The government’s anti-corruption office has brought its first court action tied to alleged irregularities in flood control projects, naming former lawmaker Zaldy Co and several public works and private sector officials among those accused of serious offenses.
Rather than emerging from years of inquiry, the case was initiated only weeks after the Independent Commission for Infrastructure (ICI) filed a complaint on Sept. 29 that flagged questionable construction practices in a P289.5-million road dike project along the Mag-Asawang Tubig River in Naujan, Oriental Mindoro. The project—funded under the 2024 national budget and implemented by the DPWH-Mimaropa Region 4B—was awarded to Sunwest Inc. in February, with work authorized to begin on March 2.
What prosecutors brought to the Sandiganbayan includes one count of malversation of public funds through falsification of public documents and two graft charges against Co, along with former DPWH Region 4 officials and Sunwest executives. The malversation case involves more than P8.8 million, prompting the panel to recommend that the lead charge be non-bailable. Assistant Ombudsman Dominic Clavano III said the threshold for the no-bail rule had been exceeded, and that Co was also indicted under Section 3(h) of the Anti-Graft and Corrupt Practices Act for “receiving unwarranted financial or pecuniary benefits.”
Investigators noted the ICI’s observation that steel sheet piles used in the project were “grossly below the required standards” and shorter than the 12-meter specification. The commission estimated that the deficiencies could expose the government to more than P63 million in potential losses. According to its findings, Co allegedly enjoyed “unwarranted benefits” from Sunwest, the company he founded, and may have maintained beneficial ownership even after assuming office in Congress. ICI also said officials who approved progress payments through false certifications may face liability.
Clavano said prosecutors have requested immediate arrest warrants and hold departure orders. “It is the first case to be filed in court. This is the first of many cases that will be filed in court. There are several cases in the preliminary investigation stage and more in the fact-finding stage,” he said. He added that “these findings point to a scheme that resulted in unwarranted benefits, technical falsification and the misuse of public funds.”
The filing came shortly after Co circulated videos alleging that President Marcos and former House Speaker Martin Romualdez orchestrated P100 billion in insertions in the 2025 budget and personally benefited from projects. Malacañang has rejected his accusations.
As the case proceeded, Ombudsman Jesus Crispin Remulla said on One News’ Storycon that his office was evaluating the sworn account of former DPWH undersecretary Roberto Bernardo, describing the narrative as plausible based on patterns he had previously found suspicious. “Let us follow where it may lead. That is the mandate given to us and we will investigate and prosecute when the evidence shows liability,” he said.
He noted that several of Bernardo’s statements aligned with long-standing concerns about undue interference in infrastructure matters. Although he acknowledged that “temptations” could have surfaced during the process, he emphasized that more charges may be filed before Dec. 15, stating, “These cases are ripe already. We expect things to happen very soon.” Lawmakers implicated in the inquiries are expected to receive invitations to respond.
Remulla told the program that he may ask for at least five new Sandiganbayan divisions to address an anticipated surge in cases. He recalled that former ombudsman Simeon Marcelo made a similar request during the PDAF scandal but did not obtain the full expansion sought.
Asked about Co’s recent online claims, he dismissed them for lacking sworn statements. “I cannot give attention to social media posts and say, ‘I believe you.’ You have to have a sworn statement,” he said. He also rejected Co’s offer to testify remotely, insisting, “He has to come home. You have to see the person’s deportment. You cannot see that on a flat screen.”
The ombudsman has asked the court to cancel Co’s passport, and the case has been raffled to a Sandiganbayan division. If the court grants pending motions, an arrest warrant may soon follow. Authorities, Remulla said, are ready to coordinate with Interpol and other agencies to track Co’s whereabouts. “Social media will catch you. It’s not as easy to hide anywhere in the world now,” he said, adding that the government will “do everything necessary” to bring him back.
