![“This [flood control scheme] is a corruption on a scale that we have not seen in the past,” says Public Works Secretary Vince Dizon. “The Napoles scandal is like petty change compared to this.”](https://www.panaynews.net/wp-content/uploads/2025/09/Ombudsman_copy_resized-218x150.jpg "FLOOD CONTROL SCANDAL: Ombudsman cases filed vs DPWH staff, contractors")
ILOILO City – The P400-million flood mitigation project in Bo. Obrero, Lapuz district is now in limbo after contractors tied to the Discaya family lost their permits, prompting Mayor Raisa Treñas to press the Department of Public Works and Highways (DPWH) for clarity on who has the authority to suspend or terminate the works.
Treñas said she has formally written the DPWH following the Philippine Contractors Accreditation Board’s (PCAB) revocation of the licenses of St. Timothy Construction and other Discaya-owned firms.
“I want to know who has the authority to stop the project, because as of now, it is not clear if it’s the city, the DPWH, or another agency,” the mayor stressed.
PCAB, an attached agency of the Department of Trade and Industry, ensures that only licensed and qualified contractors operate, particularly in government infrastructure projects. Under the Contractors’ License Law, no contractor — including sub-contractors — may engage in contracting without a PCAB license.
Project details
The Lapuz flood control project consists of three sections, featuring slope protection with a wave deflector, a carriageway, and a drainage system.
“The wave deflector is a curved part of the seawall that bounces back waves to the shore, while the carriageway serves as a road passable to vehicles, and the drainage channels rainwater runoff back to the sea during heavy rains,” explained Office of the Building Official (OBO) head Mavi Gustilo.
According to project records, Section 1 funded in 2024 spans 200 linear meters, Section 2 measures 210 linear meters, while another section funded in 2025 covers 235 linear meters but is already suspended.
Construction began in September 2024, yet no billboard onsite indicates the project’s completion date, raising transparency concerns.
Adding to the uncertainty, Acting Community Environment and Natural Resources Office (CENRO) head Armin Halili said his office cannot confirm if the structure encroaches on the mandated easement.
“We still need a survey to determine the cadastral line and to see if any part of the structure exceeds the easement,” Halili noted, adding that initial estimates place the width of the project at no less than 15 meters from the old seawall line.
Why PCAB blacklisted the Discayas
Last week, PCAB revoked the licenses of nine construction companies owned by contractor Sarah Discaya after she admitted during a Senate Blue Ribbon Committee hearing that her firms had been bidding against each other for government projects.
In its Sept. 3 resolution, PCAB said the admission revealed collusion, with Discaya’s companies engaging in multiple bidding to manipulate outcomes, corner projects, and stifle fair competition.
“Employing schemes which stifle or suppress the outcome of the procurement activity in violation of licensing and procurement laws,” the board noted, adding that such practices undermine transparency and fairness in public bidding.
The revoked firms include:
* St. Gerrard Construction Gen. Contractor & Dev’t Corp.
* Alpha & Omega Gen. Contractor & Dev’t Corp.
* St. Timothy Construction Corp.
* Amethyst Horizon Builders and Gen. Contractor & Dev’t Corp.
* St. Matthew General Contractor & Development Corp.
* Great Pacific Builders And General Contractor Inc.
* YPR General Contractor And Construction Supply Inc.
* Way Maker OPC
* Elite General Contractor And Development Corp.
PCAB said these companies will be removed from its registry of licensed contractors, with notices of revocation already issued. It will also endorse the matter to the National Bureau of Investigation (NBI) and the Department of Justice (DOJ) for possible criminal liability./PN
