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January 9, 2026 | 12:00am
The Sandiganbayan Sixth Division started the hearings on Jan. 8 for the bail petition of the nine officials, who are co-accused of former Ako Bicol congressman Zaldy Co.
Zaldy Co / Philstar.com's screenshot
MANILA, Philippines — Nine former officials of the Department of Public Works and Highways (DPWH) in Mimaropa yesterday asked the Sandiganbayan to grant them bail in their malversation case over the P289-million flood control project in Oriental Mindoro.
The Sandiganbayan Sixth Division started the hearings on Jan. 8 for the bail petition of the nine officials, who are co-accused of former Ako Bicol congressman Zaldy Co.
DPWH-Mimaropa officials Juliet Calvo, Gerald Pacanan, Gene Altea, Ruben delos Santos Jr., Dominic Serrano, Lerma Cayco, Felisardo Casuno, Dennis Abagon and Montrexis Tamayo had entered not-guilty pleas for malversation, as well as graft charges.
Last November, the Sandiganbayan issued arrest warrants and hold departure orders against Co and 15 other DPWH officials and Sunwest Inc. representatives charged in the road dike project in Oriental Mindoro.
Ombudsman prosecutors recommended no bail for the malversation charges.
Co remains at large.
The bail hearing will resume on Jan. 12.
BIR: Probe ofpols continues
The Bureau of Internal Revenue (BIR) continues to investigate politicians linked to alleged irregularities in flood control projects, as authorities vow to pursue cases with solid evidence.
Following the filing of a tax evasion case against a construction firm yesterday, BIR Commissioner Charlito Mendoza emphasized that they are looking at all personalities involved in the corruption, including lawmakers.
“Our investigation is ongoing, all the personalities who have emerged as allegedly involved in these anomalies are being investigated by the BIR. We are just making sure that when we file a case, we have a clear basis,” he told reporters.
The BIR has filed a criminal complaint before the Department of Justice against the sole proprietor of Wawao Builders, Mark Allan Arevalo, over a near P50 million tax deficiency stemming from a non-existent flood control project in Bulacan.
The criminal complaint alleged that Wawao Builders violated the National Internal Revenue Code of 1997 through acts of tax evasion amounting to P48.39 million and the submission of incorrect or inaccurate information in its tax filings.
“While other agencies address the irregularities in project implementation, we at the BIR are doing our part by filing criminal complaints against those who misuse public funds and evade their tax obligations through these ghost projects,” Mendoza said.
BIR said their records showed that a government contract valued at P77.2 million for the construction of a riverbank protection structure in Malolos, Bulacan was awarded to the construction firm in January 2024.
It said that Wawao Builders was paid a total of P72.37 million, net of withholding taxes, disbursed in three installments from March to April last year.
However, inspections conducted by the Commission on Audit and the BIR revealed that no riverbank protection structure existed at the project location, notwithstanding reports certifying full project completion.
As a result, the BIR disallowed the firm’s claimed deductions and input value-added tax.
