The Philippine Competition Commission (PCC), through its Competition Enforcement Office (CEO), has formally referred its initial findings on possible bid-rigging in flood control projects in Bulacan to the Department of Justice (DOJ). The referral was submitted on November 14.
The CEO’s referral follows an evaluation of information provided by the Department of Public Works and Highways (DPWH) and evidence obtained during a motu proprio preliminary inquiry conducted pursuant to Section 31 of the Philippine Competition Act (PCA) and Article I, Rule II of the PCC Rules of Procedure. The preliminary inquiry indicated a potential violation of Section 14(a)(2) of the PCA, relating to bid-rigging in certain flood control contracts managed by the DPWH 1st District Engineering Office (DEO) – Bulacan.
Evidence gathered suggests that contractors colluded to predetermine winning and losing bids, while several public officers of the DPWH 1st DEO allegedly facilitated and ensured compliance with the bid-rigging arrangements. Bid-rigging, a prohibited practice under Philippine law, undermines competition, deprives the public of fair value, and results in the inefficient use of government resources.
Under DOJ Department Circular No. 015 dated July 16, 2024, in conjunction with DC No. 20 dated March 31, 2023, the DOJ will review the PCC’s referral and determine whether to proceed with further case build-up or initiate a preliminary investigation.