Criminal raps loom for Discaya, DPWH over P96.5M 'ghost' Davao project | Philstar.com

💥 “From Luxury to Lockup: Sarah Discaya’s P96.5M Ghost Project Scandal Rocks the Philippines” 🔴

Published on December 22, 2025

Introduction

The Philippines is once again gripped by a high-profile corruption scandal that exposes the dark underbelly of public infrastructure spending. Cezarah “Sarah” Discaya, a contractor once celebrated for winning multi-million government projects, now finds herself in handcuffs and behind bars.

The case revolves around a P96.5 million “ghost” flood control project in Davao Occidental, where public funds were allegedly siphoned off while no construction took place. The scandal has ignited nationwide outrage, prompting questions about how billions in government contracts can disappear into thin air, and why accountability for such massive fraud is so elusive.

This article delves into the rise and fall of Sarah Discaya, the inner workings of the scandal, the arrest, the legal charges, public reaction, and the broader implications for Philippine governance and infrastructure integrity.

1. Sarah Discaya: From Prosperity to Controversy

Cezarah “Sarah” Discaya built a reputation as a high-profile contractor with multiple government projects under her name, including flood control, road development, and urban planning contracts. Her companies, including St. Timothy Construction Corp. and Alpha & Omega General Contractor, allegedly secured contracts totaling billions of pesos, raising eyebrows about the scale of her operations.

Known for a lavish lifestyle, luxury vehicles, and social prominence, Discaya became a familiar figure in both business circles and local news. However, questions about her company’s sudden rise and contract approvals quietly brewed until the Davao Occidental “ghost project” scandal came to light.

2. The Davao Occidental Flood Control “Ghost” Project

The project in question was a P96.5 million flood control initiative in Barangay Culaman, Jose Abad Santos, Davao Occidental, intended to mitigate seasonal flooding. Official documents reported the project as fully completed in 2022, and payments were processed accordingly.

Upon physical inspection in late 2025, investigators found no evidence of construction. Reports highlighted the stark difference between official claims and actual site conditions: concrete structures, drainage systems, and revetments that should have existed were nowhere to be found. This discovery labeled the project as a “ghost”—an infrastructure contract paid but never delivered.

3. Early Warning Signs and Investigative Triggers

Government auditors, civic watchdogs, and investigative journalists began to notice irregularities in multiple flood control projects, including anomalies in payment schedules, contractor submissions, and completion reports.

In Davao Occidental, these discrepancies were magnified because of public funds explicitly earmarked for disaster mitigation. Lawmakers and the Office of the President, under Ferdinand Marcos Jr., highlighted the issue, prompting the National Bureau of Investigation (NBI) and other agencies to open formal inquiries.

4. Filing of Charges: The Ombudsman Steps In

On December 5, 2025, the Office of the Ombudsman filed criminal complaints against Sarah Discaya and several co-accused, including DPWH engineers and corporate associates, citing malversation of public funds and violations of the Anti-Graft and Corrupt Practices Act (RA 3019).

The President’s office emphasized that the charges were non-bailable, sending a stern warning to other contractors and public officials who might consider engaging in similar schemes.

5. The Surrender and Arrest Drama

Faced with imminent arrest, Discaya voluntarily surrendered to the NBI on December 8, 2025, a dramatic move that drew intense media coverage. She was later formally served with arrest warrants on December 18, 2025, for graft and malversation—both non-bailable offenses.

Videos from the NBI processing center showed her in standard detainee attire, escorted by authorities, while media crews recorded the spectacle that immediately went viral online.

6. Unpacking the Legal Charges: Non-Bailable Graft and Malversation

Discaya faces multiple charges:

Graft (RA 3019): Alleged gross negligence and partiality resulting in undue injury to the government.
Malversation of Public Funds: Misuse of government money through falsified documents claiming project completion.

The charges are non-bailable, reflecting the gravity of the alleged fraud and the systemic breach of public trust.

7. Detention and Jail Life: Inside Lapu-Lapu City Facility

After processing, Discaya was transferred to Lapu-Lapu City jail while awaiting preliminary hearings. Jail authorities emphasized no special privileges despite her social prominence.

Her detention underscores the Philippine legal system’s approach to high-profile corruption cases, highlighting accountability regardless of wealth or influence.

8. Public Outrage, Media Frenzy, and Political Fallout

The scandal ignited nationwide outrage, social media debates, and political commentary. Citizens questioned how public funds can be misused in life-saving projects, while watchdog organizations called for systemic reforms.

Politicians and journalists drew parallels to previous “ghost project” cases, emphasizing the need for transparency, auditing, and stricter enforcement in government contracts.

9. Lessons for Infrastructure Oversight and Transparency

Several lessons emerge:

Rigorous auditing and inspection are critical.
Transparency in awarding and monitoring contracts must be mandatory.
Legal frameworks like RA 3019 must be actively enforced.
Public engagement and media scrutiny play crucial roles in uncovering corruption.

Experts suggest that the Discaya case could serve as a template for strengthening oversight mechanisms nationwide.

10. The Bigger Picture: Fighting Systemic Corruption in the Philippines

The case of Sarah Discaya is not isolated; it highlights broader systemic issues:

Mismanagement of infrastructure funds across multiple regions.
Ghost projects undermining public safety and trust.
Need for legal, administrative, and civic reforms to prevent similar abuses.

The government’s response, including arresting high-profile contractors, is seen as a signal of commitment to accountability, yet it also underscores the challenges of enforcing laws consistently.

Conclusion

The “Ghost Project Nightmare” exemplifies the consequences of corruption and mismanagement of public resources. Sarah Discaya’s journey from a prominent contractor to a detainee under non-bailable charges serves as a cautionary tale for contractors, public officials, and the general public.

As the trial unfolds, the case will continue to influence policy, public opinion, and governance reforms, reminding all stakeholders that public trust is invaluable—and not to be squandered.

Anatomy of a Ghost Project: How Millions Disappear
Understanding RA 3019: Anti-Graft and Corrupt Practices Act
High-Profile Infrastructure Corruption in the Philippines
Flood Control Projects and Public Accountability
The Role of the Ombudsman and NBI in Anti-Corruption Cases