Six contractors involved in flood mitigation projects under President Marcos had past checkered histories
Several construction companies, including Legacy Construction Corporation, EGB Construction Corporation, Sunwest Incorporated, Hi-Tone Construction & Development Corp, L.R. Tiqui Builders Inc, and Road Edge Trading & Development Services, have received unsatisfactory ratings for their work on flood control projects during President Ferdinand Marcos Jr.'s term.
According to reports, Legacy Construction Corporation, owned by the Abelido family, received poor ratings for a road widening project in Capiz in 2020, an unsatisfactory rating for a joint venture revetment construction work in Antique, and an unsatisfactory rating for a drainage project in Baguio City in 2020.
EGB Construction Corporation, owned by Erni Baggao, received a poor rating for a road and drainage upgrade in Baguio City in 2020. Sunwest Incorporated, part of the Martin Romualdez-allied Ako Bicol conglomerate, received an unsatisfactory rating for a wharf upgrading project in Tabaco, Albay, in 2022.
Hi-Tone Construction and Development Corporation, owned by Edgar Acosta of Legazpi City, received an unsatisfactory rating for a wharf upgrade project at the Legazpi Port in 2022 and a poor rating for a road construction project in Romblon in 2020.
Road Edge Trading and Development Services, owned by Ryan Willie Uy, received a bad rating for a bridge project in Bukidnon in 2017, unsatisfactory ratings for a road maintenance project and a separate road improvement project in Surigao City in 2018. However, it's not clear whether this company is still active, as it does not appear in the current database of the Securities and Exchange Commission (SEC), but it might be the same as R26 Construction Incorporated.
L.R. Tiqui Builders received an unsatisfactory rating for a project that was still ongoing and attributed it to right-of-way issues, which were resolved by 2016 when the project was terminated with an actual accomplishment of 79.79% of the revised contract price.
The investigation and the launch of a crowdsourcing website are part of Marcos' midterm promise to hold accountable those who allegedly corrupted projects at the expense of Filipinos who now suffer from heavy flooding. The presidential spokesperson mentioned that an investigation will cover previously blacklisted contractors, without specifying any contractor or that she was referring to the Top 15.
It's important to note that poor ratings alone do not equate to blacklisting under the Government Procurement Policy Board (GPPB) framework. Blacklisting is a formal administrative sanction requiring a prescribed process and evidentiary basis beyond mere performance ratings. Contractors must be officially listed as “blacklisted” or barred from bidding by the Government of the Philippines or its agencies for reasons such as fraud, abandonment, or failure to comply with contractual obligations.
The procuring entity "has the authority to blacklist contractors for poor performance or unsatisfactory project quality/progress," according to the Philippine Domestic Construction Board (PDCB). For a first offense, a contractor can be suspended for a year; a second offense merits a two-year suspension. These sanctions are lifted automatically after the penalty period.
Despite their poor ratings, these six contractors have also received many satisfactory ratings in their other projects from then to now. Erni Baggao, the owner of EGB Construction Corporation, is also the acting general manager of Isabela Electric Cooperative II. Legacy Construction Corporation's major shareholder and president is Alex Abelido. Hi-Tone Construction and Development Corporation is owned by Edgar Acosta of Legazpi City.
As the investigation into these contractors continues, Filipinos affected by the poor quality of these projects will be hoping for accountability and improvement in future projects.
- The poor ratings for Legacy Construction Corporation's projects, such as the road widening project in Capiz, the joint venture revetment construction work in Antique, and the drainage project in Baguio City, raise questions about the quality of their work in the realm of finance and business, which intersects with politics and general news since the company's unsatisfactory performance could have implications for public funds and infrastructure development.
- The business and political landscape is under scrutiny as the accountability investigation into the unsatisfactory performance of companies like EGB Construction Corporation, partially owned by the acting general manager of Isabela Electric Cooperative II, Erni Baggao, unfolds. The findings could potentially impact the country's finance and business sectors, as well as general news by shedding light on past corruption allegations and poor work quality in various projects.
