Press Release
September 9, 2014

PROBE HILMARC'S INVOLVEMENT IN DAP PROJECTS -- MIRIAM

Sen. Miriam Defensor Santiago wants to investigate the alleged anomalous involvement of controversial construction firm Hilmarc's Construction Corp. in building the Iloilo Convention Center, which was reportedly funded through pork barrel and Disbursement Acceleration Program (DAP) funds.

Hilmarc's is the contractor of the allegedly overpriced Makati parking building presently under investigation by the Senate blue ribbon committee.

Santiago said that the Senate needs to specifically inquire as to how Hilmarc's Construction Corp. seems to corner super-lucrative public works contracts.

"We also need to know how this evolved into a rigged-bidding procedure, institutionalizing illegal system of kickbacks tantamount to plunder," she said.

Reports said that, in the past decade, Hilmarc's was able to clinch no less than 20 government infrastructure projects; in some cities, including Iloilo and Makati, Hilmarc's was able to clinch two or more government infrastructure projects in consecutive years.

"I don't know which is worse: Hilmarc's getting the most number of lucrative government contracts, or the possibility of other construction firms getting similar and multiple preferential treatments from other local government units," Santiago said.

The construction of the ICC was 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 P100 million from the DAP in 2013.

According to media reports, the ICC is overpriced by P531 million compared to, or four times more expensive than, the SMX Convention Center. The ICC is said to have been built at a cost of P109,375 per square meter based on a floor area of 6,400 sqm, compared to the SMX Convention Center at P26,400 per sqm based on a floor area of 46,647 sqm.

Santiago reiterated her call for Department of Budget and Management Sec. Butch Abad to accept her invitation to attend a "question hour" in the Senate on the DAP.

"Not only should we know whether the DAP funds were diverted to fake NGOs and bogus or grossly overpriced projects, but also whether these projects were rigged to favor certain contractors," Santiago said.

"The DAP itself is illegal, as decided by the Supreme Court. Fake NGOs and the contractors are involved in illegal activities using DAP funds. Sec. Abad should clear up this mess in the Senate 'question hour,'" Santiago said.

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