The Office of the Ombudsman has determined probable cause to prosecute former Ako Bicol Party-list Representative Zaldy Co, along with multiple Department of Public Works and Highways (DPWH) officials and staff members, over a ₱77-million flood control initiative in Balagtas, Bulacan that state investigators found was never constructed.
The anti-graft agency announced on Friday, August 28, that Co will face charges alongside DPWH personnel Brice Ericson Diaz Hernandez, Arjay Salvador Domasig, Jaypee De Leon Mendoza, Niño Lawrence Vergara Morales, Juanito Coronel Mendoza, Floralyn Yutuc Simbulan, and Christina Mae Del Rosario Pineda.
Henry Alcantara was excluded from the formal court filing after being admitted into the Witness Protection Program. Co’s aides, John Paul Estrada and Mark Tecsay, were also named as co-respondents.
The case centers on Contract ID No. 25CC0155, which awarded SYMS Construction Trading approximately ₱77.2 million to build a riverbank protection structure along the Balagtas River in Purok 4, Barangay San Juan, Balagtas, Bulacan.
Official certifications declared the project fully completed, but field inspections disclosed that no structure was built.
“The project supposedly started last February 24, 2025 and was declared to be 100% accomplished on May 2, 2025. However, upon inspection, it was non-existent,” the Ombudsman’s resolution noted.
The Ombudsman cited recurring approvals of payment paperwork—specifically Monthly Certificates of Payment and Statements of Work Accomplished—as evidence of an organized scheme.
“[T]he repeated approvals of the payments to SYMS, in spite of the glaring irregularities in the Monthly Certificates of Payment (MCPs) and Statements of Work Accomplished (SWAs), are strong indication of their participation in the devious schemes of misappropriating the funds for flood control projects,” the Ombudsman stated.
Investigators pointed to an implied conspiracy where funds were secured in the national budget in exchange for advance kickbacks.
“In exchange for the kickbacks collected by Alcantara from contractors and delivered in advance to Co, the latter ensured that the project will be inserted in the NEP and eventually funded in the General Appropriations Act (GAA). Co’s participation was therefore necessary or indispensable in this elaborate scheme of embezzling funds intended for flood control projects,” the ruling detailed.
“The modus did not end after the delivery of the advance payment to Co. The project was eventually awarded to SYMS which was owned by Santos. However, and which is apparent in the scheme used by the respondents, there was no intention to actually complete the project,” the resolution added.
The Ombudsman emphasized that the repeated failure of reviewing and inspecting officials to exercise due diligence constituted gross negligence and bad faith.
“Here, respondents acted with evident bad faith and/or gross inexcusable negligence when they issued the pertinent documents and certifications that led to the diversion of public funds… for a project that turned out to be non-existent or incomplete. The repeated failure to exercise due diligence is very telling,” the ruling read.
The respondents face one count of malversation of public funds through falsification of public documents under Article 217 in relation to Article 171(4) of the Revised Penal Code, as well as one count of violating Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act).
Meanwhile, the Ombudsman dismissed charges under Section 3(b) of R.A. 3019 against Co, Alcantara, Estrada, and Tecsay for lack of probable cause. Perjury allegations concerning Sally Santos were referred to the Department of Justice for further action.