ILOILO City – Multimillion-peso flood control projects in this city, cornered by firms owned by controversial businesswoman Sarah Discaya, were found to have been carried out without the required Mayor’s Permit — a violation that has now cost the companies more than P3.1 million in back taxes and penalties.
The discovery, which city officials called alarming, came after the City Treasurer’s Office reviewed over 90 Department of Public Works and Highways – Iloilo City District Engineering Office (DPWH–ICDEO) projects from 2022 to 2025 and conducted on-site inspections.
“The review revealed that St. Timothy Construction Corporation and Alpha and Omega General Contractor & Development Corporation had no valid Mayor’s Permit. As such, the City Treasurer’s Office was directed to impose the necessary tax obligations and require full compliance with the city’s regulations,” Mayor Raisa Treñas said.
The projects under scrutiny included:
* Construction of Flood Mitigation Structure in Lapuz, Section 1 (24GJ0051)
* Construction of Flood Mitigation Structure in Lapuz, Section 2 (24GJ0052)
* Waterways Rehabilitation and Coastal Protection, Section 1, Iloilo City (25GJ0016)
* Iloilo Comprehensive Flood Mitigation Project, Section 2, Barangay Tacas, Jaro
The first three were handled by St. Timothy Construction Corporation, while the fourth was awarded to Alpha & Omega.
Both companies are part of the nine firms Discaya herself admitted to owning, and were earlier flagged by President Ferdinand Marcos Jr. as among the contractors monopolizing public works projects nationwide.
What raised eyebrows further, according to Treñas, was that representatives of St. Timothy Construction could not even identify the actual sites of three projects despite already being issued Notices to Proceed by the ICDEO under District Engineer Roy Pacanan.
City Hall has since compelled the two firms to settle their obligations, but Treñas stressed that monitoring and stricter enforcement will continue.
“This initiative is being done to protect public interest and to make sure that all government projects in Iloilo City are carried out properly, transparently, science-based, and in accordance with regulations,” the mayor said./PN
