Comelec probes 15 contractors for illegal campaign donations

(UPDATE) THE Commission on Elections (Comelec) has launched a probe into at least 15 government contractors flagged for donating to candidates in the 2022 national and local elections. The probe comes as the Department of Public Works and Highways (DPWH) is reeling from a wave of corruption allegations tied to ghost flood control projects, prompting the creation of a new anti-graft committee and sparking calls for the resignation of Secretary Manuel Bonoan. Comelec Chairman George Garcia confirmed over the weekend that the poll body’s Political Finance and Affairs Department had identified at least 15 contractors who allegedly donated to candidates in 2022. The figure, he said, could climb as the review continues. “Based on our initial findings, 15 contractors were reported to have extended donations to candidates. If it is proven that they had active government contracts at the time of the contribution, then this constitutes an election offense punishable by one to six years’ imprisonment,” Garcia said. The ban is anchored in Section 95 of the Omnibus Election Code, which prohibits campaign contributions from certain entities — including government contractors, financial institutions, public utilities, state-subsidized schools, civil service and military personnel, and foreign corporations. The rule is designed to prevent corruption, conflicts of interest, and undue influence over public officials. Violations fall under Section 264, which prescribes not only jail time but also disqualification from public office and loss of voting rights. Candidates who knowingly accept unlawful contributions may also be charged. Yet despite clear prohibitions, enforcement has been weak. In 2013, watchdogs flagged donations from construction and supply firms to senatorial candidates, but cases were either dismissed for lack of evidence or stalled at preliminary investigation. Analysts say the problem lies in the slow pace of cross-checking candidates’ Statements of Contributions and Expenditures (SOCEs) against procurement records, making timely enforcement almost impossible. This time, the Comelec says it is seeking confirmation from the DPWH about whether donors held active contracts during the election period. Garcia declined to name either contractors or candidates until verification is complete. “The law is clear: government contractors cannot make donations. If proven, we will enforce the penalties,” he said. Flood control scandals While Comelec examines campaign finance violations, the DPWH is battling a scandal involving questionable infrastructure projects. The controversy exploded when President Ferdinand Marcos Jr. personally inspected a P55-million river wall project in Barangay Piel, Baliwag, Bulacan, only to find that the structure — listed as completed — had not even broken ground. The revelation fueled public outrage over “ghost projects” and sharpened scrutiny of DPWH contracting practices. In a video message, Public Works Secretary Manuel Bonoan admitted the issue was “heartbreaking” to confront but rejected calls for his resignation. “There are those calling for me to go on leave or to resign because of this issue. That would be the easy thing to do — resign and just avoid the problem. But leaving or avoiding responsibility is not the right way to find a solution. I will accept accountability but will not condone corruption, despite calls for my resignation,” Bonoan said. The DPWH has since ordered the preventive suspension of personnel from the Bulacan 1st District Engineering Office. The Commission on Audit (COA) is conducting a fraud audit of flood control projects in Bulacan, dating from January 2022 to July 2025, checking whether projects actually exist and whether they meet design specifications. Similar reviews are underway in Central Luzon, Mimaropa, Western and Central Visayas, and Eastern Visayas. Bonoan has also highlighted disciplinary actions in other provinces, such as the arrest of Batangas District Engineer Abelardo Calalo for allegedly attempting to bribe Batangas Rep. Leandro Leviste. In response to the widening scandal, the DPWH has set up a new Anti-Graft and Corrupt Practices Committee as part of a bid to restore integrity in its ranks, amid mounting allegations of irregularities in flood control projects and the arrest of a district engineer accused of bribery. Department Order 166, series of 2025, signed on Aug. 28, empowers the committee to investigate complaints, issue subpoenas, and formulate rules in line with the Civil Service Commission’s 2025 guidelines on administrative cases. It may also form technical working groups, inspect project sites, and coordinate with other agencies and law enforcement bodies for prosecution purposes. DPWH Special Order 142, also issued this month, designated Undersecretary Eric Ayapana as chairman, with Assistant Secretary Medmier Malig as vice chairman. Other members include Assistant Secretary Michael Villafranca, Directors Gliricidia Tumaliuan, Reynaldo Faustino, and Randy del Rosario, and Assistant Director Melrose Pailma. This is not the first time the DPWH has tried to tighten internal checks against corruption. In the past, the department relied on its Internal Audit Service and Integrity Management Program to flag questionable transactions, while the Office of the Assistant Secretary for Legal Affairs handled graft-related complaints. Earlier administrations also experimented with transparency initiatives, such as requiring the public posting of project details at construction sites and mandating online disclosure of major procurement contracts. Yet despite these measures, the DPWH has remained one of the agencies most frequently cited in Commission on Audit reports for procurement anomalies and incomplete or substandard projects. Conflict of interest Meanwhile, Sen. Panfilo Lacson exposed a potential conflict of interest involving at least two members of the Philippine Contractors Accreditation Board (PCAB). The senator raised the apparent conflict of interest of PCAB members — engineers Erni Baggao and Arthur Escalante — who own construction companies and bagged government contracts. They might face violation of the Code of Conduct and Ethical Standards for Public Officials and Employees, or Republic Act 6713, he said. Lacson called on the Department of Trade and Industry (DTI) and the Construction Industry Authority of the Philippines (CIAP) to conduct an investigation on the matter and file criminal and administrative charges if necessary. “Paging PCAB — Instead of an outright denial, you should at least look into allegations against your own people’s improper conduct,” Lacson said, referring to PCAB’s earlier statement dismissing the reported “accreditation for sale” scandal that hounded the group. Lacson recently said he got information from some private contractors that PCAB will take care of the paperwork for accreditation in exchange for at least P2 million. “Aside from reports of corruption in your ranks, there is potential conflict of interest involving your 2 board directors in violation of RA 6713,” Lacson posted on X. He said public records show both Baggao and Escalante signed contracts with the DPWH as presidents of their own construction companies for government projects — while sitting on the PCAB board. Baggao was reappointed for a three-year term as PCAB board member in September 2023, while remaining as an authorized managing officer of EGB Construction, a contractor for government projects. Escalante, while sitting as PCAB board director, is the owner of A.N. Escalante Construction Inc. The PCAB Board’s duties include limiting the operations of constructors to the bounds of their classifications or restrictions, and investigating violations of the law. Baggao and Escalante thus had an undue advantage over other contractors, as they can investigate potential rivals, or even suspend or revoke their licenses, Lacson said. ‘Don’t be onion-skinned’ Also over the weekend, House Deputy Speaker and Antipolo Rep. Ronaldo Puno has advised Davao City Rep. Paolo Duterte to not be “onion-skinned” and be open for scrutiny regarding his flood control projects. The statement came after Manila Rep. Bienvenido Abante and Bicol Saro Rep. Terry Ridon called for an investigation regarding the flood control projects in the city, which Duterte blasted. “Let me be clear, all projects allocated to my district are properly implemented and completed. If he really wants to know the exact figures, I am directing DPWH District and Regional Offices to provide him with the official data and amounts,” Duterte said, referring to Abante. During his press briefing, Puno, who is also concurrent National Unity Party chairman, said that public officials like Duterte must be prepared to account for the use of government funds, especially of the increasing flooding that hit the city despite allocations for anti-flood systems. “As government workers, let’s not be onion-skinned if our projects are going to be investigated. If it is that good, they can even praise it,” Puno said. He urged Duterte to accept any form of investigation, as he said that it is part of his job as a lawmaker, and that Davao City is not being singled out in the upcoming investigation, as other regions have been identified for scrutiny in connection with questionable flood control spending. Puno added that oversight is part of the mandate of Congress and not an attack on local leaders. “In fairness, it is not just only in Davao City that the committee will investigate. They will investigate other areas, including the ones visited by President (Ferdinand Marcos Jr.) in Baguio and Mountain Province, and even those mentioned by Sen. [Panfilo] Lacson,” Puno said. Puno also said that such investigations could benefit local officials since proper oversight may validate that their projects were aboveboard and effective and were not tainted with irregularities. “I know they will go to other provinces, but they are not singling out Davao City,” the former interior secretary said. In the same briefing, Puno revealed that there were also allocations in the 2026 National Expenditure Program (NEP) intended for projects that had been completed, such as in Marikina City. “A funny example is in Marikina, in the district of Congressman Marcelino Teodoro. When he saw the proposed NEP in 2026, and we were seated beside each other, he told me ‘Sec, will I return this to the DBM?’ Why, I asked, he said that all of the projects listed here have already been completed,” Puno said. Even in his own district, some projects that have been staged over several years have disappeared from the budget, such as a flood control system that would divert water away from Marikina City. While projects that were vital to his district vanished, new allocations appeared in the NEP, with some of them inflated or slashed beyond recognition, with some discrepancies so blatant that other party leaders and senior lawmakers found themselves victims of the same manipulation. It was the reason Puno filed a resolution that would investigate how these errors were introduced in the NEP, since the Department of Budget and Management and the Department of Public Works and Highways were responsible for the transmission of the documents. “You can include in that example why we are funding a project in Marikina that is already completed. Because if no one has read that, the funding will be there, so who will implement that? It’s the agency! It’s like they won in the lottery,” Puno said in Filipino.