ICI seeks charges vs. Villanueva, Estrada, Co, 3 others in flood control scandal

Metro Manila, Philippines - Two sitting senators, an audit commissioner, and three former public officials are in the charge sheet recommended for filing by the ombudsman in court in relation to the multibillion-peso flood control scandal, the Independent Commission for Infrastructure disclosed on Wednesday, Oct. 29.

In a news briefing, ICI Chairman Andres Reyes named the following - senators Joel Villanueva and Jinggoy Estrada, Commission on Audit Commissioner Mario Lipana, former Ako Bicol party-list Rep. Zaldy Co, former Caloocan Rep. Mitch Cajayon-Uy, and former Public Works Undersecretary Roberto Bernardo - who supposedly took “bribes and unwarranted monetary benefits” from flood control project contractors.

This marked the second case referral of the ICI after recommending charges against Co and a number of DPWH personnel and Sunwest officials over a questionable multimillion-peso road dike in Naujan, Oriental Mindoro in September.

In its report submitted to the ombudsman, the commission said Villanueva, Estrada, Co, Uy, and Lipana may have committed direct and indirect bribery, corruption, and plunder.

Bernardo’s possible violations were bribery and corruption, the ICI said.

The commission’s recommendations were based on corroborated testimonies of dismissed Bulacan district engineer Henry Alcantara and former assistant district engineers Brice Hernandez and Jaypee Mendoza. ICI executive director Brian Hosaka said the commission will also recommend charges against the three engineers, but the commission has yet to provide details.

In his briefing at the ombudsman, Andres said the commission uncovered an “alleged systematic kickback scheme in which legislators acting as project proponents inserted flood control projects into the National Expenditure Program and the House Appropriations Bill and the General Appropriations Act in exchange for commission ranging from 20 to 30 percent of the project cost.”

“If the list is forwarded to the DPWH (Department of Public Works and Highways) regional director, it will be included in the NEP (National Expenditure Program). On the other hand, if the list is given to the proponent itself, he or she would insert the projects in the House general appropriations bill called HGAB or bicameral insertions wherein it would be reflected in the General Appropriations Act (GAA),” Andres said in an earlier briefing.

The ICI report was similar to previous exposes in the Senate - detailing the alleged P600-million insertion of Villanueva in 2023, P355 million for Estrada in 2024, P411 million for Cajayon-Uy in 2021, and P35 billion for Co. It also noted the supposed P150-million kickback for Villanueva, as well as the alleged delivery of luggages of cash to Co from 2022 to 2025.

In a statement, Villanueva said “the records of the Senate will show that I have been against flood control projects from the very beginning.”

Estrada called the ICI findings hearsay.

In an earlier briefing, Andres said once the projects are reflected in the NEP or GAA, dismissed DPWH Bulacan first district engineer Alcantara will choose contractors who will carry out the projects – which will eventually trigger payment and obligations to the proponent.

He said the 25 percent payoff is advanced by contractors to make sure they will bag the projects.

“An advance payment of the budget allocation where the NEP is released, while the remaining 15 percent will be paid off to the proponent when the GAA is passed. If the insertions were included in the GAA, the whole 25 percent SOP is given to the proponent,” Andres said.

Contractor-couple Sarah and Curlee Discaya earlier exposed the bribery scheme – with the 25 percent payoff allegedly for Co and former House Speaker and Leyte Rep. Martin Romualdez.

In a September Senate inquiry, Alcantara tagged Villanueva, Estrada, Co, and Uy in multimillion-peso budget insertions for flood control projects.

He also accused Bernardo as the middleman for lawmakers tagged in anomalous deals.

The dismissed engineer also linked Lipana to ₱1.4 billion in alleged insertions through questionable flood control projects.

Villanueva, Estrada, Co, Cajayon-Uy, and Bernardo were on the charge list of the National Bureau of Investigation in September.

Lipana is under investigation by the ombudsman. The ICI said the audit commissioner secured funds for flood control projects using the license of his wife, who is the president and general manager of Olympus Mining and Builders Group Philippines Corporation – which won nearly P200 million in projects in 2024.

The commission previously invited a number of resource persons, including Bernardo, the Discayas, Romualdez, senators, and government officials involved in the budget process.

In his statement, Reyes said the recommendation to file charges against six officials shows that the commission will spare no one from the investigation.

“We will continue to investigate, follow the evidence, pursue charges to the very last man involved. Justice will not be delayed this time,” he said.

Filing of cases in Sandiganbayan

In a press briefing, Ombudsman Jesus Crispin “Boying Remulla” said the processing of cases may be faster as the information has already been validated by the ICI itself.

Remulla said his office is aiming to file cases with the anti-graft court, Sandiganbayan, on or before Nov. 25, which will include the findings of the Justice Department and the ICI.

The DOJ earlier submitted its report to the ombudsman on anomalous flood control cases in Bulacan, which recommended charges against contractors and public works personnel.

Remulla said high-ranking officials may be included in the first batch of cases, but he refused to name them.

“Public officials including district offices siguro 14 or 15 people…Corruption related, direct and indirect bribery, malversation, falsification, maraming involved dito sa mga kaso na ito [many are involved in these cases],” he said.

The ombudsman also noted that it is looking at livestreaming preliminary investigations and making resolutions available to the public.

The office announced plans to publicize the decisions on the dismissal order against Villanueva.