House panel says no collusion among WB-sanctioned firms

MANILA, Philippines - A House panel on Wednesday virtually cleared seven construction firms blacklisted by the World Bank for alleged collusive practices, saying the multilateral agency was not able to substantiate its claims. The documents submitted by the World Bank provided no concrete evidence that the firms were guilty of irregularities, Southern Leyte Rep. Roger Mercado told reporters after the hearing of the Public Works and Highways Committee. "Walang collusion [There's no collusion]," Mercado, the committee chairman, said. "We do not have the evidence to support the criminal act of collusion. Under our rules, we have to present real evidence that is factual and we need witnesses to support these allegations. Unless those are acquired, we cannot prosecute... As far as the committee is concerned, their [World Bank] letters and documents submitted are merely recommendatory, they do not pinpoint any liability." Mercado said he ended the investigation after only two hearings because he believed the committee had "properly ventilated the issue," adding that the committee would issue its report on its investigation soon. He said among the committee’s recommendations was to revise Republic Act 9184, or the Procurement Law, to give bidding committees guidelines on how to determine firms guilty of collusion. Probe must go on But another lawmaker said the committee should not have terminated its investigation and should have waited for the Department of Finance or the Office of the Ombudsman to provide the World Bank's complete report on the debarment of the three Filipino and four Chinese firms. In an interview with reporters after the hearing, Rep. Teodoro Casiño, Bayan Muna party-list lawmaker, said he believed that collusion had taken place, saying the bidding records show a large difference between the bids of the winning bidder and the other firms who bid for the road projects in question. "Ito ba set-up o talagang patalo yung bids ng iba [Is this a set-up or were the other firms' bids really that bad]?" Casiño said. He also accused the Department of Public Works and Highways (DPWH) of being in "a state of denial" over collusive acts being practiced by construction firms. "Kaya nagbubulag-bulagan ang DPWH dito ay dahil ang tinamaan ay mga contractor na malapit sa pulitiko [The DPWH is playing blind on this issue because the contractors involved are close to politicians]," said the lawmaker, noting that First Gentleman Jose Miguel Arroyo was alleged to have met several times with one of the blacklisted firm's owners, Eduardo de Luna, in 2002. The militant lawmaker added that the DPWH itself did not seem to know what comprises collusive acts. He noted that Undersecretary Manuel Bonoan's answer during the hearing that one of the "tell-tale signs" of collusion for the department is if the bidding companies use the same stationery. 'Reliable' firms At the hearing, Bonoan also described the three Filipino firms sanctioned by the World Bank – CM Pancho Construction, Inc., EC de Luna Construction Corp., and Cavite Ideal International Construction and Development Corp. – as "reliable." "These three contractors... are one of the most reliable contractors we have in the department, in the country," Bonoan said. Last Jan. 15, the World Bank blacklisted three Filipino firms and four Chinese construction firms after finding that they had rigged bids for local road projects funded by the agency. The institution also suspended the release of $33 million for the road projects. Permanently prohibited from bidding for World Bank projects was EC De Luna Construction Corp., while the Cavite Ideal International Construction and Development Corp. and CM Pancho Construction Inc. were banned from participating in bidding for four years. The World Bank also barred China Road and Bridge Corp. from bidding for eight years. China State Construction and China Wu Yi were barred for six years and China Geo-Engineering was barred for five years. - GMANews.TV