Metro Manila, Philippines – The Securities and Exchange Commission (SEC) has revoked the registration of two construction firms tied to controversial contractor Sarah Discaya due to false disclosure of beneficial ownership.
It revoked the certificates of incorporation of St. Timothy Construction Corporation and St. Gerrard Construction General Contractor and Development Corporation on Nov. 26 and publicized on Thursday, Dec. 4.
St. Timothy is among the top 15 contractors that cornered billions of pesos in flood control projects and the subject of a corruption crackdown.
The SEC ordered the two companies to pay P2 million each for submitting false beneficial ownership information, while an administrative fine of P1,000 per day of continuing violation will be imposed for failure to comply after 15 days.
In facing the Senate blue ribbon committee hearings in September, Discaya said she is the owner and officer of the two construction firms.
However, SEC records showed St. Timothy and St. Gerrard did not disclose Discaya as its beneficial owner from 2022 to 2024.
The SEC said both companies did not submit replies even after a law firm said it would represent the companies and filed a motion for extension of time, a prohibited pleading.
“The matter at issue is neither complex nor technical—the Corporation could have easily reconciled the inconsistency between its sworn representations before the Senate Blue Ribbon Committee and the beneficial ownership information it submitted to the SEC by providing a simple written explanation or supporting records,” read the revocation orders.
“Its silence on a matter it is uniquely positioned to clarify amounts to an implied admission of the factual circumstances established on record,” it said.
The regulator also disqualified the directors of St. Timothy and St. Gerrard to occupy the positions of director, trustee, or officer of any corporation for five years.
In September, the Philippine Contractors Accreditation Board revoked the license of nine construction companies owned or controlled by Discaya, after admitting to senators that their companies would sometimes bid for the same government projects.
Discaya and her husband, Curlee, are facing tax evasion complaints before the Department of Justice for failing to pay P7.18 billion in income taxes.
The Bureau of Customs is auctioning off the contractor-couple’s luxury cars – part of the ill-gotten wealth from the flood control corruption scandal.
