Senators Joel Villanueva and Jinggoy Estrada are set to face formal complaints over alleged corruption and the misuse of public funds, Justice Secretary Jesus Crispin Remulla confirmed on Tuesday.

The charges are based on an affidavit by former Bulacan district engineer Henry Alcantara who outlined how billions in flood control funds were allegedly diverted as kickbacks to lawmakers and their associates.

Speaking at the Senate Blue Ribbon Committee hearing on anomalous flood control projects, Remulla said he met with representatives of the National Bureau of Investigation (NBI), the Anti-Money Laundering Council (AMLC), and the Department of Justice’s (DoJ) National Prosecution Service with Alcantara present to review his affidavit.

“They recommended filing charges so we are treating this as a formal complaint, with the NBI as the endorsing agency,” he told Senate panel chair Panfilo Lacson.

“We had the NBI come over, the AMLC, and the NPS housed in the DoJ compound. We met in room 206 over the affidavit of Mr. Alcantara, in his presence. And we determined that the NBI will be investigating it,” Remulla said.

“They recommended that the charges be filed already. So we are treating this as a complaint, with the NBI as the endorsing agency,” he added.

Remulla said a digital copy of the complaint, along with supporting documents, had been sent to the AMLC, which has begun taking action.

According to him, the AMLC has issued freeze orders on several bank accounts linked to Alcantara.

“They have acted because there’s already a filed complaint with the DoJ. So, given that, I believe that freeze orders have been issued directly by the AMLC over the bank counts of felony,” he said.

According to Remulla, the NBI’s initial recommendation to be prosecuted included Rep. Elizaldy Co, former DPWH undersecretary Roberto Bernardo and former Rep. Mitch Cajayon-Uy.

When Lacson inquired about the specific charges to be filed, Remulla said the alleged offenses include violations of Section 3 of Republic Act 3019 (Anti-Graft and Corrupt Practices Act), Article 211 of the Revised Penal Code (Direct Bribery), and Article 217 of the Revised Penal Code (Malversation of Public Funds).

“The crimes committed were all specified in the sheets given by the NBI to us,” he said.

The Justice chief added that the DoJ is also reviewing the potential involvement of Commission on Audit (CoA) Commissioner Mario Lipana and his wife, Marilou Laurio-Lipana, reportedly a contractor.

“So far, these are the people, but we are still looking at the case of Commissioner Lipana and his spouse, who was a contractor, since it was already touched upon by Alcantara, and we are working on that now,” he said.

DPWH documents showed that Olympus Mining and Builders Group Philippines Corporation, headed by Lipana’s wife, had secured multiple government contracts in recent years, including projects funded in 2023.

Revilla tagged, but not charged

Although former Senator Bong Revilla was mentioned in Alcantara’s affidavit, he was not listed among those recommended for formal charges.

Alcantara said that Bernardo told him the insertion of P300 million in the 2024 GAA was for Revilla who was then running for reelection.

“Henry, kay Sen. Bong yan, baka gusto mo tumulong sa kanya e dagdagan mo ang proponent ikaw na bahala,” Alcantara quoted Bernardo as saying. “Kaya po imbes na 25 percent ay naging 30 percent ang naging proponent ng nasabing mga proyekto bilang tulong ko na din sa kandidatura ni Sen. Bong Revilla.”

(“Henry, that’s for Sen Bong, you might want to help him, just add the proponent, it’s up to you.”)

25-percent cut

Alcantara testified that starting in 2022, Bernardo instructed his district office to withhold a 25-percent “cut” from project funds as commissions for lawmakers.

“In 2022, Undersecretary Bernardo began channeling huge amounts of funds to my district office. The arrangement was that 25 percent of a project budget would go to the proponent,” Alcantara said. The proponents were senators and congressmen.

He said that portions of the commissions were sometimes advanced — between 5 and 15 percent of the project cost — after the Congress bicameral committee budget deliberations, often at Bernardo’s instruction.

According to Alcantara, the allocations funneled to his office surged dramatically: P350 million in 2022, P710 million in 2023, and P3.3 billion in 2024.

Of the 2024 allocations, P2.85 billion came from unprogrammed appropriations — special budget funds that may only be released if government revenue targets are exceeded or specifically authorized by law.

“Once those funds reached my district office, the 25-percent payments to the proponents continued, and I turned them over to Usec. Bernardo,” Alcantara said.

All Bulacan projects ‘substandard’

Meanwhile, former DPWH assistant district engineer Brice Hernandez told the Senate that every infrastructure project in Bulacan from 2019 to 2025 fell short of standards, responding to a question from Senator Bam Aquino.

Aquino asked if the projects included classrooms, hospitals, bridges, and roads.

“Yes, your honor,” Hernandez answered, pointing out that even public lighting projects were overpriced.

He explained that contractors and district engineers were compelled to cut corners and lower the projects’ quality to accommodate the kickbacks extracted from the allocated funds.

Aquino told him in Filipino, “The DPWH has plans, and there’s a budget for that. But since you divide the budget among yourselves, in the end, no proper project comes out of it.”

To which Hernandez simply replied, “Yes, po, your honor.”

Hernandez went further, claiming that from 2015 to 2019, not a single major infrastructure project in Bulacan met its original specifications.

“None of what was specified in the plans was followed. None of it was met,” he said.

When Aquino asked him if all the projects involved a kickback, Hernandez answered bluntly: “All of them, your honor.”

The testimony left former DPWH Secretary Manuel Bonoan, who was present, visibly stunned.

“I don’t know what to say. This is the first time I heard about all these shenanigans they were doing in this district engineering office,” he told Aquino.

Bonoan explained that the DPWH’s Bureau of Construction was supposed to monitor each phase of a project.

“In my watch, they were supposed to submit monitoring reports for every phase of the work, every phase of the project,” he said.

Tulfo grills Hernandez

Senator Raffy Tulfo then tore into Hernandez over suspicious bank transactions, casino binges, and fake driver’s licenses used to enter casinos from which government employees are barred.

Tulfo cited Anti-Money Laundering Council records that showed 36 frozen bank accounts under Hernandez’s name held P597 million in deposits — a staggering figure considering his P56,000 monthly salary.

“P597 million from 190 deposits — on a P56,000 salary? Now you’ll say it’s from your wife and ex-wife? What kind of jobs do they have to be making deposits like that?” Tulfo asked sarcastically.

Hernandez claimed the money came from his family’s “buy-and-sell” venture. Tulfo shot back, “Sideline na milyon-milyon, pansugal lang (A sideline in the millions, just for gambling)?”

The former DPWH engineer admitted winning up to P30 million in a single night at the casinos, where the AMLC noted that he often went in with P1 million and left with P2 million.

But Hernandez said the gambling money wasn’t his, pointing to “Boss Henry,” who allegedly carried bags containing P20 million in cash for casino nights.

Tulfo also brought up Hernandez’s use of a fake driver’s license under the name “Marvin de Guzman” to enter casinos. Hernandez at first denied this but later admitted the license had his picture, claiming that casino staff arranged for fake IDs for government employees.

“So the casinos themselves are giving you fake IDs? And we’re just supposed to ignore the law?” Tulfo fumed.