The Department of Public Works and Highways (DPWH) is asking for the help of the Department of Justice (DOJ) in investigating 19 cancelled "midnight deals" made within the last week of the Arroyo administration.
DPWH Secretary Rogelio Singson said that the deals, which total P934 million, were “questionable.”
Most of the 19 projects are flood-control projects in areas which were devastated by last year’s typhoons. It was pointed out that several contractors had clinched deals on numerous projects. Northern Builders, for example, acquired four projects amounting to P375 million. L.R. Tiqui Builder Inc. was awarded contracts to three projects, while Towking Construction had two.
It was also noted that the government entered the contracts on June 18, 12 days before the end of the former president Gloria Macapagal-Arroyo’s term. The Statement of Allocation Release Orders (SAROs), which are usually processed before the contracts, were signed on June 25, a mere five days before new president Noynoy Aquino took his oath.
Singson added that the officials involved in the botched deals will be given five days to submit an explanation.
“The lightest sanction they will get is a suspension. I have asked the DOJ to help investigate the case. If the evidence against them is strong, we will haul them all the way to the Ombudsman,” Singson said, in an interview over dwIZ radio.
The projects were to be funded by a P5.5 billion loan from the Japan International Cooperation Agency (JICA).
“I talked to JICA. I said we need the funds and the projects. But we cannot have negotiated contracts. I said we will go through competitive public bidding and they agreed,” Singson added.
The Public Works secretary said that the department is open to a probe by Congress.
"Of course, of course we would welcome an investigation by Congress to fix the loopholes in the process,” he said.
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