Ombudsman files new graft, malversation raps vs Zaldy Co, others

MANILA, Philippines — The Office of the Ombudsman on Friday filed a second malversation case agains t former Ako Bicol party-list Rep. Zaldy Co over the alleged non-existent flood control project worth ₱77 million in Balagtas, Bulacan.

The six-page case information was filed for one count each of malversation of public funds and one count each of violation of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act against Co as well as former Department of Public Works and Highways (DPWH) officials Brice Hernandez, Arjay Salvador Domasig, Jaypee De Leon Mendoza, Niño Lawrence Vergara Morales, Juanito Coronel Mendoza, Floralyn Yutuc Simbulan and Christina Mae Del Rosario Pineda.

They also said that Co’s staff John Paul Estrada and Mark Tecsay “were also included in the indictment.”

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The case involves the construction of a riverbank protection structure along the Balagtas River in Purok 4, Barangay San Juan which was awarded to SYMS Construction Trading with a revised contract amount of approximately ₱77.2 million.

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Investigators said the project was supposed to begin last Feb. 24, 2025 and was declared to completed on May 2 the same year.

“However, upon inspection, it was non-existent,” the Ombudsman’s ruling said. 

The resolution noted that repeated approvals of the payments to SYMS, “in spite of the glaring irregularities” in the Monthly Certificates of Payment and Statements of Work Accomplished “are strong indication of their participation in the devious schemes of misappropriating the funds for flood control projects.”

“Here, respondents acted with evident bad faith and/or gross inexcusable negligence when they issued the pertinent documents and certifications that led to the diversion of public funds … for a project that turned out to be non-existent or incomplete,” the resolution stated.

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“The repeated failure to exercise due diligence is very telling.”

In November 2025, Co was charged with one count of malversation and two counts of graft before the Sandiganbayan stemming from a P289.4 million worth Sunwest project — or the company where Co is said to be a beneficial owner — in Naujan, Oriental Mindoro, which prosecutors said was found to have serious structural deficiencies. 

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Co could not participate in the trial of his first  malversation case held in the anti-graft court’s Sixth Division as he was earlier declared by Sandiganbayan as a fugitive from justice. 

A respondent declared as a fugitive from justice could not  participate in the proceedings and could not seek any judicial relief unless they surrender voluntarily. /gsg