THE Philippine Contractors Accreditation Board (PCAB) has revoked the licenses of nine construction companies owned or controlled by businesswoman Cezarah “Sarah” Discaya due to violations of procurement and licensing laws.

The resolution, approved on Sept. 1, stemmed from Discaya’s testimony before the Senate Blue Ribbon Committee, where she admitted under oath to owning and controlling nine construction firms that had simultaneously joined government bidding processes.

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PCAB said her admission established a collusive scheme designed to manipulate procurement outcomes, undermine competition and corner projects in violation of Republic Act 4566, or the Contractors’ License Law, and the Government Procurement Reform Act.

The nine companies identified in the resolution are St. Gerrard Construction General Contractor & Development Corp.; Alpha & Omega Gen. Contractor & Development Corp.; St. Timothy Construction Corp.; Amethyst Horizon Builders and Gen. Contractor & Development Corp.; St. Matthew General Contractor & Development Corp.; Great Pacific Builders and General Contractor Inc.; YPR General Contractor and Construction Supply Inc.; Way Maker OPC; and Elite General Contractor and Development Corp.

The Senate inquiry was launched after President Ferdinand Marcos Jr. disclosed on Aug. 11, during a press conference in Malacañang, that a handful of contractors had cornered a significant portion of government-funded flood control projects. He warned that many of these projects were under scrutiny for irregularities. A subsequent Senate probe identified 16 contractors allegedly linked to ghost projects, with Discaya’s group of companies among those flagged.

At the Sept. 1 Blue Ribbon Committee hearing, senators grilled Discaya on how her firms — despite being under her single ownership and control — were able to participate in the same bidding processes. Committee members, citing documents and testimonies, suggested that Discaya’s network of companies was set up to create the appearance of competition while ensuring her group secured contracts.

Under questioning, Discaya conceded that she owned and directed the nine firms, a revelation that reinforced suspicions of collusion and bid-rigging. Her testimony, senators noted, exposed gaps in government oversight and raised questions about possible connivance with officials who approved the contracts.

PCAB, citing both the President’s statements and the Senate’s findings, concluded that the “continued accreditation of these corporations is inimical to public interest, industry integrity and government procurement transparency.”

The resolution ordered the immediate revocation of the nine firms’ licenses, their removal from the registry of duly licensed contractors and the issuance of notices of revocation to relevant agencies. Copies will also be furnished to the Department of Public Works and Highways (DPWH), Securities and Exchange Commission, the Government Procurement Policy Board and local government units.

Discaya companies' licenses revoked for bid-rigging

The matter has also been endorsed to the National Bureau of Investigation and the Department of Justice for further determination of possible criminal liability under the Revised Penal Code and procurement laws.

Discayas subpoenaed

Meanwhile, the House Infrastructure Tri-Committee was set to issue subpoenas against the companies allied with the Discaya couple after they did not appear in the first hearing of the committee on Tuesday.

In a press briefing on Wednesday, panel overall chairman and Bicol Saro Party-list Rep. Terry Ridon said they will issue subpoenas to both Cezarah and Pacifico Discaya to explain why they were able to receive contracts from the DPWH and enabled their companies to bid against themselves.

“This is one way to make the Discayas and their firms accountable, but we should not stop there, so the House Infrastructure Committee will release a subpoena against the two Discayas, and we expect them to be there in the next hearing,” Ridon said.

Ridon said they were able to extract some revelations during the eight-hour hearing, including revelations from DPWH District Engineer Henry Alcantara that he signed the completion certificates for the ghost projects in Bulacan.

“District Engineer Alcantara intentionally defrauded the government into not implementing the Baliuag-Bulacan ghost project. He was there in the beginning. He was there [from] the first signing of the check, issuance of the check, until the issuance of the receipt,” Ridon said.

Alcantara also said during the briefing that he used fake identification cards when he entered a casino, after his gambling habits were revealed.

The hearing also revealed that the owner of one of the contractors alleged to have bagged anomalous projects, Centerways Construction and Development Inc., donated P30 million to the senatorial campaign of Senate President Francis Escudero, while another construction firm, MG Samidan, had P1 billion of cash in hand despite being a single proprietorship.