SENATE, Pasay City — Further pointing to collusion between private contractor and public officials in government projects, Senator Panfilo 'Ping' Lacson has flagged 'potential conflict of interest' involving two board members of the Philippine Contractors Accreditation Board (PCAB). Lacson refered to the accreditation board member as engineer Erni Baggao who reportedly owns and is the president of EGB Construction Corporation which bagged the fifth biggest amount of flood control projects in the country.

Engr. Baggao was appointed to the PCAB in 2023 but despite his appointment as a government official, he apparently did not divest ownership of the said construction company that is ranked fifth in President Ferdinand 'Bongbong' Marcos Jr. (PBBM)’s list of biggest contractors from 2022 to 2025.

Moreover, 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.

EGB Corporation is based in Ilagan City, Isabela, and the company is worth ₱5.3 billion at the end of 2024, according to its latest financial statement. The company earned a net income of ₱202 million in 2024, compared to a net income of ₱64 million in 2023, which is a 216 percent increase.

It was revealed that EGB cornered a total of ₱7.7 billion worth of flood control projects, including a number of joint ventures.

Likewise, Baggao's firm 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.

The other PCAB official was named as engineer Arthur Escalante. Lacson.

“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 pointed out.

As of press time, Baggao could not be reached for a comment but Escalante has indicated that he would prefer to explain his side at today's Senate hearing.

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.

After his revelations, Sen. Lacson asserted that the PCAB must investigate information alleging that the body is involved in an “accreditation for sale” modus.

However, PCAB has reacted that it has not authorized any individual, group or third-party consultant to act on its behalf or to guarantee contractor accreditation in exchange for money, adding that it was aware that some unscrupulous people may be misrepresenting themselves.

“PCAB has been proactive in addressing this issue—qconducting investigations, reporting fake social media accounts, and coordinating with the proper authorities to protect the public and the industry,” the Board stressed.