The government has tightened the noose around embattled couple Curlee and Sarah Discaya after the Philippine Contractors Accreditation Board (PCAB) revoked the licenses of their nine corporations effective 1 September.

The move came after Sarah admitted in a Senate Blue Ribbon hearing on Monday that all nine of her firms had simultaneously bid for the same government flood control projects.

With the revocation, the companies are barred from bidding for or entering into new government or private contracts — their names officially stricken off the list of accredited contractors.

As a result, all their work on the ground has been ordered stopped, since the government can no longer release funds to contractors stripped of their eligibility.

In just three years, six firms owned by the Discayas — along with three joint ventures — managed to corner 421 flood control projects, out of 9,855 nationwide, worth P31.035 billion.

‘Ínimical to public interest’

Based on Resolution No. 075 signed by PCAB chairman Pericles Dakay, the nine Discaya firms were St. Gerrard Construction Gen. Contractor and Dev’t Corporation; Alpha and Omega Gen. Contractor and Dev’t Corporation; St. Timothy Construction Corporation; Amethyst Horizon Builders And Gen. Contractor and Dev’t Corp.; St. Matthew General Contractor and Development Corporation; Great Pacific Builders and General Contractor Inc.; YPR General Contractor and Construction Supply Inc.; Way Maker OPC; and Elite General Contractor and Development Corp.

The PCAB ruled that Sarah admission “establishes a scheme of joint or multiple bidding participation designed to influence the outcome of a public bidding, manipulate results, and corner public projects, thereby undermining transparency, fairness, and competition in violation of procurement laws and licensing requirements.”

After reviewing Sarah’s admission, the board ruled that the continued accreditation of the nine corporations was inimical to public interest, industry integrity, and government procurement transparency.

“Now, therefore, for and in consideration of the foregoing premises, the board resolves as it is hereby resolved that the contractors’ licenses of the nine corporations abovementioned, owned or controlled by Ms. Sarah Discaya, are hereby revoked effective immediately upon approval of this resolution,” the resolution read.

The PCAB will also issue notices of revocation to the subject corporations and remove them from the PCAB registry of duly licensed contractors.

A copy of the resolution will be forwarded to the Department of Public Works and Highways, Securities and Exchange Commission, Government Procurement Policy Board, local government units, and all government agencies concerned, and the matter shall likewise be endorsed to the National Bureau of Investigation and the Department of Justice for further determination of criminal liability, if warranted, under the Revised Penal Code and Procurement Laws.

DTI’s Roque at the helm

Meanwhile, Trade and Industry Secretary Cristina Roque vowed to keep a close watch over the Construction Industry Authority of the Philippines (CIAP) and its licensing arm, the PCAB, after Senator Panfilo Lacson bared a bribery attempt earlier this week. The CIAP is under the Department of Trade and Industry.

Roque vowed not to let corruption take root in the PCAB, after Lacson revealed that one of its officials allegedly tried to extort P1 million from a contractor in exchange for a license renewal.

Lacson said a contractor was forced to shell out the million after being threatened with the non-renewal of his license by the PCAB if he refused.

Roque, who chairs the CIAP, said placing the PCAB and CIAP under her direct supervision and launching a major revamp is aimed at restoring integrity and transparency in the agencies.

“Placing them under my direct supervision will ensure that order, transparency, and accountability are restored within these agencies,” she said.

She said the leadership intervention underscores the DTI’s unwavering commitment to prevent mismanagement and any conduct detrimental to its agencies.

“Full transparency and cooperation are mandatory, and those who breach the trust and mandate entrusted to us will be held accountable,” Roque emphasized.

She said the move signals a renewed push for accountability and good governance as the CIAP and PCAB undergo a major review and cleanup.

Seized luxury vehicles

At Monday’s Senate hearing, Sarah Discaya admitted owning 28 luxury cars — prompting the Bureau of Customs (BoC) to serve a search warrant the next day.

During the raid, BoC operatives seized two vehicles listed in the warrant — a 2024 Toyota LC300 and a 2022 Maserati Levante.

Customs Commissioner Ariel Nepomuceno warned the Discaya family that all the missing cars would be tracked down and the proper duties collected.

By evening, seven more vehicles — including a Rolls-Royce Cullinan, Bentley Bentayga and Brabus G-Wagon — were surrendered and secured at a Pasig compound. The remaining three, now at authorized service centers, are also scheduled to be handed over.

All 12 cars have been sealed and placed under 24/7 guard by Customs and the Coast Guard. The BoC is reviewing import records to check for violations of customs law.

Denied due process

Sarah and Curlee Discaya expressed dismay over the Philippine Contractors Accreditation Board’s revocation of the licenses of nine construction firms linked to them, amid the ongoing investigation into alleged anomalies in government flood control projects.

Lawyer Cornelio Samaniego III, legal counsel and spokesperson for the Discaya couple, said they were denied due process, pointing out that the revocation was based solely on Sarah Discaya’s testimony at a Senate hearing, not on supporting documents.

“It’s saddening because the PCAB hearings are still ongoing,” Samaniego said. “We asked for an extension to submit the required documents, but it wasn’t granted.”

He added, “Actually, the documents show that these companies did not all participate in biddings at the same time. Sarah’s answer may have been misunderstood. When you’re testifying in the Senate, the pressure is intense. There was no simultaneous bidding as implied.”

Samaniego said Sarah Discaya had divested from eight of the nine companies years ago, and she was connected only to Alpha and Omega General Contractor and Development Corporation as its president.

“PCAB didn’t base their decision on documents. The other eight companies she already divested from a long time ago,” he said.

He emphasized the couple had always complied with PCAB requests and will continue to do so.

Luxury cars legally acquired

On the issue of the luxury vehicles, Samaniego said all the Discayas’ cars were legally purchased over 23 years in the construction industry.

“The luxury cars were not at the residence when Customs Commissioner Nepomuceno arrived because they were being used. They have nothing to hide, and all the vehicles were found to be legally acquired,” Samaniego said.

He added that all the cars were purchased from authorized dealers and were locally registered.

“They would not have been registered if they were illegally acquired. If there are claims of 80 luxury cars, that can be double-checked. My clients have waited for the official Senate and House summons before speaking publicly,” he said.

Samaniego said the Discayas have been unfairly judged on social media. He defended their interactions with politicians.

“Taking selfies with figures like Chavit Singson is normal. It doesn’t mean you know them personally,” he said.

He also said the companies had settled their tax obligations and possessed the necessary business clearances.

“The DPWH coordinates with local governments for project permits, not the contractors,” Samaniego added.

He said the couple is ready to cooperate fully with all official investigations.

“We don’t want to fight on social media. We want to settle these matters with documents and facts,” he said.

He said there were luxury cars that were sold but the ownership papers had not yet been transferred.

“The objective of the display of the luxury cars was merely to inspire the Filipino people, but it was used for politics,” he added.

Samaniego also said he would not talk about the children of the Discaya couple who have gotten sick but he would talk only about the couple.

He said there were no “ghost” or unprogrammed projects, as far as St. Timothy, St. Gerrard and Alpha and Omega were concerned, they being quadruple-A construction companies with the financial capacity to execute the awarded projects.