Floodgates of Corruption: Will ‘Big Fish’ Drown in Flood Control Scandal?

President Ferdinand Marcos Jr.

Floodgates of Corruption: Will ‘Big Fish’ Drown in Flood Control Scandal?

By Bing Jabadan and Wilma N. Yamzon – TheNationWeek.Com | November 25, 2025

MANILA, Philippines – The net is tightening around the alleged masterminds behind a colossal flood control project scandal that threatens to expose deep-seated corruption within the Philippine government.

With eight individuals already detained on charges of graft and malversation related to a P289.5-million anomalous flood project, Interior and Local Government Secretary Jonvic Remulla has vowed to go after the next targets: “Big fish are coming soon.”

“In the normal process of law, we should expect the (private contractor couple) Discayas, the senators, and the congressmen; they will all be jailed within the next five weeks.”

“They will be arraigned one after the other.”

Former Ako Bicol party-list Rep. Zaldy Co.

Arrest Warrants

President Ferdinand Marcos Jr. recently authorized arrest warrants for 16 individuals, including former House of Representatives appropriations committee chairperson and resigned Ako Bicol party-list Rep. Zaldy Co.

Co, along with several officials of the Department of Public Works and Highways Mimaropa (DPWH 4B) and Sunwest Corp., a construction firm with alleged ties to Co, faces accusations of corruption and malversation.

Co, however, has fired back, vehemently denying the allegations and implicating Marcos and former House Speaker Leyte Representative Martin Romualdez.

Romualdez resigned as House Speaker following accusations of receiving kickbacks from infrastructure projects.

This counter-accusation throws a shadow of doubt over the entire investigation.

While Remulla remained cautious about directly implicating Romualdez, stating, “there’s nothing yet to that effect. We’re still waiting on the developments,” he acknowledged the gravity of the situation.

The DPWH and the Independent Commission for Infrastructure (ICI) have recommended plunder, graft, and direct bribery cases against both Romualdez and Co concerning flood control projects worth billions of pesos.

Adding a layer of complexity, Remulla noted, “But the Ombudsman doesn’t have a comment yet,” he said as he referred to his brother, Ombudsman Jesus Crispin Remulla.

This familial connection raises questions about potential conflicts of interest and the impartiality of the investigation.

Both Romualdez and Marcos have refuted the accusations.

Marcos dismissed Co’s claims, stating he would not “dignify” them with a response.

The six male detainees among the eight arrested have been ordered by the Sandiganbayan to be held at the New Quezon City Jail.

Remulla assured the public that no special treatment would be afforded to those detained in connection with the flood control case.

Contractors Pacifico “Curlee” Discaya and Cezarah Rowena “Sarah” Discaya.

Discaya’s Dubious Empire: A House of Cards?

Central to the scandal is contractor Cezarah “Sarah” Discaya, whose companies have secured billions in flood control contracts.

A Senate Blue Ribbon Committee hearing on Sept. 1, 2024, put Discaya under intense scrutiny, revealing a web of inconsistencies and raising serious questions about her business practices.

Former Commission on Audit Commissioner Heidi Mendoza challenged Discaya’s claim of having “23 years in business,” revealing that 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, coinciding with actor OPC, only emerged in 2019 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.

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.

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.

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 on “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.

DPWH Vows Asset Seizure, Senators Deny Involvement:

Amid the swirling allegations, Dizon led a campaign to freeze assets and pursue criminal charges against contractors and DPWH personnel involved in the 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.

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.

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

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.

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

Senators Jinggoy Estrada and Joel Villanueva.

A Nation Awaits Accountability:

The unfolding scandal raises critical questions about corruption within infrastructure projects and the potential for high-level involvement. The public demands accountability and transparency.

Will Secretary Remulla’s promise of “big fish” arrests materialize, or will this investigation become another example of impunity for the powerful? The nation awaits further developments with bated breath.