The Bureau of Internal Revenue (BIR) has broadened its investigation into the multibillion-peso flood control scandal, now including senators, local executives, and contractors allegedly linked to ghost projects and tax evasion, Commissioner Romeo Lumagui Jr. announced Thursday.
“All personalities identified in Senate hearings will be investigated. No one will be spared,” Lumagui said, noting that the bureau has intensified coordination with other government agencies.
The BIR has requested the Commission on Elections (COMELEC) for copies of Statements of Contributions and Expenditures (SOCE) to determine if campaign funds — including those of Senator Chiz Escudero — were truthfully declared and properly taxed.
Over 200 individuals and companies are currently under audit, among them contractors Curlee and Sarah Discaya and their joint venture partners. Lumagui said previous audits failed to detect anomalies because of Department of Public Works and Highways (DPWH) certificates of completion that later turned out to be tied to ghost projects.
In a related move, the BIR filed a ₱1.6-billion tax evasion case before the Department of Justice (DOJ) against former DPWH Bulacan 1st District Engineer Henry Alcantara, two former assistant engineers, and several private contractors.
The bureau’s lifestyle checks revealed undeclared assets such as luxury vehicles, high-end properties, and large casino expenditures that did not align with their reported income.
“Their SALNs did not match our records. This discrepancy clearly indicates unreported income,” Lumagui said.
He added that while the BIR is coordinating with casino operators and other agencies to track possible money-laundering links, the primary focus remains on tax violations.
“Whatever the source or intention may be, the fact remains that there was unreported income. That alone is tax evasion,” he emphasized.
Those found guilty, Lumagui warned, will be compelled to settle their liabilities or face asset seizure.