Philippines suspends tech undersecretary over alleged contract conflict of interest

David Almirol accused of steering $24m worth of DICT contracts to a company he founded

By LineZotpaper
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The Philippine government's Ombudsman has suspended a senior technology official for six months without pay over allegations he helped award government contracts worth more than ₱1.5 billion ($24 million) to a company he founded and held a stake in.

Undersecretary for E-Government David L. Almirol faces administrative complaints of Grave Misconduct, Conduct Prejudicial to the Best Interest of the Service and violations of the Code of Conduct and Ethical Standards for Public Officials and Employees, the Ombudsman announced yesterday.

"In ordering the preventive suspension, the Ombudsman found strong evidence supporting the administrative charges against Almirol," the announcement said.

Almirol founded Multisys Technologies Corporation, a software development firm offering services and packaged products, and served as its CEO for more than a decade before joining the Department of Information and Communications Technology (DICT) in 2022 at the request of President Ferdinand Marcos Jr. to work on improving e-government services.

The Ombudsman alleged that between 2023 and 2025 DICT awarded at least eight contracts valued at over ₱1.5 billion ($24 million) to entities linked with Multisys. The contracts covered ICT consultancy, e-government application deployment, web-based messaging services, cloud infrastructure, data center colocation and software subscriptions.

Philippine law required Almirol to divest his stake in Multisys within 60 days of taking office. The Ombudsman alleges he missed that deadline but later complied. It is not alleged he issued contracts during the period he continued to hold Multisys shares.

The Ombudsman said the suspension was necessary because Almirol's continued role "could prejudice the investigation, particularly given his control and custody of documents and evidence relevant to the case." It stressed that the decision does not pre-judge the matter but is "a precautionary measure intended to preserve the integrity of the proceedings and ensure an impartial and unimpeded investigation."

Marcos Jr. made rooting out corruption a key plank of his platform and created an agency to tackle the problem, though it is felt that some anti-corruption actions may have been partly politically motivated. Past tech-related scandals in the Philippines include a 2022 case in which the Department of Education overpaid for poor-quality laptops.

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Analysis

Why This Matters

  • The case goes to the heart of the Philippines' digital government program, with contracts for e-government applications, cloud infrastructure and data services awarded to companies linked to the official overseeing that portfolio.
  • It tests President Marcos Jr.'s anti-corruption platform, which he made central to his presidency, at a time when some observers question whether enforcement is politically even-handed.
  • A suspension of a senior DICT figure could slow or scrutinise e-government projects already underway.

Background

Almirol left a decade-long tenure as CEO of Multisys Technologies in 2022 to join DICT at Marcos's request, to work on improving e-government services. Philippine law requires public officials to divest holdings in companies within 60 days of taking office, a requirement the Ombudsman alleges Almirol missed before later complying.

The Ombudsman's announcement stresses the suspension is precautionary, intended to protect evidence and the integrity of an ongoing investigation, not a finding of guilt. Anti-corruption enforcement in the Philippines has previously been accused of being selectively applied, and tech procurement in the country has a recent record of problems, including a 2022 Department of Education deal that overpaid for laptops.

Key Perspectives

The Ombudsman: Says strong evidence supports the administrative charges and that leaving Almirol in post could prejudice the investigation given his control and custody of relevant documents. It frames the suspension as a protective measure, not a pre-judgment.

Almirol: He is not quoted in the Ombudsman's announcement, and the account of events is the Ombudsman's. Notably, it is not alleged he issued contracts during the period he continued to hold Multisys shares, and he is said to have eventually complied with the divestment requirement.

Critics and skeptics: Some observers feel anti-corruption actions under the Marcos administration may be partly politically motivated, raising questions about whether enforcement targets are chosen on merit.

What to Watch

  • Whether the investigation leads to formal charges and whether the eight contracts are reviewed, renegotiated or cancelled.
  • Whether Almirol challenges the suspension or the allegations before the courts or the civil service commission.
  • The wider effect on DICT's e-government rollout, and whether the case prompts tighter procurement rules for technology contracts.

Sources

Checked

12 claims in this story checked against 1 source: 11 supported.

Show each claim
  1. SupportedThe Philippines suspended a technology undersecretary over an alleged contract conflict of interest.www.theregister.com - Articles: “The Philippines government’s Ombudsman has suspended a senior Department of Information and Communications Technology (DICT) official over allegations he assigned government contracts to a company he founded and continued to hold a stake in.”
  2. SupportedDavid Almirol was accused of steering $24 million in DICT contracts to a company he founded.www.theregister.com - Articles: “The Ombudsman alleged that between 2023 and 2025 DICT awarded at least eight contracts valued at over ₱1.5 billion ($24 million) to entities linked with Multisys.”
  3. SupportedThe Ombudsman suspended Almirol for six months without pay.www.theregister.com - Articles: “The Ombudsman has suspended Almirol without pay for six months”
  4. SupportedThe Ombudsman alleged that Almirol assigned contracts to Multisys, a company he founded and continued to hold a stake in.www.theregister.com - Articles: “The Philippines government’s Ombudsman has suspended a senior Department of Information and Communications Technology (DICT) official over allegations he assigned government contracts to a company he founded and continued to hold a stake in.”
  5. SupportedThe Ombudsman said it found strong evidence supporting the administrative charges against Almirol.www.theregister.com - Articles: ““In ordering the preventive suspension, the Ombudsman found strong evidence supporting the administrative charges against Almirol,” according to its announcement of the suspension.”
  6. SupportedAlmirol faces administrative complaints of Grave Misconduct, Conduct Prejudicial to the Best Interest of the Service, and violations of the public officials’ code of conduct.www.theregister.com - Articles: “after considering “administrative complaints of Grave Misconduct, Conduct Prejudicial to the Best Interest of the Service and violation of … the Code of Conduct and Ethical Standards for Public Officials and Employees.””
  7. SupportedThe Ombudsman announced the suspension yesterday.www.theregister.com - Articles: “The Ombudsman announced the suspension yesterday”
  8. SupportedThe Ombudsman alleged that at least eight DICT contracts, awarded between 2023 and 2025, were valued at over ₱1.5 billion ($24 million) and went to entities linked with Multisys.www.theregister.com - Articles: “The Ombudsman alleged that between 2023 and 2025 DICT awarded at least eight contracts valued at over ₱1.5 billion ($24 million) to entities linked with Multisys.”
  9. SupportedAlmirol founded Multisys, was its CEO for more than a decade, and joined DICT in 2022 at President Marcos Jr.’s request to improve e-government services.www.theregister.com - Articles: “After over a decade as the company’s CEO, Almirol in 2022 joined DICT at the request of President Ferdinand Marcos Jr., to work on improving e-government services.”
  10. SupportedThe Ombudsman said the suspension was necessary because Almirol’s continued role could prejudice the investigation, given his access to relevant documents and evidence.www.theregister.com - Articles: “a step it says is necessary because if he continued in the role it “could prejudice the investigation, particularly given his control and custody of documents and evidence relevant to the case.””
  11. SupportedThe Ombudsman said the suspension does not pre-judge the matter and is a precautionary measure to protect the proceedings and ensure an impartial, unimpeded investigation.www.theregister.com - Articles: “the org has also pointed out that its decision does not pre-judge the matter, but is “a precautionary measure intended to preserve the integrity of the proceedings and ensure an impartial and unimpeded investigation.””
  12. Partly supportedAlmirol was legally required to divest his Multisys stake within 60 days of taking office.www.theregister.com - Articles: “Local laws mean Almirol should have divested his stake in Multisys within 60 days.”

Zotpaper

Written by June Katz on the World desk. Claims checked by Ines Fairley, verification. Read for legal risk by Marcus Hale, legal. Edited by Angus Burke, chief sub.

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