Flood Funds Scandal: DPWH Vows Asset Seizure as 2 Senators Face Bribery Allegations

DPWH Secretary Vince Dizon

Flood Funds Scandal: DPWH Vows Asset Seizure as 2 Senators Face Bribery Allegations

By Bing Jabadan – TheNationWeek.Com | September 16, 2025

MANILA, Philippines – A widening scandal has threatened to engulf the Department of Public Works and Highways (DPWH) as officials pledge to recoup billions of pesos allegedly embezzled from flood control projects.

Public Works Secretary Vince Dizon is leading a campaign to freeze assets and pursue criminal charges against contractors and DPWH personnel involved in anomalous flood control projects.

“Jail time is not enough,” Dizon said as the Senate probes “ghost” flood control projects.

“We must ensure the return of the people’s money. We’re talking about billions of pesos in projects that were either unfinished, substandard, or outright ‘ghost’ projects. We will leave no stone unturned in recovering these funds,” he declared.

Charges Filed

The DPWH has filed graft charges against 20 government engineers and employees in Bulacan and four private contractors, including Cezarah “Sarah” Discaya, known for her family’s opulent lifestyle.

A second wave of criminal complaints is set to be filed next week, targeting flood control irregularities in Oriental Mindoro.

Dizon plans to meet with the Anti-Money Laundering Council to initiate the freezing and forfeiture of assets belonging to those implicated in anomalous flood projects.

The DPWH is also going after contractors who have allegedly “damaged” other infrastructure projects.

“We will first pursue all bonds, warranties, and securities tied to these contractors’ contracts,” Dizon stated.

He stressed that contractors could be held accountable for noncompliance for up to five years, based on contract stipulations.

“If it’s a ‘ghost’ project, we will take decisive action against these individuals, as outlined in the contract,” he said.

Senate Under Scrutiny as Kickback Allegations Emerge

The scandal took a dramatic turn when Brice Hernandez, a former DPWH assistant district engineer, testified before a House infrastructure committee that Senators Jinggoy Estrada and Joel Villanueva received kickbacks linked to flood control projects in Bulacan.

Estrada and Villanueva have denied the allegations.

Hernandez claimed the two senators allegedly pocketed at least 30 percent in kickbacks from nearly P1 billion allocated for flood control initiatives.

He alleged that Estrada facilitated the allocation of P355 million in the 2023 national budget while Villanueva earmarked P600 million in the 2025 budget for the province’s first district.

“Sen. (Panfilo) Lacson is correct in saying that DPWH engineers have become intermediaries for kickbacks,” Hernandez stated, adding that the kickbacks were a “standard operating procedure.”

Hernandez presented photographs of cash stacks purportedly delivered to the Bulacan district office by contractors for project proponents.

DPWH Assistant District Engineer Jaypee Mendoza shared screenshots of disappearing Viber messages between DPWH official Henry Alcantara and Villanueva, which he managed to capture before they vanished.

Senators Deny Allegations, Promise Legal Action

Estrada denied Hernandez’s allegations and announced his intention to pursue legal action against him for defamation.

“I will not allow this blatant attempt to tarnish my reputation to go unchallenged,” he stated, proposing a public lie detector test to ascertain the truth.

Villanueva echoed Estrada’s sentiments, categorically denying any involvement in flood control projects and asserting that he possesses receipts to validate his claims.

Both senators had previously faced scrutiny regarding their handling of public funds.

Estrada has a history of legal troubles, including a conviction related to the pork barrel scam that was later overturned, while Villanueva had been implicated in corruption allegations during his term as a party-list representative.

Student Protests Demand Accountability

Corruption allegations have sparked outrage among students and civil society groups.

A protest was recently held at the University of the Philippines, with demonstrators displaying images of prominent figures, including President Ferdinand Marcos Jr., former public works secretary Manuel Bonoan, Estrada, and Villanueva, as well as contractors Pacifico “Curlee” and Sarah Discaya.

Skepticism Remains About Recouping Funds

While Dizon has vowed to recoup misappropriated funds, many remain skeptical.

Doubts linger about the administration’s ability to recover billions from corrupt DPWH officials and contractors.

“These individuals are unlikely to wait for their ill-gotten wealth to be forfeited and will undoubtedly attempt to conceal their assets, potentially even depositing them in foreign countries,” a government official said.

Investigation Ongoing; Public Trust at Stake

The House infrastructure committee is continuing its investigation into the alleged corruption, while the DPWH is working with the AMLC to trace and freeze assets.

The unfolding situation raises significant concerns about corruption within public infrastructure projects, prompting calls for further investigation into the matter.

The DPWH’s aggressive pursuit of asset recovery and criminal charges signals a renewed commitment to combating corruption in infrastructure projects and ensuring accountability for those who allegedly defraud the public.

The investigation’s outcome will be crucial in restoring confidence in the integrity of public works projects.