MANILA, Philippines — Nine former officials of the Department of Public Works and Highways (DPWH) in Mimaropa on Thursday asked the Sandiganbayan to grant them bail in connection with a malversation case involving a P289-million flood control project in Oriental Mindoro.
The Sandiganbayan Sixth Division began hearings on Jan. 8 on the bail petition of the nine officials, who are co-accused of former Ako Bicol party-list Rep. Elizaldy “Zaldy” Co.
The accused DPWH-Mimaropa officials—Juliet Calvo, Gerald Pacanan, Gene Altea, Ruben delos Santos Jr., Dominic Serrano, Lerma Cayco, Felisardo Casuno, Dennis Abagon and Montrexis Tamayo—have all pleaded not guilty to charges of malversation and graft.
Last November, the Sandiganbayan issued arrest warrants and hold departure orders against Co and 15 other individuals, including DPWH officials and representatives of Sunwest Inc., in connection with the road dike project in Oriental Mindoro.
Ombudsman prosecutors have recommended that no bail be granted for the malversation charges. Co remains at large.
The bail hearing will resume on Jan. 12.
BIR: Probe of politicians continues
Meanwhile, the Bureau of Internal Revenue (BIR) said it continues to investigate politicians linked to alleged irregularities in flood control projects, as authorities vowed to pursue cases backed by solid evidence.
Following the filing of a tax evasion case against a construction firm on Thursday, BIR Commissioner Charlito Mendoza said all personalities allegedly involved in the anomalies—including lawmakers—are being investigated.
“Our investigation is ongoing. All the personalities who have emerged as allegedly involved in these anomalies are being investigated by the BIR. We are just making sure that when we file a case, we have a clear basis,” Mendoza told reporters.
The BIR has filed a criminal complaint with the Department of Justice against Mark Allan Arevalo, sole proprietor of Wawao Builders, over a nearly P50-million tax deficiency linked to a non-existent flood control project in Bulacan.
The complaint alleges that Wawao Builders violated the National Internal Revenue Code of 1997 through tax evasion amounting to P48.39 million and by submitting incorrect or inaccurate information in its tax filings.
“While other agencies address irregularities in project implementation, we at the BIR are doing our part by filing criminal complaints against those who misuse public funds and evade their tax obligations through these ghost projects,” Mendoza said.
According to BIR records, a government contract worth P77.2 million for the construction of a riverbank protection structure in Malolos, Bulacan, was awarded to Wawao Builders in January 2024. The firm was paid a total of P72.37 million, net of withholding taxes, in three installments from March to April last year.
However, inspections conducted by the Commission on Audit and the BIR found that no riverbank protection structure existed at the project site, despite reports certifying full project completion.
As a result, the BIR disallowed the firm’s claimed deductions and input value-added tax.