The Commission on Audit (CoA) has filed four fraud audit reports involving more than P325 million worth of flood control projects in Bulacan, citing ghost projects, unauthorized relocation of project sites, and questionable claims of completion.
In reports submitted to the Independent Commission for Infrastructure (ICI), the CoA said the projects were implemented by the Department of Public Works and Highways (DPWH)-Bulacan 1st District Engineering Office and awarded to contractors Wawao Builders and Darcy and Anna Builders & Trading. The audit found recurring indicators of systemic misuse of public funds in projects intended to mitigate flooding in vulnerable communities.
The CoA said its findings underscore the agency’s commitment to transparency and accountability, stressing that funds earmarked for public safety must not be diverted through corruption.
Ghost projects and dubious accomplishments
Based on physical inspections, drone surveillance, geotagged photographs, and historical satellite imagery, auditors uncovered several irregularities. In some cases, no flood control or riverbank protection structures were found at the approved project sites despite documents declaring the projects completed or substantially accomplished.
The CoA also reported instances where DPWH representatives directed inspectors to locations different from those specified in approved bid documents and contracts, without any authorized revised plans — violations of procurement and contract rules. In other locations, satellite images showed that riverbank protection structures already existed before the contracts took effect, raising the possibility that public funds were used to pay for works that were not newly constructed.
The audit further flagged severe documentation deficiencies, including missing as-built plans, detailed cost estimates, geotechnical investigation reports, complete statements of work accomplished, and approved master plans, which auditors said undermined the credibility of reported accomplishments and payments.
Projects under scrutiny
Among the projects cited was the P96.49-million construction of a riverbank protection structure in Barangay Santa Cruz, Guiguinto, Bulacan, awarded to Wawao Builders. The CoA found that the structure was not built at the approved site and appeared to have been relocated without authority, with discrepancies in project length and design.
Another Wawao Builders project worth P77.19 million in Barangay Iba-Ibayo, Hagonoy, Bulacan, was declared 100% complete, but auditors found no structure at the designated site. The structure pointed out by DPWH officials was located about 694 meters away and had no approved authority for relocation.
In Calumpit, Bulacan, a P77.19-million riverbank protection project also awarded to Wawao Builders showed inconsistencies in location and measurements, with a structure bearing a different contract identification and located outside the approved site.
The CoA also flagged a P74.12-million project in Barangay Babatnin, Malolos City, awarded to Darcy and Anna Builders & Trading. Auditors confirmed that no structure was built at the approved site, while the structure identified by DPWH officials predated the contract by nearly a year based on satellite imagery. Progress photos submitted by the contractor also contained embedded coordinates inconsistent with the approved project location.
The fraud audit reports named several DPWH engineers and officials, as well as representatives of the contractors, as persons potentially liable.
Possible charges, more reports expected
The CoA said the individuals involved may face charges for graft and corruption under the Anti-Graft and Corrupt Practices Act, as well as malversation and falsification of public documents under the Revised Penal Code. Possible violations of CoA Circular No. 2009-001 were also noted.
The fraud audit forms part of a broader investigation ordered by CoA Chairperson Gamaliel A. Cordoba in August 2025, directing an immediate review of DPWH flood control projects in Bulacan from July 2022 to May 2025 amid public concerns over alleged ghost projects.
The CoA said it will continue to submit additional reports to the ICI as the investigation progresses, in line with President Ferdinand Marcos, Jr.’s call for greater transparency and accountability in government spending.
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