NBI arrests Sarah Discaya over P96.5-M ghost flood project

The National Bureau of Investigation (NBI) on Thursday night served arrest warrants against businesswoman Sarah Discaya in connection with a P96.5-million flood control project in Davao Occidental that authorities said was never implemented.

According to the NBI, two arrest warrants were issued against Discaya. One warrant is for violation of Republic Act No. 3019, or the Philippine Anti-Graft and Corrupt Practices Act, which carries a recommended bail of P90,000.

The second warrant is for malversation of public funds, a non-bailable offense, NBI spokesperson Atty. Palmer Mallari said.

Following the service of the warrants, Discaya underwent standard booking procedures and a medical examination. She was later transferred to the NBI Detention Facility in Muntinlupa City, where she is currently being held.

Mallari said Discaya is scheduled to attend a hearing on Friday before the Department of Justice (DOJ) regarding a complaint filed by the Bureau of Internal Revenue (BIR).

After the DOJ proceedings, she is expected to be turned over to the Regional Trial Court in Cebu City, where the charges against her were filed.

The NBI anticipates that the DOJ hearing will conclude by late Friday afternoon. A flight to Cebu has been tentatively scheduled at around 4 p.m., subject to the completion of the proceedings, Mallari added.

Mallari explained that the immediate return of the arrest warrant to the issuing court is required under procedural rules. This step allows the court to assume jurisdiction over the accused and proceed with the next stages of the case.

“Once the warrant is returned, the court will be scheduling the arraignment where the accused will be informed of the charges and enter her plea,” he said.

He added that it will be up to the court to decide whether Discaya will remain detained in Cebu while awaiting trial or be transferred to another detention facility.

Mallari also confirmed that President Ferdinand “Bongbong” Marcos Jr. had been informed of Discaya’s arrest. Discaya declined to issue any statement to the media following her apprehension.

Authorities also served an arrest warrant against Roma Rimando, president of St. Timothy Construction Corporation, at the Pasig City Police Station Headquarters.

Rimando is among those implicated in the same case involving the alleged ghost flood control project.

Earlier, President Marcos announced that a local court had issued arrest warrants against Discaya and nine other individuals in connection with the allegedly spurious project.

In a video message, Marcos said the accused are facing charges of graft and malversation, both of which he described as serious offenses.

“Ang mga akusado ay nahaharap sa kasong graft at malversation, ito pong mga kasong ito hindi po bailable ito, hindi pwedeng bayaran ang kanyang…para sila’y malalabas sa kulungan. Kabilang na po rito si Sarah Discaya na sa kasalukuyan ay nasa kustodiya ng NBI,” Marcos said.

The President also disclosed that eight officials of the Department of Public Works and Highways (DPWH) have signified their intention to surrender in connection with the case.

“Ito po ay patuloy naming gagawin at simula lang po ito at patuloy naming iimbestigahan at kakasuhan lahat po ng may kinalaman sa mga iskandalo na nakikita natin sa mga flood control project,” Marcos added.

The Office of the Ombudsman filed the criminal information against Discaya and her co-respondents before a Regional Trial Court in Digos City on Dec. 5, 2025.

Prosecutors alleged that the respondents conspired to facilitate the release of P96.5 million in public funds for the construction of a revetment project in the municipality of Jose Abad Santos, Davao Occidental.

According to the information, the project “was never implemented,” despite the release of funds, prompting the filing of graft and malversation charges against those involved.

Discaya had earlier surrendered to the custody of the NBI last week, even before the issuance of an arrest warrant. At the time, she said the move was intended to ensure her personal safety while the case was pending.

Authorities said further developments are expected as the court proceedings begin and as additional respondents in the case are located or surrender to authorities.