(UPDATED), 1st update. The Philippine House of Representatives today started an investigation into the alleged anomalies in the 2018 and 2019 national budgets prepared by the Department of Budget and Management (DBM) under its current secretary, Benjamin Diokno.
At today’s hearing House Majority Leader Rolando Andaya announced that he is seeking the help of the Anti-Money Laundering Council (AMLC) to access the bank accounts of two construction firms, C.T. Leoncio Construction and Aremar Construction, both of which he alleged were involved in dubious government construction projects, reported Rappler.
Andaya alleged that C.T. Leoncio served as the dummy corporation of Aremar, reported Rappler. The lawmaker alleged that Aremar used the former as a front to land projects in Sorsogon in the Bicol region.
For example, Andaya alleged that the Department of Public Works and Highways’ (DPWH) bidding for flood control projects in the Bicol Region was just for show. Once a bidder wins a project, they lend their license to Aremar, which then works on the project, CNN Philippines reported.
Aremar is owned by Maria Minez Hamor, who is related to Diokno by marriage, reported the Manila Standard. But more on that later.
As proof, Andaya today presented a copy of a deposit slip from an anonymous contractor which allegedly won the bid for a PHP11.416-million (more than US$216.899 billion) public works project.
Andaya was quoted by Rappler saying today: “After release of funds from DBM, the winning contractor deposited the money to the real contractor of the project: Aremar Construction. Look closely at the deposit slip: a total of PHP11,416,374 found its way to the bank account of Aremar on October 4, 2018.”
The winning bidder would only receive a commission from Aremar, stated Andaya.
Andaya earlier said that his team discovered that C.T. Leoncio won contracts in Sorsogon, Catanduanes, Samar, the National Capital Region, Camarines Sur, Pangasinan, Tarlac, Batangas, Bulacan and Davao City starting 2017, reported GMA News.
He said that at least PHP550 million-worth (more than US$10.435 million) of projects in Sorsogon were linked to the Hamors who are also local politicians in Bicol, reported CNN Philippines.
Now here’s where things get even more complicated.
Andaya said that Maria, the owner of Aremar, is the daughter of Casiguran, Sorsogon Mayor Edwin Hamor.
According to the Philippine Star, Mayor Hamor’s wife, Sorsogon Vice Governor Esther Hamor, is said to be the mother of Romeo Sicat Jr.
Romeo is said to be Esther’s child from her first marriage and is married to Diokno’s daughter, Charlotte Justine Sicat.
Get all that?
Previously, Andaya alleged that Sorsogon also received PHP10 billion-worth (more than US$189.630 million) of infrastructure funds and a PHP6 billion (more than US$113.815 million) funding from the DPWH under the 2019 budget, reported Rappler.
Diokno denies having knowledge of the contracts and insists that such topics were never discussed during family gatherings.
He also said the DBM does not deal with contractors.
He was quoted by GMA News for saying in December: “In the matters of that state I have no relatives, I have no friends… I’m very objective, unbiased. I don’t talk business with anybody except the line departments. I cannot micromanage. We do not talk to contractors. We talk to department heads. That’s our clientele, the departments.”
The conflict between Congress and Diokno got so heated that lawmakers passed a resolution in December urging President Rodrigo Duterte to fire Diokno, but the president hasn’t done so.
In today’s hearing, Andaya also accused the DBM of allegedly inserting more than PHP14 billion (US$266.40 million) in funds for the DPWH’s flood control projects which were not officially part of the National Expenditure Program, reported GMA News.
He said: “In the PHP119 billion (US$2.262 billion) budget of the DPWH for their flood control projects, more than PHP14.5 billion of this is not part of the regular programming of DPWH.”
Andaya said that the amount that the DBM allegedly inserted into the budget was not included in the document shown to President Rodrigo Duterte and other members of the cabinet.
Congress subpoenaed the owner of CT Leoncio, Consolacion Leoncio and officials of the DPWH to today’s hearing. Diokno was not summoned by Congress.
