Court grants Sara Discaya P1 million bail

CEBU, Philippines — The Regional Trial Court (RTC) in Lapu-Lapu City has granted the petition for bail of controversial contractor Sarah Discaya, allowing her to post a P1 million bond while standing trial over the alleged P96.5-million ghost flood control project in Davao Occidental.

In a 15-page resolution dated July 7, RTC Branch 27 Presiding Judge Nelson G. Leyco ruled that the prosecution had not presented sufficiently strong evidence at this stage to establish Discaya's active participation in the alleged malversation of public funds through falsification of public documents.

It also granted the petition for bail of Department of Public Works and Highways (DPWH) Davao Occidental Acting Finance Section Chief Czar Ryan S. Ubungen, whose bail was fixed at P300,000.

However, the court denied the bail petitions of the eight other accused after finding that the evidence of guilt against them was strong. They are District Engineer Rodrigo C. Larete, Assistant District Engineer Michael P. Awa, Officer-in-Charge Construction Section Chief Joel M. Lumogdang, Project Engineer Harold John E. Villaver, Officer-in-Charge Quality Assurance Section Chief Jafel C. Faunillan, Planning and Design Section Chief Josephine C. Valdez, Maintenance Section Chief Ranulfo A. Flores, and St. Timothy Construction Corp. authorized managing officer Ma. Roma Angeline D. Rimando.

The charges stem from the alleged anomalous implementation of a P96.5-million flood control project along the Culaman River in Jose Abad Santos, Davao Occidental.

Prosecutors alleged that St. Timothy Construction Corp. falsely claimed to have completed the project in 2022 and received full payment even though the flood control project was allegedly a "ghost project."

An inspection conducted by investigators from the DPWH Central Office reportedly uncovered several irregularities, including the absence of the revetment structure at the approved project site, discrepancies in project documents, and indications that the existing structure was built only in 2025 after the alleged anomaly had already been exposed.

The prosecution also alleged that Discaya was the beneficial owner of St. Timothy Construction Corp. and was therefore complicit in the alleged scheme.

In granting Discaya's petition for bail, however, the court ruled that the prosecution failed to sufficiently establish her direct participation in the alleged crime.

“As far as Discaya is concerned, the evidence is not strong in showing her active participation in the crime,” the resolution stated.

The court noted that none of the prosecution witnesses testified regarding Discaya's involvement in the implementation of the flood control project.

Former employees of St. Timothy Construction Corp. likewise admitted that they had no personal knowledge of the project that is the subject of the criminal case.

Leyco cited Supreme Court rulings emphasizing that corporate officers cannot automatically be held criminally liable solely by virtue of their position in a corporation.

The court said criminal liability requires proof of active participation in the commission of the alleged offense or proof that the officer had the authority to prevent it.

“At this point in time, the pieces of evidence highlighted by the prosecution are not yet enough to prove Discaya's instrumental participation in committing the criminal act of falsifying the documents, or in conspiring with the other accused. As such, this Court has to afford her the Constitutional right to post bail during the pendency of the main trial in this case,” the 15-page resolution read.

Leyco stressed that the grant of bail should not be interpreted as a declaration of innocence.

“It reflects the Court’s faithful adherence to the Rule of Law,” the resolution stated, adding that the findings made during bail proceedings are merely provisional and that the issue of criminal liability will be resolved during the full trial.

In an interview with GMA Regional TV's Balitang Bisdak, lawyers representing the other respondents said they would pursue available legal remedies.

Atty. Vincent Villa, lead counsel for the DPWH officials from Davao Occidental, said they respect the court's ruling, although his clients were disappointed by the denial of their petitions for bail.

Another defense lawyer, Atty. Joseph Randi Torregosa, said they may file a motion for reconsideration and, if necessary, elevate the matter through a petition for certiorari.

In a separate section of the resolution titled "Reflections Beyond the Case: A Humble Plea for Re-Examination,"  Leyco acknowledged that his ruling may be viewed as a setback in the government's fight against corruption but stressed that judges are bound to apply the law as it currently stands.

“I am not unaware that the Resolution may be viewed as a setback in the fight against corruption. That lingering thought made it even more difficult to gather the resolve to issue what will most likely be an unpopular decision. Nevertheless, this is how our present legal system is structured. Until and unless that system is changed, my role as a judge imposes upon me the positive duty to remain within its confines,” Leyco wrote.

He said personal convictions cannot override the rule of law, even if a judge believes that a different outcome would better serve the public interest.

The judge also raised broader questions on whether the current evidentiary framework—particularly the requirement of proof beyond reasonable doubt—continues to strike the proper balance between protecting the constitutional rights of the accused and ensuring accountability in corruption cases.

He observed that sophisticated corruption schemes are often carried out through intermediaries, making it difficult to establish the direct participation of those who allegedly benefit most from the crimes.

While courts must faithfully apply existing laws, Leyco said there should be room for meaningful discussions on possible legal reforms that would better address corruption while preserving constitutional safeguards.

Discaya and the eight DPWH officials were committed to the Lapu-Lapu City Jail on December 20, 2025, following the filing of the charges.

Discaya and her husband, Pacifico “Curlee” Discaya, are also facing a separate non-bailable criminal case involving the alleged P53.9-million ghost flood control project in Calumpit, Bulacan. — /FPL (FREEMAN)