2 Capitol bulk water contracts: Discaya firm bags P180 million

Bulk water projects worth ₱180.42 million under former Cebu Governor Gwendolyn Garcia have been linked to firms owned by controversial contractor Cezarah Rowena Discaya. | Photo Courtesy: Jesse Bustos, The STAR

CEBU CITY, PHILIPPINES — At least two unfinished bulk water projects worth P180.42 million, under the administration of then Cebu governor Gwendolyn Garcia, have been linked to companies owned by controversial flood control contractor Cezarah Rowena Discaya.

The projects—awarded in 2023 and 2024 to St. Gerard Construction General Contractor and Development Corp.—are among the 154 infrastructure and waterworks projects that Governor Pamela Baricuatro has indefinitely suspended for audit and review. 

One is a P109.44 million bulk water system in Alegria, while the other is a P70.99 million project in Malabuyoc.

Assistant Provincial Administrator Aldwin Empaces said the contracts surfaced during Capitol’s ongoing audit of suspended projects.

“Under further review ni siya na contract…Unique lang ni kay this is in support of the investigation that is happening,” Empaces told reporters.

He added that Governor Baricuatro’s suspension order was meant as the province’s “contribution” to the nationwide investigation of questionable government infrastructure projects.

Documents show the Alegria project was awarded to a joint venture between St. Gerard Construction and main proponent SBK Construction Inc. It was intended to supply water to Barangays Compostela, Guadalupe, Legaspi, Madridejos, Montpeller, Poblacion, Sta. Filomena, and Valencia.

Originally set for completion in 360 days, the project deadline was later extended to 630 days. As of Capitol’s latest monitoring, only 18.59 percent of the work had been completed.

The Malabuyoc project, meant to serve Barangays Poblacion I, Poblacion II, Montañeza, Looc, and Sto. Niño, was initially contracted for 300 days but later stretched to 750 days.

Despite reaching 86.76 percent completion as of August 22, 2025, the system remains unfinished.

The two projects are part of 14 bulk water supply systems initiated under Garcia’s administration to improve water distribution across Cebu Province.

In total, 154 projects have been suspended for compliance review–140 under the Construction Division and 14 under the Waterworks Division of the Provincial Engineering Office (PEO). The PEO is expected to release a detailed report next week.

In a July 28, 2025 memorandum, Baricuatro ordered the immediate suspension of all work-related activities—including excavation, civil works, electrical installations, and material mobilization—citing the need for transparency, accountability, and compliance with procurement laws and auditing standards.

Spotlight on Discaya

Although SBK Construction Inc. JV was the main proponent of the Alegria and Malabuyoc projects, Capitol auditors flagged them because of the involvement of Discaya, who is under mounting scrutiny for her network of construction firms involved in anomalous flood control projects.

On September 1, 2025, she appeared before the Senate Blue Ribbon Committee to respond to allegations of irregularities in her companies’ government contracts.

Discaya admitted that she and her husband owned at least nine construction firms, including Alpha & Omega General Contractor & Development Corp. She acknowledged that her companies often bid against each other in government biddings but insisted the practice is allowed under procurement rules.

Records showed that in 2022 alone, aside from St. Gerard, Alpha & Omega submitted bids for 491 flood control projects and won 71 of them.

| Written by Jonnavie Villa

The Freeman Digital

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