The Department of Public Works and Highways (DPWH) will pursue performance bonds and insurance claims from contractors involved in “ghost” and substandard projects, DPWH Secretary Vince Dizon said Wednesday.
Dizon signed a memorandum of agreement (MOA) with the Insurance Commission (IC) led by commissioner Reynaldo Regalado. The move is in response to the President’s order to recover money stolen from the public.
The agreement aims to recover up to 30 percent of project costs from contractors involved in ‘ghost’ and substandard infrastructure projects using performance bonds and insurance claims.
Under the MOA, the DPWH and the IC will work together to speed up the process of claiming insurance for fraudulent and substandard projects, with claims potentially reaching 30 percent of the total project cost.
“Our beloved President has repeatedly said that the money of our countrymen must be returned. It is not enough to just go to jail. The stolen money, which was used to buy sports cars, to gamble in the casino, to buy expensive houses, that must be returned. And that is what the Insurance Commission and we will work on now,” Dizon said.
Dizon also warned insurance companies to cooperate. “If they really see that it’s a ghost project and the contractor they ensure did not fulfill their responsibility to do the right project. Commissioner Rey [Regalado] and I call on them to act voluntarily.”
“Let’s hope this doesn’t reach the courts. But if they insist and fight, we have no choice. We apologize for the inconvenience,” he said.
