THE House Infrastructure Committee yesterday ordered members its members to disclose in writing if they have conflict of interest in the joint panel’s investigation into “ghost” and sub-standard flood control programs of the Department of Public Works and Highways (DPWH) amid reports that some lawmakers are also moonlighting as contractors of multi-million projects.
The infra comm, which is composed of the House committees on public accounts, on good government and public accountability and on public works, adopted the motion of Rep. Jose Manuel Diokno (PL, Akbayan) for members to “make a full disclosure of their financial, business or pecuniary interest that may be directly or indirectly affected by any investigation into the government’s past or present flood control projects.”
The members of the three committees were given five working days to submit a certification that there is no conflict of interest in their participation in the hearing.
Diokno cited Rule 9 Section 33 of the House Rules and Section 9 of the internal Rules of public accounts panel which states that: “A member of a committee shall not participate in the deliberations or vote on any matter that directly or indirectly affects the members’ business, financial or pecuniary interest.”
He added, “These rules are in line with Section 9 of Republic Act 6713, Code of Conduct of Public Officials, which provides that the public official or employee shall avoid conflicts of interest at all times. These rules are also aligned with Article 6, Section 12 of our Constitution, which requires all members of the House to make a full disclosure of their business and financial interest to avoid conflict of interest.”
Diokno cited Sen. Panfilo Lacson’s disclosure that at least 67 House members in the 19th Congress who were operating construction businesses “that back projects that they themselves had allocated funding for.”
Before approving the motion, the joint panel which is led by Rep. Terry Ridon (PL, Bicol Saro) first heard the views of members, including Rep. Leila De Lima (PL, ML) who registered her objection to the conduct of the inquiry because of potential conflict of interest.
Deputy speaker Janette Garin (Iloilo) warned that the oversight powers of Congress will be “clipped” if the investigation will not proceed to uncover the truth while Lanao del Sur Rep. Zia Alonto Adiong said the hearing’s purpose was not to “pass judgment but to see if there are lapses insofar as implementation of flood control programs are concerned.”
Lawmakers wrangled over the motion of Caloocan City Rep. Edgar Erice for the panel to invite Rep. Zaldy Co (PL, Ako Bicol), chair of the House committee on appropriations in the 19th Congress, and his Senate counterpart, former Sen. Grace Poe, who chaired the Senate finance committee.
Erice wanted Co and Poe to explain after former Public Works Secretary Manuel Bonoan said the DPWH’s budget for 2025 was increased by P100 billion in the General Appropriations Act (GAA) or the national budget.
Davao City Rep. Isidro Ungab, a staunch ally of detained former President Rodrigo Duterte, stressed that the 2025 national budget was the “most corrupt” in Philippine history while Garin opposed Erice’s motion, saying the joint panel cannot investigate their own colleagues.
Garin urged the panel to look into other important issues like how “insertions” for additional flood control projects were allegedly made in National Expenditure Program for 2026 when it was just submitted to Congress by the Executive through the Department of Budget and Management.
“We are losing focus,” Garin said. “The focus of the investigation is to nip it (corruption) in the bud, so let’s proceed to hearing our resource persons.”
Navotas Rep. Tobias Tiangco, an independent, protested that Co will not be invited since “that means, congressmen are exempted.” “The bicam insertion (in the 2025 GAA) of P13.803 billion was under the name of Zaldy Co as proponent and we don’t want to invite him as resource person?” he said.
When Garin butted in as Tiangco was speaking, the irked Navotas lawmaker repeatedly said, “I have the floor.” Ridon warned the heated arguments will only further frustrate the public.
Erice later deferred the motion to invite Co and Poe pending consultation with his staff about P100 billion in insertions to find out if it included ghost projects that President Ferdinand Marcos Jr. had mentioned in his recent revelations.
Tiangco said that out of the P13.8 insertions in the bicam, P2.295 billion went through Co’s Ako Bicol party-list group while P2.064 billion went through the BHW party-list. “Why did the projects for districts have to go through those party-lists? Why not download it directly? Only Cong. Zaldy Co can answer that,” he said.
Co, whose name has been dragged into the flood control controversy for allegedly being one of the founders of Sunwest Construction, which was one of the Top 15 contractors identified by the President, has been silent on the issue.
SUBPOENA
The Infra Comm subpoenaed five contractors for snubbing the inquiry: Royal Crown Monarch Construction and Supplies Corporation; SYMS Construction Trading; Alpha and Omega General Contractor & Development Corporation; St. Timothy Construction Corporation (STCC); and Wawao Builders Corporation.
SYMS Construction Trading and Wawao Builders were earlier identified to be the contractors of alleged ghost projects in Bulacan, which angered the President after the personally inspected the sites in Baliuag and Calumpit last month.
Alpha and Omega General Contractor & Development Corporation and St. Timothy Construction Corporation are reportedly owned by contractor Sarah Discaya, whose projects are now under congressional scrutiny.
During the hearing, Henry Alcantara, former district engineer of the DPWH First Engineering District Office, admitted to lawmakers that is responsible for the “ghost” flood control projects that the President discovered in Bulacan. He said he was taking responsibility but only for “negligence” because he trusted his subordinates, including his project engineer, who all told him that the projects were already completed.
Like he did in the Senate hearing last Monday, Alcantara admitted issuing completion certificates without personally inspecting the works, saying he relied on his subordinates.
Alcantara agreed when asked by Manila Rep, Benny Abante if he should be charged and held liable for the waste of public funds but denied that he was promoted to the position in 2019 under the Duterte administration because he was favored by then Public Works Secretary Mark Villar.
On the questioning of Antipolo Rep, Romeo Acop, Alcantara also admitted he was the one who proposed the projects under question to be included in the National Expenditure Program (NEP), adding that those were not products of congressional initiatives.
“Kayo ang may responsibilidad sa lahat ng katarantaduhang nangyari duon? (You’re responsible for all the shenanigans that happened there?” Acop asked Alcantara, who said, “Yes.”
‘INTENTIONAL’
Alcantara said that like the President, he, too, was angry when he discovered the ghost projects, a claim that Manila Rep. Joel Chua, chair of the good government panel, obviously could not believe.
Alcantara said he even reported to Bonoan but Biñan City Rep. Arman Dimaguila pointed out that it was only after the President revealed the issue in his State of the Nation Address (SONA) last July.
Dimaguila said he does not believe that Alcantara was simply “negligent” as he claimed. “Ginawa niyo ‘yun. “Di kapabayaan dahil meron ibang intensyon (You did that. That’s not negligence because you have other intentions),” he said.
Ridon warned that plunder charges could eventually be filed against those behind ghost projects.
“We have copies of all relevant documents to build the cases against officials of the DPWH 1st District Engineering Office and the private contractor, Syms Construction Trading, all of whom are involved in the P55-million Baliuag ghost project,” Ridon said. “The threshold for plunder is P50 million pesos. This project is P55 million. Plunder charges should be filed against all involved personalities in the soonest time.”
The project in question is the P55.7-million “ghost” flood control project in Baliuag, Bulacan, which the President also inspected, was also not a congressional insertion.
He said the reinforced concrete river wall project in Purok 4, Barangay Piel, Baliuag, Bulacan, which was implemented by the DPWH in the province’s First Engineering District, was in the 2025 NEP.
The project was paid in full last June 30 and was awarded to contractor SYMS Construction Trading.
Also being questioned is the P96.4 million rehabilitation of river protection structure project in Bulusan, Calumpit, Bulacan implemented by the DPWH First District Engineering Office and St. Timothy Construction Corporation in 2022.
The third one is the P77.19 million construction of flood mitigation structures in Barangay Frances, which was again implemented by the DPWH First District Engineering Office and Wawao Builders in 2023.
The project has also reportedly already shown signs of concrete deterioration, with exposed loose cables and wires.
“The President had found concrete deterioration, with exposed loose cables and wires. The two substandard projects had been built within the last four years,” he said. “We take notice of Ms. Discaya’s admission that their group started engaging in DPWH flood control projects from 2016 onwards.”
CHIZ CONNECTION
Later in the hearing, Lawrence Lubiano, president of Centerways Construction and Development Inc., confirmed to lawmakers reports that he donated P30 million to the campaign kitty of Senate President Francis Escudero in the 2022 national elections, when the lawmaker was still governor of Sorsogon.
Lubiano made the admission on Diokno’s questioning.
Centerways Construction is among the 15 contractors President Marcos Jr. earlier identified to have cornered most of the government flood control projects,
Lubiano also said most of the flood control projects his company won were in Sorsogon, Escudero’s home province.
He recalled around 30 projects in the province but Diokno said the Sumbong sa Pangulo website would show Centerways cornered between 50 and 53 flood control projects.
DISCAYA VEHICLES
Senate President pro tempore Jinggoy Estrada yesterday said a number of luxury vehicles owned by controversial contractor Cezarah Rowena “Sarah” Discaya are not registered with the Land Transportation Office.
During his manifestation at the Senate plenary, Estrada said that based on LTO records gathered by his staff members, at least 11 luxury vehicles under the name of Discaya and her husband Pacifico II were not in the government database.
During last Monday’s hearing, Discaya admitted owning 28 luxury vehicles, but Estrada said it appears that the Discayas own at least 63 luxury and other vehicles and heavy equipment used in their business, based on LTO records.
“She also mentioned three vehicles [during the Blue Ribbon Committee hearing last Monday] — Range Rover Defender, Cadillac Escalade, and Mercedes Benz Maybach — which are not in the LTO records. In the viral interview of Julius Babao uploaded on his YouTube channel, there are eight other luxury vehicles which are also not in the LTO records under the name of the Discaya couple),” Estrada said in Filipino.
He said his office also learned that the Discaya couple also owns six other luxury vehicles like Volvo XC-90, Mercedes Benz GLS, and a Maserati.
Estrada disclosed the information after the Bureau of Customs (BOC), on the strength of a search warrant issued by a Manila court, raided the Discaya residence in Pasig City to check if the couple has paid the right taxes for them.
Customs Commissioner Ariel Nepomuceno said only two of the 12 high-end vehicles covered by the warrant were found in the property — a Maserati and a Land Cruiser. A third luxury car — Cadillac Escalade — was found but it was not covered by the warrant.
Nepomuceno said the BOC conducted the operation to determine if the Discayas had paid the correct taxes for the luxury vehicles.
Estrada, in a chance interview, said the Discayas obviously hid the other vehicles.
The Discayas own nine construction firms, a number of which were named by Marcos Jr. as among the 15 companies who corned around P100 billion worth of questionable flood control projects.
During the Blue Ribbon Committee hearing last Monday, the Bureau of Internal Revenue said it has served letters of authority (LOAs) to the country’s top 15 flood control contractors, formally launching parallel tax investigations into alleged irregularities in critical government projects.
The BIR said the LOAs were issued under the bureau’s Run After Tax Evaders (RATE) program, empowering examiners to scrutinize the financial records and tax compliance of the country’s top flood control contractors.
Pasig City Mayor Vico Sotto questioned Sarah Discaya’s Senate testimony.
In a Facebook post, he said Discaya, who ran against him for Pasig mayor, was not completely honest in her answers to senators.
“I hope all relevant authorities act quickly, before they get away. We will continue to do our part,” he said.
Sotto added he hopes the next hearing will directly question both contractors and DPWH officials about allegations that some contractors advance up to 40 percent of project costs to congressmen or politicians.
Leyte Rep. Richard Gomez apologized to media persons covering the House.
“To members of the press who took offense in my social media post, I apologize. Sensitive information has since been removed. I understand that the media endeavored to get my side of the story. I acknowledge your efforts. I am sorry and I could have handled it better,” he told the plenary.
Reporters covering the House earlier assailed Gomez for accusing journalists of being “paid hacks” after they asked him to comment on the allegations of Matag-ob Mayor Bernie Tacoy who linked him to a collapsed flood control project in the town. – With Raymond Africa and Christian Oineza
