12 Discaya cars seized

MANILA, Philippines — Bureau of Customs personnel went on a daylong hunt yesterday for 10 of 12 imported luxury cars owned by contractor couple Pacifico “Curlee” and Cezarah Rowena “Sarah” Discaya, after failing to find the cars in the family compound in Pasig.

Armed with a court-issued search warrant covering the compound at F. Manalo corner J. Pueblo Street in Barangay Bambang, the Bureau of Customs team led by BOC Commissioner Ariel Nepomuceno had intended to impound the imported vehicles for possible violations of the Customs Modernization and Tariff Act.

Only two, however, were found yesterday morning by the BOC Intelligence and Enforcement Agents: a 2024 Toyota Land Cruiser and a 2022 Maserati Levante Modena.

A third vehicle, a Cadillac Escalade ESV 2021, was reportedly found, but it was not included in the search warrant issued by Manila Regional Trial Court Executive Judge Carolina Icasiano-Sison.

At past 9 p.m., the BOC announced that all 12 cars had been located. Nine were formally sealed by the BOC in the compound, which is also the main office of the Discayas’ St. Gerrard Construction, General Contractor and Development Corp.

The compound is being secured by the BOC and Philippine Coast Guard personnel.

Apart from the first three vehicles found in the Discaya compound, the BOC took custody of a 2023 Rolls Royce Cullinan, Bentley Bentayga, Mercedes Benz G-Class (Brabus G-Wagon), 2022 Mercedes Benz AMG sport utility vehicle (SUV), 2022 Toyota Tundra and Toyota Sequoia.

Three others are in a service center and will be turned over to the BOC: a 2019 Mercedes Benz G 500 SUV, 2022 GMC Yukon Denali SUV and 2024 Lincoln Navigator L.

In a radio interview, BOC chief of staff Jek Casipit said they tried to issue the search warrant twice on Monday night, but was not allowed to enter the property.

“Based on our records, there were 12 that we did not pull out records from the (BOC), so we were banking on those data. We cannot check on other data that we do not have a basis for,” he said.

Sison gave the BOC 10 days to search the premises and gave instructions that barangay officials should be present during the search.

The 12 cars mentioned in the search warrant were a red Toyota Tundra 2022, an orange Toyota Sequoia, a black Rolls Royce Cullinan 2023, a matte black Mercedes AMG G 63 AMG SUV 2022, a white Mercedez Benz G 500 SUV 2019, an altitude black mica Toyota LC300 3.3 V6ZX AT SUV 2024, a black Lincoln Navigator L SUV 2021, a blue Bentley Bentayga, a black Cadillac Escalade ESV/2021, a white GMC Yukon Denali SUV 2022 GAS, a white Lincoln Navigator L 2024 and a grigio maratea Maserati Levante Modena 2022.

During a Senate committee hearing on Monday, Sarah Discaya confirmed that they owned a total of 40 luxury cars, clarifying that 28 of them were for personal use and the remaining were service vehicles.

BOC Commissioner Ariel Nepomuceno said the agency is determined to locate the missing vehicles and collect any unpaid duties and taxes.

“Let it be clear that those hiding or abetting the concealment of these cars will be punished to the fullest extent of the law. The Bureau is committed to decisive action to protect government revenues and enforce accountability,” he said.

Citing President Marcos’ directive to curb smuggling and protect government revenues, Nepomuceno assured the public that the BOC would continue to enforce customs laws with fairness, transparency and due process.

As for the other luxury cars that were not found in the establishment, Nepomuceno said they have already coordinated with the Philippine National Police-Highway Patrol Group and placed the vehicles on alert, to be flagged if seen on the road.

Vico flags dummies, contradictions

Meanwhile, Pasig Mayor Vico Sotto cast doubt on the credibility of Sarah Discaya’s testimony before the Senate and called on the government to “act quickly before they get away,” amid allegations of irregularities in flood control projects.

In a Facebook post yesterday, Sotto shared his observations on the Sept. 1 Senate Blue Ribbon committee hearing, where the Discaya group was questioned on its links to several construction firms.

During the hearing, Sarah initially claimed she had divested from eight of nine companies allegedly connected to her, but later admitted to still owning the firms after being pressed by senators.

“She contradicted herself within minutes,” Sotto said, pointing to her shifting responses to questions of Senators Erwin Tulfo and Jinggoy Estrada.

Sotto also highlighted inconsistencies in the ownership structures of firms under the Discaya group.

He cited testimony from Ma. Roma Discaya Rimando, niece of Curlee Discaya, who became the majority shareholder of St. Timothy Construction despite previously earning only P30,000 to P40,000 a month as an employee.

“How could someone with that salary suddenly afford P888 million in paid-up capital?” Sotto wrote, noting that Rimando admitted to borrowing P7 million from her uncle but failed to explain how the capital grew nearly 100 times.

The mayor also flagged other companies allegedly linked to the family, including Elite General Contractor, Amethyst Horizon Builders, Waymaker OPC and St. Matthew Builders, which he said were registered under relatives and employees of the Discaya group.

“It’s clear they are using dummies,” he said.

Sooto urged future hearings to address reports that some contractors allegedly advance up to 40 percent of project costs to lawmakers and that “standard operating procedures” or kickbacks exist in Department of Public Works and Highways (DPWH) projects.

He added that the next Senate hearing “should summon not only Sarah Discaya but also her husband, Curlee ‘Great Pacific’ Discaya,” whom he called the “DPWH Project Mistermind.”

Discaya may be cited in contempt for lying

In an ambush interview yesterday, Senate President Pro Tempore Jinggoy Estrada said he will see next hearing if Sarah Discaya will be cited in contempt and detained in the Senate for lying.

“She lied, definitely. She is very much a liar,” Estrada said.

During plenary yesterday, Estrada manifested on the floor that there are at least 80 vehicles owned by the Discayas for their personal and their companies’ use.

“This is outrageous wealth. I am already astounded when Sarah said they have 28 luxury cars, but it turned out it wasn’t even half of what they have,” Estrada said.

He slammed the Discayas for hiding away their vehicles before the BOC raided their Pasig property.

While Discaya claimed they only have 28 luxury vehicles, Estrada cited Land Transportation Office (LTO) records that they actually own 40.

Sixty-three of their vehicles – both mainstream and luxury – are registered with the LTO, according to Estrada, and includes a Rolls Royce Culinan, Bentley Bentayga, two GMC Yukon Denali, Cadillac Escalade, Mercedes Benz Wagon G63 and Range Rover Evoque.

A Range Rover Defender, Cadillac Escalade and Mercedez Benz Maybach, as well as eight more luxury vehicles, were not registered with the LTO, Estrada said.

The Discayas also own six more vehicles, such as Volvo XC-90, Mercedes Benz GLS and a Maserati, he added.

Tax evasion?

Meanwhile, Sen. Erwin Tulfo yesterday questioned the BOC and the Bureau of Internal Revenue (BIR) over potential unpaid taxes from the Discayas’ luxury vehicles.

“More or less, we should be getting over P100 million because of the number of vehicles, is that correct?” Tulfo pressed.

“Correct, Mr. Chair,” Customs Deputy Commissioner Ariel Fermin replied.

Tulfo pointed out that imported luxury vehicles can carry an almost 100 percent tax burden.

“For example, if the car costs P22 million, the tax should be 100 percent, so P22 million as well. If the value of the vehicle is P5 million, like the Range Rover, the tax should also be P5 million,” the senator said.

Fermin confirmed this assessment, noting that taxes can equal the declared value of the unit.

Tulfo also directed his questions to the BIR, asking whether contractors linked to P1.3 trillion worth of flood control projects were being monitored for tax compliance.

BIR Deputy Commissioner Marissa Cabreros replied that the agency has already started looking into the reports.

Tulfo pressed further on the whereabouts of the missing cars, noting reports that the Discayas’ compound previously had as many as 28 vehicles.

Fermin admitted that the vehicles were no longer physically present.

“We assume these were moved out but the BOC is already in coordination with the (Discaya) family so that they will present, which they concur to present all the documents,” he said.

Amendment laws on contractor vetting

Citing rampant and material misrepresentation in public works, Senate Minority Leader Vicente Sotto III is calling on Congress to amend the laws governing the agencies that license and accredit contractors to curb anomalies in government projects.

Sotto issued the statement after revelations surfaced about questionable ownership structures of construction companies linked to the Discayas as detailed in Court of Tax Appeals (CTA) Case No. 10472. The case involves St. Timothy Construction Corporation against the Bureau of Internal Revenue.

Records showed that these corporations were owned, operated and represented by the Discayas, their niece Ma. Roma and employee Darryl Mark Pesigal.

The Philippine Contractors Accreditation Board (PCAB) confirmed during Monday’s probe into ghost flood control projects that such arrangements constitute material misrepresentation in corporate ownership and registration.

Sotto warned that accountability is difficult to enforce because the firms use multiple addresses.

“Where can we locate them if they are using different addresses?” he asked.

The senator also flagged a recurring scheme where contractors simply form new corporations or sole proprietorships whenever their licenses are denied, allowing them to skirt regulatory safeguards.

PCAB acting eExecutive director Herbert Matienzo affirmed that such practices may indeed fall under material misrepresentation.

Sotto urged stronger powers, tighter coordination and clearer enforcement measures across the DPWH and the Department of Trade and Industry to stop the abuse.

Expressing support for the Blue Ribbon committee’s inquiry, he added: “We are hoping that this precisely will be the result of your committee – the legislation that we need to do with PCAB, we need to overhaul PCAB.”

Apart from PCAB, Sotto also wants the laws governing the Construction Industry Authority of the Philippines to be amended. — Mark Ernest Villeza, Marc Jayson Cayabyab, Neil Jayson Servallos