Discaya, DPWH execs plead “not guilty” to graft

CEBU, Philippines — Contractor Sarah Discaya, owner of St. Timothy Construction, company president Maria Roma Rimando, and eight officials of the Department of Public Works and Highways (DPWH) Davao Occidental District Engineering Office pleaded “not guilty” during their arraignment on January 13, 2026, before the Regional Trial Court (RTC) Branch 27 in Lapu-Lapu City.

The accused DPWH officials are Rodrigo Larete, Michael Awa, Joel Lumogdang, Harold John Villaver, Jafael Faunillian, Josephine Valdez, Ranulfo Flores, and Czar Ryan Ubungen.

They face charges for violation of Section 3(e) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act, and for malversation of public funds through falsification of commercial documents.

The cases stem from the alleged ?96.5-million “ghost” flood control project in Davao Occidental.

The arraignment marked the accused’s first physical appearance before Presiding Judge Nelson Leyco. On January 5, they had appeared via online conference to argue their motion to quash the information, contending that Supreme Court’s Office of the Court Administrator (OCA) Circular No. 328-2025—which mandates the transfer of cases to an RTC outside the judicial region where the accused holds office—does not apply to their case.

Leyco denied the motions thereby retaining jurisdiction of the case with RTC Branch 27 in Lapu-Lapu City.

Prior to the arraignment, lawyers for Discaya and the eight DPWH officials verbally manifested their request to defer the arraignment, citing that they had received only that day the order denying their motions.

In an interview, Atty. Joseph Randi Torregosa, one of the legal counsels, said they firmly believe that the Lapu-Lapu court has no jurisdiction over the case.

Torregosa said they are preparing to file a motion for reconsideration or a petition for certiorari.

“We will be moving forward without abandoning our remedies, and even the court agreed with us,” he said.

Rimando’s counsel, Atty. Cornelio Samaniego, did not seek to defer the arraignment but instead verbally presented a petition for bail and a motion for an ocular inspection of the alleged “ghost” project in Davao Occidental.

Samaniego said the flood control project in Barangay Culaman, Jose Abad Santos, Davao Occidental was “built, existed, and was erected.”

“We might as well have an ocular inspection para makita kasi nagsasayang lang tayo ng oras dito kung nandoon naman talaga ang project,” he said, adding that St. Timothy Construction would shoulder all related expenses.

Torregosa said he and the other defense counsels are also set to file their own petitions for bail.

“All these remedies might be pursued simultaneously without abandoning or waiving the others,” he said.

He added that while the offenses are generally non-bailable, the accused may be granted bail if the prosecution fails to establish that the evidence of guilt is strong.

Despite the pending jurisdictional issues, the arraignment proceeded “without prejudice” to the accused’s right to continue challenging the court’s authority over the case.

During the arraignment, the charges were read to the accused, who were then asked to enter their pleas. All of them pleaded not guilty.

The court also ordered the preventive suspension of seven DPWH officials in connection with the alleged violation of RA 3019. Lumogdang was excluded from the suspension, having retired last year.

One defense counsel, however, said the court-ordered suspension would be “superfluous,” noting that the officials had already been preventively suspended by the DPWH.

“The court has its own mind. I think we will also question that part of the ruling in our motion for reconsideration,” he said, adding that they intend to exhaust all available legal remedies.

The court has set the preliminary conference a week ahead of the pre-trial, which is scheduled on February 3, 2026. — (FREEMAN)