The money trail: Rappler probes family ties in DOH contracts

CHEERS TO Rappler for its investigative report that looked into the potential conflict of interest involving a high-ranking health official and a construction firm owned by his brother. Reports from the Philippine Star and Inquirer.net focused on the filing of graft complaints by “concerned DOH employees.” Rappler stands out for its deep dive into documents, checking out records of procurement and official appointments. Its investigation surfaced the background showing family connections in the mix of government contracts. 

Pivot in procurement

James Patrick Cruz and Danisa Fernandez of Rappler revealed that EGB Construction Corporation, owned by Erni Baggao, secured contracts worth  PHP140 million in health infrastructure the year his brother, Glenn Mathew Baggao was appointed DOH Undersecretary. 

For background, EGB Construction had been established as specializing in multi-billion peso flood control projects for the DPWH. Rappler pointed to the curious shift in the firm’s portfolio of contracts after Glenn Baggao’s appointment in the DOH when the company began winning bids for DOH projects, including “Super Health Centers.” The firm won several contracts for Super Health Centers in the Cagayan Valley region, where Usec. Baggao had previously served as a regional hospital chief, suggesting the latter’s continuing influence in the area.  

Rappler also reported that Usec. Baggao was in charge of the DOH’s Health Facilities Enhancement Program (HFEP), the very office that manages the budget for the projects his brother’s firm was winning.

Rigor through data

Rappler found the story by digging into public records. The story was not “leaked” by a whistleblower or an insider source. The team had to prove the family connection between officials and those bidding and to trace the sudden increase in EGB Construction’s earnings.  To do this, journalists had to examine documents and cross-reference official data in registration papers filed in the Securities and Exchange Commission (SEC) with the Philippine Government Electronic Procurement System (PhilGEPS) on their own.

Cruz and Fernandez also mapped out the specific hospitals involved. This turned a dry list of numbers and names into a clear, visual story that is easy to follow and understand. 

Guarding public funds

This investigation serves as a reminder of the power of nepotism in Philippine business and public affairs. There are rules and regulations that prohibit the awarding of government contracts to family members and relatives of government officials in the same department.  But sadly, these have not prevented family ties and other personal connections from creeping into the process of selection. Rappler’s work shows how rewarding it can be to dive deep into the data held by documents or to trace the money trail with pesos changing hands. The tedious work can lead to evidence that proves how money intended for the public good — in this instance, the people’s health and safety — can end up as a family’s private windfall.