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Senate urged to probe bid rigging at NIA
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Senate urged to probe bid rigging at NIA

Aug 15, 2024

Private contractors called the senate for an immediate probe on the bid rigging at the National Irrigation Administration (NIA) after several government-accredited contractors were denied to purchase bid documents for the Malatgao River Irrigation System (RIS) Project in Region 4-B.  

Four AI construction firms which previously participated in the bidding of  government irrigation projects in the country, were denied to purchase bid documents due to alleged lack of a certificate of site Inspection, which is not legally required. 

NIA is currently headed by Eduardo Guillen, while the NIA-Region 4-B or MIMAROPA is supervised by Regional Manager Engr. Ronilio M. Cervantes and Palawan Irrigation Management Office (IMO) Division Manager Engr. Armando L. Flores.  

NIA records revealed that only the Octagon Construction firm was allowed to obtain the bid document for the rehabilitation and repair of Malatgao RIS project worth more than P400 million.  

It will be recalled that during a Senate blue ribbon committee hearing, Sen. Raffy Tulfo criticized former and current NIA officials for their negligence in tolerating defective, incomplete and ghost irrigation projects, which, he said, should have helped the country’s farmers increase their rice production.  

The Senate inquiry stemmed from Tulfo’s recent privilege speech, wherein he exposed the alleged irregularities in irrigation projects, many of which were delayed by more than five years.  

He cited a report by the team he sent to verify the projects, which found that many of these were not functioning, supposedly due to poor workmanship or use of substandard materials while others were abandoned because of failed contracts.  

Representatives of a good standing construction firm visited NIA R-4B to purchase for the Malatgao RIS project, but was denied the opportunity to obtain a bidding document despite submitting all the required documents, alleging it lack Certificate of Inspection.  

The firm presented an Affidavit of Site Inspection but their attempt to purchase the necessary bid document to participate in the bidding process was likewise denied. 

The representative appealed to the BAC chairman for reconsideration but equally rejected.  

There were allegations that some NIA officials are linked to fraudulent schemes in the procurement of bidding documents which enables companies to submit non-competitive bids.   

Senator Tulfo said that in a lot of cases, unscrupulous individuals are raking in profits from these irrigation projects, like seeking funding for maintenance, but in truth, no maintenance is done and the funding only goes straight to their pockets.   

“Bid rigging almost always results in economic harm to the agency which is seeking the bids, and to the public, who ultimately bear the costs as taxpayers or consumers,” the solon added. 

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