OMB, Palace asked to probe PPA’s procurement activities

THE anti-corruption watchdog, Crime and Corruption Watch International (CCWI) is seeking the help of the Office of the Ombudsman (OMB) and the Office of the President in looking into the procurement activities at the Philippine Ports Authority (PPA) for potential conflict of interest and anti-competitive bidding.

These concerns were raised by CCWI Chairman/President Dr. Carlo Magno Batalla, in a letter that he sent to PPA General Manager Jay Daniel Santiago last March 22, a copy of which was obtained by Pinoy Exposé just recently.

To send the message of the seriousness of his intention, Batalla also sent a copy of his letter not only to the OMB and the OP but also, to the Philippine Competition Commission (PCC) and the Government Procurement Policy Board (GPPB).

In his letter, Batalla informed Santiago of their “serious concern” related to at least three contracts recently awarded by the PPA with an aggregate total of nearly ₱1 billion.

The first two contracts (HO-RM INFRA-AGME-25-0011 and HO-RM-AGME-25-0012) pertain to the Port of Ubay and the Port of Talibon, both in Bohol Province, in the amount of ₱40,765,250.04 and ₱30,671,911.82, respectively.

The CCWI averred there “appears to be a violation of the principle of competitive bidding” since these contracts were awarded to just two bidders, JJ&J Construction and General Supply and its joint venture partner, Kimwa Construction and Development Corporation, with the latter entering as a “separate bidder.”

“(S)uch an arrangement may constitute collusive practices, creating opportunities for bid manipulation and merely simulating competition while restricting genuine bidders,” Batalla noted.

To send the message of the seriousness of his intention, Batalla also sent a copy of his letter not only to the OMB and the OP but also, to the Philippine Competition Commission (PCC) and the Government Procurement Policy Board (GPPB).

In the third and larger awarded contract (DSD-003-25) in the amount of ₱835,441,582.16 for the dredging of the North Harbor Inner Basin (including the Marine Slipway, Phase 1), Batalla noted that the winning contractor, WTG Construction “has reportedly incurred multiple negative slippages” in its projects awarded previously by the Department of Public Works and Highways (DPWH).

“Under both RA 9184 and RA 12009k contractor performance, including negative slippage is a critical indicator of (contractor’s) capacity and reliability,” Batalla noted.

The CCWI under Batalla has filed dozens of graft and corruption complaints before the Ombudsman over the years against private contractors and their alleged accomplices at the DPWH mainly over the issue of the continued awarding of public works projects to private contractors with glaring slippages, in violation of the law and the DPWH’s own internal rules.

Batalla maintained that had the Ombudsman under Samuel Martirez acted on their complaints, the multi-billion flood control project scam that erupted last year could have been prevented.

Batalla also disagreed with the decision of the PPA’s Bids and Awards Committee (BAC) not to allow the CCWI to observe its procurement and bidding process.

Mark Jon Palomar, PPA BAC chair, declined to accredit the CCWI, claiming they already “deemed sufficient” the composition of the present committee to meet the prescribed requirements of the law.

Batalla, however, averred that “the determination of ‘sufficiency of observers’ should not override the mandatory requirement of the law to invite qualified observers.”

Batalla said he finds the argument of Palomar puzzling considering that all CCWI observers have passed the qualification requirements of the GPPB.

“Our observers are very much qualified and the denial of our application deserves a more convincing explanation from the PPA in the interest of fairness and transparency,” Batalla said.