A construction company linked to former Ako Bicol Party-list Representative Zaldy Co has landed ₱2 billion worth of government projects from the Land Transportation Office (LTO) — and those same projects are now facing questions over possible misuse and underutilization.
LTO Chief Assistant Secretary Markus Lacanilao confirmed on Tuesday that Sunwest Inc. was awarded three major projects under contracts signed in February 2021.
Among them were two buildings valued at ₱499 million each — the supposed IT Training Hub and the Road Safety Interactive Center. Another structure, worth ₱946 million, was intended to serve as the Central Command Center.
Although the construction was completed, Lacanilao revealed that audit findings by the Commission on Audit (COA) uncovered troubling issues.
“The COA report disclosed several serious observations — improper use of the IT dormitory, poorly maintained rooms, idle IT hub equipment,” Lacanilao said in a press conference.
According to the COA’s AOM-184-2024-17 report, the agency found inefficiencies, non-compliance with contract terms, and overpayment amounting to ₱26.9 million.
Lacanilao noted that the buildings were underutilized partly because some payments remained pending due to the LTO’s own internal questions. However, during the leadership of Vigor Mendoza, the LTO reportedly released payments totaling nearly ₱2 billion in December 2024.
Given the findings, Lacanilao said his office will submit documents to the Independent Commission for Infrastructure (ICI) and the Office of the Ombudsman for further investigation.
“Given the circumstances and strong indications of potential irregularities in public funds, our office finds it necessary to elevate this matter to the ICI,” Lacanilao emphasized.
GMA News Online has reached out to Zaldy Co’s camp for comment and will update the story once a response is received.
