Billions in Flood Control Funds Siphoned: Senators, Congressmen Implicated in Kickback Scandal

Billions in Flood Control Funds Siphoned: Senators, Congressmen Implicated in Kickback Scandal

By Bing Jabadan – TheNationWeek.Com  | September 12, 2025

EDSA SHRINE, Philippines – A firestorm of public outrage is engulfing the nation as allegations of massive corruption within the Department of Public Works and Highways (DPWH) surface, implicating senators, congressmen, and high-ranking officials in a multi-billion peso kickback scheme tied to flood control projects.

Anti-corruption advocates staged a powerful rally at EDSA Shrine on Thursday (Sept. 11, 2025), demanding accountability and a thorough, independent investigation.

The scandal, centered around accusations that DPWH district engineers and Discaya Constructions Company amassed billions through “ghost projects” – flood control initiatives existing only on paper – has ignited a crisis of confidence in the government’s ability to protect its citizens from increasingly devastating floods.

Contractors Expose Systemic Corruption

The explosive allegations emerged during a Senate Blue Ribbon committee hearing, wherein government contractors Sarah and Curlee Discaya, owners of St. Gerrard Construction, detailed a deeply entrenched system of extortion, rigged bidding processes, and threats against those who refused to participate.

The Discayas testified that lawmakers and high-ranking DPWH officials allegedly demanded a percentage of project funds – ranging from 10% to as high as 25% – in exchange for project approval and smooth implementation.

Refusal to comply, they claimed, resulted in project termination or the creation of artificial obstacles, effectively “holding their projects hostage.”

“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 the hearing.

Key Allegations Unveiled

Systemic Kickbacks: Contractors claimed they were pressured to pay a percentage of 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.

Romualdez Link:

The testimony took a dramatic turn when Curlee Discaya implicated Rep. Marvin Rillo, who allegedly claimed that funding requests came directly from unprogrammed funds and insertions approved by Speaker Martin Romualdez.

List of Alleged Participants

The Discayas presented a list of individuals allegedly connected to the scheme, including:

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.

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

Political Earthquake, Senate Shakeup

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

Sen. Panfilo Lacson replaced Sen. Rodante Marcoleta as chairman of the Blue Ribbon Committee.

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

Public Demands Accountability

“The people demand accountability!” chanted protesters at the EDSA Shrine, echoing a sentiment that resonates across the nation.

The demonstrators called for swift and impartial investigations, demanding that those found guilty face the full force of the law, including jail terms.

Rally organizers stressed that they will continue their protests until concrete action is taken and those responsible for the alleged corruption are brought to justice.