Senate Hearing Unveils Allegations of Fraud vs Discaya

Sarah Discaya

Senate Hearing Unveils Allegations of Fraud vs Discaya

By Bing Jabadan – TheNationWeek.Com | September 1, 2025

MANILA, Philippines – In a gripping session of the Senate Blue Ribbon Committee on Monday (Sept. 1, 2024), contractor Sarah Discaya faced serious allegations regarding her role in flood control projects that reportedly yielded her billions in kickbacks.

As she defended her actions, skepticism hung in the air, particularly from former Commission on Audit Commissioner Heidi Mendoza, who challenged Discaya’s claim of having “23 years in business.”

Fabrication of Experience

Discaya’s companies, including Alpha & Omega General Contractor & Development Corp. and St. Timothy Construction Corp., were established merely 11 years ago in 2014.

St. Gerrard Construction General Contractor & Development Corp. followed suit in 2015, while Way Maker General Contractor OPC only emerged in 2019, coinciding with the introduction of OPCs under the Revised Corporation Code.

This timeline casts serious doubt on Discaya’s assertion of extensive experience, suggesting it is a mere fabrication rather than a reflection of her companies’ true history.

Profit Claims Under Fire

Her claims of generating billions in profits are equally questionable.

Although her firms secured contracts worth ₱31–32 billion for flood control projects from 2022 to 2025, the figure represents contract values, not actual earnings.

In contrast, well-established construction giants like Megawide and EEI Corp. report significantly lower net profits, raising eyebrows about the feasibility of such earnings for newer, smaller contractors linked to Discaya.

Lack of Financial Clarity

Financial analysts explain that to achieve a ₱1-billion profit at a modest 5% margin, a contractor would need to generate ₱20 billion in revenue.

At a tighter margin of 1.5%, that figure skyrockets to ₱66.7 billion.

Yet, Discaya’s companies have not made any public financial records available to substantiate her claims.

Without audited financial statements or tax filings, her assertions of earning billions appear to be little more than smoke and mirrors, observers said.

Troubling History of Compliance Issues

The scrutiny of Discaya’s business practices further deepened with her troubling track record.

St. Gerrard was blacklisted by the Department of Public Works and Highways in 2015 and 2020 for regulatory non-compliance.

On the other hand, St. Timothy has faced direct allegations from President Ferdinand Marcos Jr. himself regarding “ghost projects.”

Additionally, investigations by the Bureaus of Customs and Internal Revenue into Discaya’s lavish lifestyle and a fleet of luxury vehicles have raised significant concerns.

Public protests outside her Pasig office reflect a growing discontent over the alleged misappropriation of taxpayers’ money.

Call for Accountability

The facts surrounding Discaya and her companies paint a troubling picture:

• Her businesses are far younger than claimed.

• Achieving billions in net profit is unusual, even for larger, established firms.

• Contract values do not equate to actual income or profits.

• Longevity in business does not guarantee financial success; transparency and performance are crucial.

Until Discaya can provide credible financial documentation, including audited statements and tax returns, her claims remain unverified and warrant thorough investigation.