The Land Transportation Office (LTO) confirmed that Sunwest Inc., a construction company previously associated with former Ako Bicol Party-list Representative Zaldy Co, secured ₱2 billion worth of projects from the agency.
According to LTO chief Assistant Secretary Markus Lacanilao, the company was contracted to build two structures worth ₱499 million each — an IT Training Hub and a Road Safety Interactive Center — as well as a ₱946-million Central Command Center.
The contracts were signed in February 2021, and while the facilities have been completed, an audit report showed that the projects were underutilized and not fully compliant with contractual requirements.
“COA AOM-184-2024-17, 2020-2021 highlighted that efficiency and non-compliance with the contract requirements and specification of non-utilization, under-utilization of various components in the facility and improper computation of the contract results in an overpayment amounting to ₱26,910,332,” Lacanilao said during a press conference on Tuesday.
He confirmed that nearly ₱2 billion was paid to Sunwest in December 2024, during the tenure of former LTO chief Atty. Vigor Mendoza II.
Co, however, has previously clarified that he divested his shares in Sunwest back in 2019, before the projects were awarded.