COA finds fraud in over P325-M flood control projects in Bulacan

The Commission on Audit (COA) has filed four fraud audit reports (FARs) over alleged irregularities in flood control projects in Bulacan worth more than P325 million.

The FARs were lodged before the Independent Commission for Infrastructure. 

The said projects, all implemented by the Department of Public Works and Highways (DPWH) – Bulacan 1st District Engineering Office (DEO) — were awarded to Wawao Builders, and Darcy and Anna Builders & Trading. 

The investigation indicated recurring indicators of systemic misuse of public funds on these flood control projects.

Through physical inspections, drone surveillance, geotagged photography, and historical satellite imagery, COA auditors discovered alarming patterns such as ghost projects, unauthorized relocation of project sites, payments for pre-existing structures, and severe documentation deficiencies. 

The disputed projects are as follows:

1. Wawao Builders – Guiguinto, Bulacan 
Project: Construction of Riverbank Protection Structure at Barangay Santa Cruz, Guiguinto, Bulacan
Total Contract Cost: P96,499,302.69

2.Wawao Builders –Iba, Hagonoy, Bulacan
Project: Construction of Riverbank Protection Structure at Barangay Iba-Ibayo, Hagonoy, Bulacan
Total Contract Cost: P77,197,558.67

3.Wawao Builders – Calumpit, Bulacan
Project: Construction of Riverbank Protection Structure at Barangay San Jose, Calumpit, Bulacan
Total Contract Cost: P77,199,226.37

4.Darcy and Anna Builders & Trading – Malolos City, Bulacan
Project: Construction of Riverbank Protection Structure at Barangay Babatnin, Malolos City, Bulacan
Total Contract Cost: P74,120,639.56

“Using a combination of physical inspections, drone surveillance, geotagged photography, and historical satellite imagery, COA auditors uncovered several alarming patterns [such as these being] ghost projects, unauthorized relocation of project sites, payments for pre-existing structures and severe documentation deficiencies,” COA said.

“At some locations identified by DPWH, COA determined through satellite imagery that riverbank protection structures already existed prior to contract effectivity, raising the possibility that public funds were used to pay for works that were not newly constructed. [There’s also] widespread absence of required documents such as as-built plans, detailed cost breakdowns, geotechnical investigation reports, complete Statements of Work Accomplished and approved master plans—seriously undermining the credibility of reported accomplishments and payments made,” COA added.

State auditors said that the individuals involved could face charges for graft and corruption under the Anti-Graft and Corrupt Practices Act, as well as for malversation, and falsification of documents under the Revised Penal Code.—LDF, GMA Integrated News