Zaldy Co got P802 million in bank deposits from Sunwest – witness

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The prosecution says the cash flow allegedly proves that Co is the beneficial owner of Sunwest Incorporated

MANILA, Philippines – Fugitive former Ako Bicol representative Zaldy Co has allegedly received a bank inflow of P802 million from contractor Sunwest, a financial investigator of the Anti-Money Laundering Council (AMLC) revealed.

According to the testimony of AMLC financial investigator Jan Mark Busa, Co allegedly received the bank inflow through check deposits from Sunwest’s accounts from 2019 to 2025. The prosecution said this is enough to prove that the resigned lawmaker is the Sunwest’s beneficial owner.

Co is the among the founders of Sunwest, but claimed that he already divested or left the company in 2019 to supposedly avoid conflict of interest. However, a Rappler investigation in 2025 showed that the former lawmaker is still the corporation’s beneficial owner.

Under many laws, including the 1987 Constitution, conflict of interest in the government is strictly prohibited. Aside from banning politicians from having other occupations other than their elective positions, Philippine laws also bar them from having direct or indirect financial interests in government contracts.

“That is his (Co) connection with the contractor and in the entire conspiracy. So essentially, he is benefiting. In summary, based on the bank records that the AMLC was able to secure, there were transactions, cash inflows, deposits from Sunwest to the accounts of Zaldy Co,” the prosecution team told reporters in a mix of Filipino and English after the Sandiganbayan 6th Division hearing on Tuesday, April 7.

“These are strong indicators of the beneficial ownership of economic benefits, receiving money from Sunwest,” the prosecutors added.

Co’s is facing the malversation case pending before the anti-graft court’s 6th Division due to alleged irregularities in the procurement and construction of a P289.4-million flood control project in Naujan, Oriental Mindoro. Apart from the former lawmaker, Department of Public Works and Highways (DPWH) Mimaropa officials are also respondents in the case, along with the board of directors of Sunwest.

What the prosecution is trying to prove through the AMLC findings is that Co still benefited from Sunwest even after supposedly divesting.

“Of course, he (Co) has no direct participation in the transaction per se because the ones contracting with the DPWH is Sunwest. But the fact that he is the beneficial owner, which we are trying to prove, essentially, the benefits went to him and the amounts malversed in this case,” the prosecution team explained.

Busa is the financial investigator who looked into Co’s bank accounts and business interests. He is also behind the AMLC’s preliminary report and initial bank inquiry report, which formed the basis for filing a petition with the Court of Appeals (CA) to issue a freeze and bank inquiry order against Co’s accounts.

The CA granted the petitions and issued a freeze order against Co’s assets.

No more witnesses from prosecution. What now?

Busa is the prosecution’s last witness in Co’s malversation case. Before him, the Office of the Ombudsman presented two high-profile state witnesses against Co: former DPWH undersecretary Roberto Bernardo and former Bulacan district engineer Henry Alcantara.

On March 17, Bernardo revealed that he allegedly received shares from Co from 2023 to 2025 amounting to around P130 million in total. The former DPWH official said the “balato” (share) – the term used by some of the parties during the Tuesday hearing – was allegedly coursed through former DPWH Mimaropa regional director Gerald Pacanan, who is also among the accused in the malversation case.

Alcantara, meanwhile, has testified that Co sought infrastructure contracts in Bulacan. The prosecution said the former DPWH engineer’s testimony proves that Co is connected to Sunwest, and is a contractor of government projects.

“We’re confident, especially after the resolution denying bail and there were strong evidence of guilt, we’re confident. So far, we were able to establish our case,” the prosecution team said, when asked about their assessment of their evidence against Co.

Since the prosecution has already finished with the presentation of their evidence, the defense lawyers are expected to lodge a motion for leave to file a demurrer to evidence.

The 6th Division – comprised of chairperson Associate Justice Sarah Jane Fernandez and members Associate Justice Kevin Narce Vivero and Associate Justice Lord Villanueva – said there will be no open hearings for the motion for leave if ever.

Demurrer to evidence, if granted, has the effect of an acquittal. It is sought if the accused believes that the prosecution’s evidence is weak enough that they don’t have to present their own. It can be filed after the prosecution’s presentation of evidence.

The Sandiganbayan division set the initial presentation of the defense on June 2, where the accused’s lawyers are expected to present at least 66 witnesses. The court said the hearings will be held twice a week – on Tuesdays and Thursdays.

Initially, the defense opposed the two-day weekly hearings, citing difficulties due to the accused’s detention and in preparing their witnesses. The prosecutors, however, objected.

“We will maintain the schedule of every Tuesday and Thursday,” the court ruled later on, pointing out that the accused are detained so that the case could be handled with speed. – Rappler.com