Economy

Economy
10 Feb, 2026
Sandiganbayan Orders Arrest of Former Congressman Zaldy Co, 17 Others Over P289.5M Flood Control Project Scandal
Theresa Ramos
The Sandiganbayan has mandated the arrest of former Congressman Zaldy Co and 17 other officials involved in the Department of Public Works and Highways (DPWH) as well as directors of Sunwest Corporation. The order relates to charges of graft and malversation concerning the P289.5 million flood control project in Naujan, Oriental Mindoro.\n\nIn a statement issued by the Office of the Ombudsman (OMB), law enforcement agencies were urged to promptly carry out the warrants of arrest. The specific Sandiganbayan division issuing the order was not disclosed, as the related cases filed on November 18 were distributed among the court’s fifth, sixth, and seventh divisions.\n\nBesides Co, the arrest orders encompass DPWH Region IV-B Director Gerald A. Pacanan; Assistant Regional Directors Gene Ryan A. Altea and Ruben C. Santos, Jr.; Construction Division Chief Dominic G. Serrano; Project Engineer Felisardo S. Casuno; Materials Engineer Timojen A. Sacar; Planning and Design Division OIC-Chief Montrexis T. Tamayo; Maintenance Division Chief Juliet C. Calvo; Quality Assurance and Hydrology Division OIC-Chief Dennis P. Abagon; Accountant IV Lerma D. Cayco; bids and awards committee member Grace D. Lopez; BAC vice chairperson Friedrich Karl L. Camero; and several Sunwest Corporation officials including President and Chairperson Aderma Angelie D. Alcazar.\n\nThe Ombudsman welcomed the issuance of arrest warrants, emphasizing the urgency of executing them without delay and ensuring the accused are brought to justice.\n\nThe cases against Co and the others address multiple violations: the first graft charge under Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) is docketed under SB-25-CRM-0039, handled by the Fifth Division, naming all 18 accused; the second graft charge under Section 3(h) with docket number SB-25-CRM-0040, assigned to the Seventh Division, names only Co; and the malversation charge for falsification of public documents under Article 171(4) of the Revised Penal Code, docketed SB-25-CRM-0041, is with the Sixth Division, naming all accused.\n\nThese allegations stem from an investigation led by DPWH Secretary Vince Dizon and Oriental Mindoro Governor Bonz Dolor on September 9, 2025 into irregularities in a flood control project along the Mag-Asawang Tubig River. Inspectors found the steel sheet piles used for the dike were significantly below required engineering standards, with only three meters of total pile length rather than the specified twelve meters.\n\nFollowing the arrest orders, the Ombudsman may request Interpol to issue a red notice for Co, who left the Philippines in July and has yet to return. Additionally, a petition to revoke Co’s passport with the Sandiganbayan is being considered to prevent international travel.
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