The Kilusang Magbubukid ng Pilipinas (KMP) today said the public has yet to see whether President Marcos Jr.’s newly formed Independent Commission for Infrastructure (ICI) can deliver on its promise of accountability.
“Erring contractors must be blacklisted for life, public officials who facilitated and got kickbacks from multibillion-peso anomalous deals must be held accountable, and procurement loopholes that allow contract splitting must be shut down. Lahat ng sangkot dapat managot,” stressed KMP chairperson Danilo Ramos.
KMP challenged the ICI to investigate the country’s 5th top contractor flagged in the President’s Sumbong sa Pangulo list – EGB Construction Corporation, owned by Engr. Erni G. Baggao, and to probe infrastructure projects in Region II. The website lists that EGB secured 97 flood control projects not only in Isabela but also in Aurora, Kalinga, Ilocos Sur, Ilocos Norte, Bataan, Oriental Mindoro, and Zambales amounting to P7.98 billion.
Cagayan ranks 18th nationwide among provinces with the most flood control projects, with 167 on record, while Isabela is among the top recipients of billion-peso allocations for flood control management. “Kasama ang Cagayan at Isabela sa may pinakamalaking pondo sa flood control, pero bakit tuwing may bagyo at baha, wasak pa rin ang kabuhayan ng mga magsasaka? Malinaw ang sagot: hindi napupunta ang pondo sa proyekto kundi sa bulsa ng mga tiwaling kontraktor at politiko,” Ramos said.
He added: “We cannot allow another catastrophe like the collapse of the P1.8-billion Cabagan–Sta. Maria Bridge in Isabela. That 990-meter bridge that is considered a vital link between Region II and the Cordillera Autonomous Region collapsed in February 2025. It was supposed to boost economic activity in Northern Luzon and ease the transport of corn, rice, and vegetables. Instead, its collapse represents a corrupt system that rewards political patrons and rogue contractors at the expense of the people.”
Despite its poor record in the Constructors’ Performance Evaluation System (CPES), EGB reportedly won almost P8 billion worth of flood control projects from 2022 to 2025 under Marcos Jr.’s administration. In 2019, the LGU of Ilocos Norte sought EGB’s blacklisting over substandard flood control projects. In 2020, EGB’s road and drainage upgrade in Baguio City was rated poor. EGB also undertook flood control works along the Magat River in Nueva Vizcaya. Baggao was also a board member of the Philippine Contractors Accreditation Board before his resignation recently.
“Billions of pesos are being wasted on overpriced and defective projects while farmers continue to suffer from flooding and the absence of genuine rural support,” Ramos said.
An investigative report into DPWH flood control projects in Cagayan from 2022 to 2025 revealed recurring irregularities including “contract splitting” to evade the P50-million audit threshold, the repeated awarding of projects to a circle of favored contractors, some with political ties, and the use of suspiciously rounded cost figures. (Read here: https://kodao.org/cagayan-flood-control-projects-show…/)
“Funds intended for disaster resilience and agricultural development are being siphoned off through rigged contracts,” Ramos warned. “Instead of protecting communities from floods, these projects are enriching a cartel of contractors. Farmers and the people of Region II deserve genuine rural development, not more monuments to corruption,” KMP concluded. ###
