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Manila Bulletin devider Philippines devider National devider Discaya-owned firms face P300-B penalties for rigging DPWH flood contracts

Discaya-owned firms face P300-B penalties for rigging DPWH flood contracts

Published Oct 3, 2025 12:47 pm  |  Updated Oct 3, 2025 01:04 pm

At A Glance

  • Nine Discaya-owned firms could face P300-B penalties for rigging DPWH flood control contracts.
  • 1,214 projects from 2016 to 2025 worth P77.934-B allegedly manipulated.
  • Contractor licenses revoked; two cases referred to the Philippine Competition Commission (PCC).
  • Discayas admitted under oath that their firms sometimes competed against each other.
  • DPWH filed P89.23-M claims with insurance companies to protect public funds.
Department of Public Works and Highways (DPWH) Vince B. Dizon (Photo courtesy of DPWH)
Department of Public Works and Highways (DPWH) Vince B. Dizon (Photo courtesy of DPWH)
Construction companies owned by Pacifico “Curlee” Discaya and Cezarah Rowena “Sarah” Discaya could face fines totaling P300 billion for allegedly rigging more than 1,200 flood control contracts with the Department of Public Works and Highways (DPWH).
DPWH Secretary Vince Dizon said on Friday, Oct. 3, that the nine Discaya-owned companies cornered 1,214 projects worth P77.934 billion from 2016 to 2025.
The violations prompted the revocation of their contractor licenses and the referral of two cases to the Philippine Competition Commission (PCC) for possible penalties under anti-competitive practice laws.
“The maximum penalty is P250 million per contract, so the penalty is actually higher than the value of the contracts,” Dizon said.
He added that the Discayas admitted under oath during a Senate Blue Ribbon Committee hearing that their firms sometimes competed against each other for the same projects, exposing systemic manipulation that undermines public trust in government spending.
Records from the Land Registration Authority show the Discayas fully own 18 real estate properties valued at P1 billion.
DPWH has also filed claims totaling P89.23 million with Sterling Insurance Company, Travellers Insurance Company, and Liberty Insurance Corp. for surety bonds tied to the contracts, an effort Dizon said is meant to protect public funds and ensure accountability.
Two separate cases are now under PCC review.
One involves Wawao Builders, IM Construction Corp., SYMS Construction Trading, St. Timothy Construction Corp., and officials from the DPWH Bulacan 1st District Engineering Office.
The second case targets Sunwest, Inc., and officials from DPWH Regional Office IV-B.
Dizon expressed confidence that the PCC can expedite the investigations since the department provided complete evidence and the Discayas admitted involvement.
The DPWH chief added that the scale of the case serves as a warning to other contractors that attempts to manipulate public projects will face strict penalties.
He emphasized that the department remains committed to transparency, accountability, and safeguarding taxpayers’ money, stressing that no contractor is above the law.

Related Tags

DPWH Discaya firms flood control contracts bid-rigging contractor penalties
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