Senators flag DPWH’s ‘contractor-friendly’ budget preparation process

MANILA, Philippines – The Senate investigation led by Senator Ping Lacson has exposed how the budget process for government infrastructure projects appears to favor contractors.

“Contractor-friendly” was how Lacson characterized it after Senator Sherwin Gatchalian noted how the agency appeared to tailor the budget items in a way that would make it easier for contractors to meet requirements.

Under a circular from the Department of Budget and Management (DBM), proposed projects from the Department of Public Works and Highways (DPWH) are supposed to be “shovel-ready” — complete with feasibility studies, location coordinates, and secured rights of way, among other requirements.

But Gatchalian on Monday, January 19, said the reality is different. “Hinahabol ‘yung pondo, rather than ‘yung pondo ‘yung humahabol sa project,” he said. (They chase the funding, instead of the funding following the project specifications.)

“Nagiging lokohan lang ang isina-submit sa DBM (Department of Budget and Management) para lang magkapondo,” Gatchalian added. (What ends up being submitted to the DBM is essentially a deception, done merely to obtain funding.)

Gatchalian flagged how the coordinates for infrastructure projects indicated in the plan are changed when implementation comes.

According to former DPWH undersecretary Roberto Bernardo’s earlier testimony, regional and district engineers conspire with government contractors to finalize government projects.

Gatchalian stressed that projects should be based on endorsements from the Regional Development Council, which is composed of local government officials. By mandate, the RDC is tasked with the coordination, preparation, implementation, monitoring, and evaluation of short- and long-term regional development plans and investment programs.

Mismatched timeline

Lacson and Gatchalian also flagged a mismatch between the DBM’s budget calendar and the RDC’s deliberation process.

Lacson noted that the DBM’s budget call typically ends around March, while RDC deliberations are completed only by August or September, raising questions about how RDC inputs are fully integrated into the national budget.

DBM Acting Secretary Rolando Toledo said RDC inputs are considered as early as February. From 2025 to 2026, only about 20% of infrastructure projects were endorsed by the RDC, Toledo said. In the future, Toledo said that the agency aims to ensure that a “majority” of future projects will carry RDC endorsements.

Former DPWH secretary Manuel Bonoan, however, said around 70% of DPWH projects are endorsed by the RDC.

Moving forward, the DPWH said it will require RDC endorsement for infrastructure projects.

Bernardo, however, said that RDC approval alone does not make projects corruption-proof. The former undersecretary, who earlier exposed corruption schemes within the DPWH, said that most of the projects implicated in the scheme had also been endorsed by the RDC. – Rappler.com