Discaya Couple Faces Billion-Peso Tax Evasion Probe Amid Ghost Project Allegations

Discaya Couple Faces Billion-Peso Tax Evasion Probe Amid Ghost Project Allegations

By Wilma N. Yamzon – TheNATIONWEEK.Com | December 19, 2025  

MANILA, Philippines – Curlee and Sarah Discaya, a prominent couple already under intense scrutiny for alleged irregularities in government flood control contracts, appeared at the Department of Justice (DOJ) on Friday for a preliminary investigation into a staggering P7.1-billion tax evasion case.

The case, filed by the Bureau of Internal Revenue (BIR) in October, threatens to further unravel the Discayas’ business empire and expose potentially widespread corruption within government contracting.

The Discayas’ company, St. Gerrard Construction Company, has been at the center of a swirling controversy surrounding the acquisition and execution of government projects, particularly those related to flood control.

The DOJ hearing aligns with a previously announced schedule for parties implicated in the BIR case to submit rejoinder affidavits on December 19, according to DOJ spokesperson Polo Martinez.

The appearance at the DOJ follows the recent arrest of Sarah Discaya, a development that prompted a terse, one-word statement from Curlee Discaya: “Malungkot (Sad).” When pressed about the well-being of their children following the hearing, he offered only, “Yun na nga eh (That’s the thing).”

Adding to the drama, Sarah Discaya arrived at the DOJ under heavy security, transported in a National Bureau of Investigation (NBI) vehicle.

She was shielded from public view with a bulletproof vest, helmet, and a towel obscuring her face, highlighting the gravity of the situation and potential security concerns.

Curlee Discaya arrived separately, escorted by personnel from the Senate Office of the Sergeant-at-Arms. Sarah Discaya remained silent when approached by the media.

While Curlee Discaya is expected to return to the Senate detention facility, Sarah Discaya faces imminent transfer to Cebu.

She is reportedly facing charges related to a P96.5-million “ghost” flood control project in Davao Occidental, raising serious questions about the legitimacy of St. Gerrard’s operations and the potential misuse of public funds.

The Discayas and St. Gerrard Construction Company have been the subject of intense scrutiny, particularly after Pacifico and Cezarah Discaya testified before a Senate Blue Ribbon Committee hearing on September 8, 2025.

The investigation centers on accusations of “ghost projects,” suggesting that significant funds were allocated for projects that were either never completed or executed to a substandard level. These allegations, coupled with the massive tax evasion case, paint a picture of potential systemic corruption and mismanagement.

The P7.1-billion tax evasion case filed by the BIR adds a critical layer to the ongoing legal challenges, raising serious questions about the financial practices of St. Gerrard Construction Company and the Discayas’ personal involvement in government contracting.

This investigation, combined with the “ghost project” allegations, promises to shed light on the potential misuse of public funds and the extent of corruption within the flood control project sector. The nation awaits further developments as the investigations progress and the truth behind the Discayas’ dealings begins to surface.