Malacañang has called on critics to present concrete proof to support allegations that government contracts were improperly awarded to a construction company linked to the family of Philippine Amusement and Gaming Corp. (PAGCOR) Chair and CEO Alejandro H. Tengco. The executive branch said any review of the issue would rely on evidence, procurement procedures, and verified links, rather than speculation or unsubstantiated claims.

The statement followed reports that Nationstar Development Corp., a construction firm founded by Tengco in 2015 and now run by his children, secured more than 14 government contracts valued at PHP7.1 billion after Tengco’s appointment to PAGCOR in August 2022. Palace officials stressed that accusations must be backed by documentation before authorities can assess whether any conflict of interest exists under Philippine law.

Palace Response Centers on Evidence and Process

Palace Press Officer Claire Castro addressed the allegations during a briefing, emphasizing that claims of wrongdoing should be supported by proof. “It would be better if those making the accusations would immediately present evidence so it can be reviewed)” Castro said.

She explained that the government’s assessment would focus on whether established procurement rules were followed and whether Tengco remained connected to the company involved. Castro also noted that, to date, authorities have not reported any formal anomalies linked to the contracts cited in media reports.

Castro added that the administration would consider the quality and regularity of the completed projects alongside questions of ownership or influence. “If the proper process was followed and the company is still linked to Chairman Tengco, that should guide our judgment,” she said.

She further stated, “But if the work is properly done with no anomalies, and Chairman Tengco himself has said he has no involvement, we should leave it at that.”

Tengco Denies Influence and Cites Divestment

Tengco has repeatedly rejected claims that his role at PAGCOR had any bearing on the awarding of public infrastructure projects to Nationstar. He has said that PAGCOR has no authority over public works procurement and that his position “has no direct or indirect influence in the awarding of public works contracts to Nationstar.”

According to Tengco, he “fully divested all [his] interests” in the construction firm when he assumed leadership of PAGCOR in 2022. As reported by Philippine News Agency, he also stated that he transferred his shares to his children in 2019, several years before his appointment to the gaming regulator. Tengco has described Nationstar as a legitimate construction company with prior and ongoing projects in both the public and private sectors, citing its industry record as the basis for its continued work.

Reports detailing Nationstar’s government projects included infrastructure developments such as a P779-million construction project at the West Visayas State University College of Law, a P278-million rehabilitation of the New Executive Building in Malacañang, and a multi-purpose facility in Batac, Ilocos Norte. Tengco has maintained that Nationstar never held contracts with PAGCOR itself.

In addressing the broader issue, Tengco has argued that the allegations reflect a misunderstanding of conflict-of-interest provisions under Philippine law. He has said such conflicts arise only when a public official retains a financial interest in transactions requiring official intervention, which he contends does not apply in his case.

Palace officials echoed that position by underscoring that any review of potential gaps in conflict-of-interest rules would fall under the authority of Congress. Castro said it would be up to lawmakers to determine whether existing statutes require adjustment, while the executive branch would continue to rely on evidence-based evaluation and due process.

The administration’s stance reflects a refusal to draw conclusions without documented proof, even as public discussion continues following investigative reporting on Nationstar’s contracts and Tengco’s prior involvement in the construction sector. For now, Malacañang has made clear that allegations alone will not form the basis of official action.