Ombudsman suspends DICT exec over alleged conflict in P1.5-B deal

By Saghir Hussain ·

Philippine anti-graft body suspends top digital official, clouding UK tech partnership talks

The Philippine Ombudsman has preventively suspended a Department of Information and Communications Technology undersecretary over an alleged conflict of interest in a ₱1.5 billion contract, injecting fresh uncertainty into a digital infrastructure programme British ministers have quietly backed as a gateway for UK fintech and cybersecurity firms.

Suspension hits flagship broadband rollout

The Office of the Ombudsman confirmed Wednesday it ordered the six-month suspension of DICT Undersecretary for E-Government David Almirol Jr. pending investigation into the award of a ₱1.5 billion (£21.4 million) contract for the National Broadband Programme’s middle-mile segment. The watchdog alleges Almirol “directly participated” in the procurement despite a financial link to a subcontractor — a claim his legal team denies as “malicious and baseless.”

The contract, awarded last year to a consortium led by a Manila-based telco, forms the backbone of the government’s push to connect 65,000 remote barangays. British officials have cited the programme in trade talks as a “concrete pipeline” for UK suppliers of network kit, satellite backhaul and digital identity systems.

UK trade office flags “governance risk”

A British Embassy Manila briefing note circulated to UK tech attachés last month — seen by Crawlio — flagged “governance risk” in DICT procurement as a “material concern” for companies bidding on the Philippine Digital Infrastructure Project, a wider ₱300 billion envelope co-financed by the World Bank and the Asian Development Bank. UK Export Finance has £120 million in active exposure to Philippine digital projects.

“British SMEs don’t have the legal firepower to navigate opaque tenders,” said a UK-based telecoms consultant who has advised two British firms on Philippine bids. “One suspended official doesn’t cancel a programme, but it signals the referee might be playing for one team.”

DICT Secretary Ivan Uy, appointed by President Ferdinand Marcos Jr. on an anti-corruption platform, said the department “welcomes the Ombudsman’s action” and will cooperate fully. The consortium involved has not been named; the DICT says the contract remains “valid and ongoing” pending review.

Manila’s digital pitch vs London’s due diligence

The suspension arrives as the UK-Philippines Enhanced Partnership Dialogue resumes in London next month, with digital trade a headline agenda item. The Department for Business and Trade has identified the Philippines as a “high-growth market” for UK cyber services, citing a 34% year-on-year rise in British security exports to the country.

Yet the Almirol case mirrors a pattern. In 2023, a DICT assistant secretary was dismissed over a separate cloud procurement irregularity. Transparency International Philippines ranks the country 116th of 180 on its Corruption Perceptions Index — below Vietnam and Indonesia, both competing for the same UK investment.

For British firms, the calculation is blunt: the Philippines offers 85 million internet users and English-speaking talent. But each procurement scandal raises the cost of compliance and the risk of retrospective challenge.

The Ombudsman’s move proves the watchdog has teeth. Whether the bureaucracy can clean its own house before the next tender round will decide if British capital stays — or walks.

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