Twenty officials from the Department of Public Works and Highways (DPWH) in La Union and Davao Occidental, along with two construction firms linked to the Discaya couple and several House lawmakers, were charged before the Office of the Ombudsman on October 23 over alleged irregularities in flood control projects.

DPWH Secretary Vince Dizon filed cases for malversation and violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) against the respondents. He was accompanied by Independent Commission for Infrastructure (ICI) Chairperson Justice Andres Reyes.

The complaint documents were personally received by Ombudsman Jesus Crispin Remulla.

Named in the DPWH complaint were the following:

DPWH La Union 2nd District Engineering Office (DEO):

• Gil Lorenzo, District Engineer
• Raul Gali, Assistant District Engineer
• Mario Laroya, Chief, Construction Section
• Ethel Guerrero, Project Engineer
• Joseph Delizo, Project Engineer
• Christian Eduria, Project Engineer and Materials Engineer
• Albemar Elloise Estipular, Materials Engineer
• Nestor Sibayan, Representative, Office of the Construction Section
• Aries Graciano Novencido, Representative, Office of the Quality Assurance Section
• Jose Perez, Representative, Office of the Planning and Design Section
• Zyrah Marie Estipular, Representative, Office of the Maintenance Section
• Dan G. Ginete, Chief, Finance Section
• Marivic Manalo of Silverwolves Construction Corp., represented by Moises Tabucol, General Manager, and Alvin Diego

DPWH Davao Occidental District Engineering Office (DEO):

• Rodrigo Larete, District Engineer
• Michael Awa, OIC – Assistant District Engineer and Chief, Construction Section
• Joel Lumogdang, OIC – Chief, Construction Section
• Harold Villaver, Project Engineer
• Jafaeil Faunillan, Chief, Quality Assurance Section
• Josephine Valdez, Chief, Planning and Design Section
• Ranulfo Flores, Chief, Maintenance Section
• Czar Ryan Ubungen, Acting Chief, Finance Section
• St. Timothy Construction Corp., represented by Ma. Roma Angeline Rimando, authorized managing officer and/or Cezarah Rowena Discaya

“Iyan muna ang initial na pwede nating kasuhan dahil ‘yan ang pinapakita sa atin ng ebidensya,” Dizon said.

The cases involve flood control projects in La Union and Davao Occidental with a combined worth of P276 million.

Dizon previously inspected the flood mitigation structures and found that payments had been made despite the projects being “substandard and ghost projects.”

Two projects, each worth P89.7 million, are located along the Bauang River Basin in La Union. These were supposed to be completed in 2021. Silverwolves Construction, the contractor, had already been fully paid, but the projects were found to be substandard. Dizon noted that after the scandal broke out, the company resumed work on the structures.

Meanwhile, the P96.5 million flood control project in Davao Occidental was awarded to St. Timothy Construction, reportedly owned by Curlee and Sarah Discaya. “The project was never completed. And the construction… was started only last August of this year, already three years since the supposed completion and full payment of the project. So it is clearly a ghost project,” Dizon stressed.

Remulla said Benguet Rep. Eric Yap and ACT-CIS Party-list Rep. Edvic Yap are considered persons of interest in the investigation.

He stated that they are probing allegations that Eric Yap is a beneficial owner of Silverwolves Construction.

“A person of interest here is Congressman Eric Yap who is known to be the beneficial owner of the company (Silverwolves). He divested from it a few years ago, supposedly, but there is reason to suspect that he’s still the beneficial owner of the company, so there’s a clear case of conflict of interest also, punishable also under Republic Act 3019 (Anti-Graft and Corrupt Practices),” Remulla said.

He also noted that Eric Yap served as House Appropriations Committee Chair from 2020 to 2022, the same period when the Discayas were awarded the La Union flood control project.

Additionally, the Anti-Money Laundering Council (AMLC) discovered that the Discayas had transmitted around P70 million to Edvic Yap’s bank account.

“Meron na kaming nakuha na transmittal ng pera from the AMLC papunta kay Edvic Yap. So nakita natin yung pattern talaga na meron talaga silang kinalaman sa kontrata kasi yung transmittal ng pera galing sa mga Discaya,” he added.

Remulla also said they will look into allegations that then-Congressman Claude Bautista was the beneficial owner of another construction company.

He further mentioned Rep. Salvador Pleyto (Bulacan, 6th District) as another lawmaker who allegedly received funds from the Discayas, based on AMLC findings. Pleyto was said to be the president of S.A. Pleyto Construction Corp.

Remulla explained that while complaints filed before the Ombudsman are usually subject to initial evaluation, the presumption of regularity in government documents allows the cases to proceed directly to preliminary investigation, expected to last 60 days.

Dizon emphasized that more individuals may still face charges depending on the evidence. “Hindi tumitigil dito… Habang nakakakuha ng ebidensya at testimonya, pwedeng may mas matataas at pwedeng may mga nasa labas ng departamento,” he stated.

📷 DPWH