Department of Public Works and Highways (DPWH) Secretary Manuel Bonoan on Tuesday, August 19, expressed his belief that some flood control projects in Bulacan may be “ghost projects.”

During the Senate Blue Ribbon Committee hearing, Bonoan said under questioning by Senate President Pro Tempore Jinggoy Estrada that there seem to be ghost projects as reported to him.

“In all honesty, Your Honor, I think so,” Bonoan said when Estrada asked if he believed ghost projects were present.

Estrada pressed him further, citing reports received by his office that projects in Calumpit, Malolos, and Hagonoy, Bulacan were ghost projects allegedly awarded to Wawao Builders as well as SYMS contractor.

Bonoan replied: “Yes—that’s true, the information we received.”

Wawao Builders is among the top 15 contractors named by President Marcos that received the bulk of the government’s flood control projects over the years. 

Bonoan later disclosed that Wawao Builders had secured projects worth ₱9 billion nationwide, including ₱5.97 billion for 85 projects in Bulacan alone, all under the First Engineering District Office. In these 85 projects, he said that there could be "some" ghost projects.

In the data provided by Estrada, SYMS Construction, on the other hand, supposedly completed 16 projects totaling ₱931.2 million over the past three years.

A check on the DPWH records showed that Wawao Builders is owned by Mark Allan Arevalo, while SYMS Construction is a sole proprietorship owned by a certain Sally Nicolas Santos.

Estrada questioned whether the entire ₱5.97 billion in Bulacan represented ghost projects and demanded that DPWH release the full breakdown of the projects awarded to the contractor.

The DPWH chief said the validation is ongoing, with financial and physical reports expected within a week. He added that the alleged ghost projects mostly covered contracts implemented in 2021 to 2022.

Sen. Rodante Marcoleta, who presided over the hearing, said the committee would subpoena Wawao Builders’ owner after the firm failed to respond to invitations. Marcoleta also asked Bonoan about going after the performance bonds of these ghost projects, which Bonoan said they would come up with the documentation.

He also grilled the Commission on Audit (COA) on how these ghost projects were able to slip by them.

"Alam niyo ang problema niyo madam COA? Puro kayo post-audit. Mag-aaudit kayo 'pag tapos na yung project (You know what your problem is, Madam COA? You only do post-audit. You conduct the audit only after the project is finished)," he added.

Estrada also asked Bonoan whether the agency would have investigated the anomalies had the President not made them public.

Bonoan replied that flood control projects are routinely subjected to validation and audit before contractors are fully paid.

Estrada raised concern over the concentration of projects, citing President Marcos’ statement that 15 contractors cornered about ₱100 billion worth of flood control contracts, or roughly 20 percent of the total budget, while the remaining ₱436 billion was divided among 2,394 contractors.

Bulacan province, along with Metro Manila and the provinces of Pampanga, Nueva Ecija, Pangasinan, Tarlac, Maguindanao, North Cotabato, Oriental Mindoro, and Ilocos Norte, is included in the most-flood prone provinces based on the National Adaptation Plan of the Philippines (2023 to 2050).

Meanwhile, Senator Raffy Tulfo asked why out of 103 blacklisted contractors, the DPWH only flagged down one company from the flood control project bidding.

Bonoan explained that as long as there's no derogatory information that would come out in the bidding process, they could participate in the bidding.

But Tulfo stated that the majority of DPWH's employees are contractors themselves.

"So sila yung gumagawa ng ghost projects at di nila ibblaclist sarili nila (They create the ghost projects so they will not blacklist themselves)," he added.

Out of the 15 construction companies invited to the hearing, only seven showed up either with the owner or a representative.

"I hope this is not a sign of disinterest on their part because this meeting was called precisely top get to the bottom of this problem," Marcoleta said.

Senator Erwin Tulfo said that they need a reasonable answer when they issue subpoenas for the next hearing. 

"Para pong ginagago itong committee natin na may sakit nagbakasyon na prior schedule. Ano mas importante, prior schedule o itong investigation into P544 billion na pinaguusapan natin? (It’s like this committee is being made a fool of—that someone who is sick supposedly went on vacation because of a prior schedule. Which is more important, a prior schedule or this investigation into the ₱544 billion we’re talking about?)" he added.  

The following will be issued subpoenas:

Cezarah C. Discaya, President, Alpha and Omega Gen. Contractor & Development Corporation

Ma. Roma Angeling D. Rimando, Owner/Manager, St. Timothy Construction Corporation

Eumir Villanueva, President, Topnotch Catalyst Builders Inc.

Aderma Angelie Alcazar, President/CEO, Sunwest, Inc.

Edgar Acosta, President, Hi-Tone Construction & Development Corp.

Romeo Miranda, President/AMO, Royal Crown Monarch Construction & Supplies Corp.

Mark Allan Arevalo, General Manager, Wawao Builders

Luisito Tiqui, President, L.R. Tiqui Builders, Inc.