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Advocates Philippines
PCIJ Investigation: Two Decades, Four Presidents, Same Contractors Dominate Public Works Deals
Photo credit: PCIJ
For the past two decades, across four presidential terms, the country’s biggest public works projects have gone to a familiar circle of contractors. Whether the president was Arroyo, Aquino, Duterte, or Marcos, the same politically connected firms have secured some of the most lucrative infrastructure deals—despite recurring questions about fairness, performance, and accountability.
An investigation by the Philippine Center for Investigative Journalism (PCIJ) reveals that this pattern has persisted through changes in leadership, despite repeated scandals, congressional hearings, and promises of reform.
The Pattern That Never Broke
PCIJ tracked government data and past audit findings and found that political influence continues to shape the awarding of infrastructure contracts. Companies with questionable records still dominate the rankings. Oversight mechanisms remain weak, while systemic corruption—acknowledged in previous probes—shows little sign of abating.
Equi-Parco Construction Company, founded by former Butuan Mayor Vicente Lagnada, has consistently placed among the top contractors, ranking first under Aquino and second under Arroyo. Sunwest, Inc., linked to Ako Bicol party-list representatives Elizaldy and Christopher Co, emerged as the top contractor under Marcos after years of securing projects in earlier administrations. St. Gerrard Construction, tied to the Discaya family, topped the list under Duterte and went on to win P31 billion worth of flood-control projects during the first three years of the Marcos presidency.
Arroyo: Political Shrines and Powerful Connections
President Gloria Macapagal-Arroyo’s administration was marked by what her first budget secretary called an “obsession with road projects.” Arroyo envisioned networks of roads and bridges as symbols of progress and often presided over inaugurations herself. But this drive also opened doors for politically connected contractors to corner deals with little scrutiny over cost or quality.
“The ease with which obscure contractors secured deals suggested they had very, very powerful connections,” the secretary said in an earlier interview with PCIJ.
Aquino: The Culture of Cuts
Under President Benigno Aquino III, the language of reform was strong, but the culture of “cuts” remained. Local politicians, including congressmen and mayors, reportedly demanded portions of project funds from winning contractors. Those who resisted were threatened with delays in permits and other approvals. One source described the practice as “ingrained in our political system,” driven by politicians’ obligations to reward supporters.
Duterte: Blacklisted but Still Winning
The Duterte administration saw contractors with tainted histories continue to secure top projects. PCIJ found that three of the top 10 contractors had been previously suspended or blacklisted, including one firm that submitted fake tax clearance certificates. One contractor’s corporate registration had been revoked, while several officers of other firms faced graft charges. Despite these red flags, they still bagged billion-peso projects.
Marcos: Flood-Control Bonanza
The pattern has carried over into the current administration. While available data for President Ferdinand Marcos Jr.’s term covers only the first three years and is limited to flood-control projects, familiar names dominate the list. Sunwest, Inc. tops the rankings, while nine companies linked to the Discaya family collectively secured P31 billion in contracts.
An Open Secret for Years
This cycle of favoritism and collusion is hardly new. In 2007, a World Bank investigation into road projects funded by the institution uncovered a well-organized cartel involving contractors, politicians, and officials from the Department of Public Works and Highways (DPWH). Witnesses told investigators that losing bidders were instructed to inflate their bids to favor the pre-selected winner—a practice they described as the “Standard Operating Procedure” and an “open secret.”
Nearly two decades later, the same dynamics persist. Political power, rather than fair competition, continues to dictate the flow of public funds into infrastructure. And while presidents have come and gone, the system remains firmly in place—at great cost to taxpayers.
An investigation by the Philippine Center for Investigative Journalism (PCIJ) reveals that this pattern has persisted through changes in leadership, despite repeated scandals, congressional hearings, and promises of reform.
The Pattern That Never Broke
PCIJ tracked government data and past audit findings and found that political influence continues to shape the awarding of infrastructure contracts. Companies with questionable records still dominate the rankings. Oversight mechanisms remain weak, while systemic corruption—acknowledged in previous probes—shows little sign of abating.
Equi-Parco Construction Company, founded by former Butuan Mayor Vicente Lagnada, has consistently placed among the top contractors, ranking first under Aquino and second under Arroyo. Sunwest, Inc., linked to Ako Bicol party-list representatives Elizaldy and Christopher Co, emerged as the top contractor under Marcos after years of securing projects in earlier administrations. St. Gerrard Construction, tied to the Discaya family, topped the list under Duterte and went on to win P31 billion worth of flood-control projects during the first three years of the Marcos presidency.
Arroyo: Political Shrines and Powerful Connections
President Gloria Macapagal-Arroyo’s administration was marked by what her first budget secretary called an “obsession with road projects.” Arroyo envisioned networks of roads and bridges as symbols of progress and often presided over inaugurations herself. But this drive also opened doors for politically connected contractors to corner deals with little scrutiny over cost or quality.
“The ease with which obscure contractors secured deals suggested they had very, very powerful connections,” the secretary said in an earlier interview with PCIJ.
Aquino: The Culture of Cuts
Under President Benigno Aquino III, the language of reform was strong, but the culture of “cuts” remained. Local politicians, including congressmen and mayors, reportedly demanded portions of project funds from winning contractors. Those who resisted were threatened with delays in permits and other approvals. One source described the practice as “ingrained in our political system,” driven by politicians’ obligations to reward supporters.
Duterte: Blacklisted but Still Winning
The Duterte administration saw contractors with tainted histories continue to secure top projects. PCIJ found that three of the top 10 contractors had been previously suspended or blacklisted, including one firm that submitted fake tax clearance certificates. One contractor’s corporate registration had been revoked, while several officers of other firms faced graft charges. Despite these red flags, they still bagged billion-peso projects.
Marcos: Flood-Control Bonanza
The pattern has carried over into the current administration. While available data for President Ferdinand Marcos Jr.’s term covers only the first three years and is limited to flood-control projects, familiar names dominate the list. Sunwest, Inc. tops the rankings, while nine companies linked to the Discaya family collectively secured P31 billion in contracts.
An Open Secret for Years
This cycle of favoritism and collusion is hardly new. In 2007, a World Bank investigation into road projects funded by the institution uncovered a well-organized cartel involving contractors, politicians, and officials from the Department of Public Works and Highways (DPWH). Witnesses told investigators that losing bidders were instructed to inflate their bids to favor the pre-selected winner—a practice they described as the “Standard Operating Procedure” and an “open secret.”
Nearly two decades later, the same dynamics persist. Political power, rather than fair competition, continues to dictate the flow of public funds into infrastructure. And while presidents have come and gone, the system remains firmly in place—at great cost to taxpayers.
Sep 5, 2025
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