PAGCOR Chief Refutes Conflict-of-Interest Claims vs. Family’s Construction Firm

Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco has refuted allegations of conflict of interest linked to government contracts awarded to his family’s construction firm, saying he has no direct or indirect influence in the approval of public works projects.

As a legitimate business entity, Nationstar has secured past and ongoing contracts with both government and private clients, including local government units.

He also denied claims that contracts won by Nationstar Development Corporation, which he founded in 2015, were due to his closeness to the family of President Ferdinand Marcos Jr.

“There is no conflict of interest because under the Anti-Graft and Corrupt Practices Act (RA 3019) and the Code of Conduct of Government Employees (RA 6713), conflict of interest exists only when a public official has direct or indirect financial or pecuniary interest in a business contract or transaction in which they must intervene in their official capacity,” Tengco said.

“For one, my position as Chairman and CEO of PAGCOR has no direct or indirect influence in the awarding of public works contracts to Nationstar. For another, I fully divested all my interests in Nationstar when I assumed the PAGCOR post in 2022, eliminating any potential conflict of interest. I actually began divesting my holdings to my children in 2019,” he added.

Tengco said it is up to Congress to determine whether gaps exist in conflict-of-interest laws and what measures may be needed.

He said he entered the construction business in 1996 and founded Nationstar in 2015. As a legitimate business entity, Nationstar has secured past and ongoing contracts with both government and private clients, including local government units.

During the administrations of Presidents Benigno Aquino III and Rodrigo Duterte, Nationstar carried out retrofit and fit-out works at Malacañang’s Premier Guest House and the Presidential Management Staff Building.

These projects established the firm’s reputation, he said, leading to subsequent awards.

During the pandemic, Nationstar also built modular hospitals nationwide.

More recently, the company completed private-sector projects, including the Senior High School building at Ateneo de Manila University, and several public schools nationwide, which qualified it for the Western Visayas State University project.

Tengco also clarified that the Davao City bypass road project was awarded to a consortium that included China Road and Bridge Corporation, noting that the project was too large for Nationstar to undertake alone.

“Singling out my ties to the Marcos family is selective and distorts Nationstar’s legitimate business activities, regardless of partisan considerations,” he said.