A storm of controversy has erupted around Alejandro Tengco, CEO of the Philippines’ gambling regulator, PAGCOR. Accusations of a conflict of interest are swirling, centering on lucrative government contracts awarded to a construction firm deeply connected to his family.
The company, Nationstar Development Corporation, founded in 2015 by Tengco himself, has seen a dramatic surge in government projects since President Ferdinand Marcos Jr. took office. This timing has fueled speculation about potential influence and preferential treatment.
Tengco vehemently denies any wrongdoing, asserting he has no direct control over government contracting decisions. He maintains that Nationstar operates as a legitimate business, securing projects based on merit and a growing reputation within the industry.
However, the numbers tell a different story. Since 2022, Nationstar has secured 14 government contracts totaling a staggering 7.1 billion Philippine pesos – equivalent to over $120 million US dollars. These projects include a high school and emergency “modular hospitals” constructed during the pandemic.
Currently, Tengco’s children manage the day-to-day operations of Nationstar, adding another layer to the complexity of the situation. Critics argue that even indirect familial ties create an unacceptable conflict of interest for the head of a regulatory body.
The Presidential Palace has responded cautiously, stating that an assessment will be made based on whether proper procedures were followed in awarding the contracts. Undersecretary Claire Castro emphasized the need for concrete evidence to support the accusations.
Legal experts point to Republic Act 3019, which explicitly prohibits public officials from having a financial stake in businesses dealing with the government. Former finance undersecretary Cielo Magno argues that Tengco’s position as a head of a government-owned corporation doesn’t exempt him from these regulations.
Tengco defends Nationstar’s success, highlighting its history of working with both public and private sector clients. He claims the company’s established track record and positive reputation are the primary drivers of its continued growth and project acquisitions.
The controversy comes at a sensitive time, as reports indicate government contracts have “more than tripled” since the change in administration. This dramatic increase has intensified scrutiny of the bidding process and raised questions about transparency and fairness.
