Discaya Couple Faces Tax Evasion Charges

Pacifico “Curlee” Discaya II and Cezarah “Sarah” Rowena Discaya,

Discaya Couple Faces Tax Evasion Charges

By Wilma N. Yamzon – TheNATIONWEEK.com | February 5, 2026

MANILA, Philippines – Pacifico “Curlee” Discaya II and Cezarah “Sarah” Rowena Discaya, a power couple whose construction empire has amassed P31 billion in flood control projects over the past three years, now face tax evasion charges that threaten to unravel their success.

Dubbed the “Ghost Flood Control King and Queen” due to allegations of substandard or non-existent project implementation, the couple, figures behind a network of construction firms dominating the Philippines’ flood control sector, have been formally accused of underreporting income and providing false information on their 2020 and 2021 tax returns, according to the Department of Justice (DOJ).

The charges, filed by the Bureau of Internal Revenue (BIR), allege violations of the National Internal Revenue Code, specifically related to willful tax evasion and the provision of inaccurate financial information.

The BIR claims the Discayas significantly understated their income, depriving the government of crucial tax revenue.

While the Discayas prepare to defend themselves in the Court of Tax Appeals, the DOJ has dismissed three related complaints concerning excise taxes on a fleet of luxury vehicles owned by the couple and their primary company, St. Gerrard Construction, citing technicalities.

Suspicion of Favoritism

The Discayas’ ascent from relative obscurity to a dominant position in the flood control sector has raised serious questions about the fairness and transparency of the government contracting process.

Sarah Discaya, a former political candidate, has publicly acknowledged the family’s wealth, citing 23 years in the construction industry and boasting about their ownership of a fleet of luxury vehicles, including a P42 million Rolls Royce Cullinan.

This display of wealth, juxtaposed with allegations of tax evasion and substandard project delivery, has fueled public outrage.

However, it is the sheer volume of flood control projects awarded to companies founded by the Discayas and their joint ventures that has ignited widespread scrutiny.

A Senate investigation reveals that six companies linked to the Discayas, along with three joint ventures, secured a disproportionate 421 out of 9,855 flood control projects between 2022 and 2025, totaling P31.035 billion.

This dominance has fueled accusations of favoritism, cronyism, and a compromised bidding process, prompting calls for a thorough independent audit of all contracts awarded to Discaya-linked entities.

Dismissals and Lingering Graft Allegations Complicate the Picture

Adding further complexity, the DOJ’s dismissal of three complaints related to unpaid excise taxes on six luxury vehicles registered under the couple’s names and their company has been met with disbelief and accusations of preferential treatment.

The DOJ reasoned that the couple, as end consumers and not importers, could not be held liable for the unpaid taxes, a decision criticized by legal experts as a questionable interpretation of the law.

Two complaints against Curlee Discaya and St. Gerrard Construction were dismissed due to the expiration of the statute of limitations, raising concerns about the efficiency of the government’s investigative processes.

Furthermore, Sarah Discaya and nine co-defendants are currently embroiled in a separate legal battle, having pleaded not guilty to graft and malversation charges stemming from a P96.5 million “ghost” flood control project in Davao Occidental.

The involved Department of Public Works and Highways (DPWH) officials have been arrested and jailed, highlighting the potential for systemic corruption within the sector and raising questions about the effectiveness of internal oversight mechanisms.

Unanswered Question: Why No Action Against Martin Romualdez?

Amid the scrutiny surrounding the Discayas, a glaring question remains: Why has no investigation been launched into the potential role of former House Speaker Martin Romualdez, publicly linked to the couple and their business dealings? Critics point to the Discayas’ rapid rise to prominence coinciding with Romualdez’s ascent to power as evidence of a potential quid pro quo relationship.

The lack of any formal inquiry into Romualdez’s alleged connections to the Discayas has fueled accusations of selective prosecution and a double standard in the application of justice.

The Price of Dominance: A Call for Transparency and Accountability

The Discayas’ remarkable success in securing government contracts has sparked questions about potential influence and connections within the highest levels of government.

The tax evasion charges, coupled with ongoing graft allegations and unanswered questions surrounding Martin Romualdez’s potential involvement, underscore the critical need for greater transparency, robust oversight, and impartial investigations in government contracting.

This case serves as a stark reminder of the importance of ensuring fair competition, preventing abuse of power, and safeguarding public funds.

As the legal proceedings unfold, the focus remains on the integrity of the bidding process, the accountability of those entrusted with managing public resources, and the impartiality of the justice system.

The outcome of these cases could have significant implications for the future of government contracting, the fight against corruption, and the public’s faith in the Philippines’ democratic institutions.