CONTROVERSIAL private contractor and failed Pasig City mayoral candidate Sarah Discaya on Monday acknowledged during a Senate Blue Ribbon Committee hearing that her family-owned companies had at times competed against one another for the same flood control projects.
On the other hand, Wawao Builders owner Mark Allan Arevalo invoked his right against self-incrimination as the senators grilled him about alleged ghost flood control projects.
Discaya’s admission came after Senate President Pro Tempore Jinggoy Estrada pressed her to confirm whether her nine firms had simultaneously joined in bids for single contracts.
“That is not a legitimate bidding. Because those nine competing for one contract have only one owner. So whoever wins that bidding, you are the actual winner,” Estrada said.
Discaya initially denied the allegation, but conceded after Estrada threatened to secure official records from the Department of Public Works and Highways (DPWH).
The revelation fuelled suspicions among lawmakers that the supposed competition in the bidding process was merely for show meant to have semblance of legitimacy.
Senator Erwin Tulfo remarked during the hearing that such a practice was tantamount to manipulating the procurement system.
The nine companies identified under Discaya’s name were Alpha and Omega Construction, St. Timothy Construction, St. Gerrard Construction, Elite General Contractor and Development Corporation, St. Matthew General Contractor and Development, Great Pacific Builders and General Contractor, YPR General Contractor and Construction Supply, Amethyst Horizon Builders and General Contractor and Development Corporation, and Way Maker OPC.
Discaya confirmed she serves as chief operating officer of Alpha and Omega, one of the top recipients of flood control contracts in recent years.
She also holds executive positions in other family-linked firms, although management was often delegated to relatives or close associates.
Records showed that Alpha and Omega alone secured 71 flood control contracts in 2022 out of 49 it submitted bids on.
Overall, Discaya estimated that her family’s companies had landed around 400 government projects since 2022.
She insisted that her firms were capable of handling simultaneous contracts, claiming they employ more than 200 workers nationwide, denying allegations that her family’s businesses enjoyed advance knowledge of DPWH project listings.
She also maintained that while she knows some district engineers in provinces such as Laguna and Bulacan, no one provided her preferential treatment.
The Blue Ribbon inquiry was Discaya’s first appearance after skipping an earlier session in August, which prompted senators to issue a subpoena against her.
Her testimony also sought to clarify viral interviews in which she boasted of becoming a billionaire through DPWH contracts.
Discaya said the videos had been “spliced” and failed to show her full statements about also working with local governments.
The claim prompted Minority Leader Vicente Sotto III to ask whether she was accusing journalists of deliberately editing her words.
The interviews, which have since been deleted, featured Discaya showing off dozens 40 luxury vehicles inside a family-owned parking building.
She told senators she owns 28 high-end cars, not the 40 she had mentioned in past interviews.
“There are 28 luxury cars, but we also have service cars that are under the company’s name,” she said.
The list included a Rolls-Royce Cullinan, Mercedes-Maybach, Bentley, Cadillac Escalades, GMC units, and several Range Rovers.
She admitted to buying one to three luxury cars per year since 2016, splurging over ₱150 million for the vehicles.
Estrada expressed disbelief that a single family could amass such an extravagant fleet in less than a decade.
The senators also raised questions about one of her car dealers, Frebel Enterprises, which was previously flagged by Customs officials for smuggling vehicles.
Discaya denied owning any smuggled automobiles, insisting her cars were bought locally and legally.
A Philippine Center for Investigative Journalism report previously found that her companies won 421 projects worth ₱31 billion.
The media watchdog described her and her husband, Pacifico “Curlee” Discaya II as the “King and Queen of Flood Control” for cornering large portions of the program.
Discaya clarified that her family has been in construction for more than two decades, entering flood control projects in 2016 under the Duterte administration.
She backtracked on earlier statements that she earned her first billion from a single contract, clarifying that the wealth accumulated over time.
The Senate probe, chaired by Senator Rodante Marcoleta, will resume next week as lawmakers pursue evidence of alleged collusion and substandard projects.
The investigation is expected to determine whether billions in flood control funds were misused through a network of family-owned contractors.
Arevalo declined questions from Senate Majority Leader Joel Villanueva and Senate President Pro Tempore Jinggoy Estrada, who asked whether his company had benefited from non-existent or anomalous contracts in Bulacan.
He declined to give direct answers, repeatedly citing legal advice from his lawyers who warned that any statement could be used against him in potential prosecution cases.
“I invoke my right against self incrimination, sir,” Arevalo repeatedly answered.
“Because of the issues where DPWH contractors may be charged and since the Senate report may recommend filing cases against the resource person, my lawyers advised me not to speak at this time,” he explained.
His refusal to confirm or deny the allegations elicited frustrations among the senators, who accused him of evading simple questions about the existence of ghost projects.
“It’s like being asked if you’re a person, and you don’t even know if you are one,” Villanueva noted.
Arevalo, who established Wawao Builders in 2017 with an initial capital of P9 million, said the company began engaging in government contracts in 2019.
Records show that the firm initially worked on projects in Metro Manila and Quezon province before expanding into Bulacan, where it has since handled dozens of contracts.
By 2022, Wawao Builders had emerged as a major player in flood control projects, securing 15 contracts in Bulacan alone, a sharp rise from a single contract in 2021.
The company maintained strong growth in succeeding years, eventually ranking among the top 15 contractors nationwide.
From 2022 to 2025, it reportedly obtained 60 flood control contracts worth P4.37 billion, most of them in Bulacan.
Estrada disclosed that his office received reports of ghost projects in Malolos City and the municipalities of Calumpit and Hagonoy, with Wawao Builders allegedly among the firms involved.
Committee chairman Rodante Marcoleta warned that Arevalo could face dozens of plunder charges unless he fully cooperated with the inquiry.
Marcoleta said the Senate may offer leniency if the contractors identified the main players behind anomalous projects, suggesting financial settlements could be considered in place of criminal prosecution.
Newly resigned Public Works Secretary Manuel Bonoan told the senators earlier that at least P5.9 billion worth of projects in Bulacan appeared questionable, though validation was still ongoing.
Arevalo identified some projects in San Juan City, Quezon City, and Quezon province but stopped short of acknowledging the firm’s extensive operations in Bulacan.
He insisted that addressing allegations directly would jeopardize his legal standing amid threats of criminal and administrative cases.
The committee vowed to press ahead with the investigation, which has already implicated several contractors with alleged links to the DPWH.
