MANILA — Contractor Sarah Discaya pleaded not guilty Tuesday to charges of graft and malversation of public funds linked to a P96.5 million alleged “ghost” flood control project in Davao Occidental.

The arraignment took place before the Regional Trial Court Branch 27 in Lapu-Lapu City, where Discaya, along with Maria Roma Rimando — president of Discaya’s St. Timothy Construction — and eight Department of Public Works and Highways (DPWH) officials, entered not guilty pleas. Among those charged were Rodrigo Larete, Michael Awa, Joel Lumogdang, Harold John Villaver, Jafael Faunillian, Josephine Valdez, Ranulfo Flores, and Czar Ryan Ubungen.

Prosecutors allege the accused conspired to approve and release payments for the flood control project — which was reportedly either partially completed or never implemented — as if it had been fully executed. The alleged scheme led to the misuse of P96.5 million in public funds, prosecutors said.

All defendants denied wrongdoing, insisting they are innocent. Their motions to have the charges dismissed and to transfer Discaya from Lapu-Lapu City Jail to NBI custody were rejected by the court. Discaya was returned to the Lapu-Lapu City Jail immediately after the hearing.

The court set the pre-marking of evidence for Jan. 27 and the pre-trial conference on Feb. 3, where key issues and evidence will be formally presented.

Discaya, who was flown to Cebu on Dec. 19 and placed in a standard jail cell, has appeared in several Senate hearings prior to her arrest. Authorities emphasized that she would receive no special treatment while in custody.

📷 Senate of the Philippines