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December 18, 2025 | 3:27pm
The photo of the Commission on Audit's office in Quezon CIty.
The STAR / Michael Varcas
MANILA, Philippines — The Commission on Audit (COA) has officially filed four Fraud Audit Reports involving over P330 million in flood control projects in Bulacan that investigators say were either non-existent or built in unauthorized locations.
The audit reports, which were filed with the Independent Commission for Infrastructure (ICI) on Wednesday, December 16, highlighted "strong indications" of fraud in projects implemented by the 1st District Engineering Office of the Department of Public Works and Highways in Bulacan and awarded to Wawao Builders.
The report was filed with the ICI for potential referral to the Office of the Ombudsman for criminal, civil, and administrative action, according to state auditors.
According to the COA, the total cost of the project is P330,512,956.97.
“COA's Special Audit Team (SAT) found strong indications that public funds were exposed to possible fraud through non-existent structures, relocated projects, and unsupported claims of 100% completion,” COA’s statement read.
The following are the projects that the COA found to be anomalous, which are all awarded to Wawao builders:
- Construction of riverbank protection structure at Barangay Calero, Malolos City, Bulacan (P77,197,885.27)
- Construction of riverbank protection structure at Barangay Malis (Phase III), Guiguinto, Bulacan (P98,999,939.04)
- Construction of flood mitigation structure along Bulusan, Calumpit, Bulacan (P77,199,991.76)
- Construction of riverbank protection structure at Barangay Namayan, Malolos City, Bulacan (P77,115,140.90)
According to the COA, the four flood control projects were marred by "ghost" projects that remained unbuilt at their designated sites, undocumented transfers to unauthorized locations, and significant missing data in essential project records.
State auditors said that Mark Allan Arevalo of Wawao Builders, along with several others, should be held liable.
Also implicated are former engineers Henry Alcantara, Brice Hernandez and Jaypee Mendoza.
The following are the other individuals who should be held liable in the mentioned Bulacan ghost projects:
- Ernesto Galang
- Paul Jayson Duya
- Jolo Mari Tayao
- Lemuel Ephraim Roque
- Sheena Bernadette Morales
- Jaime Hernandez
- Lorenzo Pagtalunan
- Emelita Morales
- Paycee Nicole Dimaano
- Isiah Lor Galang
- Mark Lester Castro
- John Michael Ramos
State auditors said that the individuals may face charges for graft and corruption, malversation of public funds, and falsification of documents.
