The Philippine Contractors Accreditation Board (PCAB) will file charges against the contractor of the alleged “ghost project” in Baliuag, Bulacan, and may revoke its license, according to PCAB Executive Director Atty. Herbert Matienzo.
In an interview on DZRH’s Dos Por Dos program, Matienzo said SYMS Construction Trading, the contractor involved in the P55-million flood control project flagged by President Ferdinand Marcos Jr., faces possible license revocation after PCAB’s investigation.
“Tama po ang presidente—nakakagalit po ang kanilang ginawa. Kami po sa PCAB ay magsasampa ng kaso sa kanila at maaari po silang matanggalan ng lisensya,” Matienzo said.
“Kami ay may sarili pong imbestigasyon,” he added.
PCAB is a government agency under the Construction Industry Authority of the Philippines (CIAP), attached to the Department of Trade and Industry (DTI).
Matienzo noted that the main mandate of the agency is to "issue, suspend, or revoke contractors’ licenses."
How contractors are licensed
Matienzo explained that licenses are granted based on technical capability, financial standing, and overall credit points.
These determine whether a contractor qualifies for entry-level “Small B” projects—worth up to ₱30 million—or for larger-scale categories, including the highest “Quadruple A” license.
“Ang una-unang requirements diyan, tinitingnan natin ang technical, financial at overall credit points. Sa technical aspects po kinakailangan na may minimum kayong empleyado na mga arkitekto o inhenyero na mag-e-equal po at least 60 years of work experiences. Pangawala po, mayroon din kayong minimum net worth na ₱1 billion,” he said.
He also clarified concerns raised by senators about firms with very low paid-up capital being awarded billion-peso government projects.
“Ang tinitingnan po namin ay net worth, hindi po yung paid-up capital lamang. Assets minus liabilities equals net worth po,” Matienzo explained.
Grounds for license revocation
He further said that PCAB may suspend or revoke a license on several grounds, including project abandonment, falsification of documents, injury or death at project sites, and “license lending”—the illegal practice of allowing unqualified contractors to use another firm’s license in exchange for royalties.
“License lending [ay] bawal po ito. Isa po ito sa mga kasong dinidinig ng aming ahensya na nagdudulot ng pagsuspinde o pagtatanggal ng lisensya ng contractor,” he said.
“Ngunit kung ito naman ay dumaan sa subcontracting, allowed naman sa batas ang subcontracting. Kailangan lang may batas po tayo diyan na hindi dapat sumobra ng more than 50% ang ipapasubcontract. Number 2, kailangan may lisensya din ang magsasubcontract, at kailangan din may consent ang ahensya kung saan po gagawin ang proyekto,” Matienzo noted.
He stressed that Republic Act 4565, as amended, now imposes heavier penalties.
“Noon, multa lang na ₱5,000 ang parusa. Ngayon, ang parusa po ay ₱100,000 – ₱500,000 plus 1/10 of 1% of the contract at may kasama pa po itong kulong,” Matienzo said.
Blacklisting of contractors
Contractors proven to have violated procurement laws may also be blacklisted by the government agency overseeing the project. Once blacklisted, PCAB automatically cancels its government registration, preventing it from bidding for new public contracts.
“Ang pagbablacklist po ay nagmumula sa ahensya kung saan po nagkaroon ng problema o pagkakamali yung contractor. Kapag natanggap namin o napost sa GPBB website, automatic po na tinatanggalan namin sila ng government registration. Nasa procurement law po na nasa 1 year ang blacklisting. Pwede din itong maging dalawang taon depende sa dami ng pagkakamali,” he said.
“May tinatawag po tayo na interagency blacklisting, so kapag nablacklist po, for example ng DPWH, lahat po ng government agencies—even the LGU—ay hindi na po maaring makasali o makakuha ng bagong kontrata.”
Sanctions on contractors of ₱306-M flood control projects in San Carlos City
Meanwhile, on the ‘ghost’ flood control projects worth ₱306 million in San Carlos City, Negros Occidental, Matienzo confirmed that PCAB may impose sanctions ranging from suspension to full revocation of license.
“Maaari po silang masuspinde o ma-revoke ang lisensya dahil bukod po mayroon pong sinusunod na code of ethics ang mga contractors. At kung ito ay mapatunayan, ay maaari po silang matanggalan o masuspinde ang lisensya. Mas madali po sana na mablacklist ng LGU o kung sino mang agency ang concern sa project,” Matienzo said.
The Senate Blue Ribbon Committee hearing on Tuesday uncovered the controversy surrounding alleged “ghost projects” linked to irregularities in flood control projects.
