The Philippine Competition Commission (PCC) confirmed on October 3 that it received referrals from the Department of Public Works and Highways (DPWH) concerning alleged anti-competitive conduct in the procurement of a flood control project.
The referrals pertain to possible violations of Republic Act No. 10667 or the Philippine Competition Act (PCA) involving St. Timothy Construction Corp., Wawao Builders, IM Construction Corp., SYMS Construction Trading, and officials and employees of the DPWH Bulacan 1st District Engineering Office; as well as Sunwest, Inc., and officials and employees of the DPWH Regional Office IV-B.
The referrals include inspection reports, bid documents, and other relevant documents that may support the PCC Competition Enforcement Office’s (CEO) ongoing preliminary inquiry into possible bid-rigging and collusion among contractors. CEO Director Christian Loren De Los Santos stated that the Commission is currently gathering evidence, including bid submissions and possible communication exchanges, to determine whether violations of the PCA occurred.
The referrals follow testimonies presented during recent Congressional hearings on the flood control controversies, which may likewise be used as evidence in the PCC’s investigation.
Under the PCA, entities found to have engaged in anti-competitive agreements such as bid-rigging may face administrative fines depending on the number of offenses committed. For the first offense, a fine of up to P110 million may be imposed. For the second offense, the fine ranges from P110 million to P275 million. For the third and succeeding offenses, the fine increases to a range of P165 million to P275 million.
The PCC reminds the public that individuals or entities involved in cartel conduct, such as bid-rigging, price fixing, market allocation, or output restriction, may avail of the Commission’s Leniency Program. The program offers immunity from suit or a reduction of administrative fines to those who voluntarily disclose their participation in anti-competitive agreements and cooperate fully with the PCC’s investigation. Only one applicant per violation may be granted full immunity, so early disclosure is encouraged.
