Graft Charges Filed Against Zaldy Co. Over PHP289-M Mindoro Flood Project: What Filipinos Need to Know
The Office of the Ombudsman (OMB) has filed graft charges against former congressman Elizaldy Co, several officials from the Department of Public Works and Highways (DPWH), and the board of directors of Sunwest Corp. over alleged irregularities in a PHP289-million flood control project in Oriental Mindoro.
The case stems from a complaint filed by the Independent Commission for Infrastructure (ICI) on September 29, following a thorough investigation into procurement and construction irregularities in Region 4-B (Mimaropa).
The Mindoro Flood Project in Question
The project involved the construction of a road dike along the Mag-Asawang Tubig River in Naujan, Oriental Mindoro, with a total budget of PHP289,498,230. The OMB charges include malversation of public funds, falsification of public documents, and violations of the Anti-Graft and Corrupt Practices Act (RA 3019).
Specifically, Co was also charged under Section 3(h) of RA 3019 for receiving unwarranted financial benefits, highlighting a pattern of alleged personal enrichment at the expense of public welfare.
What Investigations Found
Ombudsman Jesus Crispin Remulla said investigations revealed significant flaws in the project:
Measured sheet piles did not meet the required 12-meter specification
Materials used were substandard, raising doubts about the quality of the entire flood control structure
“These findings point to a scheme that resulted in unwarranted benefits, technical falsification, and misuse of public funds,” the Ombudsman said, emphasizing that public money meant to protect communities from flooding was instead allegedly diverted for personal gain.
Because the amount involved exceeds PHP8.8 million, prosecutors have recommended no bail for the accused.
Why Filipinos Should Pay Attention
This case is not just a political headline—it has real consequences for citizens and the economy:
Public Safety and Flood Protection
The project was intended to protect local communities from flooding. Mismanagement and substandard construction put residents at risk during typhoon season.
Accountability in Government Spending
Cases like this highlight the importance of transparency and strict oversight in handling taxpayer money.
Economic and Investor Confidence
Infrastructure projects are critical to economic growth. Alleged corruption in high-value projects can affect investor trust, slow down development, and influence fiscal planning at both local and national levels.
Potential Forex Implications
While this is primarily a governance issue, Forex traders and investors in the Philippine peso (PHP) should be aware of indirect implications:
Government credibility and transparency affect investor confidence. Lower confidence can reduce foreign capital inflows, which can weaken the peso against major currencies like USD, EUR, or JPY.
Delays or mismanagement in infrastructure spending can slow economic growth, influencing macroeconomic indicators that traders watch closely, including GDP projections, government spending, and fiscal balance.
Political and fiscal risks highlighted by high-profile graft cases may contribute to short-term volatility in USD/PHP or PHP-cross pairs.
For Forex traders, monitoring government integrity, budget management, and infrastructure spending is key to understanding currency movements in the Philippines.
The Road Ahead
Remulla stressed that this is the first case referred by ICI to be filed in court, with several others in preliminary or fact-finding stages. The OMB has promised to pursue all cases “firmly, independently, and without fear or favor,” signaling that more legal action may follow.
“The responsible parties will be held to account,” the Ombudsman said.
Final Thoughts
The Zaldy Co. graft case underscores the critical importance of accountability, transparency, and proper use of public funds in safeguarding Filipino communities and national economic stability.
For citizens, it highlights the need to stay informed and vigilant. For investors and Forex traders, this case serves as a reminder that political and fiscal governance can directly influence market sentiment and currency stability.
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