Defense Counters 'Ghost Project' Allegation in P96.5 Million Flood Control Case
In a dramatic opening to the trial at the Regional Trial Court Branch 27 in Lapu-Lapu City, defense lawyers for controversial contractor Sarah Discaya and nine co-accused have strongly contested the prosecution's claim that a P96.5 million flood control project was a 'ghost' project. Presided over by Judge Nelson Leyco at the Lapu-Lapu City Hall of Justice, the proceedings saw the Office of the Ombudsman present its first set of witnesses, led by Ombudsman–Visayas officer-in-charge for Preliminary Investigation Jess Vincent Dela Peña.
Witness Testimony Reveals Project Existence with Discrepancies
During cross-examination on Tuesday, April 7, 2026, a prosecution witness from the Department of Public Works and Highways (DPWH) Central Office Quality Assurance Unit testified that an infrastructure project was indeed present during an ocular inspection conducted on October 25, 2025. However, the witness highlighted that the project was still incomplete at that time and cited significant discrepancies between the actual coordinates of the construction and those indicated in official plans and documents.
The witness explained that portions of the riverbank project had been partially completed, while other sections on land were undergoing repairs during the 2025 inspection. The investigation team, accompanied by co-accused Project Engineer Harold John Villaver, visited the site only once and noted variations in stone sizes and splicing of rebars compared to approved plans.
Defense Argues Physical Presence Negates 'Ghost' Label
Defense counsel Joseph Randi Torregosa, representing former DPWH XI District Engineer Rodrigo Larete, argued vehemently that a project cannot be classified as 'ghost' if it physically exists. 'Physically, the project is there existing, although at the time of the inspection, it was still ongoing,' said Torregosa in a media interview. 'I think that's the most important fact that was established by the testimony of the witness. It’s not a ghost project.'
Torregosa added that the prosecution's issue concerns only a portion of the structure, specifically a 400-meter gap related to the designated starting point. According to the defense, the prosecution alleges that part of the project was constructed along a section of the Culaman River in Jose Abad Santos, Davao Occidental that does not fully align with the approved plans.
Background of the Case and Charges
The case stems from allegations that Discaya, along with St. Timothy Construction president Roma Rimando and eight DPWH officials in Davao Occidental, were involved in an alleged 'ghost' flood control project. The 10 individuals are facing serious charges of malversation of public funds and violation of Section 3(e) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act.
The two-kilometer flood control project was scheduled for implementation from January 13, 2022, to November 14, 2023. While it was reportedly completed on October 2, 2022, it later required repairs due to damage caused by typhoons and heavy rainfall, adding complexity to the trial.
During the court session, all of the accused, except for Villaver who appeared in person, attended via video conferencing while being held at the Bureau of Jail Management and Penology in Barangay Mactan, Lapu-Lapu City. The trial continues as both sides prepare to present further evidence in this closely watched corruption case.



