Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House BillNo._ 8361

Introduced by Rep. Erico B. Aumentado

EXPLANATORY NOTE

This bill seeks to support Pres. Benigno Aquino's mantra against graft and
corruption in the Philippines.

In fact, his campaign slogan was “Kung walang corrupt, Walang mahirap,”
(Without corruption, there will be no poor). He buttressed also his strong advocacy with
a bold statement against corruption during his inaugural address on June 30, 2010.

The President further strengthened his resolve to fight graft and corruption during
his first State of the Nation Address (SONA) on July 26, 2010. The message is thus
crystal clear: corruption must be taboo in this country under his watch

In this bill, Pres. Aquino’s sincerity on his drive against graft will be provided with
more teeth in the Department of Public Works and Highways (DPWH) and other
government institutions undertaking horizontal infrastructures such as roads, bridges
and airports, where reforms are being proposed herein.

For the Department of Public Works and Highways had, in the past, been
feported to be graft-ridden with sub-standard infrastructure projects. Hence, the
proposed reforms therein.

Accordingly, the alleged corruption in the Department started from the planning
and programming, through bidding and awarding of contracts, to the implementation
and payment of the project concemed.

This measure proposes certain reforms in DPWH to address the root of
corruption therein and imposes stiff penalties with special disqualification to hold any
Public office as deterrents for both the government personnel and private parties to
Obey in order to avoid any infraction of the legislation, if approved into law.

Among the reforms being proposed herein are: (a) the strict adherence to the
DPWH Standard Specifications of 2004 and onwards, especially on base preparation
for foundations, layer by layer soil compaction and drilling test; (b)punishment of those
involved in collusion in bidding and award to the winning contractor; (c) pre-qualification
of blacklisted contractors and those with 15% negative slippage or who had abandoned
any previous project; (d) the mandatory use of computerized batching plants for
portland cement concrete pavement (PCCP) and asphalt roadworks to ensure the
quality standard of the project; (e) timelines in payment of billings; (f) prohibition in either
Consolidation of projects or splitting of projects; (g) the mandatory use of cement paver
and asphalt paver for Official Development Assistance (ODA)-funded or locally funded
Project worth not less than P200 million to ensure quality standard of PCCP and asphalt
Toadwork as addendum to the requirement under item (d) of Section 3 of the bill; and,
(h) banning DPWH personnel to enter and gamble in any gambling den or casino even
during off hours while in government service, and public empowerment to monitor the
project for transparency and accountability.


The empowerment of our people to monitor and report irregularities is being
provided in this bill. The provision requires the publication in a billboard, for
transparency and accountability the following specifications: Name of Project, Cost of
the Project, Length of Project, Starting Date, Completion Date, Name of Contractor,
and, Implementing Agency, whether central office, regional office or district office, as the
case may be. The billboard shall be placed in conspicuous places from the project
starting point to its completion point.

The DPWH shall endeavor to establish a point system in any bidding to include
quality of equipments for more efficient and effective implementation of the project,
environmental compliant equipments and camps. Whenever there is a requirement for a
cement paver or an asphalt paver in PCCP and asphalt project, respectively, the ISO
with an international auditor such as TUV of Germany may be required by DPWH.

Wherefore, the approval of this bill is most respectfully and eamestly
recommended.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 3361

Introduced by Rep. Erico 8. Aumentado

AN ACT
PROVIDING FOR REFORMS IN THE DEPARTMENT OF PUBLIC WORKS AND
HIGHWAYS AND OTHER GOVERNMENT INSTITUTIONS IMPLEMENTING SIMILAR
PUBLIC INFRASTRUCTURES, PENALIZING VIOLATIONS THEREOF, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Republic of
the Philippines in Congress Assembled:

SECTION 1.TITLE. ~ This act shall be known as The Department of Public
Works and Highways Reform Act of 2010.

SECTION 2. DECLARATION OF POLICY. — It is the policy of the State to
eradicate graft and corruption in the government and the private sector dealing with it in
order to avoid the wastage of public funds which could have gone to provide for poverty
alleviation to the poor and needy in the country.

Towards this end, the state hereby adopts the policy of cleansing the DPWH — a
vital and strategic department for the construction of roads, bridges, flood controls,
buildings and other infrastructures and other government institutions implementing
similar public infrastructures — from graft and corruption; and insure faithful
implementation of government projects under their respective jurisdiction with efficiency,
effectiveness and cost-saving processes

SECTION 3. ACTS PUNISHABLE. — In addition to acts or omissions of public
Personnel already penalized by any existing law, the following shall constitute acts
committed by any public personnel and private person in conspiracy with such
government personnel are hereby declared to be unlawful

. Deliberate planning and programming of any infrastructure project to favor a
certain contractor, consortium or joint venture; or grossly erroneous planning
and programming where the project cannot be completed because the
infrastructure is constructed in a place not suited for the purpose and just to
accommodate a request or instruction by any party other than the planning
Officials’ superior which results to damage and prejudice to the government,

b. Collusion in a bidding and awarding of contract, including, but not limited to
an arrangement on who wins among the participating contractors in a public
competitive bidding; or pre-qualifying any blacklisted contractor and those
with negative slippage of not less than 15% or who had abandoned any
previous project.


For this purpose, the bids and awards committee shall conduct pre-
qualification process to eliminate any notoriously undesirable contractor
previously blacklisted, who had abandoned or incurred a 15% negative
slippage in any previous project to bid under its jurisdiction

The DPWH shall endeavor to establish a point system in any bidding to
include quality of equipments for more efficient and effective implementation
of the project, environmental compliant equipments and camps. Whenever
there is a requirement for a cement paver or an asphalt paver in PCCP and
asphalt project, respectively, the ISO with an international auditor such as
TUV of Germany may be required by DPWH.

¢. The public works personnel shall see to it that the DPWH Standards
Specifications of 2004 and onwards shall be strictly followed especially on
base preparation for foundation, layer by layer soil compaction and drilling
test.

d, The mandatory use of computerized batching plants for portland cement
concrete pavement (PCCP) and asphalt roadworks.

e. Project billings shall be paid within 30 days from submittal thereof, excluding
delays in COA pre-audit and other extraordinary circumstances beyond the
control of the personnel concerned.

f. The consolidation or splitting of projects in the implementation thereof under
the jurisdiction of the regional office or district office is hereby prohibited. For
this purpose, the maximum limit of contract under the Engineering District
shall be in the amount of P75,000,000.00, and that of the Regional Office, in
the amount of P150,000,000.00, provided, however, that the latter shall
assign from its engineering staff a project engineer to supervise the
implementation of the regional project. All public works contracts in excess of
P150,000,000.00 shall be exclusively under the Department of Public Works
and Highways (DPWH) Central Office.

g. The mandatory use of cement paver and asphalt paver for Official
Development Assistance (ODA)-funded PCCP and asphalt roadwork,
respectively, is hereby ordained to ensure further quality standard of work and
non-compliance herewith is an offense under this Act. The same equipment
shall be required for P200,000,000.00 worth of locally funded similar projects.

h. DPWH personnel are hereby prohibited to enter into and gamble in any

gambling den especially casinos even during off hours while in government
service; and

i. Deliberate and unjustified change orders, extra work or suspension of work to
favor the contractor and prejudicial to the interest of the government is hereby
prohibited except for extraordinary reasons such as natural calamities,
including but not limited to, floods, landslides, typhoons, and movements of
land by reason of earthquakes.

The foregoing unlawful acts shall apply to the construction of airports and similar
horizontal public infrastructures under other departments or agencies of the
government, including local government units.

Section 4. PUBLIC MONITORING. - The implementing agency shall install billboards
in the starting point of the project and in the completion point of the project for
transparency and accountability with the following specifications stated therein: Name of


Project, Cost of the Project, Length of Project, Starting Date, Completion Date, Name of
Contractor, and, Implementing Agency.

Section 5. PENALTIES FOR VIOLATION.— Any public officer or private person
committing any of the unlawful acts enumerated under Section 4 hereof, shall be
imposed the penalty of six (6) years and one (1) day to twelve (12) years of prision
mayor, with an accessory penalty of disqualification to hold public office or be elected
thereto, and in the case of a public officer, automatic suspension after arraignment until
such time as the court lift the said suspension.

Section 6, SEPARABILITY CLAUSE. — If any provision of this Act or the application of
such provision to any person or circumstance is declared void by the proper court, the
remainder of this Act or application thereof to other persons or circumstances shall not
be affected by such declaration of nullity.

Section 7. EFFECTIVITY. ~ This Act shall take effect upon its approval and publication
in the Official Gazette or newspaper of nationwide general publication

APPROVED.