THE Commission on Audit (COA) on Friday submitted four new fraud audit reports to the Independent Commission on Infrastructure (ICI) based on its continuing review of alleged irregularities in connection with flood control projects that went through the Department of Public Works and Highways (DPWH) – Bulacan First District Engineering Office.
All four projects involved construction of riverbank dikes or slope structures identified in specific locations in the municipalities of Pulilan, Plaridel, and Bocuae.
Upon inspection, however, COA investigators were led to four different sites that did not correspond to the coordinates stated in the DPWH contracts.
Auditors said the site variation was a red flag indicative of another kind of ghost or non-existent project that uses a duplication of billing through “double-counted accomplishments.”
This was the third batch of reports released by the COA Fraud Audit Office (COA-FAO) pertaining to its evaluation of flood control projects in Bulacan spurred by a directive from President Ferdinand Marcos Jr. after his personal onsite inspection of a failed revetment structure in Baliuag, Bulacan last August 15.
The previous two batches were submitted to the Office of the Ombudsman, but during the second submission on September 18, 2025, COA chairperson Gamaliel Cordoba said the succeeding COA-FAO reports would be filed directly with the ICI which is spearheading the investigation.
Based on the latest reports, the first project was the P92.88 million Construction of Flood Control Structure along Angat River at Barangay Santo Cristo/Barangay Taal, Pulilan, Bulacan undertaken by SYMS Construction Trading.
“During COA’s inspection on September 16, 2025, DPWH-Bulacan First DEO representatives pinpointed a project site different from the approved location. No explanation was provided by the DPWH-Bulacan First DEO representatives why the location was changed,” the report stated.
In addition, the DPWH-Bulacan First DEO failed to submit critical supporting documents to COA to establish the legitimacy of the project.
Held liable for these irregularities were former District Engineer Henry Alcantara, former Assistant District Engineer Brice Ericson Hernandez, Planning and Design Section Chief Ernesto Galang, Engineer III John Michael Ramos, Project Engineer Lemuel Ephraim Roque, Engineer II Jolo Mari Tayao, and Sally Santos of SYMS Construction Trading.
The three other projects were all awarded to Topnotch Catalyst Builders Inc.
These were the P69.48 million Construction of Riverbank Protection Structure (Package A) at Barangay Bulihan (Sitio Dulo), Plaridel, Bulacan; the P98.999 million Construction/Improvement of Slope Protection and Waterways at Barangay Bambang, Bocaue, Bulacan; and the P99.995 million Construction/Improvement of Slope Protection Structure and Waterways along Bocaue River in Barangay Turo (Sitio Hangga), Bocaue, Bulacan.
The first project has already been issued a Notice of Disallowance as of August 2025.
“Similar to other inspections, COA found another mismatched project site. COA found that the original site was already occupied by another flood control project attributable to a different contract altogether,” the audit team said.
DPWH-Bulacan First DEO officials said the site was transferred although no justification was offered.
At the same time, the fraud audit team found that the structure fell short of the specifications stated in the contract.
Held liable were Alcantara, Hernandez, Galang and Eumir Villanueva of Topnotch Catalyst Builders, Inc., as well as the company’s officers and members of the Board of Directors.
The second project was implemented by the Joint Venture of Topnotch and Beam Team Developer Specialist Inc. It received a Notice to Proceed on April 23, 2024 and had a target completion date of January 17, 2025.
“During its ocular inspection, COA was led by DPWH-Bulacan First DEO representatives to a project site which did not match the approved location. DPWH personnel did not provide any supporting documents/justification,” auditors said.
Verification of the project site through historical satellite imagery revealed that an existing flood control structure was already in place on the same spot as early as February 29, 2024.
“This information confirmed what was seen on the ground by COA; the accomplishments being attributed to the JV belong to a different project,” the COA noted.
The fraud audit named Alcantara, Hernandez, Galang, Maintenance Section OIC Chief Jaime Hernandez, Project Engineer John Carlo Rivera, Engineer II John Michael Marcos, Engineer II Claudine Magdalene Magsakay, Engineer II Ericka Justine Chico and the Joint Venture’s Allan Kevin Payawal as well as the JV’s corporate officers and members of the board.
Finally, the third project, also undertaken by Topnotch Builders in a joint venture with One Frame Construction Inc., was supposed to have started on April 23, 2024, and completed on January 17, 2025.
During inspection, however, DPWH-Bulacan First DEO pointed COA’s inspectors to a different location than what was indicated on the contract.
“Like the other projects, no explanation was provided by the DPWH-Bulacan First DEO representatives why the location was changed. Based on available information to COA, the approved site already had an earlier existing flood control structure built prior to the joint venture’s receipt of the Notice to Proceed,” the COA-FAO said.
For this project irregularities, auditors pinned liability on Alcantara, Hernandez, Galang, Ramos, Project Engineer Emelita Morales, J. Hernandez, Chico, Engineer II Isiah Lor Galang, and the joint venture’s Gian Carlo Galang as well as its corporate officers and members of the board.
