CoA files 4 Fraud Audit Reports worth over P275 million for Bulacan flood control projects; flags ghost projects, unauthorized relocations, and questionable accomplishments

The Commission on Audit (CoA) has filed four Fraud Audit Reports (FARs) before the Office of the Ombudsman involving more than P275 million worth of flood control projects in Bulacan, citing alleged ghost projects, unauthorized site relocations, payments for pre-existing structures, and serious documentation deficiencies.

The projects were implemented by the Department of Public Works and Highways (DPWH)-Bulacan 1^st District Engineering Office and awarded to SYMS Construction Trading and Wawao Builders.

The CoA said the filing of the cases underscores its commitment to transparency and accountability to ensure that public funds intended for flood mitigation are properly used.

Based on physical inspections, geotagged photographs, and historical satellite imagery, state auditors reported recurring irregularities:

Ghost projects: No flood control or riverbank protection structures were found at approved project sites, despite reports that the projects were completed or substantially accomplished.

Unauthorized relocation of sites: In several instances, DPWH representatives allegedly led inspectors to locations different from those specified in approved plans and contracts, without revised plans or written authority.

Payments for preexisting structures: Satellite imagery showed that some riverbank protection structures already existed prior to contract effectivity, raising the possibility that payments were made for works not newly constructed.

Documentation deficiencies: Required documents, including as-built plans, detailed cost breakdowns, Statements of Work Accomplished, and approved master plans, were either incomplete or missing, undermining the credibility of reported accomplishments and payments.

Audit Coverage

The fraud audit stemmed from a directive issued on Aug. 12, 2025 by CoA Chairperson Gamaliel A. Cordoba ordering an immediate review of DPWH flood control projects in Bulacan covering July 1, 2022 to May 30, 2025, following public concerns over alleged ghost projects and corruption.

Disputed Projects

Hagonoy, Bulacan (SYMS Construction Trading)

The P67.55-million project involved the construction of a reinforced concrete flood control structure at Barangay Santa Monica (Purok 6 to Purok 7). The CoA reported that no such structure was found at the designated site despite the project being declared 100% complete as of June 11, 2024 and fully paid by June 19, 2024. Auditors also noted indications of unauthorized site changes and missing required documents.

Pandi, Bulacan (SYMS Construction Trading)

The P39.60-million riverbank protection project at Barangay Malibong Bata was allegedly built at a location different from that specified in approved engineering plans, without documented authority for relocation. Structures found at both the approved and identified sites could not be conclusively linked to the contract. Several key documents were also missing.

Baliuag, Bulacan (Wawao Builders)

The P72.37-million Phase IV riverbank protection project at Barangay San Roque was reportedly constructed at a site different from that indicated in the approved bid plans. The structure bore markings corresponding to another project. Geotagged progress photos used to support payments were taken before the issuance of the Notice to Proceed and pointed to a different barangay. The CoA also cited overlapping project locations with another flood control contract and incomplete documentation.

Plaridel, Bulacan (Wawao Builders)

The P96.50-million flood control structure along the Angat River in the Lumang Bayan section was found to have existing structures at the site at least 90 days before contract effectivity, based on satellite imagery and inspection. The structures bore markings of different contract IDs and differed in design from approved plans. Despite this, the project was reported 100% complete within 65 days from contract effectivity. Auditors again noted missing supporting documents.

Possible Violations

The CoA said those involved may face charges for violations of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, as well as malversation and falsification of documents under the Revised Penal Code. Possible violations of COA Circular No. 2009-001 were also cited.

The audit body said additional reports may be filed with the Ombudsman as investigations continue, in line with President Ferdinand R. Marcos, Jr.’s call for transparency and accountability in government spending.

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