ASEANEWS HEADLINE-CORRUPTION | MANILA: 9 Discaya firms stripped of license as contractors
BAD FOR BUSINESS One of the Discaya companies flagged by the Philippine Contractors Accreditation Board was St. Gerrard Construction, its Pasig City office compound photographed here on Tuesday when the Bureau of Customs searched the premises for the owners’ fleet of luxury cars. —NIÑO JESUS ORBETA
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PH Contractors Accreditation Board revokes licenses of Discaya couple’s construction firms | ANC
A Philippine regulatory agency revokes the licenses of nine companies linked to controversial flood control contractors Curlee and Sarah Discaya. Their lawyer complains there was no due process given to the couple.
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MANILA, Philippines — The Philippine Contractors Accreditation Board (PCAB) has revoked the licenses of nine companies owned or controlled by Cezarah “Sarah” Discaya, who has cornered more than P30 billion in government flood control contracts over a three-year period.
Meanwhile, the lawyer of Sarah and her husband, Pacifico “Curlee” Discaya II, gave an assurance that the couple remained in the country and “will not run away” pending the issuance of an immigration lookout bulletin for individuals involved in allegedly anomalous infrastructure projects.
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READ: Marcos orders ‘sweeping revamp’ of contractors’ board amid flood probe
PCAB’s Board Resolution No. 075, approved on Sept. 1 and made public on Sept. 3, revoked the licenses of the following companies
• St. Timothy Construction Corp.;
• Amethyst Horizon Builders and General Contractor and Development Corp.;
• St. Matthew General Contractor and Development Corp.;
• Great Pacific Builders and General Contractor Inc.;
• YPR General Contractor and Construction Supply Inc.;
• Way Maker OPC;
•Elite General Contractor And Development Corp.
The resolution cited Sarah Discaya’s sworn testimony before the Senate blue ribbon committee on Sept. 1 where she admitted ownership and control of these construction companies that participated in bidding for government projects.
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It said this has “[raised] the presence of collusion, employing schemes which stifle or suppress the outcome of the procurement activity in violation of licensing and procurement laws.”“[S]uch admission establishes a scheme of joint or multiple bidding participation designed to influence the outcome of public bidding, manipulate results and corner public projects thereby undermining transparency, fairness, and competition in violation of procurement laws and licensing requirements,” the resolution stated.
PCAB cited Republic Act No. 12009, or the Government Procurement Reform Act of 2024, which provides that “procurement must be competitive, transparent, and free from collusion, and explicitly prohibits conflict of interest and multiple participation in a single bidding process by entities under common ownership or control.”
“[A]fter thorough evaluation of the statements made by Ms. Discaya, the PCAB Board concludes that the continued accreditation of these corporations is inimical to public interest, industry integrity and government procurement transparency,” it said.
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PCAB said the revocation was effective immediately and that the companies involved will be removed from the PCAB registry of duly licensed contractors.
It also endorsed the matter to the National Bureau of Investigation and the Department of Justice “for further determination of criminal liability, if warranted, under the Revised Penal Code and procurement laws.”
Long overdue
At the House of Representatives, Bicol Saro Rep. Terry Ridon said PCAB’s action was long overdue considering that anomalies linked to the Discayas have been well-documented for years.
“Why only now? Why did it have to take an inquiry by both chambers of Congress before the revocation of their licenses?” said Ridon, who chairs the House infra committee tasked to investigate flood control projects under the Marcos administration.
“What this tells us is that all this time, the PCAB could have actually done this after all,” he added.
READ: Magalong willing to join independent body on flood control probe
Company links
St. Gerrard was suspended in 2015 and blacklisted by the Department of Public Works and Highways (DPWH) in 2020 but PCAB still issued a license valid until January 2026.
Another Discaya company, St. Timothy, has been linked to deficiencies in a P96.4-million Bulacan River Project in 2023 but was also granted a new license valid until 2027.
Ridon noted that while these companies sometimes garnered a “satisfactory” rating under the Constructors’ Performance Evaluation System—which is used to measure contractors’ performance for projects—“we have to look at the totality of their record.”
“It’s not enough to basically just cherry-pick the satisfactory ratings to show that they are OK companies. Mrs. Discaya herself admitted that her companies bid for the same projects at the same time,” Ridon said.
Of the nine companies, five were directly incorporated by the Discaya couple: Alpha and Omega (May 9, 2014); St. Timothy (July 4, 2014); St. Gerrard (Nov. 12, 2015), St. Matthew (Nov. 9, 2015); and Great Pacific Builders (June 19, 2018).
Sarah sits as president for Alpha and Omega while Curlee heads St. Gerrard based on their latest available general information sheets.
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Except for Alpha and Omega and St. Timothy, all share the same address at the four-story SGC Building on F. Manalo Street, Bambang, Pasig.
Amethyst Horizon Builders (June 5, 2020), Elite General (June 10, 2020), and YPR General Contractor are headed by the Pesigans, also related to the Discayas.
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Cleaning PCAB
Following these developments, Department of Trade and Industry (DTI) Secretary Cristina Roque has assumed direct supervision of the Construction Industry Association of the Philippines (Ciap) in a bid “to restore integrity and transparency” amid claims of accreditation irregularities.
Roque will place the Ciap and its implementing boards, including PCAB, under her direct supervision.
“Placing them under my direct supervision will ensure that order, transparency and accountability is restored within these agencies,” Roque said in a statement on Wednesday.
Roque, concurrently serving as Ciap chair, said the leadership intervention underscores the DTI’s unwavering commitment to preventing mismanagement and any conduct detrimental to its agencies.
“Full transparency and cooperation are mandatory, and those who breach the trust and mandate entrusted to us will be held accountable,” she added.
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