By CHRIS V. PANGANIBAN,SR.
SAN FRANCISCO, Agusan del Sur — The ₱144-million water system project in Sta. Josefa, in this province, has been stalled after its Davao City–based contractor was using a rented license previously issued to the controversial Discaya couple, whose accreditation was recently revoked.
P144-M water system project in Agusan stalled due to Discayas revoked license
Dicken Otero, Sangguniang Bayan member and former mayor of the major rice-producing town, said the local government is considering re-bidding the project after auditing its accomplishments, which are reported to be 75 percent complete.
The project is funded through a loan from the Development Bank of the Philippines. Officials are also exploring other options, including negotiated procurement and claiming the P43-million performance bond from the contractor.
Crown Works Development Corp., the Davao City–based firm, rented a license from St. Gerrard Construction and Development Corp.—one of nine companies owned by Sarah Discaya, a failed Pasig City mayoral candidate whose construction empire has been linked to questionable procurement practices.
Otero added that Mayor Richard Plaza is expected to issue a work stoppage and terminate the contract with the contractor following their meeting next week.
Crown Works is handling the Cluster II phase of the water system, which involves pipe-laying for nine of the town’s 11 barangays.
Originally scheduled for completion in November, the project aims to provide a level III water system benefiting 2,800 households in the first-class municipality of Sta. Josefa, which had a population of 26,432 according to the 2020 Census—3.57% of Agusan del Sur’s total population.
The Philippine Contractors Accreditation Board (PCAB) revoked the contractor licenses of Sarah and Pacifico Discaya after Sarah admitted during a Senate Blue Ribbon Committee hearing that she controlled nine construction companies that simultaneously submitted bids for the same government project.
A PCAB license is mandatory for all contractors in the Philippines, certifying their compliance with national standards of expertise and competency. Without it, firms cannot legally bid on or undertake government projects.
PCAB said the Discayas’ practices indicated collusion and the use of schemes that undermine fair procurement processes, violating licensing and procurement laws.
The revocation delivers a serious blow to the Discayas’ business empire, several of whose companies had previously secured contracts with the Department of Public Works and Highways (DPWH).
Industry observers note that the decision not only bars their firms from future public bidding but could also delay ongoing projects involving their contractors.
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