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Tengco’s Triple-A License to Print Billions: When “Divesting” Means Handing the Keys to Your Kids and Cashing the Checks

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Louis ‘Barok’ Biraogo

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Tengco’s Triple-A License to Print Billions: When “Divesting” Means Handing the Keys to Your Kids and Cashing the Checks
Climax: Kids Hold the Shares, Dad Holds the Koneksyon—Triple-A License Meets First Family Perks

By Louis ‘Barok‘ C. Biraogo — December 14, 2025

MGA kababayan, welcome back to Kweba ni Barok, where we shine the harsh light on the trapo politics that turns public office into a family ATM. Today, we dissect the latest stench rising from Malacañang’s inner circle: Philippine Amusement and Gaming Corporation (PAGCOR) boss Alejandro “Al” Tengco and his “divested” construction empire, Nationstar Development Corporation, suddenly swimming in ₱7.1 billion worth of Department of Public Works and Highways (DPWH) contracts since he got cozy in his government-owned or controlled corporation (GOCC) throne in August 2022.

Ay, what a “coincidence”! Tengco, longtime kaibigan of the First Couple—attending surprise birthdays, family weddings in Thailand, weekend lunches with Liza Araneta-Marcos—gets appointed PAGCOR chief, and poof! His family firm (once 94% his) triples its government haul. From ₱2.2 billion under Duterte to ₱7.1 billion under Marcos Jr. in just three years. Not suspicious at all, di ba? It’s like winning the lotto right after buying a ticket from your best friend’s cousin. Pure luck, sabi niya (Rappler, 10 Dec. 2025).

“Divestment 101: Transfer shares to your kids, then transfer billions to your bank.”

The Core Scandal: From Private Builder to Crony Jackpot Winner

Let’s call it what it is: a staggering spike in contracts to a family-owned firm timed perfectly with a powerful appointment and unbreakable social ties to the President and First Lady. Nationstar bags 14 juicy DPWH deals post-2022, including a ₱4.6 billion slice of the Davao bypass road (in a consortium, sure, but still), ₱779 million for the College of Law building at West Visayas State University (where Liza teaches criminal law—ironic, ha?), ₱278 million rehab of Malacañang’s New Executive Building (fixing the Palace while pocketing Palace-adjacent cash), and even a quarter-billion multi-purpose facility in Batac, Ilocos Norte—the Marcos home turf.

Tengco claims “fair and impartial bids” and a shiny triple-A license from the Philippine Contractors Accreditation Board (PCAB). But come on—who believes this isn’t the classic elite patronage playbook? Appoint a loyal friend to a fat GOCC post, and watch the family business feast on infrastructure billions. Coincidence? My foot.

Legal Evisceration: Shredding the “Divestment” Farce and “No Influence” Delusion

Tengco’s defense? He “fully divested” shares to his three children before/during his PAGCOR stint, and PAGCOR has zero sway over DPWH bids. Classic palusot—technical compliance masking substantive rot.

The “Divestment” Farce Dismantled

Republic Act (RA) No. 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees) demands officials avoid conflicts at all times, resign from private enterprises within 30 days, and fully divest interests within 60 days. Divestment means voluntarily disposing to unrelated parties—not shuffling papers to your kids! While the law narrowly defines “family” for some prohibitions as spouses and minor children, the spirit screams: transferring to immediate adult children is no real separation—it’s indirect pecuniary interest, benefiting the household and maintaining control.

Enter RA No. 3019 (Anti-Graft and Corrupt Practices Act), Section 3(h): Unlawful for officials to directly or indirectly have financial interest in contracts where they intervene or are prohibited from having interest. Supreme Court in Teves v. COMELEC (G.R. No. 180363) spells two modes: (1) actual intervention in official capacity, or (2) prohibited interest by law/Constitution. Even indirect interest via family triggers scrutiny—appearance of impropriety alone erodes trust.

Experts nail it: Former undersec Cielo Magno says flatly, “He is not absolved… Section 3(b) of RA 3019 prohibits public officials from having a financial or pecuniary interest in any business that deals with the government.” R2KRN’s Eirene Aguila adds: Laws scrutinize indirect interests through immediate family. Tengco’s kid-owned firm? Still smells like his money.

Demolishing the “No Influence” Claim

Absurd! Tengco insists PAGCOR doesn’t touch DPWH. But as GOCC head and Marcos BFF—confirmed at private parties, son’s wedding with Liza in attendance—he has informal sway. Phone call to the right ear in Malacañang? Whisper during lunch? That’s how cronyism works—no need for official letterhead. “Technical” no direct power vs. “substantive” ethical breach? The law and public demand the latter. This isn’t clean; it’s classic trapo—koneksyon over competence.

The Stench of Cronyism: Marcos Inner Circle’s Patronage Playground

Connect the dots, mga kaibigan: Tengco and the Marcoses go way back—Ateneo batchmates with Liza, guest at Bongbong’s 2009 birthday bash, appointment “confirmed” at Liza’s surprise party. Now, Nationstar fixes Malacañang buildings, builds where Liza teaches, constructs in Ilocos Norte. Not anomaly—this is elite networked patronage, rewarding loyalty with billions in public works. Same script as the Cadiz Jr. resignation scandal: Place allies in power, let family businesses boom. Marcos Jr.’s “unity” team? More like unity of wallets.

Prosecution Pathways & Consequences: Peril Awaits in Ombudsman and Beyond

Tengco faces real heat, despite his defiant denials. Ombudsman can probe RA 6713 violations—administrative liability for ethical breaches, leading to suspension or dismissal. Push to criminal under RA 3019 §3(h): Prove indirect interest (family ownership) or informal intervention (via presidential koneksyon). Sandiganbayan trial if charged—prolonged, reputation-shredding.

Political fallout? Massive. Even if he dodges conviction on “technicalities,” public cynicism explodes—another Marcos crony exposed, eroding trust amid flood control ghost scandals. Reputational death: From respected builder to poster boy for cronyism. Nationstar blacklisted? Contracts delayed? Senate hearings grilling him under oath? Delicious peril.

A Call to Arms: No More Palusot—Demand Justice Now!

Enough of this arrogant elite gamesmanship! Tengco must immediately resign or be fired—PAGCOR chief can’t moonlight as family firm benefactor.

  • Ombudsman: Launch full, transparent probe yesterday.
  • Senate committees: Haul him in, subpoena records, expose every bid.
  • Congress: Close the “family divestment” loophole—amend RA 6713/RA 3019 to ban transfers to immediate family, mandate blind trusts for GOCC heads.
  • Broader reckoning: Audit all politically connected contractors, enforce real transparency in DPWH bidding. No more crony capitalism disguised as “fair bids.”

Mga kababayan, this isn’t just Tengco—it’s the system rotting from the top. Demand accountability, or watch billions vanish into family vaults while roads crumble. Rise up—or forever be the suckers funding their feasts.

  • —Barok, still waiting for the day these cronies finally pay the bill instead of sending it to us taxpayers.

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Louis ‘Barok‘ C. Biraogo

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