MANILA – Senate President Pro Tempore Panfilo “Ping” M. Lacson warned the Department of Public Works and Highways (DPWH) to prepare for contractors who may refuse to participate in project bidding due to lower construction material costs under reforms introduced in this year’s budget.

Lacson said this could be a challenge, particularly for contractors accustomed to large profits through early advances to some legislators and officials of the DPWH and other agencies after the National Expenditure Program (NEP) was finalized.

“The DPWH should anticipate how to deal with contractors ‘unwilling’ to participate in the bidding of projects due to reduced cost of construction materials. Their early advances to legislators after the NEP was finalized will not help obviate a looming infrastructure crisis,” Lacson said in a post on his X account.

Lacson said his findings stemmed from hearings of the Senate Blue Ribbon Committee, which he presided over, as well as his review of current and past national budgets. He said these efforts uncovered an elaborate system of kickbacks involving flood control and other infrastructure projects.

According to Lacson, the setup benefited some contractors, lawmakers, and government officials, including those from the DPWH.

He said he detailed the alleged kickbacks in two privilege speeches delivered last year.

Lacson added that the Blue Ribbon Committee hearings played a major role in building cases against several personalities involved in the alleged scheme.

Several reforms were also introduced in the 2026 national budget, including those affecting the DPWH, following the investigation, he said.