The Department of Public Works and Highways (DPWH) and the Insurance Commission (IC) on Wednesday inked a deal to fast-track the government’s retrieval of performance and surety bonds of contracts linked to anomalous flood control projects.
In a ceremony in Manila, Public Works Secretary Vince Dizon and Insurance Commissioner Reynaldo Regalado signed a memorandum of agreement (MOA) to establish a data-sharing framework that enables “closer monitoring, validation, and enforcement of [performance] bonds and surety bonds required in all government procurement of projects.”
Dizon said the government can claim up to 30% of the contract value of projects found to be anomalous.
For example, if a contract costs around P100 million, the government can claim up to P30 million.
“Because of this agreement [with the IC], the claiming of these bonds will be easier and faster,” Dizon said.
The DPWH will initially start claiming performance bonds from the alleged anomalous flood control projects in Bulacan’s first district, which were the subjects of the first graft complaint that the DPWH filed with the Office of the Ombudsman last month.
In September, Dizon led the filing of a graft complaint against 20 officials of agency and four contractor, including key figures DPWH district engineer Henry Alcantara, and former Bulacan 1st district assistant engineers Brice Hernandez and Jaypee Mendoza and contractor Sarah Discaya.
Moving foward, Dizon said the DPWH and IC will move in parallel with the investigation of the Independent Commission on Infrastructure (ICI) in processing the claiming of bonds in public works projects found to be anomalous.
Regalado said the agreement between the DPWH and IC also serves as an “institutional response to the very real and pressing need to address irregularities and potential abuses in our flood control and other infrastructure projects.”
“By aligning our systems and sharing critical information, we aim to close the gaps that allow anomalies and corruption to persist. As regulators, and most importantly as stewards of public trust, we have a shared responsibility to ensure that insurance instruments, which are actually meant to safeguard government resources, are not misused or rendered meaningless,” the IC chief said.
Dizon said the DPWH need not wait for the conclusion of criminal proceedings on the flood control projects scandal before it can proceed with the claiming of performance bonds.
He also called on insurance firms of flood control contractors to cooperate with the government and make the initiative to return the 30% performance bonds to the government.
“Nanawagan na rin ako para sa insurance companies na makikita naman nila na hindi ginawa ng tama ang mga proyekto na ito… Magkusa na sila at ibalik na nila yung claim na ‘yun ng gobyerno… ‘Wag na sana natin paabutin sa korte ito,” Dizon said.
(I am calling on insurance firms, as you may see that the projects may have not been done properly… You can make the initiative of paying the government’s claim… Let’s not bring this matter to court.) — JMA, GMA Integrated News
