Floodgates of Corruption: Senate Hearing Exposes ‘Ghost Projects,’ Tests Marcos’ Anti-Graft Resolve

Contractors Sarah Discaya and Mark Allan Arevalo are accused of amassing billions in ill-gotten gains from lucrative flood control ghost projects.

Floodgates of Corruption: Senate Hearing Exposes ‘Ghost Projects,’ Tests Marcos’ Anti-Graft Resolve

By Bing Jabadan – TheNationWeek.Com | September 2, 2025

MANILA, Philippines – A Senate Blue Ribbon Committee hearing this week has ripped open a gaping hole in the country’s flood control efforts, exposing a potential cesspool of corruption involving kickbacks, “ghost projects,” and raising serious questions.

The hearing tackles President Ferdinand Marcos Jr.’s commitment to check the country’s endemic graft.

Triggered by devastating floods across the nation, the hearing centered on the testimony of contractor Sarah Discaya, accused of amassing billions in ill-gotten gains from lucrative flood control projects.

Discaya’s companies, including Alpha & Omega General Contractor & Development Corp. and St. Timothy Construction Corp., have become prominent within just 11 years, a meteoric rise that has fueled intense scrutiny.

Adding fuel to the fire, Mark Allan Arevalo, owner of Wawao Builders, also appeared before the committee.

Wawao Builders is one of 15 contractors President Marcos himself flagged as potentially involved in anomalous flood control deals in Bulacan and suspected of perpetrating “ghost projects” or projects that exist only on paper in the province.

‘Everybody Happy:’ Peeling Back the Layers of Systemic Corruption

An anonymous contractor’s testimony painted a stark picture of the bidding process for government projects.

According to him, connections and political endorsements are virtually prerequisites for success.

A deeply entrenched “standard operating procedure” (SOP) allegedly exists, demanding contractors pay advance kickbacks to district engineers “before” bids are even submitted.

Sources further described a systematic corruption scheme, dubbed “everybody happy,” where kickbacks flow from the lowest clerk to the highest officials, ensuring widespread complicity in the misappropriation of public funds.

The system, they say, ensures that everyone profits from the inflated budgets and substandard work.

The hearing poses the critical question: will those responsible – the contractors, government officials, and politicians allegedly colluding to siphon off public money – finally face justice?

Public outrage has intensified following revelations of Discaya’s lavish lifestyle, allegedly fueled by Department of Public Works and Highways flood control projects.

Marcos’ Anti-Corruption Gambit: Genuine Reform or Political Posturing?

Marcos has responded to the public outcry by launching a lifestyle audit of government officials.

In his July State of the Nation Address, he directly linked the severe flooding crisis to corruption and disclosed a list of firms awarded flood-control contracts, even personally inspecting sites and uncovering substandard work.

His office claims to have received over 2,000 corruption complaints within days of his call for citizen reporting.

While these actions appear decisive, skepticism lingers.

Marcos’ own family history is deeply tainted by allegations of corruption during his father’s Martial Law era.

Furthermore, some of his close associates are reportedly linked to companies that have secured lucrative government contracts, potentially creating a significant conflict of interest.

Analysts suggest Marcos’ anti-corruption drive may be a strategic maneuver to control the narrative, preempt accusations of ineffectiveness, and deter members of the ruling coalition from defecting to rival political factions.

By highlighting the flood-control issue, Marcos has also justified expanding executive authority in approving or rejecting budget amendments.

A History of Damage Control: Is This More of the Same?

The presidential palace has a history of releasing damaging information about political figures involved in corruption scandals, a tactic often used to preempt opposition and manage public sentiment, observers say.

By publicizing the names of contractors associated with billion-peso flood-control projects, Marcos may be attempting to divert attention from other pressing budgetary concerns, such as confidential funds and the nation’s ballooning debt.

Despite Marcos’ pledge to combat corruption, the public remains grappling with alarming corruption statistics and wary of a deeply ingrained culture of impunity that has enabled the misappropriation of public funds.

While Marcos aims to lead the anti-corruption charge, he risks becoming the focal point of a movement demanding transparency and accountability as citizens recognize that Malacañang itself orchestrated and approved the budget, including the controversial pork barrel allocations.

The flood control scandal and the ensuing Senate hearing have laid bare the deep-seated corruption plaguing the Philippines.

Whether the President’s actions will lead to genuine reform or simply serve as a political smokescreen remains to be seen.

The Flood Control Fortune: Who Got What?

From July 2022 to May 2025, the Marcos government implemented 9,885 flood control projects worth ₱545.64 billion.

A staggering ₱100 billion – roughly 20% – went to the following 15 contractors, according to the DPWH:

1. Legacy Construction Corporation  
2. Alpha & Omega Gen. Contractor & Development Corporation  
3. St. Timothy Construction Corporation  
4. QM Builders  
5. EGB Construction Corporation  
6. Topnotch Catalyst Builders Inc.  
7. Centerways Construction and Development Inc.  
8. Sunwest, Inc.  
9. Hi-Tone Construction & Development Corp.  
10. Triple 8 Construction & Supply, Inc.  
11. Royal Crown Monarch Construction & Supplies Corp.  
12. Wawao Builders  
13. MG Samidan Construction  
14. L.R. Tiqui Builders, Inc.  
15. Road Edge Trading & Development Services  

Five of these firms — Legacy Construction Corp., Alpha & Omega, St. Timothy, EGB Construction, and Road Edge Trading — had projects in almost all regions nationwide, raising serious questions about how such a small group of companies could corner such a significant portion of the national flood control budget.

Adding another layer of complexity, some of the top flood control contractors named by Marcos have links to Zaldy Co, a co-founder of Sunwest Construction and current Ako Bicol representative, and Discaya, who recently ran against and lost to Pasig City Mayor Vico Sotto.