NOT ONLY DID the billions worth of anomalous flood control projects angered the citizenry, but it also exposed the pervasive conflict of interest that government officials and workers, whose families (extended by marriage or immediate as in by consanguinity) owned companies in business with government.
When someone applies for work in government, questions are asked about if they have relatives or family members working or having business in government and which could affect the integrity of the office or the tasks at hand.
I had worked in several government posts before and I am aware of the questions on nepotism and conflict of interest enshrined in the personnel file.
COMMISSIONER LIPANA
So it is quite surprising to find out that Commissioner Mario Lipana of the Commission on Audit, did not prevent his wife, Marilou Laurio Lipana, from getting nine contracts with the Department of Public Works and Highways totalling P326.6 million in 2025.
The act in itself compromised the integrity of the institution mandated to flag anomalies and irregularities to safeguard public interest and taxpayers’ money.
For one, Commissioner Lipana is aware that such falls well within the bounds of Conflict of Interest, a serious infraction under existing laws. It took the congressional hearing on the flood control mess to expose this perversion in public service.
CULPABLE INFRACTION
According to ACT Teachers partylist Rep. Antonio Tinio, Lipana’s wife, bagged two flood control projects in Bulacan worth P86.8 million and P91.7 million, supposedly completed in 2024, to be certified by dismissed Bulacan First Engineering District chief Henry Alcantara.
Tinio said the Lipana company’s involvement was a clear violation of Article IX, Section 2, of the Constitution, which states no member of a constitutional commission “shall be financially interested, directly or indirectly, in any contract with, or in any franchise or privilege granted by the Government, any of its subdivisions, agencies, or instrumentalities, including government-owned or controlled corporations or their subsidiaries.”
The militant legislator went as far as demanding Lipana to resign.
SANDRO MARCOS BILL
Presidential son, Sandro Marcos, House Majority Leader, filed HB 3661 seeking to bar relatives of public officials from securing government contracts, amid the flood control corruption that exposed several lawmakers violating current laws on conflict of interest and nepotism.
The bill embarks on preventing relatives of public officials of up to the 4th degree of consanguinity (by blood relations) or affinity (by marriage) from participating in government biddings — much less notch contracts.
Once enacted, first cousins, cousins-in-law, nieces, nephews-in-law of public officials won’t be allowed to do business with the government.
“By closing this loophole, we take another step toward a government that is fair, transparent, and truly for the people,” Marcos said.
GOVERNMENT OFFICIALS
Under the proposed legislative measure are explanations and definitions as to who and how far the bill would cover. The young Marcos defined in his bill “public officials.”
According to the Ilocos Norte congressman, “public officials” are the agency and department heads, procuring entity leaders, governing board members, and employees with policy or managerial functions, including those in military and uniformed service.
“Government funds are meant to serve the Filipino people, not to enrich relatives or perpetuate undue advantage. … We owe it to every taxpayer to safeguard every peso. This is what genuine public service demands,” the Star quoted his post.
CONG-TRACTORS’ LIST
The Philippine Center for Investigative Journalism cited the following lawmakers with contractor links through their family companies:
Rep. Elizaldy Co (Ako Bicol Partylist), founder of Sunwest Inc. but claimed to have divested. His brother, Christopher Co, co-founded Hi-Tone and his sister, Farida Co, is managing officer of FS Co Builders and Supply, all of which had flood control project contracts with DPWH.
Rep. Munir Arbison (Sulu, 2nd District) is said to be related to Nirrain Construction and Supply Corp.’s top shareholder Ash-Shahid Arbison.
Rep. Augustina Dominique “Ditse Tina” Pancho (Bulacan, 2nd District). Her family owns C.M. Pancho Construction Inc.
Rep. Alyssa Michaela Gonzales (Pampanga, 3rd District). Her family reportedly owns A.D. Gonzales Jr. Construction and Trading Company Inc. She is the daughter of former Senior Deputy Speaker Dong Gonzales Jr.
Rep. Edwin Gardiola (CWS Partylist) is related to shareholders of Newington Builders, Lourel Development Corp., and S-Ang Construction & General Trading Inc. The former firm was previously named after him, E. Gardiola Construction.
Reps. Jolo Revilla, Lani Mercado-Revilla and Bryan Revilla. Jolo and Bryan’s aunt is a shareholder of Graia Construction Corp., while she is Lani’s sister-in-law.
Rep. Ramon Rodrigo Gutierrez (1-Rider Party-list) is the brother and son of Alro Construction and Development Corp.’s two shareholders.
Other lawmakers who have yet to divest interest from construction companies include Rep. Carlos Loria (Albay, 2nd District), Rep. Cristina Angeles (Tarlac, 2nd District), Rep. Jernie Jett Nisay (Pusong Party Party-list) and Rep. Ferdinand Beltran (Magbubukid Party-list).
SEN-TRACTORS EXIST
In the Senate, Sen. Bong Go’s father owns CLTG Builders, while his half-brother owns Alfrego Builders and Supply.
Previously, former Senate President Francis Escudero admitted receiving a whopping P30 million donation from a certain Lawrence Lubiano, president of the Centerways Construction.
Other members of the upper chamber whose names were dragged into the flood control scandal include Senators Jinggoy Estrada and Joel Villanueva.
The name of Senator Loren Legarda is the latest addition to the shame list, over allegations of dismissed Batangas First Engineering District Office chief Abelardo Calalo who was arrested for allegedly bribing Rep. Leandro Leviste.
In his counter affidavit, Calalo insisted that there was neither entrapment nor bribery, even as he claimed that he was merely asked by Legarda — through a certain Jojo Ang, to raise donations from contractors.
Apart from Congress, the Commission on Audit, which oversees the proper use of public funds, has admitted a conflict of interest, as COA Commissioner Lipana’s wife, serves as president of Olympus Mining and Builders Group Philippines Corp.