(UPDATE) THE Court of Appeals has granted a freeze order on 135 bank accounts and 27 insurance policies connected to individuals and corporations involved in anomalous flood control projects, the Anti-Money Laundering Council (AMLC) announced Tuesday.
The agency said the freeze order came after petitions it filed on Monday, in line with a request from the Department of Public Works and Highways (DPWH).
Last week, the DPWH filed a petition at the Office of the Ombudsman against DPWH personnel and five contractors linked to the anomalous flood control projects.
The day after, the DPWH wrote the AMLC requesting the application of a freeze order with legal basis and justification under the Anti-Money Laundering Act. DPWH Secretary Vince Dizon said they requested the freezing of accounts of all the respondents of the first complaint that they filed with the Ombudsman. This includes “BGC Boys” former OIC-assistant regional director Henry C. Alcantara, former OIC-district engineer Brice Ericson D. Hernandez, and former OIC-assistant district engineer Jaypee D. Mendoza. It also includes contractors such as Cezarah “Sarah” Rowena C. Discaya and Pacifico “Curlee” Discaya II of St. Timothy Construction Corp., Mark Allan V. Arevalo of Wawao Builders, Sally N. Santos of SYMS Construction Trading, and Robert T. Imperio of IM Construction Corp.
Dizon added that the banks that house the accounts of these respondents have already been informed about the freeze order.
AMLC Executive Director Matthew David said their preliminary findings show that there is a possible money laundering involving public funds. He added that the agency will intensify its investigation to identify all parties involved and determine the full extent of these activities. He noted that they are also working with the Office of the Solicitor General on the matter.
Dizon thanked the AMLC and the Bangko Sentral ng Pilipinas (BSP) for their help.
BSP Governor Eli Remolona Jr., he said, informed them that Republic Act 12010, or the Anti-Financial Account Scamming Act, may be used as a basis to freeze accounts. The Bangko Sentral ng Pilipinas has also launched an inquiry into the bank accounts of involved individuals and entities, looking into possible violations of that law.
Roberto Figueroa, general counsel of the BSP, said DPWH filed its request with the BSP on Monday. He said that they would look at the use of financial accounts to obtain, receive, deposit, transfer, or withdraw proceeds that were realized from crimes.
Penalties for money laundering under the Anti-Financial Account Scamming Act include imprisonment of six to eight years and/or a fine of P100,000 to P500,000, said Figueroa. He added that conviction also carries civil liabilities such as restitution for damages or unwarranted benefit. Properties and other non-liquid assets that were used for the act will also be subject to forfeiture following Supreme Court rules.
“This is a major step in our road to make the people who did this accountable and to make sure that the people get their money back,” Dizon said.
Test case
Meanwhile, the newly created Independent Commission for Infrastructure (ICI) will focus on irregularities in a P3-billion flood control project in Oriental Mindoro as its first test case.
Dizon said his department would furnish the commission, tasked to investigate corruption, irregularities and the misuse of public funds in government infrastructure projects, with complaints and evidence on the Oriental Mindoro case within the week.
Dizon said on Tuesday that they will file graft charges before the Office of the Ombudsman against the second batch of DPWH officials and contractors who were allegedly behind the substandard flood control projects in the province.
“We are now preparing the charges, but since the ICI has already been organized, we are also coordinating with them. We will provide them with the complaints and pieces of evidence on the Oriental Mindoro case within the week,” Dizon said.
Dizon said the charges that will be filed in the second batch are almost the same as the cases filed against the 20 DPWH-Bulacan officials and four contractors.
Charges for malversation through falsification of public documents, violation of Republic Act (RA) 3019 or the Anti-Graft and Corrupt Practices Act, and RA 12009 or the New Government Procurement Act were filed against those involved for their alleged involvement in ghost and substandard projects.
Dizon, who was accompanied by Oriental Mindoro Gov. Humerlito Dolor during his inspection, uncovered “multiple, overlapping problems” in the 1.5-kilometer flood control project, including a major discrepancy where the master plan specified 12-meter sheet piles to support the dike, but actual measurements revealed less than 3 meters were installed.
The project, officially reported as “100 percent completed” as of 2025, remains visibly unfinished despite consuming P675 million in its first phase (2023) and P2 billion in the second phase (2024).
Dolor, in his testimony at the recent hearing of the Senate Blue Ribbon Committee, said the flood control structures in his province were not only substandard but also overpriced by as much as P1 million per linear meter, adding that most of the contracts were awarded to Sunwest Construction and Development Corp., owned by Ako Bicol Party-list Rep. Zaldy Co.
Citing records from the DPWH Department of Budget and Management (DBM), Dolor pointed out that Oriental Mindoro’s budget for flood control swelled by more than 100 percent from P12.8 billion under the 2025 National Expenditure Program to P30.3 billion in the final General Appropriations Act (GAA), or an “insertion” of P17.8 billion.
Dolor also said that from 2022 to 2025, Oriental Mindoro had received more than P30 billion for flood control projects, but widespread flooding remains a problem to date.
Also on Tuesday, Dizon and ICI special advisor Baguio City Mayor Benjamin Magalong uncovered more substandard flood control projects during an inspection in Bauang, La Union.
Dizon and Magalong inspected the Bauang River flood control project, consisting of two packages with an estimated total funding of P180 million.
Based on their initial assessment of the project, Dizon said that it is obviously substandard as per the physical appearance of the project.
He cited, among others, the outflow tube of the dike, which he described as just “props” or don’t serve their purpose as outlet in case the water rises so as not to compromise the dike.
“The outflow tube should have been through and through. The problem here is that the tubes were only placed on the outer part without connecting all the way to the inner part of the dike for water to pass through,” he added.
Dizon identified the contractor “Silver Wolves,” saying that the company’s name does not ring a bell. He said they would investigate to determine if it is the real contractor or just a subcontractor.
Dizon also noted that there is a pattern in all the substandard projects that he had inspected so far.
“We saw a pattern in the projects that we visited, starting from the project visited by the President in Bulacan, the one I visited in Mindoro, and now here in La Union,” he said. “Every time I arrived at the site, I asked for the project’s plan, but there is none. So how can we compare the plan to the actual [master] plan?”
ICI budget
Meanwhile, Budget Secretary Amenah Pangandaman said money for the ICI’s operations would come from the Office of the President.
Pangandaman said around P21 million would be sourced from the Miscellaneous Personnel Benefits Fund (MPBF) to cover the expenses for the personal Services of the ICI.
The commission’s budget for Maintenance and Other Operating Expenses (MOOE) and Capital Outlay (CO) would come from the contingency fund.
However, Pangandaman said that the exact funding requirements for the MOOE and CO have yet to be determined.
“Executive Secretary (Lucas) Bersamin and I talked about it — if it can still be covered by their budget, they will provide this. But if they can’t, they will request it from us (Department of Budget and Management),” Pangandaman said during a chance interview.
Pangandaman said she already has a draft for the budget and “several options.” She also said they were already working on the structure of the ICI’s personal services.
“Now, for personal service, we are already working on their structure. There’s an executive director, then the three members, and of course, the people under them,” Pangandaman said.
“We will create the positions accordingly. I’m just waiting for the announcement of the executive director. We will work on this,” she added.
Under Executive Order (EO) 94, which created the independent commission, the DBM is tasked to identify funding sources for the agency. This is “subject to pertinent budgeting, accounting, and auditing laws, rules and regulations,” the EO read. “The funding requirements for the ICI shall be included in the budget proposal, subject to the usual budget preparation process,” it added.
Meanwhile, Palace Press Officer Claire Castro said they would begin determining the budget once the organizational structure, to be approved by the executive director of the ICI, has been provided.
She said that the executive director of the ICI might be appointed within the week.
The newly formed ICI, chaired by retired Supreme Court Justice Andres Reyes Jr., is directed to investigate alleged anomalies in multibillion-peso flood control projects.
Joining Reyes on the commission are former Public Works secretary Rogelio Singson and SGV & Co. executive Rossana Fajardo as members, with Magalong appointed as special adviser.
