The Independent Commission for Infrastructure (ICI) filed before the Office of the Ombudsman (OMB) on Monday, Sept. 29, graft and malversation of public funds charges against several persons in the P289.5 million flood control project in Naujan, Oriental Mindoro.

In a 32-page report submitted to Acting Ombudsman Dante F. Vargas, the ICI said the project was implemented by the Department of Public Works and Highways (DPWH) Region IV-B in 2024 through Sunwest, Inc., a company affiliated with Ako Bicol Partylist Rep. Elizaldy "Zaldy" Co.

Named respondents in the charges were Co, DPWH Region IV-B Regional Director Gerald A. Pacanan III, Assistant Regional Director Gene Ryan A. Altea, Assistant Regional Director Ruben C. Santos Jr., bids and awards committee (BAC) Chairperson and Construction Division Chief Dominic G. Serrano, Vice Chairperson Friedrich Karl L. Camero, member Grace D. Lopez,

Project Engineer III Felisardo S. Casuno, Materials Engineer Timojen A. Sacar, Planning and Design Division OIC-Chief Montrexis T. Tamayo, Maintenance Division Chief Juliet C. Calvo, Quality Assurance and Hydrology Division OIC-Chief, Accountant IV Lerma D. Cayco, Sunwest President and Chairman of the Board of Directors (BOD) Aderma Angelie D. Alcazar, BOD Treasurer Cesar X. Buenaventura, as well as BOD members Consuelo D. Aldon, Engr. Noel Y. Cao, and Anthony L. Ngo.

In its report, the ICI lambasted the project for being "grossly substandard and not in line with required specifications," with steel sheet piles falling short of the required length indicated in the contract agreement.

The contract with Sunwest was part of the Sustainable Infrastructure Projects Alleviating Gaps (SIPAG) for flood mitigation and construction of dike along Mag-Asawang Tubig River, Barangay Tagumpay, Naujan, Oriental Mindoro, which had an approved budget of P289,499,999.99.

The contract, which started on March 2, 2024, was reported to be 92.3 percent completed. However, when Secretary Vince Dizon and Mindoro Provincial Gov. Humerlito A. Dolor conducted an ocular last Sept. 9, 2025, they found that substandard steel sheet piles were used and the length required was not met.

The ICI report also stated that a section of the revetment in front of the pile cap was excavated to expose the driven steel sheet pile. It was found that the steel sheet piles used for the project were only 2.5 meters in length, with 0.5 meters embedded into the pile cap and this was contrary to the contract requirement of 12 meters.

"Assuming that all sheet piles for the project so far were driven to an effective length of 2.5 meters instead of 11.5 meters, the government suffered damage in the amount of P63,865,084.50. This is the difference between the cost paid by the government for the sheet piles, and the cost of 1,050 pieces of steel sheet piles with a 2.5-meter effective driven length," the ICI said.

It said the total cost for 1,050 pieces of 12-meter steel sheet piles, which the government had already paid for, actually costs P84,514,725.75. Assuming that these were all but three meters in length, the government should have paid Sunwest only P20,649,641.25, it also said.

At the same time, the ICI said that since the measured steel sheet pipe was already found to be substandard, the other materials used for the project could also be of substandard quality.

The ICI said when it checked the documentation provided by the DPWH, it showed that there were only two bidders for the said project -- Sunwest and St. Matthew General Contractor and Development Corp. The former placed a bid of P279,859,649.99, while St. Matthew submitted P281,104,560.35, so the lowest bidder won the contract, it also said.

Also in its report, the ICI said that 22 days after the Notice to Proceed was issued, the DPWH issued a Monthly Certificate of Payment in connection with Progress Billing No. 1 for March 2 to 15, 2024. The project was reportedly 25.0327 percent completed by then and a Disbursement Voucher was issued in the amount of P58,672,041.83.

However, the ICI lamented that there was non-compliance with the submission of supporting documents both by the contractor and the DPWH.

It said that Sunwest failed to provide a letter request for payment, a duly-notarized contractor's affidavit, backup computations, and several Bureau of Internal Revenue (BIR) forms, among other things.

The DPWH likewise did not submit a billing summary, certification from the project engineer, certification of clearance for labor and materials payment, certificate of clearance for equipment rentals and/or lease, certificate of materials quality control assurance, statement of time elapsed, and several other documents, it also said.

Despite the lack of supporting documents for the first progress billing, a second progress billing was made on June 25, 2024 in the amount of P35,134,206.86 for a supposed completion rate of 40.0225 percent, the ICI said.

Progress billing Number 3 was issued on Aug. 21, 2024, but the ICI said they were unable to conclude whether payments for it were made, were proper, or were documented accordingly.

As for progress billing Number 4, the ICI said that it was for the period of Aug. 22, 2024 to Dec. 7, 2024 in the amount of P47,704,310.32 which indicated a supposed completion rate of 70.92 percent.

"Per DPWH's records, it appears that out of the (now) revised Contract Amount of P289,498,230.66, a total of P246,160,089.80 has been disbursed by the DPWH to Sunwest (a total of 85.03 percent progress)," the ICI said.

"Given the substandard materials used for the project, it appears that various DPWH officials, in possible connivance with Sunwest's officers/directors/employees, made false certifications in the documents which supported and resulted in the payment of Sunwest's questionable progress billings," it ICI said.

The ICI asked the OMB to charge the respondents with violations of Section 3(e), (g), and (h) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, and Article 217 in relation to Article 171 of the Revised Penal Code or Malversation through Falsification of Public Documents.

The administrative charges, on the other hand, are recommended for violations of Sections 4(a), 7(a) and (b) of the Code of Conduct and Ethical Standards for Public Officials and Employees.

The ICI told the OMB that it will be submitting more evidence within the next 15 days. It said the determination of liability rests with the proper authorities as the ICI is not making "categorical findings of guilt."