Licenses of DPWH contractor Sarah Discaya's nine companies revoked
The Philippine Contractors Accreditation Board revoked the licenses of the nine construction companies owned by top government contractor Sarah Discaya amid corruption allegations in flood control projects.
In its Board Resolution No. 75, series of 2025, the PCAB said the continued accreditation of the following companies is "inimical to public interest, industry integrity, and government procurement transparency":
- St. Gerrard Construction Gen. Contractor & Dev’t Corporation;
- Alpha & Omega Gen. Contractor & Dev’t Corporation;
- St. Timothy Construction Corporation;
- Amethyst Horizon Builders And Gen. Contractor & Dev’t Corp.;
- St. Matthew General Contractor & Development Corporation;
- Great Pacific Builders And General Contractor, Inc.;
- YPR General Contractor And Construction Supply, Inc.;
- Way Maker OPC; and
- Elite General Contractor And Development Corp.
"[T]he Board RESOLVES as it is hereby RESOLVED, that the Contractors' Licenses of the nine (9) corporations abovementioned, owned or controlled by Ms. Sarah Discaya are hereby REVOKED, effective immediately upon arrival of this Resolution," read the decision approved by Pericles Dakay via ad referendum on Sept. 1 and published on Sept. 3.
The PCAB noted that with Discaya's admission of ownership and control of the nine companies—and participating in the bidding of government projects—during the Senate Blue Ribbon Committee hearing on Sept. 1, it raised the "presence of collusion, employing schemes which stifle or suppress the outcome of the procurement activity in violation of licensing and procurement laws."
The PCAB took note of Republic Act No. 12009, or the Government Procurement Act of 2024, which states that procurement "must be competitive, transparent, and free from collusion." It also explicitly prohibits "conflict of interest and multiple participation in a single bidding process by entities under common ownership or control."
"WHEREAS, such admission establishes a scheme of joint or multiple bidding participation designed to influence the outcome of public bidding, manipulate results, and corner public projects, thereby undermining transparency, fairness, and competition in violation of procurement laws and licensing requirements," the board said.
The PCAB said it will issue notices of revocation to Discaya's corporations, remove them from the PCAB registry of duly licensed contractors, furnish copies of the resolution to the Department of Public Works and Highways, Securities and Exchange Commission, and all concerned government agencies.
It said it will also endorse the matter to the National Bureau of Investigation and the Department of Justice "for further determination of criminal liability."
9 companies, 400 contracts, billions of pesos, 28 luxury cars
During the Senate hearing, Discaya admitted to owning the nine companies, which were among those accused of corruption in flood control projects and were among 15 contractors that exclusively bagged 20% of all flood control projects worth P100 billion in the last three years, according to President Ferdinand "Bongbong" Marcos Jr.
Discaya, however, denied any wrongdoing. Asked how they made billions of pesos, she argued it's not impossible for them to make a great profit as they've been a government contractor for over two decades. She didn't explicitly confirm the amount.
She also claimed they started bidding for DPWH projects in 2012 and began winning flood control projects in 2016. For the last three years, she said their companies secured about 400 contracts.
She claimed that they're no longer part of the companies that have had projects with the DPWH.
Discaya also admitted to owning 28 luxury cars, running counter to earlier reports that she has 40. These include Rolls-Royce Cullion, Mercedes-AMG G 63, two Cadillacs, two GMCs, Chevrolet Suburban, Maybach, three Range Rovers, and Bentley.
She claimed they were purchased from a "dealer," and when pressed for more details, said they were from Frebel Enterprise and Autoart. In 2022, the Bureau of Customs seized undeclared luxury cars from Frebel and auctioned them off, according to the Philippine News Agency. In a 2014 report from GMA News, the BOC also seized undervalued products from Frebel and others.
The BOC on Sept. 3 said it has secured and formally sealed Discaya's 12 luxury cars covered by its search warrant following a daylong hunt in which only two vehicles were initially found.
The cars are under round-the-clock guard by the BOC and the Philippine Coast Guard.
The agency is verifying the cars' importation records, and any discrepancies uncovered will lead to the full collection of duties and taxes. It added that those who are hiding or abetting the concealment of the cars will be punished to the fullest extent of the law.
Discaya and her husband Curlee were thrown into the spotlight, especially after Pasig Mayor Vico Sotto, whom she unsuccessfully ran against in the midterm elections, posted about their controversial interviews with Korina Sanchez and Julius Babao. The interviews showcased the couple's rags-to-riches story and their assets, including their luxury cars.
The national attention and outrage toward the Discayas rubbed off on other contractors. Adding insult to the injury was how internet users noticed several children of politicians and contractors, branding them as "nepo babies," who flex their designer clothing and fly to different countries in seemingly unapologetic fashion—and even vlogging about their comforts.
The matter has become so alarming that many celebrities and personalities have decided to speak up.
