Arthur Fuentes

Pasig City Mayor Vico Sotto attends the House Committee Hearing on Public Accounts, Public Works, Highways, Good Government, and Public Accountability at the Batasang Pambansa on September 9, 2025. Maria Tan, ABS-CBN News

Article (news)

FLOOD CONTROL PROBE

Katrina Domingo

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/17576721976671757672194780.jpeg" class="fr-fic fr-dib" alt="Pasig City Mayor Vico Sotto attends the House Committee Hearing on Public Accounts, Public Works, Highways, Good Government, and Public Accountability at the Batasang Pambansa on September 9, 2025. Maria Tan, ABS-CBN Newsv"/><span class="fr-inner" style="text-align:left">Pasig City Mayor Vico Sotto attends the House Committee Hearing on Public Accounts, Public Works, Highways, Good Government, and Public Accountability at the Batasang Pambansa on September 9, 2025. <em>Maria Tan, ABS-CBN News</em></span></span></span></div><p>MANILA — A so-called “diploma system” between contractors and some local government officials is among the many corrupt schemes that plague several public projects, Pasig Mayor Vico Sotto said as he bared several irregularities in the government’s infrastructure program.</p><p>The “diploma system” is when local officials give away contracts to certain construction firms — similar to how diplomas are distributed in graduation ceremonies — without undergoing proper evaluation and bidding, Sotto told ABS-CBN News.</p><p>“Binibigay lang na ganun ‘yung kontrata. Basically, parang may listahan ng projects na, ‘O ito sa iyo ito. Ito, sa iyo ito,’” the Mayor said as he recalled a bribery attempt in 2019.</p><p>“Noong bagong upo ako, first 100 days definitely noong bagong mayor ako, may mga pumunta sa opisina so in-entertain ko. A group of maybe 10, 20, 30 people, kinausap ko sila,” he said.</p><p>“Sila daw yung mga matatagal nang contractor sa city hall. Sabi nila, ‘Ito yung ginagawa dati. Kapag may listahan, may budget. Tinatanong kami kung ano yung magandang gawing project o tinatanong kami kung ano yung gusto naming gawin na infra project, siyempre may SOP,’” he said.</p><p>SOP, in this context, stands for “standard operating procedure,” a clear indication that the practice has been common for years, the Mayor said.</p><p>When asked who was giving away the so-called “diplomas” in the past, Sotto said: “Ayon sa kwento nila, yung mayor mismo.”</p><p>“They are very open about it.”</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/TW1KVlfUHBs?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>LICENSE FOR RENT<br/></strong></div><p>In separate interviews, two contractors who have worked in public projects in and out of Pasig confirmed that several local officials and businesses have been colluding to illegally siphon taxpayers’ money.</p><p>Aside from using substandard materials to cheat the cost of several projects, some governors and congressional members have also been “borrowing” the licenses and receipts of contractors with triple A or quadruple A ratings, said alias “Bobby,” a contractor who spoke on the condition of anonymity due to fear for the safety of his family.</p><p>“Bobby” has worked in several <a href="https://www.abs-cbn.com/news/business/2025/9/3/9-discaya-firms-lose-licenses-for-bidding-against-each-other-on-projects-1249" rel="noopener noreferrer" target="_blank">St. Gerrard Construction</a> projects, and has discussed the details of several deals with its founder Pacifico “Curlee” Discaya II.</p><p>“‘Yung iba ang kailangan lang sa kaniya (Discaya) ay yung kaniyang construction firm. Babayaran lang yung royalty,” Bobby told ABS-CBN News.</p><p>“Mostly sa Visayas at Mindanao yung mga project. Hinihiram ng mga governor, mga congressman pero ang gagawa noon sila Gov, sila Gong, ginagamit lang yung mga companies niya,” he said.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/Jhk1p111k0g?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>Local officials have to borrow a private contractor’s license as Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees prohibit government workers from having “any financial or material interest in any transaction requiring the approval of their office.”</p><p>The same law also mandates public officials not to “own, control, manage or accept employment as officer, employee, consultant, counsel, broker, agent, trustee or nominee in any private enterprise regulated, supervised or licensed by their office unless expressly allowed by law.”</p><p>“Malaking pera yung royalty. Sa kanila na din yung hardware, sa kanila na kumukuha. Wala nang bidding,” Bobby said.</p><p>The contractor said he was not privy as to which governors and congressional members Discaya has been transacting with, as the St. Gerrard owner never mentioned names when discussing the scheme.</p><div><strong>‘TWO BODEGAS’</strong></div><p>Corrupt contractors usually prepare two “bodegas” (warehouses) for inspections, Bobby said. One storage area contains the construction materials that will meet the project requirements, while the other holds cheaper, substandard materials, he said.</p><p>Several projects have to make do with substandard materials — such as 3-meter sheet piles instead of the standard 6-meter metals — as the original budget for these programs have already been reduced by more than half due to corruption, he said.</p><p>“Doon na namin dadalhin yung inspektor sa tamang sukat sa tamang bodega,” Bobby said.</p><p>“Mayroon pa siyang (Discaya) sinabi sa amin na kapag nag-inspeksyon, tagalan namin yung pagbabaon ng sheet pile para mainip,” he said.</p><p>“Sabi niya ang mga DPWH, mainipin. Hindi magtatagal nang isang oras ‘yan. Basta ipakita lang namin na nakatayo ‘yung isang 6 meters tapos kaunting pukpok-pukpok tapos huwag na namin ipakita yung mga susunod na ilalagay namin hanggang umalis. At saka namin itutuloy yung pag lubog ng 3 meters,” he said.</p><p>Several contractors have affirmed this practice to ABS-CBN News, but they refused to sit down for a formal interview due to fear for their safety.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/TgiHa9VBD0M?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>SIGNATURES FOR SALE</strong></div><p>“Joey” — another contractor — claimed that several parties have been emboldened to engage in this scheme as they are in cahoots with officials from the Department of Public Works and Highways (DPWH).</p><p>St. Gerrard Construction staff have been holding briefings to discuss how subcontractors can skirt laws and inspections, Joey told ABS-CBN News in a separate interview.</p><p>“Sabi niya, ‘Sige yung panambak walang problema. Hindi na kailangan diyan. Kumuha na lang kayo ng lupa lupa kung saan pwede,” he said, recalling his discussions with one of SGC’s engineers.</p><p>“Sa sheet pile, walang problema. Mag picture lang kayo na dalawang ibaon nang 6 meters yung iba putulin na natin sa 3 [meters],” he said.</p><p>“Nagkakalagayan po. Lagi po silang may parte kasi kapag yung tao, kunyare engineer na mag inspeksyon, kapag wala siyang parte, hindi talaga pipirma yun,” he said.</p><p>Former DPWH Secretary Rogelio Singson has been pushing to have an independent body review his former agency’s projects, underscoring that the current review and audit systems within the government may already have been compromised.</p><p>“Forget COA muna. Time out sa COA,” Singson said, referring to the Commission on Audit.</p><p>“They should have seen this early on. Ngayon lang nag iingay, atsaka sila lumalabas?” he said.</p><p>“Saan yung COA auditors ninyo in the field? Baka naman ginood time na lang yung COA auditors imbis na mag-inspect,” he said.</p><p>Sen. Panfilo Lacson earlier alleged that COA officials have been receiving between 0.5 percent and 1 percent of project costs in exchange for audit approvals, even for questionable projects.</p><p>The COA earlier launched a review of DPWH-funded flood control projects in Bulacan after President Ferdinand Marcos Jr. questioned why only 15 contractors cornered over P100-billion worth of these programs between 2022 and 2025.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/7XG9L8MaaSM?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>But several lawmakers have also questioned the COA’s investigation, noting that one of its commissioners, Mario Lipana, and his family won several flood control projects in the said province.</p><div><strong>‘SYSTEMIC IF NOT ENDEMIC PROBLEM’<br/></strong></div><p>“It’s systemic, if not endemic and that’s really the problem,” Sotto said.</p><p>“The problem isn’t that there are a few bad eggs, the problem isn’t that you have one or two bad Filipinos. The problem is that the problem is systemic if not endemic already at kailangan talaga may drastic na mangyari dito,“ he said.</p><p>The Pasig City Government has filed requests for the DPWH to release documents on flood control programs in the city to help sift through the data and check if projects have been implemented according to proper standards, Sotto said.</p><p>“Gusto namin tumulong sa pamamagitan ng imbestigasyon within our area of responsibility,” he said.</p><p>“Sa totoo, wala naman kaming complete list ng mga proyekto ng flood control, hindi lang flood control pero kahit anong infrastructure project, wala kaming complete list,” he said.</p><p>“Minsan nagcocoordinate sa amin kapag kailangan ng tulong sa right of way or relocation ng informal settlers or other residents for that matter pero kapag hindi nila kailangan yun. Madalas hindi nagcocoordinate so wala kaming control,” he added.</p><p>Sotto hopes that after the flood control projects saga, “there will be better coordination between national government agencies and local government units.”</p><p>“As much as possible, we don’t want to add additional layers to the bureaucracy, but at the same time, when we talk about things for instance like roads, flood control programs, hindi naman puwede na hindi alam ng LGU,” he said.</p><p>“Halimbawa, simple drainage, gagawin ng isang grupo, tatamaan yung existing project or minsan may proposed project kami, naglaan na kami ng pondo, yun pala may project din ang nasyonal so masasayang yung pondo namin,” he said.</p><p>“It’s not necessarily about corruption. It’s also about efficiency. It’s also about proper manning. It’s about proper coordination in order to deliver services better,” he said.</p><p>“I guess with everything that is happening now, I think it’s all for the better. Napapaisip na tayo ngayon.”</p><div><em>This story is part of an ABS-CBN News special documentary on Philippine flood control projects.</em></div><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/CTz8aDj5HNQ??si=Ewf2kiJfSLmGXxZd&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The “diploma system” is when local officials give away contracts to construction firms sans proper evaluation and bidding, Sotto said.</p>

The “diploma system” is when local officials give away contracts to construction firms sans proper evaluation and bidding, Sotto said.

Vico Sotto, contractors bare ‘diploma system,’ illegal schemes in DPWH projects

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Vico Sotto, contractors bare ‘diploma system,’ illegal schemes in DPWH projects

Katrina Domingo,

ABS-CBN News

Published Sep 12, 2025 08:00 PM PHT

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Updated Sep 12, 2025 11:14 PM PHT

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flood control projects

DPWH

Vico Sotto

corruption

contractors

Discaya

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