Billions Down the Drain: Flood Control Funds Siphoned into Lawmakers’ Pockets?

contractors Sarah and Pacifico “Curlee” Discaya,

Billions Down the Drain: Flood Control Funds Siphoned into Lawmakers’ Pockets?

By Wilma N. Yamzon – TheNationweek.com l September 10, 2025  

MANILA, Philippines – As millions of Filipinos grapple with devastating floods, a Senate Blue Ribbon committee hearing has unearthed shocking allegations of rampant corruption within the Department of Public Works and Highways (DPWH), with billions in flood control funds allegedly diverted into the pockets of corrupt lawmakers.  

The explosive testimony, delivered by government contractors, paints a picture of a deeply entrenched system of kickbacks, rigged bidding processes, and threats against those who refuse to comply.  

Couple Sarah and Curlee Discaya, owners of St. Gerrard Construction, detailed a scheme wherein lawmakers and high-ranking DPWH officials allegedly demanded a percentage of funds in exchange for project approval and smooth implementation.  

Their testimony raises serious questions about the integrity of the bidding process and the potential misuse of taxpayers’ money intended for flood mitigation projects.  

‘Ghost Projects,’ Extortion Tactics  

According to the Discayas, their initial success in securing legitimate projects quickly made them targets of government officials seeking funds.  

They alleged that district engineers, regional directors, and chiefs of staff began soliciting kickbacks, framing participation in the scheme as a prerequisite for continued success.  

“They told us we had to accept the reality that we had to pay lawmakers if we wanted to continue getting government projects,” Sarah declared during a Senate hearing on Monday (Sept. 8, 2025).  

Refusal to participate, she claimed, would result in project termination or the creation of artificial obstacles, effectively “holding their projects hostage.”  

Curlee alleged that DPWH officials demanded a cut ranging from 10% to as high as 25% of the project cost for “smooth contract implementation.”  

The alleged extortion scheme raises concerns about the quality of work being performed and the safety of infrastructure projects meant to protect communities from floods.  

Key Allegations:

Systemic Kickbacks 

Contractors claim they were pressured to pay a percentage of the project costs to lawmakers and some DPWH officials.  

Rigged Bidding  

The Discayas alleged that the bidding process was manipulated to favor those willing to participate in the kickback scheme.  

Project Termination  

Contractors who refused to pay were allegedly threatened with project termination or the creation of artificial obstacles.  

Implicated Officials 

The Discayas presented a list of individuals allegedly connected to the scheme, including former undersecretary Terrence Calatrava and numerous members of Congress (full list below).  

Romualdez Link?  

Curlee Discaya implicated Rep. Marvin Rillo, who named Speaker Martin Romualdez as a close friend and claimed funding requests came directly from unprogrammed funds and insertions approved by the Speaker.  

List of Alleged Participants: 

1. Terrence Calatrava, former undersecretary, Office of the President  

2. Rep. Arjo Atayde  

3. AGAP Party List Rep. Nicanor Briones  

4. Marikina Mayor Marcelino Teodoro  

5. Florida Robes  

6. Eleandro Jesus Madrona  

7. Benjamin Agarao Jr.  

8. Florencio Gabriel Noel  

9. Leody “Odie” Tarriela  

10. Marvin Rillo  

11. Reynante Arrogancia  

12. Teodoro Haresco  

13. Antonieta Eudela  

14. Dean Asistio  

15. Marivic Co Pilar  

Contractors Seek Protection  

Fearing retaliation, the Discayas have offered to become state witnesses, seeking protection for themselves and their families.  

“We are ready to testify voluntarily and without coercion as state witnesses and tell everything that is happening in the corruption of the House, DPWH, and other government employees,” Curlee stated.  

Denials, Looming Investigation 

Romualdez and several of the officials named by the Discayas have vehemently denied the accusations.  

However, the allegations have already triggered a political earthquake, culminating in the ouster of Francis Escudero as Senate President and his replacement by Sen. Vicente Sotto III.  

The change in leadership adds significant pressure on the Senate to conduct a thorough investigation.