CoA files 4 fraudulent audit reports worth over P325 million for flood control projects in Bulacan; it flags ghost projects, unauthorized transfers, and questionable achievements
The Commission on Audit (CoA) filed four fraud audit reports covering more than P325 million in flood control projects in Bulacan, citing ghost projects, unauthorized relocation of project sites, and questionable claims of completion.
In a report submitted to the Independent Infrastructure Commission (ICI), the CoA said that the projects initiated by the Department of Public Works and Highways (DPWH)-Bulacan 1.St The Regional Engineering Office also awarded to contractors Wawao Builders and Darcy and Anna Builders & Trading. The study found repeated indications of misuse of public funds in projects aimed at reducing flooding in vulnerable communities.
The CoA said its results emphasize the agency’s commitment to transparency and accountability, stressing that funds earmarked for public safety must not be diverted through corruption.
Ghost projects and questionable achievements
Based on physical examination, drone surveillance, tagged photos, and historical satellite imagery, auditors found several irregularities. In some cases, no flood control structures or riverbank protection structures have been found in the approved project areas despite documents declaring that the projects have been completed or substantially completed.
The CoA also reported cases where DPWH representatives directed inspectors to areas different from those specified in the approved bid documents and contracts, without any revised approved plans – a violation of procurement and contract laws. In some areas, satellite images showed that riverbank protection structures were already in place before the contracts went into effect, making it possible to use public funds to pay for works that had not yet been built.
The audit also flagged serious documentation deficiencies, including the lack of built plans, detailed cost estimates, geotechnical investigation reports, complete statements of work accomplished, and approved master plans, which the auditors said undermined the credibility of reported accomplishments and payments.
Projects are under consideration
Among the projects cited was the P96.49 million construction of a riverside protection structure in Barangay Santa Cruz, Guiguinto, Bulacan, awarded by Wawao Builders. The CoA found that the building was not built in the approved area and it appears to have been moved without authorization, with height and project design conflicts.
Another project of Wawao Builders worth P77.19 million in Barangay Iba-Ibayo, Hagonoy, Bulacan, was declared 100% complete, but the auditors did not find the building in the designated area. The building presented by the DPWH officials was located at a distance of 694 meters and did not have an authorized relocation authority.
In Calumpit, Bulacan, the P77.19-million riverbank protection project also awarded to Wawao Builders showed a conflict of location and measurements, with a building with a different contract symbol and located outside the approved site.
The CoA also flagged the P74.12 million project in Barangay Babatnin, Malolos City, awarded to Darcy and Anna Builders & Trading. The auditors confirmed that no building was built in the approved area, while the building identified by DPWH officials predated the contract by almost a year based on satellite images. Progress photos submitted by the contractor also contained embedded links that did not correspond to the approved project area.
Audit reports on fraud have named several DPWH engineers and officials, as well as representatives of contractors, as potential suspects.
Possible costs, further reports are awaited
The CoA said the people involved may face charges of fraud and corruption under the Anti-Graft and Corrupt Practices Act, as well as forgery and falsification of public documents under the Revised Penal Code. Possible violation of CoA Circular No. 2009-001 was also noted.
The fraud audit is part of a broader investigation ordered by CoA Chairman Gamaliel A. Cordoba in August 2025, directing the 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 send additional reports to the ICI as the investigation continues, in line with the call of President Ferdinand Marcos, Jr.
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