Ombudsman firm: Zaldy Co owns Sunwest Corp.

The Office of the Ombudsman on Wednesday expressed confidence that it has enough proof that former Ako Bicol party-list Rep. Zaldy Co is the beneficial owner of Sunwest Construction, the recipient of billions-worth of anomalous flood control projects.

Assistant Ombudsman Mico Clavano made the pronouncement a day after the Ombudsman filed malversation and two counts of graft charges against Co; several officials of the Department of Public Works and Highways (DPWH) in the Mimaropa region; and directors of Sunwest Corporation in connection with a P289 million flood control project in Oriental Mindoro. 

The P289 million road dike project was built by Sunwest Construction, a firm founded by Co and still owned by his immediate family members, the Ombudsman said.

Co had earlier denied being involved in Sunwest, saying he had divested from the company before his election to the House of Representatives in 2019.

“As for DPWH officials and employees, the evidence is already there because their actions are documented, they are the ones who issued a certification [on the project], and we used these documents to establish the process of approving a substandard project,” Clavano said.

“When it comes to Sunwest, there is documentary evidence because these respondents are in the GIS (General Information Sheet),” the official said in a Balitanghali interview.

The Ombudsman can prove the link between Sunwest and Co, Clavano said.

“When it comes to Zaldy Co, we also have proof that na siya talaga ang beneficial owner [of Sunwest Construction]. Kumbaga, kahit wala po siya sa corporate papers, dinidirect niya ang operation at nakikinabang din po siya sa earnings ng corporation na ‘yun,” Clavano added.

(Co is really the beneficial owner. Even if his name is not on corporate papers, he directs the operation of the firm and he benefits from its earnings.)

According to Sumbong sa Pangulo data, Sunwest won an estimated P10.1?billion for 78 flood?control projects, mostly in the Bicol region.

In the same interview, Clavano said that the Ombudsman is also probing the allegations of Co wherein he accused President Ferdinand Marcos, Jr. or ordered him to insert P100 billion under the 2025 proposed national budget during the bicameral conference committee in late 2024.

Aside from Co, Senator Panfilo Lacson, citing accounts of former DPWH Undersecretary Roberto Bernardo, had said that two former high-ranking officials--Department of Education (DepEd) Undersecretary Trygve Olaivar and Presidential Legislative Liaison Office (PLLO) Undersecretary Adrian Bersamin—supposedly dropped the President’s name to convince Co to make such insertions for a kickback scheme.

“These statements will go through verification. We were just made aware of these a few days ago so we are yet to go into a deep dive probe on it,” Clavano said.

Olaivar and Bersamin have since resigned from their post.

Clavano, however, maintained that Co should come back to the country and face the charges against him.

 “I hope he participates in the court proceedings,” Clavano added.

Co has earlier denied allegations on his involvement in the kickback scheme, claiming that he is being used to cover up corruption in the administration of President Ferdinand Marcos, Jr.—MCG, GMA Integrated News