"

SIXTEENTH CONGRESS OF THE REPUBLIC ) OF THE PHILIPPINES )

Second Regular Session ) '14 SEP -9 P 3 :08

SENATE 90'S P. s. R. No. ~-=:...c=-::.~_ RIiX'EIVEH BV:-t:

Introduced by Senator Miriam Defensor Santiago

RESOLUTION

DIRECTING THE PROPER SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE ALLEGED ANOMALOUS TRANSACTIONS INVOLVING MULTIBILLION PESOS IN PUBLIC FUNDS BETWEEN HILMARC'S CONSTRUCTION

CORP. AND CERTAIN LOCAL GOVERNMENT UNITS

WHEREAS, the Constitution, Article 2, Section 27 provides: "The State shall maintain honesty and integrity in the public service and take positive and effective measures against graft

and corruption";

WHEREAS, Section 28 of the Constitution also states: "Subject to reasonable conditions prescribed by law, the State adopts and implements a policy of full public disclosure of all its transactions involving public interest";

WHEREAS, according to various news reports, the construction of the Iloilo Convention Center (ICC), said to be funded partly out of Senate President Franklin Drilon's P200-million allocation from the Priority Development Assistance Fund (PDAF) in 2012 and PlOO million from Malacafiang's Disbursement Acceleration Program (DAP) in 2013, was carried out by Hilmarc's Construction Corp" the contractor of the allegedly overpriced Makati parking building presently under investigation by the Senate blue ribbon committee;

WHEREAS, it was also claimed that the ICC is overpriced by P531 million compared to, or four times more expensive than, the SMX Convention Center because the ICC was said to be built at a cost of III 09,3 75 per square meter based on a floor area of 6,400 sqm compared to the SMX Convention Center at l!26,400 per sqm based on a floor area of 46,647 sqm;

WHEREAS, Kabataan Rep. Twy Ridon reportedly filed House Resolution No. 1466, urging the House committee on public works and highways to investigate, in aid of legislation, on possible cases of corruption and overpricing involving 20 govenm1ent infrastructure projects erected by Hilmarc' s Construction Corp. in the last decade;

WHEREAS, it was reported that the two-story ICC, which is at least 85-percent completed, costs a total of Il7 4 7 million, according to Western Visayas director of the Department of Public Works and Highways (DPWH) Engr. Edilberto Tayao, who also reportedly said in earlier interviews that the whole project, including site development and landscaping wDuld cost P830 million;

WHEREAS, it was reported that, in the past decade, Hilmarc's Construction Corp. was able to clinch no less than 20 government infrastructure projects; in some cities, including Iloilo

1

and Makati, Hilmarc's Construction Corp. was able to clinch two or more govemment infrastructure projects in consecutive years;

WHEREAS, Rep. Ridon repOliedly claimed that several govemment projects entered into by Hilmarc's Construction Corp. have been the center of local and national controversies involving issues of corruption and overpricing;

WHEREAS, it was reported that, aside from the ICC and the Makati parking building, other govemment projects bagged by the Hilmarc's Construction Corp. are the following:

• P550-million call center bnild'ing of the Committee on Higher Education (suspended by the Commission on Audit);

• PI 84-million Makati police station; • P21.5-million University ofMakati auditorium finishing contract;

• P30.45-million Makati swimming pool; • P2.I-billion Ospital ng Makati facility;

• P200-million Abra provincial hospital;

• PSOO-million Iloilo capitol building;

• P4S0-million Iloilo City Hall; • Bacolod govemment center in 2010;

• P262-miIlion Bangko Sentral ng Pilipinas in Dumaguete;

• Quezon City General Hospital;

• Quezon City civic center; • Philippine National Oil Co. Building S and Fort Bonifacio Building;

• Valenzuela legislative building;

• Sandiganbayan building; and • the House of Representatives south wing annex;

;, ~~, 1"-

WHEREAS, Rep. Ridon claimed that the repetitive selection of Hilmarc's Construction Corp. for various anomalous govemment projects point to its probable close relations with high­ranking officials both on the national and local level, and that such relations may have translated to favorable conditions for both Hilmarc's Construction Corp. and its officials as it is possible that Hilmarc' s Construction Corp. engages in institutionalized overpricing in govemment projects in exchange for the rigging of bidding processes by govemment officials;

WHEREAS, Congress should investigate these alleged anomalies involving Hilmarc's Construction Corp. that violate laws such as Republic Act No. 9184, 01' the Govemment Procurement Reform Act, review procurement practices in local govemments, and hold erring public officials and private individuals accOlmtable for the abuse and misuse of public funds;

WHEREFORE, BE IT HEREBY RESOLVED to direct the proper Senate committee to conduct an inquiry, in aid of legislation, on the alleged anomalous transactions involving multi­billion pesos in public funds between Hilmarc's Construction Corp. and certain local govemment units; to specifically inquire as to how Hilmarc's Construction Corp. seems to comer super­lucrative public works contracts; how it may have evolved a rigged-bidding procedure; and how it may have institutionalized an illegal system of kickbacks, amounting to plunder committed by concerned public officials.

Adopted,

~ ~ .D.~ MIRIAM DEFW~S~TI¥i'6

,,;% 2