Billions in Flood Projects Tied to Zaldy Co, Discaya as President Marcos Unveils Top Contractors - OMNIZERS

Billions in Flood Projects Tied to Zaldy Co, Discaya as President Marcos Unveils Top Contractors

President Marcos’s list of top flood control contractors reveals connections to Zaldy Co and Sarah Discayas, raising questions about potential conflicts of interest.

Zaldy Co, Sarah Discayas Photo File House of representative FB & Discaya FB Account
Zaldy Co, Sarah Discayas Photo File House of representative FB & Discaya FB Account

Manila, Philippines – President Ferdinand Marcos Jr.’s recent revelation of the top recipients of government flood control projects has sent ripples through the nation, bringing familiar names and long-standing connections to the forefront. The list, detailing contractors who have received the bulk of these crucial funds over the years, includes several companies with prominent ties to influential figures in Philippine politics.

Among the names highlighted is Sunwest, a business conglomerate based in Albay and holding the eighth position on the President’s list. Co-founded by Ako Bicol Representative Zaldy Co, Sunwest’s journey began in 1997 as Sunwest Construction and Development Corporation, registered with the Securities and Exchange Commission. Since then, the company has expanded its reach into various sectors, including energy and tourism, showcasing impressive diversification.

Sunwest’s consistent success as a top contractor for the Department of Public Works and Highways (DPWH) spans decades, extending back to the Gloria Macapagal Arroyo administration. This long-standing relationship underscores the company’s enduring presence in the Philippine construction landscape and raises questions about the nature of its sustained success.

The President’s disclosure has ignited a renewed discussion surrounding transparency and accountability in government spending. While the release of this information is a step towards greater openness, many are calling for further investigation into the awarding of these contracts, demanding a thorough examination of the processes involved and the potential influence of political connections. The public awaits greater clarity on how these contracts were secured and whether they were awarded through fair and competitive bidding processes. The ongoing debate highlights the crucial need for robust mechanisms to ensure that public funds are utilized effectively and transparently, particularly in projects of critical national importance like flood control. The coming weeks and months will be crucial in determining the next steps in this unfolding story.

The report published this March revealed that infrastructure projects worth over P38 billion were awarded to companies with close ties to a high-ranking government official between 2016 and 2024. The lion’s share, a staggering P28 billion, went towards road and bridge construction, while another P7 billion was allocated for flood control projects.

The official, identified only as “Co,” was listed as an incorporator of Sunwest Incorporated. Although Co divested from Sunwest in 2019, seemingly adhering to government ethics rules, the report highlights that Co, his family, and associates maintain significant ownership stakes in other businesses closely connected to Sunwest’s infrastructure arm. These include Sunwestville Realty and Development Corporation (SRDC), Misibis Land, and Embarcadero Land Ventures. The report states that these companies operate under common control with Sunwest.

Adding to the concerns, Sunwest’s construction arm provided over P200 million in advances to SRDC and Misibis Land in 2023 alone. This suggests frequent financial transactions between these interconnected companies. The report raises questions about potential conflicts of interest and the transparency of the bidding process for these substantial public works projects. Further investigation is warranted to ensure fairness and accountability in government spending.

15 contractors mentioned who received a significant portion of the flood control projects:

  1. L.R. Tiqui Builders Inc.
  2. Legacy Construction Corporation
  3. Alpha & Omega General Contractor and Development Corporation
  4. St. Timothy Corporation
  5. EGB Construction Corporation
  6. Road Edge Trading & Development Services
  7. QM Builders
  8. Topnotch Catalyst Builders Inc.
  9. Centerways Construction and Development Inc.
  10. Sunwest Inc.
  11. Hi-Tone Construction & Development Corporation
  12. Triple 8 Construction & Supply Inc.
  13. Royal Crown Monarch Construction & Supplies Corp.
  14. Wawao Builders
  15. MG Samidan Construction

Pasig’s Discaya and Business Ties Under Scrutiny

 The recent mayoral election in Pasig City has brought renewed scrutiny to the business dealings of defeated candidate Sarah Discaya. An investigative report by the election watchdog group, Right to Know, Right Now! (R2KRN) Coalition, released in June 2024, revealed that Discaya served as president of Alpha & Omega General Contractor and Development Corporation as recently as 2023.

Adding another layer of complexity, Securities and Exchange Commission records show Discaya as an incorporator or co-founder of St. Timothy Construction. However, Discaya stated in April that she had divested her shares in that company back in 2018. The discrepancy between her statement and the SEC records has raised questions about transparency and potential conflicts of interest. The R2KRN report is prompting calls for further investigation into Discaya’s business activities and their possible connection to her political career.

A major construction firm, St. Timothy Construction, has withdrawn from a joint venture with South Korean company Miru and other local firms following an ultimatum from the Commission on Elections (Comelec). St. Timothy, which previously held contracts with Comelec and ranked among the top contractors in the country, was caught in a conflict-of-interest situation.

The ultimatum, issued in October 2024 by Comelec Chairman George Garcia, presented St. Timothy with a stark choice: remain in the joint venture and risk a disqualification case against its owner, then-mayoral candidate Sarah Discaya, or withdraw from the partnership. The Comelec’s action underscores its commitment to upholding transparency and preventing potential conflicts of interest in public procurement. St. Timothy’s subsequent withdrawal highlights the pressure faced by companies with political connections involved in government contracts.

The ongoing investigation into the business dealings of former Pasig City mayoral candidate Sarah Discaya has uncovered further connections raising concerns about transparency and potential conflicts of interest. A recent report by the (R2KRN) Coalition revealed that Discaya’s family owns two additional companies, including St. Gerrard Construction General Contractor and Development Corporation, a firm notably blacklisted by the Department of Public Works and Highways (DPWH).

Adding to the complexity, St. Gerrard was headed by Discaya’s husband, Curlee, as of 2023. The DPWH blacklist raises serious questions about the company’s business practices and its potential impact on public projects. The revelation of St. Gerrard’s involvement further complicates the picture surrounding Discaya’s business network and its potential influence on her political aspirations. The findings are likely to fuel calls for a thorough investigation into the financial dealings of Discaya and her family.

Billions in Flood Control Funds Flow to a Tiny Few: Marcos’s “Disturbing” Findings

President Ferdinand Marcos Jr. expressed deep concern on Monday over a disturbing trend in government flood control projects. In a rare press conference, he revealed that a mere 15 contractors out of over 2,400 received a staggering 20% – approximately ₱100 billion – of the total budget allocated for these projects between July 2022 and May 2025.

This revelation follows Marcos’s earlier pledge in his State of the Nation Address (SONA) to crack down on corruption within government infrastructure projects. He had previously noted the poor quality and even non-existent nature of some flood control projects, stating bluntly, “Let’s not pretend, we all know that projects are money-making ventures.” His comments hinted at a system rife with kickbacks and underhanded dealings.

The President’s use of the term “disturbing” underscores the gravity of the situation. The concentration of such a significant portion of the budget – ₱100 billion – in the hands of just 15 contractors raises serious questions about transparency and accountability. It suggests a potential system of favoritism and cronyism, where a select few benefit disproportionately at the expense of the public good.

The implications are far-reaching. The billions of pesos intended to protect communities from devastating floods may have been mismanaged or outright stolen. This not only undermines public trust but also leaves vulnerable populations exposed to the risks of increasingly frequent and intense flooding events. The President’s strong words – “Kickbacks, initiatives, errata, SOP, for the boys… feel some shame towards your fellow Filipinos!” – show his determination to address this issue.

The investigation into these contracts is ongoing, and the President has vowed to pursue those responsible. The coming weeks and months will be crucial in determining the extent of the corruption and holding those involved accountable. This case highlights the urgent need for greater transparency and stricter oversight of government spending, particularly in crucial infrastructure projects that directly impact the safety and well-being of the Filipino people. The public awaits further details and decisive action to ensure that future flood control projects are implemented honestly and effectively.


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