ICI, DPWH refer plunder and graft charges vs 8 lawmakers in flood mess

By Erika Mae P. Sinaking and Kenneth Christiane L. Basilio, Reporter

THE Independent Commission for Infrastructure (ICI) and the Department of Public Works and Highways (DPWH) have recommended to the Office of the Ombudsman the filing of plunder and graft charges against eight lawmakers allegedly linked to the flood control scandal.

Handing over boxes of contracts and investigative findings on approximately 1,300 infrastructure projects spanning from 2016 to 2024, the ICI and DPWH named former party-list Rep. Elizaldy S. Co, who was linked to FS Co. Builders Supply, making him a subject of plunder.

Records from the DPWH show that the firm alone was awarded 40 infrastructure projects from 2020 to 2024, totaling approximately P3.83 billion.

The referral further indicates that the remaining seven sitting lawmakers were linked to firms they or their relatives managed, raising potential conflicts of interest and possible violations of anti-graft and procurement laws.

The other lawmakers include: Party-list Rep. Edwin L. Gardiola, associated with Newington Builders, Inc., Lourel Development Corp., and S-Ang Construction & General Trading, Inc., Party-list Rep. James Ang Jr., tied to IBC International Builders Corp. and Allencon Development Corp., Party-list Rep. Jernie Jett V. Nisay of JVN Construction and Trading. Bulacan Rep. Augustina Dominique C. Pancho of CM Pancho Construction, Inc.; Cagayan Rep. Joseph L. Lara of JLL Pulsar Construction Corp.; Surigao del Norte Rep. Francisco T. Matugas of Boometrix Development Corp.; and Tarlac Rep. Noel N. Rivera of Tarlac 3-G Construction & Development Corp.

ICI Chairman Andres B. Reyes, Jr. said in a statement that these congressmen should not engage in private business activities that conflict with their official duties and that “they should not influence bids and awards.”

In a press briefing, Public Works Secretary Vivencio B. Dizon said that the charges recommended to the Ombudsman constitute violations of Republic Act 7080, the Anti-Graft and Corrupt Practices Act, and other provisions of Philippine law, including bribery, the Government Procurement Reform Act, and ethical standards for public officials.

Ombudsman Jesus Crispin C. Remulla said his office would evaluate the referrals and conduct a preliminary investigation.

“We are accepting this for evaluation and fact-finding, and it will be followed by a preliminary investigation,” Mr. Remulla said.

In a statement Mr. Ang denied the allegation saying his “conscience is clear.”

“I am confident I will be able to clear my name soon. In my three years in public service, I have never used my position for personal gain. I stand firm on what is true and just and am ready to face this case in the proper forum,” he added.

Meanwhile, Ruy Albert S. Rondain, legal counsel of Mr. Co, said he had not reviewed the referral and expressed skepticism about his client’s involvement.

“I do not believe he personally entered into any contract, either individually or through an entity by that name,” Mr. Rodain told BusinessWorld over Viber.

In a Facebook post, Mr. Lara said the endorsement is not related to anomalous flood mitigation projects, and instead about his former ties with JLL Pulsar Construction. He welcomed the endorsement as an opportunity to speak in the “proper forum” to prove he did not violate any law.

The office of Mr. Matugas said in a separate Facebook post that the lawmaker has yet to receive an official notice regarding the referral. Mr. Matugas’ camp said in Bisaya that they are ready to cooperate fully with the investigation as they have “nothing to hide.”

Other congressmen named did not immediately respond to reporters’ requests for comment.

INVESTIGATE MARCOSES
Also on Wednesday, the Makabayan bloc formally urged the ICI to investigate President Ferdinand R. Marcos, Jr. and other officials over alleged corruption in the 2025 flood control budget.

In a letter, the Makabayan lawmakers cited claims of Mr. Co, who formerly chaired the House Appropriations Committee, and former DPWH Undersecretary Roberto R. Bernardo, who alleged that the chief executive personally ordered P100 billion in budget insertions, with P52 billion facilitated by former Executive Secretary Lucas P. Bersamin.

“More than 100 days have passed since the investigations into flood control corruption began, yet zero corrupt politicians have been jailed,” the letter read.

“The Filipino people are now witnessing what appears to be a massive cover-up operation designed to shield high-ranking officials from accountability in this corruption scandal.”

Mr. Co in November started releasing a series of videos in which he accused top Marcos government officials, including Mr. Marcos’ family, of impropriety stemming from the fallout of a multibillion-peso kickback scheme involving anomalous flood control deals.

In a new video statement on Wednesday, Mr. Co accused First Lady Marie Louise “Liza” Araneta Marcos of her involvement in manipulating the rice trade, alleging her role in the scheme that has kept prices of the staple grain artificially high despite reduced import duties.

He said Ms. Marcos was “in charge of the rice importers” that lawmakers began looking into due to elevated rice prices despite the rice import tariff being cut to 15% from 35%.

Congressmen prematurely ended their investigation after Agriculture Secretary Francisco P. Tiu Laurel, Jr. presented a document linking Ms. Marcos to the rice trade, prompting then‑House Speaker Ferdinand Martin G. Romualdez and Ilocos Norte Rep. Ferdinand Alexander “Sandro” A. Marcos III to call for its termination.

Palace Press Officer Clarissa A. Castro did not immediately reply to a Viber message seeking comment.

She had previously dismissed Mr. Co’s videos as a “comedy series,” urging him to present evidence rather than rely on allegations.

“It is painful to accept, but this is the truth: The most powerful family is involved in the system,” Mr. Co said in a video published on his Facebook page in Filipino. “They are the ones in charge, controlling and benefiting from transactions.”

The government in July last year slashed tariffs on rice imports to 15% from 35% to tame rice prices. But that did not arrest the market prices of the staple grain, prompting lawmakers to look into the food trade.

“Even though the import tax of rice was lowered from 35% to 15%, the price of rice still did not go down because of the amount of SOP and remittance that was paid to each transaction,” Mr. Co said, referring to kickbacks.

He also alleged that Ms. Marcos intervened in a 2022 congressional inquiry into alleged agricultural smuggling to shield her brother from being implicated.

“The investigation did not continue… because Ms. Marcos called Mr. Romualdez to stop the investigation,” he said. “That’s why there’s no continuation and punishment because the sibling of the First Lady controlled the importation of onions.”