‘No more WB financing for erring firms… prosecution up to RP govt,’ WB exec says
As DPWH follows WB ban on ‘collusive’ firms
Last week’s World Bank (WB) announcement of a permanent ban to Philippine-based construction ‘giant’ E.C. DeLuna Construction Company, its owner and six other firms was met by a similar move by the Department of Public Works and Highways (DPWH).
With the WB move used by government critics to hit the Arroyo Administration and a Senate inquiry called, a local temporary ban is also now in effect on the seven firms. Permanent blacklisting, news wires quoted the DPWH executives, is under consideration.
What is permanent now though, is that it is the end of the line for E.C. DeLuna Construction Company in as far as WB financing on all road and infrastructure works is concerned.
The clarification was made by David Theis in a query made by The News Today (TNT).
“The firms are barred from financing or contracting from every entity of the World Bank Group - that includes every arm of the institution,” Theis, Senior Communications Officer, Integrity Vice Presidency of The World Bank Group said.
As for prosecution of the banned firms, Theis said it is up to the Philippine government and other governments concerned while adding that the Philippines have been “very cooperative” in the WB investigation.
E.C. De Luna Construction Corporation is the company behind major multi-million road projects in the provinces of Antique, Iloilo, Negros Occidental and elsewhere in the country.
TNT in a separate check learned that among the early biddings questioned by the WB was a 2002 project involving P967.01-million approved budget for the contract (ABC) in Surigao del Sur and a P917.43-million contract in Negros Occidental and Oriental. The lowest bidders then were China Road, E.C. Luna, and China State Construction.
The same companies appeared to be the lowest bidders as well in the second round of bidding in 2004.
To note, a total of 40 firms have been awarded contracts under the WB’s Philippines National Road Improvement and Management Project (NRIMP) phase 1. WB reports have it that “90% of the project goals were achieved, with 382 kilometers of road in the provinces and maintenance of 975 kilometers in several areas.”
“The NRIMP-1, with an estimated cost of $305.42 million, was originally designed to upgrade about 528 kms of national roads and improve maintenance of about 1,000 kms. The project was to be implemented from 2000 to 2009 on a $150-million loan (with a maturity period of 20 years) from the World Bank, and the $155.42 million equivalent would be supplied by the government,” data as secured from the web stated.
WB probe results established evidence of what it termed was a “major cartel” out to corner contracts under NRIMP 1.
“This is one of our most important and far-reaching cases, and it highlights the effectiveness of the World Bank’s investigative and sanctions process. As the World Bank Group continues to ramp up its anti-corruption work, INT will remain vigilant in investigating allegations and holding wrongdoers accountable,” WB Integrity Vice President Leonard McCarthy in a statement said.
Several of the local E.C. De Luna Construction works here include the San Jose – Patnongon road network in the Province of Antique, the Asluman Road network to the Province of Iloilo and arterial road links in Iloilo east Coast road towards Estancia, Iloilo.
It was established in 1989 and now has the highest category – AAA - by the Philippine Contractor’s Accreditation Board.
This, the company stated, is “proof of the firm’s topnotch service in construction and civil engineering.”
Main office is in San Juan, Metro Manila yet E.C De Luna Construction dealings are practically everywhere in the Philippines.