The Regional Trial Court (RTC) in Lapu-Lapu City has allowed high-profile contractor Sarah Discaya to post bail for a P96.5 million malversation case involving falsification of public documents linked to an alleged ghost flood control project in Jose Abad Santos, Davao Occidental.
Court Ruling on Bail
In a resolution dated July 7, 2026, RTC Branch 27 Presiding Judge Nelson Leyco granted Discaya's petition for bail after noting that the prosecution failed to present strong evidence proving her participation in the scheme. The case stems from allegations that Discaya, St. Timothy Construction President Roma Rimando, and eight officials of the Department of Public Works and Highways (DPWH) in Davao Occidental were involved in the ghost project, which was declared completed in 2022 despite claims it was never built, resulting in the release of government funds.
The Ghost Project
The project in question is a concrete revetment project along the Culaman River in Jose Abad Santos, Davao Occidental, known under Contract ID No. 22LE0029. The court set bail at P1 million for Discaya and P300,000 for co-accused Czar Ryan Ubungen, acting chief of the Finance Section at the DPWH Davao Occidental District Engineering Office.
Co-Accused Also Granted Bail
The court also allowed Ubungen to post bail. According to the resolution, the prosecution's case against Ubungen relied on his signatures on disbursement vouchers and financial certifications. However, the court ruled that these vouchers were insufficient evidence to link him to the alleged conspiracy. The resolution added that the DPWH official's signatures on certifications such as “Cash Available” and “Supporting documents complete and amount claimed proper” were not deemed adequate proof that he conspired with other officials to falsify documents.
Discaya and Ubungen had previously pleaded not guilty to charges under the Anti-Graft and Corrupt Practices Act and malversation of public funds when they were arraigned at the Lapu-Lapu City RTC on January 13, 2026.
