Transcript for:
Philippines Flood Control Corruption Scandal

Philippine Public Works Secretary Vince Dizon fires a suspended district engineer after discovering yet another ghost flood control project in Bulacan. He also blacklisted the contractor in charge of the project. Andrea Taguinas reports.

Anger and disbelief from new Public Works Secretary Vince Dizon after uncovering yet another questionable flood control project in Barangay Sipat, Plaridel, Bulacan. According to DPWH records, the nearly 100 million peso dike was declared complete in June of 2024, which was even ahead of schedule. So the contractor, Wawao Builders, also received an early payment.

But when Dizon arrived at the site on Thursday, construction was still underway. The subcontractor explained that it has only been three weeks since they were hired by Wawao Builders to work on this segment of the dike along Anggat River. That's why if you look at it, they still have a lot left to cover.

Dizon suspects this isn't simply a delayed project. Maybe three weeks ago, it got hot, the Senate was investigating, the Congress was investigating, the President was angry. Those who signed off on the papers, former Bulacan 1st District Engineer Henry Alcantara, his assistant district engineer, and the head of the construction section, all of whom are already on the Immigration Bureau's lookout bulletin.

Henry Alcantara, effective today, is dismissed. Bryce Fernandez, JP Mendoza, I will already begin proceedings of dismissal and next week. I will ask the DPWH legal to recommend filing charges, the appropriate charges. Dizon also ordered the lifetime blacklisting of Wawao Builders and Sims Construction Trading, which was previously linked to another ghost flood control project in Bulacan. This action by the agency is in line with the call of President Ferdinand R. Marcos Jr. to quickly act, to file a case, and...

Dizon says pending projects of blacklisted companies will be reassessed, while all payments to them will be suspended. Claridel residents are also puzzled why this kind of project was even undertaken, despite the town not being flood-prone. But as House Infrastructure Committee Co-Chair Terry Ridon pointed out, the alleged ghost project was actually a congressional insertion in the bicameral conference committee.

Dizon earlier said he can't speak for the legislative branch, but for his part, he has asked for two weeks to review the DPWH's 2026 budget and to clean up the agency from within. He says many officials have already submitted their courtesy resignations, including all undersecretaries. Meanwhile, the Senate will summon Commission on Audit Chairman Gamaliel Cordoba next for its probe on flood control projects. Two more contractors have also been ordered to appear before the Blue Ribbon Committee on Monday, September 8. Andrea Taguinas, ABS-CBN News.

The Marcus Jr. administration calls for calm after furious protesters defaced the Pasig City office of a construction company tagged in a widespread public works corruption scandal. Easy Lee has tonight's top story. The headquarters of St. Gerard Construction in Pasig City, owned by government contractors Curly and Sara Diskaya, was defaced by protesters Thursday morning.

They pelted mud and sprayed graffiti such as thief and corrupt on the gate, windows and walls of the building. Pasig police later arrived and asked protesters to leave. They were also warned about possible complaints after defacing the property. The protesters say their actions symbolize the people's anger toward anomalous flood control projects. The PNP notes the group did not have a permit to hold a rally.

The lawyer of the Diskaya family condemned the incident and said the family was distressed over what happened. The spouses of the Diskaya are saddened because of what is happening. There are people who are rallying in front of their house and in the office.

It's not right. We are in a democratic country. But they shouldn't use violence, terrorism, vandalism, and beatings. So Maniego adds, the Diskaya family is preparing to file criminal cases against those who organized the rally. He also appealed to PNP Chief Lieutenant General Jose Melencio Nartates Jr. to deploy police to the area.

Malacanang has appealed to the public not to resort to violence or other illegal acts, saying an investigation is already underway. Pasig Mayor Vicus Soto also issued a similar plea. He says the city government is also conducting its own investigation.

into questionable infrastructure projects. The Justice Department also calling for cooler heads to prevail. Well, it's very unfortunate, and we're not encouraging people to do that.

Law enforcement has to maintain the law and order in our country. We can't let them do that because it can trigger a kind of hysteria that we don't need in this country. Meanwhile, the Bureau of Customs confirmed that the Diskaya family's 28 luxury vehicles are now in their custody. The Highway Patrol Group, for its part, says they have found no irregularities in its validation on Diskaya's eight luxury vehicles covered by the BOC search warrant.

If the Diskaya family really bought it, they are the ones who will answer for the law. Assuming that that is a mistake or a sin. It's wrong in paying and there's a denied document.

But to be fair, if we really proved it based on documents, proved that they really just bought it from the dealer or dealers, we will be the ones to sue the dealers. And what will happen is the Diskaya family will chase their dealer We will forfeit the vehicles in favor of the government. Easily, ABS-CBN News.

Major business groups in the Philippines jointly call for a stop to what they describe as shameful and excessive corruption in government public works projects. The demand was made by groups such as the Management Association of the Philippines, the Employers' Confederation of the Philippines, and the Philippine Chamber of Commerce and Industry. They expressed disgust over alleged graft by lawmakers public works and local government officials as well as state auditors.

The business groups called on banks and the Anti-Money Laundering Council to expose the alleged ill-gotten wealth of corrupt officials and contractors. Malacanang threatens to take legal action against the contractor which failed to meet the completion schedule for the new Philippine Film Heritage Building. The first lady herself was dismayed to learn that the company behind the unfinished structure is owned by contractors of anomalous flood control projects. The details from Harleen Delgado.

Another project of the husband and wife team of government contractors, Curly and Sara Diskaya, takes the spotlight. Palace Press Officer Claire Castro expressed dismay that the Philippine Film Heritage Building in Intramuros remains unfinished. The building was supposed to be completed today, which will serve as the headquarters of the Film Development Council of the Philippines.

The contractor behind the project is the Great Builders and General Contractor Incorporated, which is owned by the Diskaya family. The revised contract cost of the project is 107.9 million pesos, which started in December 2024. According to Castro, the poor quality of the finishing work in some parts of the building was also noticeable, such as the downspouts outside the building, which were not placed properly. First Lady Liza Araneta Marcos who also inspected the building in support of the film industry, was disappointed over the project. You saw the downspout earlier.

It's not normal. Because when water falls, it's directly on the road. All the people who pass by can get wet.

So it's not just that. There are more. You can see there are water leaks.

This contractor here is not just for the water, it's for the building. Because of the shoddy work, Castro believes all infrastructure projects of Diskaya-linked firms with the government should be inspected. ABS-CBN News has reached out to the Council of the Diskayas, but they have yet to issue a comment.

Meanwhile, the Bureau of Immigration confirmed that they have received the Immigration Lookout Bulletin Order from the Department of Justice for 35 individuals, including the Diskayas and other contractors. and officials of the DPWH. Justice Secretary Jesus Crispin Remulla also signed the Immigration Lookout Bulletin Order that was requested by DPWH Secretary Vince Dizon. They have similar names, but we're trying to pick out those that have not been issued orders. Remulla added that they will form an anti-graft team from the National Bureau of Investigation with civil society representatives to help with the investigation into the flood control mess.

I think that's the best way to carry out. A mission of this nature, so that even these neighbors can come and give us information. Jorine Delgado, ABS-CBN News. Three top officials resigned from the Philippine Contractors Association or Accreditation Board after the regulatory body is dragged into the country's worst public work scandal. Johnson Marabat reports.

Philippine Trade Secretary Cristina Roque said an officer in charge has been chosen to replace Philippine Contractors Accreditation Board Executive Director-Attorney Herbert Matienzo, who resigned on September 3. This was announced by Roque in an ambush interview in Micawayan, Bulacan on Thursday. Roque, however, did not name the OIC. He cited personal reasons in his letter of resignation. So we accepted his letter.

He gave us his letter of resignation on September 3, and we have also accepted his resignation. I have accepted his resignation on September 3. So We have already appointed an OIC for this position. According to Roque, two PCAB board members have already stepped down prior to Machensa's resignation. The two board members are just waiting if President Ferdinand Marcos... Jr. will accept their resignation since both are presidential appointees.

Roque adds they are investigating the alleged anomalies hounding PCAB, which is now under her direct supervision. PCAB, CIAP, and CIAC is now transferred to the office of the secretary so that we can really close monitoring here. And we have also established a fact-finding body within the DTI to investigate all of these things.

Roque also clarified that Machienza's resignation will not release him from any potential liabilities. We cannot hide this. We really need to let the public be aware of this. Our investigation here is aggressive. The trade chief also vowed to be more stricter in issuing licenses to contractors engaged in government projects.

So definitely before we issue out the license, it will pass through me and then we pass it through the PCAP board because actually the license is being approved by the PCAP board. The secretary adds, It is up to the Securities and Exchange Commission if the incorporators of the construction firms of the Diskaya family should be blacklisted or not. Meantime, the Diskaya camp said they will file a motion for reconsideration after PICA revoked the licenses of their nine construction company. Diskaya's lawyer reiterated due process was not followed.

We were surprised and unilaterally, they were given the pick-up licenses of the Siam Company. They based it on the testimony of Ma'am Sara in the Senate. The document says something different because you know what happened to Ma'am Sara.

She was a bit pressured, so she was not able to sleep, she was tired. Ah, dire direchong pagtatanong. Johnson Manabat, ABS-CBN News.

Another fully paid but incomplete flood control structure is uncovered in the Philippine province of Oriental, Mindoro. The project, funded by a 2022 budget insertion, is but one of the many contracts awarded to the now infamous Diskaya family. This flood control project in Barangay Buonglupa, Gloria, Oriental, Mindoro was supposed to be 326 meters long.

But when the provincial government inspected the structure, it fell short of the listed specification. Governor Jormelito Bos Dolor's citing records in the DPWH website said the P50 million project was declared completed in December 2023 despite measuring just 186 meters. What is currently stated in the latest documentation, 80.13% fully paid.

Fully paid already. How will it be fully paid by 80% of 186 meters out of 326 meters? The contractor of the project is St. Timothy Construction, owned by the Diskaya family. The provincial government is questioning why the unfinished project was marked complete. It's not good.

Half of it is gone. So now they want to add more. So we have a new name, Manananggal.

The project was meant to serve a protection whenever the Balete River overflows. They didn't agree if it was really over, as long as they left it. When it was built, we built four houses here so that it wouldn't be flooded. It really reached.

If they had a bloodbath, it might not have reached the four houses. The government also revealed the project is not included in the National Expenditure Program. Whatever you calculate in the NEP of 2022, There is no project like this.

A 50 million project that was inserted along with four projects in the city of Gloria. The law said St. Timothy Construction returned to the site when the flood control mess became a big issue. However, they could no longer fix the problem because another contractor who had a separate project funded the previous year had already connected their own flood control project to the area. St. Timothy Construction then decided to build the remaining 140 meters on the side of the mountain, a move that angered Governor DeLore, calling it a waste since the area itself already blocks floodwaters.

Based on the Governor's research, insertion for flood control projects in Oriental Mindoro from 2022 to 2025 amounted to 18 billion pesos. Governor DeLore personally submitted a letter to President Ferdinand Marcos Jr. along with a lease of the billions worth of flood control projects in Oriental Mindoro, calling for an investigation. The president has reportedly promised to look into the matter.

Dolor added they are investigating more questionable flood control projects in Oriental Mindoro, which he is ready to expose. That is that to ABS-CBN News, Oriental Mindoro. Manila Mayor Isko Moreno urges construction firms of the Diskaya family to settle their unpaid tax obligations to the city.

The Manila Treasurer's Office says their tax liabilities total 23 million pesos. Mayor Moreno says the delinquent contractors can still avail of a six-month tax amnesty. He threatens to sue and blacklist the Diskaya-owned companies if they fail to pay up.

These non-compliant companies will be blacklisted under the City Engineering's Office and Office of the Building Official. So what will happen? They will not be given a permit.

Philippine President Marcos Jr. is expected to give subpoena powers to the independent commission he's creating to probe anomalous flood control projects. Malacanang Press Officer Claire Castro... says this would enable the Commission to effectively carry out its mandate.

Castro says the President has yet to finalize the executive order creating the Commission and has remained mum on who will lead it. The Philippine congressman allegedly behind questionable budget insertions for flood control projects is in the U.S. for a medical checkup. The U.S. trip of ACO Bicol Partylist Representative Zaldi Coe was initially disclosed by House of Representatives Spokesperson Princess Abante and subsequently confirmed by Albay Congressman Alfredo Garbin Jr. Garbin says Coe was advised to get more extensive tests in the U.S. after experiencing problems with low blood pressure.

Navota City Representative Toby Tianko earlier accused COE of inserting 13.8 billion pesos for flood control projects in the 2025 national budget. COE chaired the House Appropriations Committee in the 19th Congress. Garbin has challenged Tianko to file a case if he believes COE did anything illegal.

Let's confirm. I'm not against the Boston University and... In time also for his regular checkup do on so checkups he was advised by the doctor to have an extensive checkup Well, someone mentioned to me that the blood pressure is lower than 90 over 60. So, I mean, there will be an extensive check-up on him.

He's still in the United States as we speak. The National Bureau of Investigation files graft charges against dismissed Bamban Mayor Alice Guo and 35 others. The Bureau says it will also file charges of misconduct. Guosco accused include former Bamban Mayor Jose Antonio Feliciano, Bamban's former Vice Mayor William Cura, as well as counselors, municipal officials, barangay, and youth leaders.

Cases will also be filed against business executives linked to questionable land deals with Chinese companies, which operated now-banned offshore gaming firms. The appraised value is 3.9 billion, but they only paid real property tax amounting to 10,000. In the land, in the building, zero.

They didn't pay. So, that's it. It's a very grossly disadvantageous to the government.

Our investigation continues. This conflict, this task force, they are not stopping the spread of evidence. Philippine lawmakers are set to probe an alleged attempt for an 8 billion peso budget insertion that would have been used to purchase new rifles for the police force.

Manila Congressman Bienvenido Abante wants to know the source of a purported letter of request for the funding, which then National Police Chief Nicolás Torre... had allegedly refused to sign. The letter was allegedly endorsed by the son of an Interior Department official.

I think this was sent out today, that there was a letter as a member of the Committee on Public Order and Safety, Congressman Abante, addressed to Congressman Roland Valeriano, that the committee should have its own investigation. 17 people are dead and 21 others injured after Lisbon's historic funicular derailed Wednesday night. The Elevador da Glória sped out of control down a steep slope and slammed into a building.

The injured include tourists from several countries. Portugal has declared a day of mourning. Ukraine's president holds talks with over two dozen Western leaders on security guarantees for his country in the event of a peace deal with Russia.

The Paris summit of the Coalition of the Willing brought together 30 leaders from Europe, Australia, Japan and Canada. French President Emmanuel Macron says the coalition leaders would endorse plans for security guarantees drawn up by their militaries. They are also hoping to persuade the U.S. to back their efforts. A rebound in investor sentiment helps the Philippine stock market and its five-day losing streak. The details from Michel Ong.

Most Asian stock markets ticked higher on Thursday as dovish comments from Federal Reserve officials soothe investor nerves at a time of heightened concerns over global growth and a sell-off in bond markets. Here at home, Philippine shares snapped a five-day losing streak, rising above 6,100, head of the release of inflation data on Friday. The expectation, a slight uptick from the previous month's 0.9%, but still within the target range.

Two trade Asias chase YAP sticking to their year-end target of 7,000. which he says might be getting harder but still attainable. Slowly accumulate and take the opportunity of this prolonged uncertainty to accumulate more shares at very, we think, cheap valuations. In corporate stories, San Miguel Corporation is reportedly in talks with banks for a loan of around $1.5 billion in what could be the largest Philippine loan of the year so far.

Based on a report by Bloomberg, The syndicated loan, which could have a tenor of five years, is set to launch in the fourth quarter. Meanwhile, RL Commercial REIT, which was recently included in the MSCI Philippines Index, confident it can sustain growth momentum, which was at 50% in the first half of the year, despite some challenges in the property sector. It's very difficult for me to say that it's an unfavored child because where do we live? In houses, properties, right?

Where do we work? In offices, again, properties. And then when we work, when we spend time with family, where do we go?

We go to malls on weekends, on holidays. Again, properties. So for us, I think we know the cyclicality of these things in terms of properties, but they always find a way to come up on top, one way or the other, because in the end, property is basically the raw material in terms of wealth creation or generation.

GoNotes, they're also looking at the possibility of injecting other kinds of assets into RCR, like hotels. Finally, Globe Telecom introduces Just For You, a hyper-personalized everyday experience in Globe One, Gcash and Facebook. Michelle Long, ABS-CBN News.