Overview of the Allegations
A coalition advocating for freedom of information has raised questions about a possible conflict of interest involving Commission on Audit (COA) Commissioner Mario Lipana. The Right to Know, Right Now (R2KRN) Coalition contends that Lipana’s connections intersect with the awarding of a contract for the New COA Building, suggesting potential influence over a government procurement process.
According to a document titled “The Watcher Entangled, Conflict of Interest at COA’s Doorstep,” DPWH awarded a contract for the New COA Building on November 26, 2021, to a joint venture between R.U. Aquino Construction & Development Corp. and Le Bron Construction. The contract value was reported at over P9.59 million. The joint venture’s authorized managing officer, Moises Nicdao Jr., is also linked to Le Bron and to Iron Ore, Gold, and Vanadium Resources (Phils.) Inc., where Lipana’s wife, Marilou Lauro Lipana, is identified as president in some records.
What R2KRN Claims
R2KRN asserts that the DPWH project awarding to Le Bron occurred during a period when Lipana’s influence could affect outcomes. The coalition says COA should clarify how the contract was awarded and whether Lipana’s family connections may have created a conflict of interest, particularly in light of Lipana’s status at COA.
Marilou Lipana’s professional profile has generated further discussion. R2KRN notes that during COA’s budget hearing in September, Marilou Lipana was identified as president and general manager of Olympus, a construction firm that has secured substantial government contracts, including flood control works for Angat River. The coalition highlights a pattern they interpret as compromising institutional independence.
Marilou Lipana’s Corporate Involvements
R2KRN points to Marilou Lipana’s use of the maiden name Marilou Laurio in some business dealings with the DPWH. They cite Gembar Enterprises (also known as Gembar Incorporated Enterprises Inc.), listed as a contracted supplier to the Bureau of Fire Protection for emergency vehicles. The group says Gembar’s procurement status and links to other entities should be examined to determine whether broader connections could influence public procurement decisions.
Timeline and Context
The document notes that Lipana served as a senior COA official, specifically as Supervising Auditor for the City of Manila, before his appointment as COA Commissioner in January 2022. R2KRN argues that even if Lipana was not a commissioner at the time of the 2021 DPWH awarding, his proximity to COA’s leadership raises concerns about the integrity of decisions within the agency that oversee the use of public funds.
R2KRN’s Requested Actions
R2KRN called for several steps to address the concerns:
– Independent investigations by COA, the Independent Commission for Infrastructure (ICI), and the Office of the Ombudsman into the allegations,
– An internal fraud and performance audit by DPWH of infrastructure projects awarded to Olympus Mining and Builders Group and its partners,
– Access to relevant documents by the Securities and Exchange Commission (SEC) so researchers and citizens can review general information sheets and annual audited financial statements for listed personalities over the past three years.
What This Means for COA and Public Confidence
Probing potential conflicts of interest in high-profile government projects is a routine part of safeguarding public accountability. The COA, ICI, and DPWH face the task of thoroughly reviewing bid processes, award criteria, and corporate relationships to maintain transparency. The broader public conversation centers on whether a new COA building, symbolizing financial oversight, is insulated from internal entanglements that could erode trust in the country’s audit institution.
Next Steps
As the various government bodies assess these claims, observers will watch for formal probes, disclosure of contracting documents, and updates on related infrastructure awards. The situation underscores ongoing debates about ethics, governance, and the safeguards needed to preserve the independence of watchdog institutions like COA.
