The meeting covered the discovery of multiple ghost flood control projects, resulting in firings, blacklisting of contractors, and the announcement of further investigations into public works corruption in the Philippines.
Major business, government, and law enforcement stakeholders discussed both immediate responses (dismissals, blacklisting) and systemic reforms (independent commission, stricter licensing, and increased oversight).
High-profile contractors are under scrutiny, with legal actions pending and immigration alerts issued for implicated individuals.
Broader social repercussions include public protests, calls for transparency from business groups, and financial sector involvement in exposing corruption-related wealth.
Action Items
Within 2 weeks – Vince Dizon/DPWH Legal: Review DPWH’s 2026 budget and submit recommendations for agency reform.
Next week – Vince Dizon/DPWH Legal: Begin proceedings for dismissal and recommend charges for other implicated DPWH officials.
Pending – Malacanang: Finalize executive order for the creation of an independent commission to probe flood control anomalies.
Pending – Justice Dept/NBI: Form an anti-graft team with civil society reps for ongoing investigation.
Pending – Bureau of Immigration: Enforce Immigration Lookout Bulletin Order against 35 individuals linked to ghost projects.
Pending – Pasig Police/PNP Chief: Monitor and maintain order at St. Gerard Construction site; address protest complaints.
Pending – Pasig Mayor/City Government: Continue investigation into local infrastructure projects.
Pending – Manila Mayor/City Treasurer: Notify Diskaya-owned construction firms about unpaid tax liabilities and administer six-month amnesty; initiate blacklisting if unpaid.
Pending – Securities and Exchange Commission: Assess whether to blacklist Diskaya-related construction firm incorporators.
Pending – Diskaya Legal Counsel: File motion for reconsideration over revoked licenses; respond to allegations.
Pending – House, Senate, Blue Ribbon Committee: Summon contractors and COA Chairman for further hearings; investigate congressional insertions and rifle procurement budget.
Pending – Department of Trade and Industry: Conduct fact-finding investigation into PCAB anomalies.
DPWH Flood Control Project Irregularities and Immediate Measures
Secretary Vince Dizon discovered a ghost flood control project in Plaridel, Bulacan, which was marked complete and paid ahead of schedule, yet remains unfinished.
DPWH District Engineer Henry Alcantara was dismissed; proceedings for dismissal and potential charges were initiated for additional DPWH officials.
Contractors Wawao Builders and Sims Construction Trading were permanently blacklisted. Pending projects and payments for blacklisted contractors are to be reassessed and suspended.
The case highlighted the persistence of congressional budget insertions in questionable projects.
Dizon requested a two-week period to review the 2026 budget and agency operations; courtesy resignations from multiple DPWH officials, including all undersecretaries, have been submitted.
Protests, Legal, and Social Response to Corruption
Protesters vandalized the Pasig office of Diskaya-owned St. Gerard Construction, prompting police intervention and threats of legal action from the Diskaya family.
Malacanang and local officials appealed for calm and lawful conduct as investigations proceed.
Law enforcement is monitoring the situation, with investigations by the Pasig city government and the Department of Justice ongoing.
The Bureau of Customs detained 28 luxury vehicles linked to the Diskaya family, pending further verification.
Business Groups and Broader Economic Impact
Major Philippine business groups condemned public works corruption, urging banks and the AMLC to unearth illicit assets of corrupt officials and contractors.
Malacanang threatened legal action against contractors for delayed or substandard projects, notably the Film Heritage Building, which drew public criticism for shoddy work.
Calls have been made to inspect all government projects linked to the Diskaya family following repeated infractions.
Regulatory and Oversight Developments
Philippine Contractors Accreditation Board (PCAB) leadership saw three resignations amid the scandal; investigations are underway under Trade Secretary Roque’s direct supervision.
The Department of Trade and Industry has established a fact-finding body to probe licensing anomalies and contractor oversight.
SEC to decide on the blacklisting of Diskaya-related incorporators.
The Diskaya camp plans to appeal license revocations, claiming due process violations.
Additional Uncovered Fraudulent Projects
In Oriental Mindoro, a flood control project by Diskaya-owned St. Timothy Construction was paid for but not completed to specifications, with serious discrepancies in reported vs. actual work.
The project was not included in official expenditure programs, fueling further calls for a national investigation.
Legislative and Legal Follow-Up on Corruption
House and Senate committees are set to summon COA officials and contractors for hearings on flood control project insertions.
A congressman accused of inserting significant funds for such projects is currently out of the country for medical reasons.
Graft and misconduct charges have been filed against former Bamban Mayor Alice Guo and others linked to corrupt land deals.
Further Developments and Related News
Blacklisting and legal action threatened against Diskaya-owned contractors in Manila for unpaid tax liabilities.
President Marcos Jr. to grant subpoena powers to a pending independent commission on flood control corruption.
Lawmakers to probe alleged budget insertions for police rifle procurement.
San Miguel Corporation is negotiating a significant syndicated loan, and RL Commercial REIT reports strong growth.
Globe Telecom launched a new personalized service offering.
Decisions
Firing of DPWH District Engineer Henry Alcantara and blacklisting of Wawao Builders and Sims Construction Trading — Based on verified evidence of a ghost flood control project and repeated contractor violations.
Resignation of PCAB officials and establishment of direct DTI supervision — To improve oversight in light of major corruption allegations.
Suspension of payments and reassessment of all projects linked to blacklisted contractors — To mitigate risk and prevent further losses.
Open Questions / Follow-Ups
What are the full findings of the DPWH’s 2026 budget review and internal cleanup?
Will the President’s independent commission be granted final subpoena powers, and who will lead it?
What are the outcomes of ongoing Senate and Blue Ribbon Committee hearings, particularly regarding congressional insertions?
Will additional Diskaya-owned or affiliated companies be blacklisted or face further penalties after all investigations?
Will the Diskaya motion for reconsideration succeed regarding their revoked construction licenses?