Senate Deputy Minority Leader Risa Hontiveros on Monday pushed for stronger accountability in flood control projects, urging the Department of Public Works and Highways (DPWH) to adopt a one-strike policy against erring contractors.
At a Senate Blue Ribbon Committee hearing, Hontiveros said the government must immediately blacklist contractors found guilty of negligence, fraud or corruption to protect taxpayers from wasteful spending.
“The public should not have to pay twice when a flood control project fails,” she said, citing that the government pays twice for substandard and failed flood control projects; for construction then repairs.
The lawmaker then raised concern that none of the 15 contractors previously named by President Ferdinand Marcos Jr. had been blacklisted despite ongoing investigations into irregularities.
DPWH Undersecretary Maria Catalina Cabral told senators the agency was open to a one-strike, zero-tolerance policy, adding that fraud and quality assurance audits could lead to sanctions.
Cabral added that infrastructure contracts include warranties, with one year for general projects, five years for flood control works, and 15 years for permanent structures such as bridges.
Hontiveros argued that such warranties are too short and urged the agency to impose a “double damages” rule, requiring contractors to cover both initial construction costs and repairs, to discourage defective projects.
Cabral said the proposal could be studied further, stressing that any measure that improves quality and deters ghost projects would likely gain department support.
The discussion came after Hontiveros questioned controversial businesswoman Cezarah ‘Sarah’ Discaya about her ownership of 28 vehicles, including company service cars, amid allegations linking her to firms associated with smuggled luxury cars on top of the anomalous flood control projects.
Senate Minority Leader Vicente Sotto III said records tied to Discaya’s companies showed links to undeclared luxury vehicles, but the businesswoman denied owning any Bugatti or other high-end cars flagged by the Bureau of Customs.
Hontiveros also turned to the Bureau of Internal Revenue (BIR), asking if the Discaya firms and other contractors were being probed for possible tax evasion.
BIR Deputy Commissioner Larry Barcelo said letters of authority had been issued to initiate investigations of the 15 contractors, though not all had been formally served.
He explained that once served, the firms would be required to submit documents within five to 15 days, with findings subject to further review.
Hontiveros assured that she would press the BIR to coordinate with the Anti-Money Laundering Council, citing unusual capitalization increases in some Discaya-owned companies.
