Contractor Pacifico “Curlee” Discaya II on Tuesday bared a scheme where some lawmakers allegedly pre-arranged Department of Public Works and Highways (DPWH) projects by “buying” them even before bidding.
Discaya, owner of St. Gerrard Construction and several other firms, told senators in a Senate Blue Ribbon Committee hearing that contractors were pressured to join fake biddings only to be paid a “share” for losing.
“Ang ‘taker’ ng proyekto naman ay ang mga ‘may-ari’ ng project. Sila ay mayroon nang mga nakausap sa loob ng Bids and Awards Committee o ang BAC upang makasigurado na sa kanila mapupunta ang project. Maaaring nabili na nila ang proyekto mula sa congressman at iniintay na lang na lumabas ang resulta ng ‘bidding’ na isinasagawa (The ‘taker’ of the project is its real owner. They have already spoken to the Bids and Awards Committee to secure the award. The project may have already been bought from a congressman, and the bidding is just for show),” he said.
He said the scheme was widespread nationwide, with losing bidders typically receiving 1 to 3 percent of the project’s approved budget as payoff.
Members of the BAC allegedly played a direct role in favoring chosen contractors by disqualifying rivals through technicalities such as declaring documents “non-compliant” or even tearing up papers.
He explained that the “taker” is the political backer who secured the project, the “negotiator” arranges which contractors may join, the “royalty” lends licenses for a fee, and the “player” participates only to lose in exchange for a share.
“The bidding is controlled end-to-end. From the sale of bid documents to the award of projects, it is BAC officials and political allies who dictate the outcome,” Discaya said.
Despite attempts to report the practices, he said contractors who refused to cooperate were harassed, disqualified or threatened with blacklisting.
Discaya vowed to cooperate with the Senate probe and submit records of transactions.
Basic sector council
Meanwhile, the Regional Basic Sector Coordinating Council (RBSCC) of Central Luzon under the National Anti-Poverty Commission (NAPC) has expressed outrage over “persistent and systemic corruption” in the Department of Public Works and Highways (DPWH), citing ghost flood control projects spanning from 2016 to 2025.
In a statement posted on its official Facebook page on Tuesday, the council said despite billions of pesos being allocated for flood mitigation and critical infrastructure, many projects exist only on paper, leaving Central Luzon —one of the most flood-prone regions in the country— more vulnerable than ever.
“The cost of this betrayal is not abstract. It is paid for daily by the basic sectors we represent,” the RBSCC said.
The council described the alleged corruption not just as a misuse of public funds, but as a “direct assault on the people” and a “crime against the most vulnerable communities.”
It called for a “full, independent, and fearless” inquiry into the ghost projects, with accountability reaching not only contractors and middlemen but also high-ranking officials who allegedly authorized or enabled the anomalies.
“Every stolen peso is stolen safety, stolen progress, and stolen hope from our communities,” it said, urging investigative agencies, oversight bodies, and lawmakers to expose the truth, prosecute the guilty, and recover public funds. (With a report from Ma. Teresa Montemayor/PNA)