The Philippine government has urged critics to present concrete evidence to substantiate allegations of a conflict of interest involving Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and CEO Alejandro H. Tengco, following reports that a construction firm owned by his family secured multiple government contracts after his appointment.
According to the Philippine News Agency, the call was made on Friday by Malacañang, the official residence and office of the Philippine president and a term commonly used to refer to the executive branch of government. Palace Press Officer Claire Castro said accusations must be supported by proof so authorities can determine whether any irregularities occurred.
Castro said the government would assess the issue based on whether procurement procedures were properly followed and whether Tengco maintains any direct link to the company involved. She added that no anomalies have been officially reported so far and that Tengco has denied any involvement in the awarding of public works contracts.
Her remarks followed media reports that Nationstar Development Corp., a construction firm founded by Tengco in 2015 and now owned by his children, was awarded more than 14 government contracts worth PHP7.1 billion ($120.14 million) since 2022, the year he assumed leadership of PAGCOR.
Tengco has previously rejected claims that his position or political connections influenced the awarding of the contracts. He has said he fully divested his interests in Nationstar when he took office in 2022, after beginning to transfer ownership to his children in 2019. He has also stressed that PAGCOR has no authority over public infrastructure procurement.
In earlier statements, Tengco said the allegations misinterpret Philippine law, which defines a conflict of interest as existing only when a public official retains a financial interest in a transaction requiring their official intervention. He has maintained that Nationstar’s projects were secured through lawful and competitive bidding processes, including consortium arrangements for large-scale infrastructure works.
The issue was first raised following an investigative report detailing Nationstar’s government and private-sector projects across several administrations, as well as Tengco’s longstanding involvement in the construction industry. Tengco has described the firm as a legitimate business with an established track record serving both public agencies and private clients.
Castro added that any review of potential gaps in conflict-of-interest regulations would fall under the jurisdiction of Congress, reiterating that the executive branch’s position would remain guided by evidence and due process.
