The Department of Justice (DOJ) is finalizing a memorandum of agreement with whistleblowers in the anomalous flood control projects, paving the way for restitution of as much as P1 billion in stolen public funds and the filing of more criminal cases.
Justice Undersecretary Jesse Andres said the whistleblowers have agreed to cooperate fully with investigators and return the estimated P1 billion in misused funds.
“They now understand that there is a higher need for them to cooperate not only to benefit themselves but to correct the wrong system,” Andres said in an interview.
The DOJ said the restitution clause in the MOA is “an integral part of justice,” requiring whistleblowers to return ill-gotten wealth, assets, and other properties.
Several Department of Public Works and Highways (DPWH) engineers, including Henry Alcantara, Brice Hernandez, Jaypee Mendoza, Arjay Domasig, and contractor Sally Santos, have applied under the Witness Protection Program.
Andres clarified, however, that immunity will be granted on a case-by-case basis.
Meanwhile, the Bureau of Internal Revenue (BIR) has filed criminal complaints against former DPWH officials Alcantara, Hernandez, and Mendoza for alleged P1.6 billion in income tax deficiencies.
The charges stemmed from a lifestyle check that revealed lavish spending and assets inconsistent with their declared incomes, BIR Commissioner Romeo Lumagui Jr. said.
He said the ex-DPWH officials allegedly received kickbacks from “ghost” flood control projects and laundered the proceeds through casino gambling.
“The SALNs and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle,” Lumagui said.
The BIR investigation which was done with help from the Anti–Money Laundering Council, PAGCOR, and other agencies, found the men had exchanged large sums for casino chips and acquired luxury vehicles and properties.
The Independent Commission for Infrastructure (ICI) also submitted a new recommendation to the Office of the Ombudsman to file charges against resigned DPWH Secretary Manuel Bonoan, Undersecretaries Roberto Bernardo and Maria Catalina Cabral, and other officials over a P95-million “ghost” flood control project in Bocaue, Bulacan.
ICI chairman Andres Reyes Jr. said the Commission on Audit confirmed that “no structure was constructed” at the approved project site despite full payment to contractor Topnotch Catalyst Builders Inc.
The ICI urged the Ombudsman to assess possible violations of anti-graft and ethical conduct laws by several DPWH engineers.
“It appears that several DPWH public officials were grossly negligent, if not remiss, in ensuring that government funds were lawfully and prudently disbursed,” Reyes said.
He also noted that a similar recommendation was made earlier involving another P72-million ghost project in Plaridel, Bulacan.
In a related development, Public Works Secretary Vince Dizon said two more complaints have been filed with the Philippine Competition Commission (PCC) to probe alleged bid-rigging and manipulation involving contractors in Davao Occidental and La Union.
The cases target St. Timothy Construction Corporation, Silverwolves Construction Corporation, and several DPWH district officials.
Dizon said the government will pursue all accountable individuals, noting that 15 contract cases worth P3.13 billion have now been elevated to the PCC.
“The President said whoever is responsible should be imprisoned, and the money stolen from the people should be returned. As long as we have evidence, we will continue to file complaints,” he said.
