Allegations surface surrounding the New COA Building contract
A rights group is pulling the threads of an alleged conflict of interest involving a high-ranking official at the Commission on Audit (COA) as it scrutinizes the construction of the agency’s new headquarters. The Right to Know, Right Now (R2KRN) Coalition published findings that tie COA Commissioner Mario Lipana to the contractor network behind the building’s construction, prompting calls for a formal review of potential conflicts and due process protections.
What the coalition alleges
R2KRN’s document, titled “The Watcher Entangled, Conflict of Interest at COA’s Doorstep,” claims that a DPWH contract for the New COA Building—worth over 9.59 million Philippine pesos—was awarded to a joint venture of R.U. Aquino Construction & Development Corp. and Le Bron Construction on November 26, 2021. The contract was signed by Moises Nicdao Jr., the authorized managing officer of Le Bron, who is also listed as an incorporator of Iron Ore, Gold, and Vanadium Resources (Phils.) Inc.
The coalition emphasizes a possible overlap of interests because Lipana’s wife, Marilou Lauro Lipana, is identified as president of Iron Ore. R2KRN argues that the awarding of the DPWH contract to Le Bron, and its connections to Lipana’s family, could present a conflict of interest or at least the appearance of one during a critical period for the COA’s independence.
“These are questions that COA should answer and clarify, especially since the contract for the new COA building has already been overdrawn,” said Malou Mangahas, co-covenor of R2KRN, at a press briefing. The group also pointed to other potential connections including Olympus Mining and Builders, a firm linked through Marilou Lipana’s alternate surname, Laurio, in construction dealings with DPWH.
Context: Lipana’s career timeline and potential overlaps
R2KRN notes that Mario Lipana held a position in COA in 2021 before being appointed commissioner in January 2022. Although the group acknowledges he was not yet a COA commissioner, it argues that he was a senior COA official, with a background as Supervising Auditor for the City of Manila. R2KRN contends that the timing of project awards to Olympus Mining and Builders Group—picking up in 2023 and continuing through 2025—coincides with Lipana’s ascent to the COA’s top role, raising concerns about institutional independence during a period of leadership transition.
In addition, R2KRN highlights a separate thread: Marilou Lipana, using the maiden name Laurio in some business dealings, is listed as owner and president of Gembar Enterprises, which has secured substantial government contracts, including a BFP project to procure firetrucks. The group notes that Gembar is also listed in procurement systems under an alternative name, with some registrations showing suspended status while others reflect platinum compliance status.
Officials respond and the path forward
R2KRN is calling for action from multiple authorities. The coalition has urged the COA, the Independent Commission for Infrastructure (ICI), and the Office of the Ombudsman to investigate the two documents and the offices involved. It also asks the DPWH to conduct an internal fraud and performance audit of all infrastructure contracts awarded to Olympus, Le Bron, and their joint ventures. Finally, the group requests the Securities and Exchange Commission to provide access to specific corporate documents for public scrutiny, arguing that transparency is essential to safeguard institutional integrity.
What happens next?
At this stage, the allegations remain a matter of public debate and require formal inquiries to determine if there were improprieties or merely perceptions of conflicts. The COA and other oversight bodies may release statements or initiate reviews that clarify whether any conflicts influenced procurement decisions or the independence of the audit institution.
Why this matters for governance and public trust
Independent institutions rely on clear separation between leadership and contracting activities to maintain credibility with citizens. When construction projects for government agencies intersect with the families and business networks of senior officials, even perceived ties can erode trust and raise doubts about accountability. Probing these concerns—through audits, disclosures, and transparent governance—helps reinforce or restore public confidence in the mechanisms that oversee public funds.
