Contractors insist: No ghost projects, illegal wealth

MANILA, Philippines — Contractors at the center of multibillion-peso flood control deals yesterday denied allegations of ghost projects, even as senators grilled them on possible anomalies within government agencies.

At yesterday’s Senate Blue Ribbon committee hearing presided over by Sen. Rodante Marcoleta, businesswoman Sarah Discaya, president of top contractor Alpha and Omega Construction Corp., admitted to being part owner with her husband Curlee Discaya of eight construction firms – including Amethyst Horizon, and Waymaker OPC.

But she insisted that her companies had completed all awarded projects, and her family’s wealth was legally earned.

“Nothing, definitely,” Discaya told Senate President Pro Tempore Jinggoy Estrada, when asked if any of her firms had implemented ghost projects.

Pressed further, she promised to submit photographs of all “400-plus” completed projects.

Estrada, however, questioned why Discaya came to the hearing without complete records, noting she had earlier claimed her companies joined 491 biddings for flood control projects in 2022 alone, winning 71 under Alpha and Omega.

“If you come here you have to be prepared. You do not come here unprepared… You are the most prominent contractor. You have to come here prepared,” Estrada said.

He also alleged that the Discayas’ nine construction companies competed against one another in public biddings for government contracts under the Department of Public Works and Highways (DPWH).

The senator went on to link Discaya’s relatives to the other firms, pointing out that company calling cards presented by Sen. Risa Hontiveros bore the names of her husband, Pacifico “Curlee” Discaya, her son and cousins.

“From the left pocket to the right pocket,” Estrada remarked, suggesting the firms were part of a single network cornering DPWH contracts.

Aside from Alpha and Omega General Contractor and Development Corp. and St. Timothy Construction Corp. – which are among the top 15 contractors identified by President Marcos as having cornered the most flood control projects – Discaya admitted during the hearing that she also has beneficial interest in the following construction firms that secured government contracts for flood control projects: St. Gerrard Construction and Development Corp., St. Matthew General Contractor and Development Corp., Elite General Contractor and Development Corp., Amethyst Horizon Builders and General Contractor and Development Corp., YPR General Contractor and Construction Supply Inc., Great Pacific Builders and General Contractor Inc. and Way Maker One Person Corp.

According to the citizen portal www.sumbongsapangulo.ph, which lists all supposedly completed flood control projects in the country, the nine Discaya-owned construction firms were awarded more than 400 government contracts amounting to around P30 billion from 2022 up to the present.

Licenses ‘for rent’

Hontiveros raised concerns over the possibility the Discaya companies could be “renting out” licenses to boost their bidding capacity despite employing only around 200 office staff.

Estrada also brought up Discaya’s personal wealth, questioning her ownership of 28 luxury vehicles – including a Rolls Royce, Maybach, Bentley and Cadillac Escalade. “My God. And you bought that from the taxpayers’ money?” he asked. Discaya denied the allegation.

Another contractor, Marjorie Samidan of MG Samidan Construction Corp., which secured P5.02 billion in flood control projects mostly in the Cordillera Administrative Region from 2022 to 2025, likewise denied irregularities.

She flatly said “no” when asked by Sen. Ronald dela Rosa if her firm had ghost projects. Dela Rosa warned her of “consequences” if irregularities would be proven.

Meanwhile, Mark Allan Arevalo, general manager of WAWAO Builders, invoked his right against self-incrimination when Estrada asked him how many ghost projects his firm had in Bulacan.

While he refused to admit having projects in Bulacan, including ghost projects as claimed by Sen. Panfilo Lacson in a privilege speech two weeks ago, Arevalo admitted having earned contracts for flood control projects in Quezon province and Quezon City.

PCAB under fire

Senators also raised doubts over the credibility of the Philippine Contractors Accreditation Board (PCAB) to investigate irregularities in the construction sector, pointing out that some of its board members are themselves contractors with government projects.

During the hearing, Sen. Erwin Tulfo said PCAB cannot credibly conduct probes, as its own directors were involved in contracting.

“How can you watch over yourself? Isn’t it the question to ask is ‘when are you resigning?”’ he asked PCAB chairman Pericles Dakay.

Dakay admitted he was aware that there were contractors within PCAB and the Construction Industry Authority of the Philippines, but noted that they no longer have government contracts.

Tulfo noted that new DPWH Secretary Vince Dizon had already announced a sweeping revamp of the PCAB.

“So, that investigation you’re saying is nonsense,” he added.

Senate Minority Leader Vicente Sotto III also grilled Dakay over the renewal of licenses for companies previously blacklisted by the DPWH, including firms linked to Discaya.

“It means if there’s no complaint, it just goes on and on,” Sotto said. Dakay remarked the PCAB only acts upon verified complaints.

Also during the hearing, the Commission on Audit (COA) said it would begin filing charges within the month against officials and contractors found liable in the alleged “ghost projects” of the DPWH.

The audit body, through acting assistant director Tracy Sunico, made the commitment when asked by Dela Rosa why no cases had been filed despite audit findings showing questionable projects and disbursements.

“If you do post audit, you would go to the area to check on the project. Now, you’ve not seen anything, is disallowance enough? Isn’t it part of your role as COA to file cases?” he asked.

Sunico said “it’s our next step.”

She said the process would cover both disbursement vouchers and the liability of project implementers.

COA ‘slow’

Dela Rosa, however, noted that government funds had already been spent and projects paid for before auditors took action.

“People watching us are saying there are many ghost projects because COA acts so slow,” Dela Rosa said.

The COA official clarified that one of the projects cited in the inquiry was declared completed in July 2025, with supporting disbursement vouchers only due for submission in August.

“The soonest possible time, Your Honor… this month po,” Sunico assured, saying both DPWH management officials and contractors may be held accountable.

In a memorandum issued on Aug. 20, COA Chairman Gamaliel Cordoba ordered the immediate inspection of all ongoing and completed projects in provinces between January 2022 and July 2025.

Inspectors have been tasked to verify both the physical existence of projects and compliance with design and specifications, with video and geo-tagged photo documentation required.

Central Luzon received the biggest share of the nationwide P548-billion flood control budget from July 2022 to May 2025, with Bulacan alone getting P98 billion, the single largest allocation.

Former Public Works secretary Manuel Bonoan showed up at the hearing to request that he be excused from participating as he had just resigned, on grounds of command responsibility.

“Effective today, Sept. 1, since I am no longer the secretary of Public Works and Highways and I don’t have the official capacity to represent the department, that I may be excused on the proceedings at this point in time,” he said.