Rigged flood control contracts may cost Discayas P300 billion in government fines

National

FROM luxury homes to billions in frozen bank accounts, the fortunes of contractor couple Curlee and Sarah Discaya are under siege as authorities pursue penalties that could reach ₱300 billion over alleged rigged flood control contracts.

The Department of Public Works and Highways (DPWH) on Friday, Oct. 3, said it has referred cases of bid manipulation to the Philippine Competition Commission (PCC) for preliminary investigation and possible prosecution under the Philippine Competition Act.

DPWH Secretary Vince Dizon said 12 projects in Bulacan and Oriental Mindoro are at the center of the initial complaints.

Five contractors were involved, including St. Timothy Construction Corp., owned by the Discayas, which secured two projects. Wawao Builders and Sunwest Inc. won three projects each, while IM Construction Corp. and SYMS Construction Trading Inc. obtained two apiece.

Dizon explained that penalties for these 12 contracts could reach ₱2.3 billion but warned that the Discayas’ liability may be far greater.

From 2016 to 2025, their companies reportedly won 1,214 flood control projects worth nearly ₱78 billion. With fines capped at ₱250 million per contract, they could face up to ₱300 billion.

He also pointed to the couple’s admission before the Senate Blue Ribbon committee that their firms took part in bid rigging.

“We have to throw everything at these people. We will file every possible case because they need to be held accountable,” Dizon said in a Philstar report.

Alongside the PCC case, the DPWH has endorsed 18 properties owned by the Discayas, including a mansion in Pasig City, to the Independent Commission for Infrastructure and the Anti-Money Laundering Council (AMLC) for possible forfeiture. The assets are valued at around ₱1 billion.

The AMLC confirmed that the Court of Appeals had issued a fourth freeze order on October 3, immobilizing 57 bank accounts, 10 real properties and nine vehicles tied to the alleged irregularities.

With this, the total frozen assets linked to questionable flood projects have exceeded ₱4 billion. Officials said the seizures now cover 1,620 bank accounts, 54 insurance policies, 163 vehicles, 40 real estate properties and 12 e-wallet accounts. Investigators also noted holdings in luxury residences, high-end cars, unit investment trust funds and cryptocurrency. “Every peso frozen is a peso that cannot be used to sustain corruption,” AMLC executive director Matthew David said in the same report.

The DPWH has also sought to revoke the licenses of 20 engineers, accountants and architects implicated in the anomalies.

Among those identified as key players were former Bulacan first district engineers Henry Alcantara, Brice Ericson Hernandez, Jaypee Mendoza and Paul Jayson Duya.

Evidence submitted to the Professional Regulation Commission (PRC) includes reports from the Commission on Audit and the DPWH’s internal audit service.

Dizon said the effort to revoke the licenses of engineers, accountants, and architects aligns with President Marcos’ directive to hold accountable not only contractors but also DPWH officials and licensed professionals involved in irregular projects.

PRC chair Charito Zamora emphasized that the commission will act only on substantial evidence and will ensure due process by giving those implicated an opportunity to respond before any final decision is made.(MyTVCebu)