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Manila Bulletin devider Philippines devider National devider COA submits to Ombudsman 2nd audit reports on P389.6-M 'ghost' flood control projects in Bulacan

COA submits to Ombudsman 2nd audit reports on P389.6-M 'ghost' flood control projects in Bulacan

Published Sep 18, 2025 05:39 pm
The Commission on Audit (COA) recommended to the Office of the Ombudsman (OMB) the filing of administrative and criminal charges against several officials of the Department of Public Works and Highways’ (DPWH) 1st District Engineering in Bulacan and owners of two construction firms for the P389.6 million “ghost” flood control projects.
The recommendation was contained in the second batch of audit reports on the four “ghost” flood control projects with private contractors Wawao Builders and the joint venture between TopNotch Catalyst Builders, Inc. and One Frame Construction. Inc.
The COA said that Wawao Builders, which was also included in the first batch of audit reports, was awarded the contract for the flood control structure along Angat River, Sipat Section in Plaridel, Bulacan with a total contract cost of P92,640,121.20.
It said the project was reportedly completed on June 11, 2024. However, the audit team inspected the project last Sept. 10, 2025 and discovered that it was still ongoing.
Worse, the COA said, historical satellite imagery pulled out as of April 7, 2025 showed no flood control structure at the site. The COA also revealed that there was an utter lack of supporting documents involved in the project.
The COA recommended that charges be filed against District Engineer Henry C. Alcantara, bids and awards committee (BAC) Chairperson Ernesto C. Galang, and Mark Allan V. Arevalo of Wawao Builders.
The joint venture between TopNotch Catalyst Builders Inc. and One Frame Construction Inc. was awarded three contracts, the COA said.
It said the first contract was for the slope protection structure and waterways in Barangay Bunsuran (Purok 4) in Pandi, Bulacan with a total contract cost of P98,999,508.95.
Initially, the DPWH 1st DEO representatives pointed to state auditors a different project location, which did not match the approved bid plan. The COA found out that this is another ghost project because the pinpointed location pertains to a different project.
Even assuming that it was the correct project, the COA said that changing the project location would require the DPWH Bulacan 1st DEO to follow certain requirements in Republic Act No. 9184 or the Government Procurement and Reform Act, which were not followed.
In the joint venture’s first project, the COA has recommended that Alcantara, Assistant District Engineer Brice Ericson D. Hernandez, Engineer II Jolo Mari V. Tayao, Engineer II Lemuel Ephraim SD. Roque, Engineer II John Michael F. Ramos, Planning and Design Chief Ernesto G. Galang, and the joint venture's Managing Officer Gian Carlo Galang to be held liable.
The second project was for the construction/improvement of slope protection structure and waterways along Bocaue River, Barangay Bambang (Sitio Pulo to Purok 6) in Bocaue, Bulacan with a total construction cost of P98,999,012.87.
Like the first project, state auditors discovered this was also a “ghost” flood control project as the designated site already had an existing slope protection structure weeks prior to the contractor's official start date of April 23, 2024, the COA said.
It also said that when state auditors conducted an ocular inspection on Sept. 10, 2025, they were led by DPWH Bulacan 1st DEO representatives to another mismatched site.
It recommended that charges be filed against Alcantara, Hernandez, Galang, Project Engineer Nino Lawrence V. Morales, Maintenance OIC Jaime R. Hernandez, and the joint venture's Galang.
The third project was for the construction and improvement of slope protection structure and waterways along Bocaue River, Barangay Bambang (Sitio Palo to Purok 6) in Bocaue, Bulacan with a total contract cost of P98,999,038.56.
The COA said the project was also non-existent. Like the second project, another slope protection structure was already in place weeks before the official start date of April 23, 2024.
At the same time, the COA said the joint venture requested for a change order worth an additional P3,959,848.71. It was approved on the same day by the DPWH contrary to the provisions of the Government Procurement Reform Act, it also said.
Alcantara, Hernandez, Galang, Morales, Quality Assurance Section Chief Norberto L. Santos, Maintenance Section Chief Jaime R. Hernandez, Construction Section Chief Jaypee D. Mendoza, and the joint venture's Galang were recommended to be charged.
"The audit findings will be crucial for the Office of the Ombudsman's proceedings and may lead to administrative and criminal charges, including graft and corruption, against those found responsible," the COA said.
The first batch of audit reports was submitted by the COA to the OMB on Aug. 8, 2025. It involved the P342.66 million “ghost and substandard” flood-control projects in Bulacan.
The contractors involved were Wawao Builders (two projects), St. Timothy, which is owned by the family of Sarah Discaya and her husband, Pacifico Discaya (two projects), and Syms Construction Trading (one project).
The projects undertaken were “incomplete, undocumented, and substandard,” the COA said.
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