Ombudsman launches probe into alleged overpricing of government IT contracts

In a press briefing on September 18, the Office of the Ombudsman said it is conducting a fact-finding mission on so-called “ghost internet” projects linked to the Department of Information and Communications Technology (DICT). Assistant Ombudsman Mico Clavano warned that while hardware such as machines and routers passes inspection, the accompanying software is rarely verified, allowing contractors to install cheaper, outdated or counterfeit software while charging full price.

The investigation will focus on four questions: the actual installation and functionality of contracted sites, whether the government paid for connectivity that was never delivered, the reasonableness of pricing, and who authorized payments for non-existent work. The scope covers all DICT-related contracts, though specific projects were not disclosed. At the same briefing, the Ombudsman confirmed pending graft complaints against members of the Villar family over alleged irregularities with PrimeWater Infrastructure Corporation.