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Discayas name lawmakers, DPWH execs tied to alleged kickback scheme in flood control projects

Published Sep 8, 2025 12:29 pm  |  Updated Sep 8, 2025 02:58 pm

At A Glance

  • Contractors Cezarah "Sarah" and Pacifico "Curlee" Discaya alleged in a sworn statement that lawmakers and DPWH officials demanded 10–25% kickbacks from flood control projects, collected in cash with vouchers and ledgers as proof.
  • They named several politicians, as well as DPWH district engineers and regional officials, claiming some funds were also for Speaker Martin Romualdez.
  • Despite the deductions, the contractors insisted they delivered projects according to DPWH specifications and vowed to testify as state witnesses, appealing for protection from the Senate Blue Ribbon Committee and President Marcos.
Cezarah “Sarah” Discaya and Pacifico “Curlee” Discaya on Monday, Sept. 8, dropped a bombshell statement alleging that lawmakers and Department of Public Works and Highways (DPWH) officials routinely demanded kickbacks of up to 25 percent from government-funded flood control projects, who told them that projects would be stalled unless payments were made.
Constractors Pacifico and Cezarah Rowena Discaya issue a joint sworn statement claiming they allegedly handed money to lawmakers and officials of the Department of Public Works and Highways (DPWH) in exchange for the approval of their projects across the country. The Discaya couple had requested protection  during the continuation of the Blue Ribbon inquiry Monday, September 8, 2025. (Senate Public Relations and Information Bureau)
Constractors Pacifico and Cezarah Rowena Discaya issue a joint sworn statement claiming they allegedly handed money to lawmakers and officials of the Department of Public Works and Highways (DPWH) in exchange for the approval of their projects across the country. The Discaya couple had requested protection during the continuation of the Blue Ribbon inquiry Monday, September 8, 2025. (Senate Public Relations and Information Bureau)
In their testimony made during the third Senate Blue Ribbon Committee hearing into the anomalous flood control projects, they said the percentages demanded from them ranged from 10 percent to as high as 25 percent of project costs. Payments, they added, were made in cash and carefully recorded in vouchers and ledgers showing the amounts, dates, and recipients.
“Matapos naming manalo sa mga bidding, may mga opisyal mula sa DPWH ang lumapit sa amin para humingi at kumuha ng bahagi nila sa halaga ng proyekto (After we won the biddings, officials from the DPWH approached us to demand and take their share from the value of the project),” the contractors declared in their sworn statement.
The sworn statement identified several politicians and officials who allegedly benefited from the scheme, including:
Terence Calatrava, former undersecretary of the Office of the Presidential Assistant for the Visayas
USWAG Ilonggo Party-list Rep. Jojo Ang
Quezon City Rep. Patrick Michael Vargas
AGAP Party-list Rep. Nicanor Briones
San Jose del Monte Bulacan Rep. Florida Robes
Romblon Rep. Eleandro Jesus Madrona
Former congressman Benjamin Agarao Jr.
Former congressman Florencio Gabriel Noel
Occidental Mindoro Rep. Odie Tarriela
Quezon Rep. Reynante Arrogancia
Quezon City Rep. Marvin Rillo
Former congressman Teodorico Haresco Jr.
Former congresswoman Antonieta Eudela
Caloocan Rep. Dean Asistio
Quezon City Rep. Marivic Co-Pilar
The Discayas also implicated DPWH officials and district engineers as conduits for collecting the kickbacks, including Regional Director Eduardo Virgilio of Region 5, Unified Management UPMO Director Ramon Ariola III, Bulacan First District Engineer Henry Alcantara, Undersecretary Robert Bernardo, Metro First Pasig City District Engineer Aristotle Ramos, North Manila District Engineer Manny Bulusan, Bulacan Sub-DEO District Engineer Edgardo Pingol, and Quezon Second DEO District Engineer Michael Rosaria.
According to the contractors, many of these DPWH officials repeatedly said that at least 25 percent of the project funds were allegedly intended for Rep. Zaldy Co.
They further alleged that Quezon City Rep. Marvin Rillo often cited his closeness to House Speaker Martin Romualdez, saying that his projects were funded through “unprogrammed funds” and insertions approved by the Speaker.
A certain Bogs Magalong, described as Rillo’s aide, allegedly collected cash from them either at their office or at establishments such as Wine Story in Bonifacio Global City.
Rep. Jojo Ang, they added, openly admitted that not all the money went to him, but also allegedly to Speaker Romualdez and Rep. Zaldy Co.
In Pasig City, the contractors said a DPWH project engineer, Angelita Garucha, personally collected on behalf of Rep. Roman Romulo for flood control projects in 2022.
By 2025, District Engineer Aristotle Ramos allegedly demanded 30 percent as Romulo’s share, telling the contractors that the high rate could not be avoided because the funding came from unprogrammed allocations.
The Discayas also claimed that cash was handed directly to other political figures, among them Cong. Antonieta Yudela and her husband, Cong. Nicanor Briones, Cong. Florencio Gabriel Bem Noel, Arturo Atayde (father of Cong. Arjo Atayde), Cong. Eleandro Jesus Madronia of Romblon, and Cong. Benjamin “Benji” Agarao Jr.
Despite the hefty cuts, the contractors insisted they never engaged in ghost projects and strictly complied with DPWH specifications. All projects, they said, underwent material testing and inspection before payments were released.
They admitted, however, that the forced deductions reduced their profits or even caused losses. To cope, they said they joined more projects in order to recover financially.
The contractors have pledged to testify voluntarily as state witnesses against what they described as widespread corruption in the House of Representatives, DPWH, and other government agencies.
They appealed to the Senate Blue Ribbon Committee, chaired by Sen. Rodante Marcoleta, and to President Ferdinand “Bongbong” Marcos Jr. for protection.
“This statement was made voluntarily, without any force or coercion. We signed this declaration freely and truthfully,” the Discayas said.
Senator Raffy Tulfo asked Pacifico Discaya when kickbacks to government officials were typically given.
Discaya replied that payments were usually demanded once a project was awarded, stating that failure to comply risked not being granted the award in the first place.
Tulfo clarified that this meant advances were being required.
Discaya confirmed, explaining that in some cases, contractors faced obstacles such as right-of-way problems or delayed collections if they failed to deliver the agreed share.
“In other words, pag naka-advance ka na, siguradong makukuha mo yung project?” Tulfo asked (In other words, once you’ve advanced the payment, you’re guaranteed to get the project?), to which Discaya agreed.
Other contractors deny
Senator Erwin Tulfo pressed several construction firms to confirm whether they also experienced the alleged kickback demands revealed by the Discayas — but all denied paying commissions to DPWH officials and politicians.
The CEO of Sunwest Inc. denied this, with similar answers given by other firms. Others that were present were Legacy Construction Corporation, EGB Construction Corporation, QM Builders, Topnotch Catalyst, Royal Crown Monarch Construction, EGB Construction, Centerways Construction, MG Samidan Construction, LR Tiqui Builders, Wawao Builders, and Hi-Tone Construction.
Tulfo appeared unconvinced by the uniform denials.
“Lumalabas lahat ito ay nagsisinungaling siguro. Dahil wala raw nagbibigay ng komisyon sa mga DPWH. So, tanging itong kumpanya lang na ito, itong mag-asawa, ang nagbibigay (It seems all of them are probably lying. Because they all claim that no commissions are being given to the DPWH. So, it would appear that only this couple’s company is giving). I don’t think so,” Tulfo said.
Marcoleta also weighed in, noting the silence from contractors when asked if they believed their own denials were credible.
“Parang lumilitaw po na ang mga Discaya lang ang nagbigay ng porsyento, at kayo pong lahat ay hindi. Sa palagay po ba ninyo ay kapani-paniwala yung mga sagot? (“It seems that only the Discayas gave a percentage, and all of you did not. Do you think your answers are believable?)” Marcoleta asked.
The contractors remained silent.
“Wala pong sumasagot. Palagay ko sila rin po ay di naniniwala sa kanilang mga isinagot kay Sen. Erwin (No one is answering. I think they themselves don’t even believe the answers they gave to Senator Erwin),” Marcoleta said.

Related Tags

Sarah Discaya curlee discaya Flood control Senate Blue Ribbon Committee President Marcos
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