Business · Philippines Bureau
DPWH holds back ₱14M retention funds from Sunwest contractor
The Department of Public Works and Highways is withholding ₱14 million in retention money from Sunwest over quality issues with a ₱289 million flood control project in Oriental Mindoro. The project's deficiencies have sparked a malversation case against multiple individuals.
LSN Philippines ·
MANILA — The Department of Public Works and Highways (DPWH) continues to retain ₱14 million in funds owed to contractor Sunwest, citing defects in a ₱289 million flood control initiative in Oriental Mindoro, according to testimony from a witness familiar with the project.
The retention of funds stems from allegations that the contractor delivered substandard work on the infrastructure project. The quality issues have drawn scrutiny from authorities, with the matter now connected to a malversation case that has implicated former Ako Bicol Representative Zaldy Co and nine others.
Cecilia Vicquerra, chief of the DPWH Finance Division, has been monitoring the financial aspects of the dispute. The withholding of retention funds is a standard contractual mechanism used when construction projects fail to meet specified standards before final payment is released.
The case underscores ongoing concerns about project quality and accountability in major public works contracts in the Philippines. Authorities continue to investigate the circumstances surrounding the flood control project and the allegations of improper conduct.