Say lawmakers, DPWH execs got 25% of contract cost
CONTRACTORS Cezarah Rowena “Sarah” Discaya and her husband, Pacifico “Curlee” II, yesterday named 17 congressmen, eight officials of the Department of Public Works and Highways (DPWH) and a former government official as alleged recipients of “advance commissions” that they paid to get government projects.
The Discaya couple made the disclosure in a sworn affidavit that they submitted to the Senate Blue Ribbon Committee, which is looking into anomalous flood control projects earlier exposed by President Ferdinand Marcos Jr.
Companies owned by the Discaya couple are among the 15 contractors identified by the President which allegedly cornered billions of pesos worth of DPWH flood control projects.
In their affidavit, which was read into the record during the committee hearing yesterday, the Discaya couple claimed that they gave at least 25 percent of the total project cost to the congressmen and DPWH officials, which were either picked up by their respective bagmen or, on rare instances, handed to congressmen either at hotels or their offices.
Curlee Discaya, reading from the affidavit, said the congressmen includes Rep. Roman Romulo of Pasig City; Rep. Jojo Ang Uswag, Ilonggo PL; Rep. Patrick Michael Vargas, Quezon City; Rep. Juan Carlos “Arjo” Atayde, Quezon City; Rep. Nicanor Briones, AGAP PL; Rep. Marcelino Teodoro, Marikina; Rep. Florida Robes, San Jose del Monte, Bulacan; Rep. Jesus Madrona, Romblon; Rep. Benjamin Agarao Jr., Laguna; Rep. Florencion Gabriel Noel, Anwaray PL; Rep. Leody Tariela, Mindoro Occidental; Rep. Reynante Arrogancia, Quezon; Rep. Marvin Rillo, Quezon City; Rep. Teodorico Haresco Jr., Aklan; Rep. Antonieta Eudela, Zamboanga-Sibugay; Rep. Dean Asistio, Caloocan; and Rep. Marivic Co-Pilar, Quezon City.
He likewise said that they gave commissions to Terrence Calatrava, former undersecretary of the Office of the Presidential Assistant for the Visayas.
The DPWH officials tagged by the Discayas in their affidavit were Usec. Robert Bernardo; Regional Director Eduarte Virgilio, DPWH – Region 5; Dir. Ramon Arriola, Unified Project Management Office; District Engr. (DE) Henry Alcantara, Bulacan 1st Engineering District; DE Aristotle Ramos, DPWH Metro Manila 1st;
DE Manny Bulusan, DPWH North Manila District Engineering Office; DE Edgardo Pingol, Bulacan Sub-District Engineering Office; and DE Michael Rosaria, DPWH – Quezon 2nd District Engineering Office.
Curlee and Sarah Discaya said they executed their affidavit on their own will and that they are willing to testify against the congressmen and DPWH officials when cases are filed in court.
During the hearing, the Discaya couple sought protection from the Senate panel, saying that they fear that they have put their lives in danger because of their disclosure.
In response, Marcoleta said he has already spoken with Justice Secretary Crispin Jesus Remulla who said that the couple would be assessed to determine if they can qualify in the Witness Protection Program.
He said Remulla said that they will determine if the Discayas are “not the most guilty” in the flood control scheme.
“If you are the most guilty, you cannot qualify. Secretary Remulla told me that you can tell them [Discayas] that they have provisional immunity and that they will be not tried at once. This is in preparation for their application in the state witness program,” Marcoleta said in Filipino.
Sen. Ronald dela Rosa advised the Discayas to use their bullet proof vehicle, if they have any, to protect themselves when going out while waiting for the DOJ decision since some groups may take advantage of the situation so that the government may be blamed once they are harmed or killed.
Remulla said the DOJ will study the request of the Discaya couple for government protection.
He said, though, that conditions set under the Whistleblower Act must be strictly met before they can be considered as government witnesses.
“That’s the law. Everything can be considered but we’re telling you the principles that have to be followed when we admit people into the program,” Remulla told reporters in a chance interview.
Remulla said he has yet to talk with the Discayas.
“I haven’t talked to the couple. But the first principle here that we will use is that if they had taken something that is not theirs, then they have to return it to the Republic. That’s our first condition,” he said in Filipino.
“You don’t walk off laughing at the system because you enriched yourself and got away with the crime. No. In this case, you give it back to the state where it rightfully belongs before you could even be considered for immunity. That’s the Whistleblower Act, we have to work on those premises,” he added.
Remulla said they will also conduct a thorough accounting of the finances of the Discaya’s, with the National Bureau of Investigation in the lead.
He said the forensic accounting will ensure that any offer by the Discayas to return the money will be fair to the government.
LEDGER, VOUCHER
Curlee, who read the second part of their sworn affidavit, said that they recorded every commission transaction that they did in a ledger and voucher to serve as official records on when they paid the kickbacks.
Senators moved to subpoena the ledgers and vouchers for vetting and examination. The request was approved by Sen. Rodante Marcoleta, committee chairman.
Curlee continued that whenever they paid commissions, the DPWH officials would always say that part of the money will be given to Co.
“Karamihan sa mga kawani ng DPWH na nabanggit sa itaas ay paulit-ulit na binabanggit ang delivery ng pera ay para kay Zaldy Co na dapat ay at least 25 percent (Most of the DPWH officials would always say that the share of Zaldy Co should be at least 25 percent [of the total project cost]),” he said.
He likewise said that Rillo allegedly repeatedly namedropped Speaker Martin Romualdez as his “close friend.”
“Si Cong. Marvin Rillo naman ay ilang beses binabanggit ang pangalan ni Speaker Martin Romualdez bilang kanyang malapit na kaibigan,” he also said
“Sa tuwing umiinom kami sa Wine Story sa BGC at EDSA Shangrila Mall, sinabi pa ni Cong. Rillo na lahat ng kanyang request para sa pondo ay galing pa mismo sa unprogrammed funds at insertions na inaaprubahan ni Speaker. Ang tao ni Marvin Rillo na si Bogs Magalong ang pumupunta sa amin para kunin ang pera sa aming opisina o sa Wine Story (Every time we drink at Wine Story in BGC and at EDSA Shangri-la, Rep. Rillo would tell me that all of his budget requests are funded under the unprogrammed funds and insertions [in the national budget] which were approved by the Speaker. Bogs Magalong, Rep. Rillo’s bagman, frequently goes either to our office or at Wine Story to pickup the money),” Curlee alleged.
He said that another congressman, whom he identified only as “Cong. Jojo,” even demanded more money.
“Dagdag pa niya, hihdi naman lahat ng pera ay para sa kanya kundi para kay Speaker at Zaldy Co (Cong. Jojo said that not all the money that he collects are for him, he said that some of these are given to the Speaker and Zaldy Co),” he also said.
The Discayas named DPWH project engineer Angelita Garucha as the alleged bagman of Rep. Roman Romulo who purportedly collected the lawmaker’s commission for a flood control project in 2022.
However, they said that in 2025, DPWH District Engineer Aristotle Ramos approached them and claimed that he was the new bagman of Romulo, and that the congressman supposedly wanted a higher 30 percent commission from the project cost.
“Sinabihan ko si DE Ramos na masyado namang mataas, ngunit sinabi na walang magagawa dito dahil pondo ito galing sa unprogrammed funds at insertions na galing sa ‘taas’ (I told DE Ramos that he is asking too much, but he replied that there is nothing they can do because these came from the unprogrammed funds and insertions coming from ‘higher ups’),” they said.
The Discayas said they also personally handed pay-offs to Eudela, Rillo, Briones, Noel, Madrona, Agarao, and Arturo Atayde, father of Rep. Arjo Atyade.
DISCAYA EMPIRE
Sarah, reading the first part of their affidavit, told the committee that they established St. Gerrard Construction Company in 2003 and joined biddings in private projects, and later on joined biddings for local government projects but noticed that it took too much time before they got paid.
She said it was then that they decided to join the biddings for national government projects, which she said proved to be more rewarding since they were able to corner contracts.
This, she said, led to the establishment of the Alpha and Omega General Contractor and Development Corp.
Since they started bagging contracts, she said DPWH engineers and chief of staffs of congressmen began to notice them.
“Nang nagsimula nang makilala ang St. Gerard Construction, dumating naman ang panibagong pagsubok. Unti-unti nagsilapitan ang mga district engineers at mga regional directors ng DPWH at mga chief of staff ng mga mambabatas na nag-alok ng mga proyektong sinasabi nilang pondo ng mga mambabatas (When St. Gerrard Construction started to boom, a new challenge confronted us. DPWH district engineers and regional directors, and chiefs of staff of lawmakers started to approach us to offer projects which they said were from the funds of lawmakers),” Sarah said.
She said they reported the matter to the DPWH but was supposedly ignored.
“Sabi nila, dapat tanggapin namin ang reyalidad na dapat kaming magbayad sa mga mambabatas kung gusto pa naming magpatuloy na magkaroon ng projects sa gobyerno. Kung hindi, binabala nila na matatanggal sa listahan ang kumpanya namin at hindi na makakakuha ng kahit anong proyekto (They told us that we should accept the reality that we must pay lawmakers if we want to continue to be awarded government projects. Otherwise, they warned us that we will be stricken off the list and will no longer be awarded any government project),” she also said.
Sarah said they were defiant at first, which led to their disqualification from public biddings. Because of this, she said they were forced to give in to the demands of the DPWH executives and the lawmakers’ staff members for fear that their business will go bankrupt.
“Matapos naming manalo sa mga bidding, may mga opisyal mula sa DPWH ang lumapit sa amin para humingi at kumuha ng bahagi nila sa halaga ng proyekto. Ang hinihingi nilang porsyento ay hindi bababa sa 10 percent at umaabot pa sa 25 percent na naging kondisyon upang hindi maipit ang implementasyon ng kontrata (When we won contracts, DPWH officials would approach us to ask for a certain percentage of the total project cost. They asked for at least 10 percent and sometimes up to 25 percent, which they set as a condition so that the project will be smoothly implemented),” she said.
BOXES OF MONEY
Sally Santos, general manager/owner of SYMS Construction Trading, told the panel that she used to borrow the license of Wawao Builders on the instructions of Hernandez in exchange for a three percent commission of the total project cost.
She said Wawao Builders owner Mark Allan Arevalo in return will get 2.8 percent of the total project cost for lending his construction firm’s license.
Santos said that once a project is completed and they were paid by the government the corresponding amount in the contract, she will deduct the commission for Arevalo and then deliver monies that she hid in boxes to Hernandez.
Hernandez admitted receiving the boxes of money, but said that he does not know how much they contained because he allegedly does not open them, and instead, directly delivers them to Alcantara.
Alcantara denied Hernandez’s claim.
Santos told senators that at one time, she allegedly delivered two batches of P245 million in cash to Hernandez.
She claimed that the amount she has delivered to Hernandez from 2022 to 2025 could reach at least P1 billion.
The Marcoleta panel yesterday approved a motion of Sen. Erwin Tulfo to cite in contempt engineer Brice Ericson Hernandez, the assistant district engineer of Bulacan’s 1st Engineering District, for lying before the committee.
During the questioning of senators, Hernandez refused to admit that he has been using an alias when going to casinos with Henry Alcantara, former district engineer of Bulacan’s 1st district engineering district; and Jaypee Mendoza, DPWH project engineer.
The panel confronted Hernandez with a fake driver’s license under the name Marvin Santos de Guzman which had Hernandez’s photo. But Hernandez insisted he did not use any alias despite the presentation of the fake ID, saying that he has a casino-issued membership card which he uses when he plays in the casinos.
Hernandez also said he went to casinos only when Alcantara invited him and Mendoza, and that the money that he used in betting allegedly came from Alcantara.
He said they were banned from playing in a casino in the southern part of Metro Manila after he won millions of pesos, but Sen. Jinggoy Estrada said Hernandez and his friends were banned because they “launder” money in the casino.
Marcoleta also presented documents from a casino hotel showing the winnings of Hernandez on different dates, which the engineer denied by saying that the only instance he went to the hotel was when he attended a convention.
Hernandez, however, later admitted he played in the hotel casino once.
Hernandez’s consistent lying did not sit well with Tulfo, who moved to cite him in contempt. Estrada seconded the motion.
Sen. Francis Escudero said he signed the contempt order versus Hernandez before he stepped down as Senate president on Monday afternoon.
Hernandez is now detained at the Senate building. – With Ashzel Hachero
