(UPDATE) PUBLIC Works Secretary Vince Dizon on Thursday acknowledged the existence of more than 100 ghost and substandard projects implemented in the past years, attributing them to collusion between contractors and department officials.
Speaking before the Senate Blue Ribbon Committee, Dizon revealed that the agency failed to properly apply safeguards, such as the Constructors Performance Evaluation System, allowing projects to be declared completed and paid for despite being poorly executed or, in some cases, not existing at all.
“In fact, what we saw was not just bad performance, but no performance at all. We discovered many ghost projects that are on record, with documents showing they were supposedly completed and yet contractors were paid even if nothing was actually delivered,” Dizon told the panel chaired by Senate President Pro Tempore Panfilo Lacson.
Dizon said that in just two weeks since assuming office, his team has already received over 100 reports of either ghost or “very substandard” projects across the country, not limited to Bulacan, where anomalies were first flagged. Reports came from regions including La Union, Oriental Mindoro, Nueva Vizcaya, Eastern Samar and some areas in Mindanao.
“Every project report opens a case file. We conduct inspections, either personally or with our team, and once anomalies are established — whether ghost or grossly substandard — we immediately prepare cases and endorse them to the Independent Commission for Infrastructure (ICI),” Dizon said, referring to the body created by President Ferdinand Marcos Jr. to investigate anomalous public works projects.
Pressed by Sen. Sherwin Gatchalian on whether collusion existed within the department, Dizon replied: “I absolutely agree, Mr. Chairman.”
Dizon further explained that many contractors have been paid even though the projects were unfinished or nonexistent. “Immediately, we start building a case to file. We inform the ICI and forward it to them,” he said.
During the same hearing, Philippine Contractors Accreditation Board (PCAB) Chairman Pericles Dakay faced criticism for allegedly failing to act against contractors with poor performance records. Senators questioned why firms were able to continue winning billions in public works contracts despite repeated complaints.
Dakay defended the agency, saying PCAB only acts upon formal complaints. This drew ire from the senators, who highlighted a potential conflict of interest since PCAB members are themselves required to be contractors under Republic Act 4566.
“This is nonsense. The law allows those with vested interests to police themselves, which has enabled irregularities to persist in public works projects,” Gatchalian said, noting he has filed a resolution to review the law.
Dizon said the Department of Public Works and Highways (DPWH) is now coordinating closely with the ICI to investigate construction companies allegedly involved in questionable flood control projects. For each reported anomaly, the department inspects records, conducts site visits and builds case files for submission to the commission.
“The reports show that this problem is not limited to a single province. It is nationwide, and we are determined to address it,” Dizon said.
Lacson earlier labeled Bulacan as the “most notorious” province for irregularities in flood control projects, alleging a “well-organized syndicate” behind the scheme. Dizon’s confirmation suggests that the problem may extend far beyond a single locality, raising questions about oversight and accountability within the DPWH.
