Beyond the reach of justice

When the Independent Commission for Infrastructure (ICI) wound down on March 13 this year, two questioned projects submitted to them for investigation had nothing to do with alleged “ghost” flood control projects. All the graft-tainted flood control projects elevated to the ICI were those of the Department of Public Works and Highways (DPWH). But two infrastructure projects that were submitted to the ICI with total worth of P1.5 billion involved computerization project at the Land Transportation Office (LTO).

LTO assistant secretary Markus Lacanilao disclosed during our Kapihan sa Manila Bay news forum last Wednesday he first discovered the two questionable projects after he assumed office in October last year and conducted due diligence review of his new mandate. Prior to LTO, President Ferdinand “Bongbong” Marcos Jr. (PBBM) appointed Lacanilao in August 2024 as the Philippine special envoy on transnational crimes. 

Lacanilao conducted a comprehensive inventory of all LTO-owned properties and infrastructure projects “in faithful execution of the directives to uphold transparency, accountability and integrity in public service” delegated to him by PBBM. Upon review, he found out several infrastructure – despite being relatively new – remained unutilized or underutilized. This prompted him to order further internal inquiry, including relevant project documentation and thorough examination of existing audit reports issued by the Commission on Audit (COA).

Two of these questioned LTO projects were awarded to contractors supposedly owned by the family of former Ako Bicol party-list representative Elizalde “Zaldy” Co. As of this writing, the fugitive solon remains at large and is allegedly hiding in a country with no extradition treaty with the Philippines. He fled abroad before corruption charges were formally filed in courts against him and he resigned in September last year as first nominee of their Ako Bicol party-list that got re-elected in the present 20th Congress. 

Co is a contractor-turned-congressman who earned the moniker as among the so-called “cong-tractors” of the House of Representatives during the 19th Congress. These alleged “cong-tractors” purportedly cornered and got multimillion-peso kickbacks from DPWH flood control projects. As the erstwhile chairman of the House committee on appropriations during the defunct 19th Congress, Co’s family-owned companies got juicy government contracts out of the approved annual budgets from 2022 to 2025.

The first LTO project, Lacanilao cited, was called Road Safety Interactive Center (RSIC), an information technology (IT) hub worth P499 million. Based on COA Audit Observation Memorandum (AOM) No. F184-2025-13-2024, it was reported to Lacanilao about the “improper use of IT dormitory rooms at no cost to its occupants; poorly maintained dormitory rooms and idle IT hub equipment.”

A month later, the second project reached the senators, who denounced the P900-million LTO Command Center that remains only partially operational. It was a project awarded back in 2021 but which the LTO has not been able to utilize despite the contracted timetable of completion. Sen. JV Ejercito identified the LTO project’s contractors as LDLA Marketing and Trading Inc. and Sunwest Construction and Development Corp. 

The project was deemed a “failure to develop required annual plans and programs and prepare accomplishment reports, in violation of Section 2 of Presidential Decree No. 1445, which mandates efficient and effective utilization of government funds.”

On Feb. 4 this year, the LTO referred the case to ICI and requested further investigation. Per ICI’s report, it was reported to the LTO chief that the case was endorsed to the Office of the Ombudsman and is still pending evaluation.

The entities and personalities requested for investigation and filing of criminal and administrative cases were the incorporators/directors/officers/authorized representatives of this joint venture project, namely, LDLA and Sunwest. Named as co-respondents in this case, according to Lacanilao, were former and present LTO officials and employees now undergoing administrative investigations.

 On March 13, 2026, ICI Chairman Andres Reyes Jr. handed over all documents, findings and evidence to the ombudsman headed by former justice secretary Jesus Crispin Remulla.

Co’s Sunwest and LDLA are sort of “suki” of the ombudsman in terms of graft cases filed against them for alleged anomalous transactions with government agencies. In a resolution it handed down in July 2025, the ombudsman ordered the filing of criminal graft and falsification charges at the Sandiganbayan against former Department of Education (DepEd) officials and representatives of the supplier joint venture, including ex-Rep. Co’s family-owned Sunwest and LDLA and VST ECS Phils. Inc., which secured the contract to supply 39,000 units at P58,300 per laptop. The COA and subsequent Senate investigations flagged the computers as overpriced and outdated entry-level models funded by DepEd’s P2.4-billion laptop procurement.

Lacanilao revealed he is also awaiting the final action of the Bureau of Customs on the Bugatti, one of the many luxury vehicles seized from the Discaya couple. The couple is co-respondents of Co in several cases involving the flood control scandal. It turned out the Bugatti was smuggled but got registered at the LTO. Lacanilao has purged the LTO personnel involved. 

Despite being tagged in hanky-panky deals with the government projects, Co apparently remained an active proponent in “ghost” or non-existent if not sub-standard flood control projects. He first resigned as chairman of the House committee on appropriations following PBBM’s explosive “Mahiya naman kayo” dig at legislators during his State of the Nation Address (SONA) in July 2025. Subsequently, former speaker Martin Romualdez, who designated Co to chair the most powerful House committee, followed suit and stepped down as the fourth highest elected official of the land.

Before she resigned from the Marcos Cabinet in July 2024, Vice President Sara Duterte tagged both Romualdez and Co as the only two officials who decided all about the budget of the national government. 

VP Duterte is currently undergoing impeachment trial and just last Friday was slapped with arrest warrant on grave threats charges filed in Quezon City court. The ombudsman repeatedly threatens to hail Romualdez to the Sandiganbayan on the flood control scam.

Meanwhile, Co is cooling his heels outside the reach of the Philippine justice system.