MANILA — Philippine Amusement and Gaming Corp. Chairman and CEO Alejandro Tengco rejected claims that he has direct or indirect influence over the awarding of government public works contracts to his family's construction firm, Nationstar Development Corp.
In a statement on Thursday, Tengco said his role at PAGCOR is not involved in public works bidding and his family's firm did not benefit from his government position.
“There is no conflict of interest because under the Anti-Graft and Corrupt Practices Act (RA 3019) and the Code of Conduct of Government Employees (RA 6713), conflict of interest occurs when a public official has direct or indirect financial or pecuniary interest in any business contract or transaction in which they must intervene in their official capacity,” he said.
Tengco, a businessman, founded Nationstar in 2015.
The PAGCOR chief said he "fully divested all [his] interests" in Nationstar when he assumed his current post in 2022, and started transferring his shares to his children in 2019.
President Ferdinand Marcos Jr. appointed Tengco as the PAGCOR chair in August 2022.
Rappler reported that Nationstar was awarded over 14 government contracts worth P7.1 billion since 2022.
Tengco emphasized in his statement that the contracts won by Nationstar were not because of his closeness to Marcos' family.
“Singling out my close ties with the Marcos family would thus seem very selective, and distorts the efforts of Nationstar to engage in legitimate business activities regardless of partisan political considerations,” he said.
The allegations arose after reports and photos suggested close ties between Tengco and the First Couple, with Rappler noting that Tengco and First Lady Liza Marcos attended Ateneo de Manila University around the same time.
Tengco said Nationstar built its industry reputation through projects completed during the presidencies of Benigno Aquino III and of Rodrigo Duterte.
He said that reputation explains why the firm has continued to receive contracts in recent years.
These projects included "retrofit and fit-out works based on specifications and with high quality standard at the Malacañang premier guest house and the Presidential Management Staff Building."
The PAGCOR chief said Nationstar's deals with the Department of Public Works and Highways (DPWH) are not related to any flood-control project “or even the so-called ghost projects, another testament to the company’s track record and professional integrity.”
In its report, Rappler mentioned that the biggest contract awarded to Nationstar is a bypass road project in Davao City, with a value of P4.6 billion as part of a join venture with two more firms in 2023.
“We joined a consortium which included the China Road and Bridges Corporation because they have the capability to undertake such big project, and the consortium won the bid, not Nationstar,” he said.
Tengco said he is leaving it to Congress to determine "whether there are existing gaps in conflict-of-interest laws" and what actions he must do regarding the matter.
