PACC Confirms Two Abandoned DPWH Projects in Dinagat Island; Another Construction Firm Steps In to Complete Works
Basilisa, Dinagat Islands — October 25, 2025. The Philippine Anti-Corruption Czar (PACC), under the leadership of Chairman Dr. Louie F. Ceniza, PhD, conducted an ocular inspection in Basilisa, Dinagat Island to verify reports of two abandoned Department of Public Works and Highways (DPWH) projects along the Dinagat–Loreto Road.
Chairman Ceniza was joined by President VADM Andres C. Visaya Jr. (PCRGA), Board of Trustee Pastor Allan Japor, and PACC volunteers 2LT Alfred Cultura (Ret.) and Pastor Rojie Olave. The inspection confirmed that both projects were left incomplete by their respective contractors, who cited “non-availability of construction materials” as the reason for abandonment.
During the inspection, the PACC team observed JMT Construction actively undertaking site works to resume and complete the unfinished projects upon the request of the DPWH Dinagat Island District Engineering Office (DEO).
FIRST ABANDONED PROJECT
Contract ID: 23NE0031
Project Name: Rehabilitation/Reconstruction of Roads with Slips, Slope Collapse, and Landslide along Dinagat–Loreto Road, K0027+990–K0028+316, Basilisa, Dinagat Islands
Location: Basilisa, Dinagat Islands
Contract Cost: ₱80,090,440.00
Original Contractor: J.H.R. Enterprises
Date Started: March 21, 2023
Target Completion: February 28, 2024
Based on findings from the inspection and information from the DPWH Project Engineer, only 55% of the project had been completed before J.H.R. Enterprises abandoned the site, citing shortages in construction materials.
To avoid further delay, the DPWH Dinagat Islands DEO sought the intervention of JMT Construction, an active local contractor in the area, to take over and complete the project to 100% physical accomplishment.
Chairman Dr. Louie Ceniza underscored that this situation reflects a serious lapse in contractor accountability, stating:
“Non-availability of materials is not a valid justification to abandon a project—especially when public funds have been released and the contract remains within its validity period. Contractors have a moral and legal obligation to deliver.”
SECOND ABANDONED PROJECT
Contract ID: 23NE0026
Project Name: Rehabilitation/Reconstruction of Roads with Slips, Slope Collapse, and Landslide along Dinagat–Loreto Road, K0023+400–K0023+500, K0023+806–K0024+000, K0024+380–K0024+412, Basilisa, Dinagat Islands
Location: Basilisa, Dinagat Islands
Contract Cost: ₱36,485,200.00
Original Contractor: Legacy Construction Corporation
Date Started: March 6, 2023
Target Completion: November 15, 2023
Field verification confirmed that Legacy Construction Corporation completed only 88% of the project before ceasing operations, citing the same issue of lack of construction materials.
The DPWH Dinagat Islands DEO again requested JMT Construction to continue and finish the remaining works. However, due to the delay and contract expiration, the project is now under Liquidated Damages (LD) as prescribed by law for late or non-compliant projects.
Chairman Dr. Louie F. Ceniza, PhD expressed deep concern over the recurrent pattern of abandonment by contractors across various regions, particularly those citing material shortages as a pretext for project delays.
“These are clear examples of inefficiency and neglect of contractual obligations,” Chairman Ceniza said. “The government has already released funds, yet the people are left with half-finished projects. PACC will coordinate with the DPWH Central Office and the Commission on Audit (COA) to ensure accountability and to prevent further misuse of public resources.”
President Andres C. Visaya Jr. commended the DPWH Dinagat Islands District Engineering Office for taking proactive steps by engaging JMT Construction to rescue the projects but stressed that administrative and financial penalties must still be imposed on the original contractors.
“Public service must never be paralyzed by contractor negligence,” President Visaya emphasized. “We commend those who step up to finish what others abandoned, but accountability must still follow the chain of responsibility.”
The PACC inspection team announced that its official findings and recommendations will be formally submitted to the DPWH Central Office, and the Office of the Ombudsman for administrative review and possible sanctions against the contractors involved.
Chairman Ceniza reiterated that the Philippine Anti-Corruption Czar (PACC) is non-political and purely civic in nature, composed of volunteer professionals — engineers, lawyers, accountants, and procurement specialists — committed to ensuring transparency, accountability, and good governance in public infrastructure projects.
“Our mission is to protect the people’s money and to make sure that every project funded by taxpayers truly benefits the community,” Chairman Ceniza concluded.