Billions Lost to ghost projects in Bulacan, says DPWH chief Bonoan

(UPDATE) PUBLIC Works Secretary Manuel Bonoan on Tuesday confirmed that there were ghost flood control projects in Bulacan worth billions of pesos that were supposedly carried out from 2021 to 2022.

Bonoan made the revelation during the Senate Blue Ribbon Committee hearing on massive flooding and the government’s flood control program.

Senate President Pro Tempore Jinggoy Estrada asked Bonoan whether he believed there were ghost flood control projects.

HOT SEAT Public Works and Highways Secretary Manuel Bonoan answers questions during the investigation on flood control projects by the Senate Blue Ribbon Committee on Aug. 19, 2025. PHOTO BY MIKE ALQUINTO

“In all honesty, I think so. Yes. As mentioned in my statements, there are district offices that try to continue the validation. Let me just point out that some of the projects [were] implemented in 2021 -2022,” Bonoan said.

Estrada said his office received reports that there were ghost projects in the municipalities of Calumpit, Malolos, and Hagonoy in Bulacan province involving Wawao Builders and SYMS Contractor.

Bonoan confirmed the senator’s claim. Asked how would he know that these are ghost projects, Bonoan said, “There are people who can testify. There are projects that we are extensively validating.”

Bonoan said that of the P9 billion worth of projects secured by Wawao Builders nationwide, 85 projects were in Bulacan, amounting to P5.971 billion, and that “some seem to be ghost projects.”

Wawao Builders is among the top 15 contractors named by President Ferdinand Marcos Jr. that received a large chunk of the government’s flood control projects over the years.

From 2022 to 2025, Wawao reportedly completed 58 flood control projects worth P4.2 billion, according to the website www.sumbongsapangulo.ph.

SYMS Construction, on the other hand, supposedly completed 16 projects totaling P931.2 million over the past three years.

Records from the Department of Public Works and Highways (DPWH) showed Wawao Builders is owned by Mark Allan Arevalo, while SYMS Construction is a sole proprietorship owned by Sally Nicolas Santos.

Arevalo has been invited to the inquiry but did not attend. Bonoan said Wawao Builders cornered 85 flood control projects in Bulacan, amounting to P5.9 billion.

Bonoan assured the senators that they will file charges against all those involved in the ghost projects.

Bulacan, along with Metro Manila, Pampanga, Nueva Ecija, Pangasinan, Tarlac, Maguindanao, North Cotabato, Oriental Mindoro, and Ilocos Norte, are among the most flood-prone provinces based on the National Adaptation Plan of the Philippines (2023 to 2050).

But Sen. Joseph Victor Ejercito said there was a mismatch in the allocation of P350 billion in flood control funds.

“My only question is, where does the P350 billion go? That’s what we want to know. Is the master plan being followed, if there is even one?” the senator asked. “My analysis is simple: There’s a mismatch in where the bulk of flood control funds are going.”

Ejercito added, “We can’t fight nature, but the flood control projects should be completed as soon as possible so that the water can be released immediately. That is what’s important.”

He said in flood-prone areas like Central Luzon, from Tarlac, Pampanga, Bulacan up to Metro Manila, what are needed are floodways, spillways, water-impounding areas, and strategic pumping stations.

Subpoenas

The Senate Blue Ribbon Committee issued subpoenas to several contractors who failed to attend Tuesday’s hearing.

Panel chairman Sen. Rodante Marcoleta approved the motion filed by Sen. Ronald Dela Rosa after no senator objected.

During the hearing held on Tuesday, Aug. 19, only seven out of the 15 contractors summoned were present, represented by company owners, executives, or legal counsel.

Subpoenas were issued to compel the attendance of those who failed to appear, including Cezarah Dizcaya, president, Alpha and Omega Gen. Contractor & Development Corp.; Ma. Roma Angeline Romando, owner and manager, St. Timothy Construction Corp.; Eumir Villanueva, president, Topnotch Catalyst Builders Inc.; Aderma Angelie Alcazar, president and CEO, Sunwest Inc.; Edgar Acosta, president, Hl-Tone Construction & Development Corp.; Romeo Miranda, president, Royal Crown Monarch Construction & Supplies Corp.; Mark Allan Arevalo, general manager, Wawao Builders; and Luisito Tiqui, president, L.R. Tiqui Builders, Inc.

The committee expects those subpoenaed to appear in person during the next hearing, as it continues its investigation into reports of anomalous practices in the awarding and implementation of flood control contracts.

Committee vice chairman Sen. Erwin Tulfo demanded a “reasonable” explanation for their absence.

“They are making a fool out of this committee by saying that they are sick, already on vacation, and have a prior schedule. What is more important, their prior schedule or this investigation? Because we’re talking about P544 billion here, not small change,” Tulfo said in Filipino.

During the hearing, Sen. Alan Peter Cayetano asked Bonoan why DPWH officials have not been suspended over alleged ghost projects, saying a simple paper trail should be sufficient to identify those involved.

He urged the DPWH to clarify how far up the DPWH chain of command the physical verification of projects goes, saying this is key to identifying who should be held accountable.

Sen. Sherwin Gatchalian asked the DPWH to submit a list of offices that approved and awarded flood control project contracts to contractors who lack the capacity to finance the projects.

Gatchalian said if a project is worth P450 million, the contractor or company must have P1 billion or more in capital, which is in the quadruple A category.

However, based on data obtained by the senator, the 15 contractors who cornered almost 20 percent of the flood control funds were capitalized at between P50 million and P90 million, far from the P1 billion required.

Gatchalian cited Centerways Construction and Development Corp. as an example, which has a P5.1 billion project value but is only capitalized at P45 million; Triple 8 Construction & Supply Inc., with a project cost of P3.9 billion but only P90 million in capital; and Wawao Builders with a project cost of P4.2 billion but only P50 million in capitalization.

He said it is clear that the projects are undercapitalized, which is why they often fail, because there are not enough funds, and contractors tend to cut corners.

Because of this, Gatchalian believes that there is possible collusion and corruption in the awarding of contracts for flood control projects, and that the pre-qualification stage in the awarding of contracts may have been manipulated.

DPWH audit

Bonoan on Tuesday ordered a technical and financial audit of alleged substandard flood control projects worth hundreds of millions of pesos, which collapsed during the onslaught of the southwest monsoon and the series of weather disturbances brought by Tropical Storm Crising, Dante and Emong last month.

“We will thoroughly look into this report. We have to go through intensive technical and financial audits on these projects in Oriental Mindoro and as well as in other areas,” he said.

Bonoan issued the order following a report made by DPWH-Mimaropa Regional Director Gerald Pacanan following an inspection, together with Oriental Mindoro Gov. Humerlito Dolor, of the flood control projects in the town of Bongabong and other areas in compliance with the president’s directive to investigate and review flood control projects nationwide.

The DPWH chief also clarified that not all on the list of completed flood control projects from July 2022 to May 2025 that he submitted to Malacañang were started under the Marcos administration.

“Some of the projects on the list were started by the past administration and were completed in 2022 and 2023. The implementing budget for this administration started in 2023, and we included them in our report because that was asked from us,” Bonoan said.

In his report to Bonoan, Pacanan said all government flood control projects under his jurisdiction are currently being reviewed, with a comprehensive report to be submitted to the DPWH soon after.

He assured the public that the agency remains committed to transparency, accountability, and delivering innovative and quality infrastructure, as he committed his full support to the provincial governor of Oriental Mindoro to ensure that government projects truly serve their purpose.

“I also encouraged citizens in Mimaropa to actively report any suspicion of substandard DPWH projects through the official DPWH Mimaropa Facebook page,” Pacanan added.

Dolor earlier questioned the integrity of a collapsed flood control project in Naujan, Oriental Mindoro, saying that the structure was not only substandard but was also grossly overpriced.

The governor demanded accountability from the DPWH, noting that the flood control project appeared to have been constructed with poor materials.

Teves offer

Also on Tuesday, expelled Negros Oriental congressman Arnolfo Teves Jr., who is facing multiple murder and terrorism-related cases, offered to testify before the Senate Blue Ribbon Committee on alleged corruption in flood control projects.

In a letter dated Aug. 18 addressed to Marcoleta, Teves’ lawyer Ferdinand Topacio said his client is prepared to share details on how graft is carried out in infrastructure programs.

“Mr. Teves Jr. humbly offers his willingness and intention to testify on how graft is being committed in flood control projects,” the letter stated.

Despite his legal troubles, Teves’ camp said his knowledge of government transactions, particularly in flood control programs, could help the Senate uncover systemic corruption.

The Blue Ribbon Committee has yet to respond to his offer.

WITH WILLIAM B. DEPASUPIL AND FRANCO JOSE C. BAROÑA