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Senator Panfilo Lacson flags ‘potential conflict of interest’ involving two board members of the Philippine Contractors Accreditation Board. One of them is Erni Baggao, owner and president of EGB Construction Corporation.
MANILA, Philippines – One of the three board members of the Philippine Contractors Accreditation Board or PCAB, a government body that can issue or revoke licenses of contractors, is the owner of a company that bagged the fifth biggest amount of flood control projects in the country.
Engineer Erni Baggao, who was appointed to the PCAB in 2023, is the owner and president of EGB Construction Corporation. It ranked fifth in President Ferdinand Marcos Jr.’s list of biggest contractors from 2022 to 2025, bagging a total of P7.7 billion worth of flood control projects, including their joint ventures.
Senator Panfilo Lacson on Friday night, August 29, flagged that “there is potential conflict of interest involving your two board directors in violation of RA 6713,” referring to Baggao and engineer Arthur Escalante. Lacson flagged that their companies both won government contracts.
“Under Section 7 of RA 6713, public officials during their inumbency shall not own, control, or manage any private enterprise regulated or licensed by their office; nor engage in the private practice of their profession,” Lacson said.
Rappler could not immediately reach Baggao when we texted and called his number on Saturday, August 30. Escalante told Rappler over a phone call on Saturday that he would prefer to explain at the Senate hearing on Monday, which he would attend.
By law or under Republic Act No. 4566, the members of the board need to have been a contractor for 10 years or more. But among the three current board members. including Pericles Dakay, only EGB Construction bagged flood control projects from the Department of Public Works and Highways during Marcos’ term.
EGB is based in Ilagan City, Isabela, and the company is worth P5.3 billion at the end of 2024, according to its latest financial statement. The company earned a net income of P202 million in 2024, compared to a net income of P64 million in 2023, which is a 216% increase.
Baggao is also the acting general manager of Isabela Electric Cooperative II or ISELCOII, which provides electricity in the northern half of Isabela. EGB’s road and drainage upgrade project in Baguio City in 2020 had once been rated poor by the Constructors’ Performance Evaluation System.
Rappler earlier reported that EGB Construction is also a joint venture partner of local contractor Dragon Twelve, which is owned by the brother of Ilagan City, Isabela Mayor Jay Diaz.
EGB and Dragon Twelve once donated motorcycles to the Christmas party of the provincial government of Isabela. The provincial government has awarded contracts to both EGB and Dragon Twelve, according to documents uploaded on the website of the province of Isabela.
Lacson said in his statement that PCAB must investigate information alleging that the body is involved in an “accreditation for sale” modus.
“PCAB licenses are not for sale. The Board has not authorized any individual, group, or third-party consultant to act on its behalf or to guarantee contractor accreditation in exchange for money,” PCAB said in a statement on Thursday, August 28.
PCAB said it was aware that some unscrupulous people may be misrepresenting themselves.
“PCAB has been proactive in addressing this issue — conducting investigations, reporting fake social media accounts, and coordinating with the proper authorities to protect the public and the industry,” it said. – Rappler.com
