COA fraud audit reports filed over Bulacan flood projects worth P297M

The Commission on Audit (COA) has filed four Fraud Audit Reports (FARs) with the Independent Commission for Infrastructure (ICI) over what it described as "rampant irregularities" in Bulacan flood control projects amounting to P297 million. 

In a statement on Saturday, the COA said the four questionable projects were all implemented by the Department of Public Works and Highways (DPWH) – Bulacan 1st District Engineering Office (DEO).

Project contracts were awarded to Wawao Builders and SYMS Construction and Trading, two companies under investigation for alleged links to the flood control corruption scandal.

The commission said the projects were "found to contain serious and recurring signs of misuse of public funds."

Highlighting the significance of the FARs, the COA said the audits "expos[e] rampant irregularities in flood control projects in Bulacan worth of P297 million."

Using the term "Audit Shock," the COA said its technical inspections, satellite imagery review, and fraud audit procedures showed "serious and recurring issues in the implementation" of the four flood control projects. 

According to COA, these issues include:

• "Ghost" projects — No concrete flood-mitigation or slope-protection structures at the approved site, despite documents indicating the projects were 100% complete.
• Unauthorized Relocation — Sites were "entirely different" from the locations indicated in the approved plans and contract documents. Some of these had "no formal documentation or written authority" to justify the relocations, which COA said "raise major concerns about project legitimacy."
• Payments for existing or pre-existing structures at approved sites — Riverbank or flood control structures "already existed years prior to the award or implementation" at some approved or pinpointed locations. "In such incidents, the existing works could not be properly attributed to the new contracts. The COA added this suggests the government may have paid millions for structures that already existed," COA's statement read.
• "Egregious" documentation gaps: Material deficiencies were noted for supporting project documents, which COA said "effectively undermining the credibility of reported accomplishments and payments."

To recall, COA Chairperson Gamaliel Cordoba ordered a fraud audit of DPWH flood control projects in Bulacan for July 1, 2022 up to May 30, 2025 to address escalating public concerns over "ghost projects" and corruption in critical infrastructure spending.

GMA News Online is seeking comment from Wawao Builders and SYMS Construction and Trading regarding the matter.

'BGC Boys'

Former DPWH Bulacan engineers Henry Alcantara, Brice Ericson Hernandez, and Jaypee Mendoza—key figures in the alleged kickback scheme in flood control projects in the province's first engineering district—are involved in all four projects included COA's latest FARs.

Wawao Builders was awarded the contracts for the four projects, one of which is a joint venture with SYMS Construction in Baliwag City.

The first project is for the construction of flood mitigation structures at Barangay San Nicolas, Hagonoy, Bulacan worth P77,199,997.92.

COA found no flood control structure at the approved site, despite documents claiming the project was 100% complete, with satellite images confirming the absence of any flood control structure.

Individuals allegedly liable for this project were listed as follows: Alcantara, Hernandez, Mendoza, Engineer Ernesto Galang, Engineer Paul Jayson Duya, Engineer Jolo Mari Tayao, Engineer Mark Lester Castro, Engineer John Michael Ramos, and Mark Allan Arevalo of Wawao Builders.

The second project is for the Construction of Riverbank Protection Structure at Barangay Iba, Hagonoy, Bulacan. The contract cost was indicated at P74,199,192.34.

According to COA, satellite imagery showed that the riverbank protection structure was not built at the designated project location. 

"At the location identified by DPWH representatives, the existing structure also appeared to be part of a continuous wall that may have been funded from other contracts, and thus could not be conclusively attributed to this project," COA said.

Allegedly liable individuals were identified as Alcantara, Hernandez, Mendoza, Galang, Duya, Tayao, Engineer Lemuel Ephraim SD Roque, Engineer Sheena Bernadette Morales, and Arevalo of Wawao Builders.

Guiguinto, Baliwag

Meanwhile, the third project was for the construction of a flood control structure along Guiguinto River, Malis Section, Guiguinto, Bulacan. It carried a price tag of P96,499,968.29.

Studied using historical satellite imagery, COA found that a flood control structure already existed at the approved project site years before the contract's effectivity. 

COA inspectors found an incomplete structure at the location identified by DPWH representatives.

Individuals allegedly liable for this project are Alcantara, Hernandez, Galang, Ramos, Tayao, Duya, and Arevalo of Wawao Builders.

Finally, the fourth project was for the construction of a flood control structure along Barangay Virgen Delos Flores, Sta. Barbara and Tiaong, Baliuag, Bulacan.

The cost of the contract is P49,498,039.75, awarded to the Wawao Builders and SYMS Construction joint venture.

No flood control structure was found at the approved contract site despite its reported completion.

"DPWH identified a completed infrastructure whose location does not match the Engineering Plans," the COA said.

Individuals identified as liable for this project are Alcantara, Hernandez, Mendoza, Galang, Engineer Rafaelito Marcelo, Arevalo of Wawao Builders, and Sally Santos of SYMS Construction and Trading.

The COA said individuals involved may face charges for graft and corruption under the Anti-Graft and Corrupt Practices Act, malversation, and falsification of documents under the Revised Penal Code, and relevant COA regulations. — VDV, GMA Integrated News