The Philippine Competition Commission has referred its initial findings on bid-rigging in Bulacan flood control projects to the Department of Justice for evaluation. The referral, made on November 14, involves several construction firms and DPWH officials suspected of colluding to manipulate bids. This step aims to address anti-competitive practices that undermine public procurement.
On November 14, the Philippine Competition Commission (PCC) referred its initial findings on possible bid-rigging in Bulacan flood control projects to the Department of Justice (DOJ). In a statement on Monday, the agency said its Competition Enforcement Office made the referral based on information from the Department of Public Works and Highways (DPWH).
Last month, the PCC received referrals from the DPWH regarding alleged anti-competitive conduct in the procurement of flood control projects. These involve companies such as St. Timothy Construction Corp., Wawao Builders, IM Construction Corp., SYMS Construction Trading and Sunwest Inc., along with officials and employees of the DPWH Bulacan First District Engineering Office (DEO) and Regional Office IV-B.
In its evaluation, the PCC found possible violations of Section 14(a)(2) of the Philippine Competition Act (PCA), which prohibits bid-rigging. Bid-rigging occurs when bidders collude to manipulate the outcome of public procurement. “Such conduct undermines competition, deprives the public of fair value and wastes government resources,” the PCC said.
Based on the evidence gathered, contractors agreed to rig and manipulate the bidding process by having pre-determined winning and losing bidders. Evidence also indicated that DPWH First DEO-Bulacan officials facilitated the bid-rigging arrangement.
Contractors found engaging in bid-rigging may face fines of up to P275 million, depending on the number of offenses, under the PCA. The DOJ will evaluate the referral and recommend either further case build-up or proceeding to preliminary investigation.