Discaya Admits Paying Kickbacks to DPWH Execs for Quezon City Flood Projects

Manila: A contractor on Thursday admitted before the Senate Blue Ribbon Committee that he paid 'standard operating procedure' kickbacks of 10 to 25 percent to Department of Public Works and Highways (DPWH) officials in exchange for flood control projects in Quezon City. Pacifico "Curlee" Discaya, owner of St. Gerrard Construction, initially invoked his right against self-incrimination when pressed by Senator Risa Hontiveros to present ledgers of transactions. However, under persistent questioning, he confirmed that his company made the payments in cash once projects were awarded.

According to Philippines News Agency, Discaya revealed that the money was usually withdrawn in bulk and delivered in paper bags, either at luxury hotels such as Shangri-La or directly inside DPWH offices. He admitted that the demand for cash came after projects were awarded and that his company complied out of fear that contracts could be canceled or delayed.

Senator Hontiveros highlighted the gravity of these practices, stating that they expose the 'floodgates of corruption.' She emphasized that taxpayers suffer threefold: through overpriced projects, persistent flooding despite supposed flood controls, and the cost of repeatedly drafting master plans that are ignored. The senator also requested the Anti-Money Laundering Council to submit reports on suspicious transactions involving contractors and DPWH officials.

Senate President Vicente Sotto III reminded Discaya that he enjoys legislative immunity when testifying in congressional hearings and encouraged him to disclose details fully. The hearing is part of the Senate's ongoing probe into alleged ghost projects and anomalies in flood control programs worth billions of pesos.