The Zaldy Co Manhunt: Malacañang Clarifies "Whole-of-Government" Strategy Amid Agency Confusion
Malacañang stepped in on Wednesday, February 18, 2026, to clarify the government's strategy for repatriating former lawmaker Zaldy Co, following conflicting statements from the Department of the Interior and Local Government (DILG) and the Department of Foreign Affairs (DFA).
The Palace emphasized that the pursuit of Co—who is wanted for his alleged role in a massive flood control scandal—is not the burden of a single agency but a synchronized effort involving diplomatic pressure and international law enforcement.
1. Diplomatic vs. Law Enforcement: Defining the Roles
Palace Press Officer and Communications Undersecretary Claire Castro clarified the "distinct but complementary" functions of the agencies involved:
The DFA (Diplomatic Channel): Handles state-to-state engagements. If Co is indeed in a specific country (with reports suggesting Portugal), the DFA manages the official requests for cooperation or extradition under established treaties.
DILG & Law Enforcement (Operational Channel): The Philippine National Police (PNP) and the National Bureau of Investigation (NBI) remain the primary leads for operational coordination with INTERPOL. This includes the issuance and enforcement of Blue and Red Notices.
"Secretary Jonvic [Remulla] simply meant that the DFA is the agency that can engage in state-to-state discussions for immediate assistance... but operations related to INTERPOL remain the responsibility of law enforcement," Castro explained.
2. The "Remulla Remark" and the DFA’s Rebuttal
The clarification follows an interview where Interior Secretary Jonvic Remulla stated that the arrest of Co was "no longer with me" and was "now in the hands of the DFA."
The DFA quickly issued a statement refining this view, noting that describing the matter as resting "solely" with them does not capture the whole-of-government approach. The department reiterated that repatriation involves complex judicial processes that the DFA cannot execute alone without law enforcement’s technical coordination with INTERPOL.
3. The Search for Zaldy Co: Current Status
Despite the high-level coordination, authorities admit that Co’s exact location remains unconfirmed.
The Portugal Lead: Intelligence suggests Co may be hiding in a gated community in Lisbon, allegedly utilizing a Portuguese passport.
INTERPOL Status: The NBI recently submitted supplemental documents to INTERPOL to secure a Red Notice, which would alert law enforcement worldwide to arrest Co pending extradition. A Blue Notice (to collect information on his location) has been active since late 2025.
The Charges: Co faces non-bailable charges of malversation through falsification and graft related to a P289.5-million road dike project in Oriental Mindoro.
GME Academy Analysis: "Sovereign Risk and the Fugitive Factor"
At Global Markets Eruditio, we are monitoring how this high-profile case affects investor perception of Philippine governance.
Trader's Takeaway for February 2026:
Governance Score: The government's ability to successfully repatriate a figure like Co is a litmus test for the Marcos administration’s anti-corruption drive. A successful arrest would bolster "Rule of Law" metrics, which are core components of ESG investing scores.
Market Sentiment: While this case is political, the "flood control anomalies" involve billions in infrastructure funds. Clarity in these investigations is crucial for the Construction and Infrastructure sectors of the PSEi, as it dictates future bidding transparency.
Legal Precedent: This case sets a precedent for how the Philippines handles "dual-passport" fugitives, particularly within the EU (Portugal).
Join our FREE Macro Workshop at Global Markets Eruditio! Is the "Co Scandal" just the tip of the iceberg? We’ll break down the ICI Fact-Finding Report and show you how to identify which infrastructure stocks are most exposed to the ongoing audit.
