Aremar using other contractors — Andaya
Credit to Author: GLEE JALEA| Date: Thu, 03 Jan 2019 16:39:36 +0000
NAGA CITY, Camarines Sur: House Majority Leader Rolando Andaya Jr. on Thursday accused in-laws of Budget Secretary Benjamin Diokno of using other contractors as front to benefit from billions worth of flood-control projects.
Andaya made the allegation during a congressional probe of questionable allocations facilitated by the Department of Budget and Management (DBM).
The House Committee on Rules bared in Thursday’s public inquiry that Aremar Construction Corp. is a duly-registered corporation with a business address in Casiguran, Sorsogon.
The biggest stockholder of the firm is Casiguran Mayor Jose Edwin Hamor. He and his wife, Sorsogon Vice Governor Ester Hamor, are seeking elective posts in the 2019 polls.
Diokno, who skipped the hearing, has been linked to the controversy because the Hamors are his in-laws and the DBM had allegedly allocated more than P385 million for infrastructure projects in Casiguran.
“Casiguran, Sorsogon seems to be special to Secretary Diokno,” Andaya remarked.
He claimed that the bidding process for the Department of Public Works and Highways’ (DPWH’s) flood-control projects in the Bicol Region (Region 5) seems to be done only “for show,” with winning bidders allegedly lending their license to Aremar Construction.
During the hearing, the House panel presented a deposit slip from Landbank, which showed an anonymous contractor that won a bidding for a Bicol project, but had deposited P11.4 million last October 4 in the account of Aremar Construction, which Andaya said is the real contractor of the project.
He added that this could be just one of at least eight “dummy accounts” being used to funnel money for infrastructure projects in other areas nationwide.
“This gives credence to a report intimated to us by several contractors. It is not true that certain technical details have been inserted in bidding documents….once the contract is obtained, the winning bidder only gets commission,” Andaya said.
The majority leader revealed that another controversial contractor, CT Leoncio Construction and Trading, was likely used as a dummy account as well.
CT Leoncio, which bagged at least 36 projects worth P1.6 billion in the provinces of Sorsogon and Catanduanes, benefited Aremar firm with one-third of the amount — P550.8 million for some blue-chip projects in 2018 alone.
‘Just a joint venture’
Consolacion Leoncio, owner of CT Leoncio, denied during the hearing that she personally knew the Hamors while conducting a joint venture with their firm.
“I only knew Aremar because we get heavy equipment, sand and gravel from them [through our projects],” Leoncio said, claiming that she only interacted with the Hamors through phone calls.
She added that it was her liaison officer, Francis Clemente, who recommended partnering with the firm.
Clemente was absent in the hearing.
Leoncio’s legal counsel, Rafael David, told reporters that “having a joint venture is not an extraordinary thing,” and that the involvement of Diokno does not necessarily make it a conflict of interest.
“Leoncio has faith in Aremar, not necessarily because there is a connection [to the Diokno issue]. It is unfair to say that the [two firms] only had a joint venture because of Secretary Diokno,” he said.
In a statement, Edwin Hamor insisted that such joint ventures are legal.
“Joint Ventures are legal and allowed by the DPWH if [they have] a PCAB [Philippine Contractors Accreditation Board] approval and special license for JV [joint venture] purposes. All these JVs have PCAB approval and a numbered special license. JVs are valid and legal,” Hamor said.
“The procurement law requires that all projects be open to all contractors,” he added.
Hamor also claimed that Aremar has a joint venture with other construction firms in at least two projects.
Meanwhile, Andaya assumed that Leoncio was “detached” from the issue as she may have only served as a financier without personally knowing the Hamors.
“Financier lang siya. Kitang kita na ginagamit lang ang lisensya. Hindi alam yung status ng projects. Ni hindi rin nga alam na lahat ng sinabmit na projects (She could only be a financier. It conveys that the license of CT Leoncio was used. She does not even know the status of the projects and which ones were already submitted),” he said.
The majority leader added that they intend to subpoena Clemente and invite some officials of the Commission on Audit (CoA) and the Anti-Money Laundering Council to further discuss the matter in the next hearing.
Officials summoned to Thursday’s hearing included Region 5 officials of the DPWH, DBM, Professional Regulation Commission, and district engineers and Bids and Awards committee heads of Sorsogon.
Other lawmakers present were Minority Leader Danilo Suarez, Senior Deputy Majority Leader Rodante Marcoleta and Coop-Natcco party-list Rep. Anthony Bravo.
Malacañang, however, said Diokno can defend himself.
“I’m sure, definitely, Secretary Diokno [will be able to answer whatever question thrown at him.] He is very competent to respond to any question directed to him,” Palace spokesman Salvador Panelo said.
“The expectation of any executive branch relative to the investigation conducted by an equal branch is one of understanding and one of action if it so requires to do such acts. It depends on the result of the investigation,” he added. “For us that is okay. We all have our functions in all branches of the government. They can do their work, we will do ours. We will help each other for the betterment of our countrymen,” he added.
WITH RALPH U. VILLANUEVA
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