is potential conflict of interest involving your two board directors in violation of RA 6713,” Lacson said in a post on X.
Records show that Baggao, reappointed to a three-year term in September 2023, simultaneously serves as an authorized managing officer of EGB Construction, which has secured government projects through the Department of Public Works and Highways (DPWH). Escalante, on the other hand, is the owner of A.N. Escalante Construction Inc. in Davao City and has signed contracts with the DPWH even while sitting on the PCAB board.
The senator underscored that the PCAB board is tasked with enforcing compliance among contractors, including investigating violations and suspending or revoking licenses. “Baggao and Escalante thus had undue advantage over other contractors, as they can investigate potential rivals, or even suspend or revoke their licenses,” he said.
RA 6713 mandates that public officials avoid conflicts of interest at all times. Under Section 9, officials must resign from private business enterprises or divest shareholdings within 30 to 60 days of assuming office. Section 7 explicitly prohibits officials from owning, controlling, or managing any private enterprise regulated by their office. Violations carry penalties of up to five years in prison, fines of up to ₱5,000, and disqualification from public office.
Lacson further revealed reports that PCAB is allegedly engaged in “accreditation for sale,” where contractors purportedly pay at least ₱2 million to secure accreditation. PCAB has denied these allegations, dismissing them as scams perpetrated by outsiders. However, Lacson insisted that the board must explain how certain contractors were still able to obtain accreditation after allegedly paying off insiders.
