Warrants of arrest have been issued against 10 people, including contractor Sarah Discaya, over an alleged P96.5 million “ghost” flood control project in Davao Occidental, President Ferdinand Marcos Jr. said in a video statement released Thursday evening.
Mr. Marcos said the accused are facing charges of graft and malversation, which he described as non-bailable offenses.
The case involved a flood control project that was funded but allegedly not implemented, he said.
“The court has issued an arrest warrant against the ten principal persons involved in this anomaly,” the President said.
He said Discaya, whom he identified as one of the principal respondents, is currently in the custody of the National Bureau of Investigation.
He said eight officials of the Department of Public Works and Highways have also expressed their intention to surrender in connection with the case.
Mr. Marcos said the arrests mark only the beginning of a broader investigation into alleged irregularities in flood control projects.
“This is just the beginning, and we will continue to investigate and prosecute everyone involved in the scandals we see in the flood control project,” the President said.
“We will ensure that not only will they be charged, but also that the money paid by our fellow citizens to the coffers of our country is returned,” he added.
Earlier this month, President Marcos said the Office of the Ombudsman has recommended criminal charges against Discaya and St. Timothy Construction Corp. over the flood control project in Davao Occidental, which was fully paid for despite never being built.
The contract, awarded in January 2022, was later reported as completed, but a joint police inspection in September 2025 found no trace of construction.
As this developed, Public Works Secretary Vince Dizon said his agency has recommended the filing of criminal and administrative charges against at least 87 individuals in connection with questionable flood control projects.
Dizon said the list includes sitting senators such as Jinggoy Estrada and Joel Villanueva as well as former House Speaker Martin Romualdez and other lawmakers.
Romualdez’s camp, however, rejected attempts to pin plunder and other serious crimes on him, underscoring that the Independent Commission for Infrastructure itself made clear its referral to the Ombudsman was “issued without finding or conclusion of guilt or liability.”
In a statement, Ade Fajardo, lawyer and spokesperson of Romualdez, said recent statements attributed to the DPWH should not be misconstrued as proof of wrongdoing.
“We take note of the DPWH Secretary’s statement. However, it is important to clarify that a DPWH ‘recommendation’ is not a finding, much less a determination of guilt,” Fajardo said.
“It is not true that the ICI has recommended to the Ombudsman that former Speaker Ferdinand Martin G. Romualdez be charged with plunder or other serious crimes related to the flood control or 2025 budget issue,” he added.
On the contrary, he pointed out that the ICI itself underscored the absence of any adverse conclusion against Romualdez in its referral to the Office of the Ombudsman.
“In fact, the ICI made it clear in their referral report that it was ‘issued without finding or conclusion of guilt or liability on the part of former Speaker Romualdez,’” he said.
“We respect due process and will await the Ombudsman to independently evaluate the submissions based on evidence, not press conference soundbites,” he added.
