A Regional Trial Court (RTC) in Lapu-Lapu City has firmly rejected attempts to dismiss the case and arrest warrants against controversial contractor Sarah Discaya and nine others linked to an alleged P96.5-million "ghost" flood control project in Davao Occidental.
Court Upholds Jurisdiction, Denies Transfer
Judge Nelson Leyco of RTC Branch 27 in Lapu-Lapu City dismissed the motions to quash, which were initially filed on January 5, 2026. The court ruled that jurisdiction over the case will remain in Cebu, countering defense arguments that it should be transferred to Malita, Davao Occidental, where the alleged crime occurred.
All ten accused underwent arraignment on Tuesday, January 13, 2026, where they each pleaded "not guilty" to charges of graft and malversation of public funds. Defense lawyer Atty. Joseph Randi Torregosa, representing Rodrigo Larete (OIC of the DPWH Davao Occidental District Engineering Office), argued that the Lapu-Lapu court lacked jurisdiction. He stated their plan to file a motion for reconsideration or a petition for certiorari to challenge the court's decision.
Case Background and Defense Strategy
The case stems from a flood control project in Davao Occidental that government auditors flagged as a non-existent or "ghost" project. Investigations revealed that the project, intended for drainage and flood control, was never implemented despite the release of funds.
The accused now face charges for Malversation of Public Funds and violation of Section 3(e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act. The group includes Sarah Discaya, Maria Roma Angeline Rimando of St. Timothy Construction, and eight officials from the DPWH Davao Occidental office.
Atty. Paul Tristan Sato, lawyer for seven of the DPWH officials, confirmed they have prepared subsequent legal steps for their clients following the dismissal of their motion. Meanwhile, Atty. Cornelio Samaniego III, representing Rimando, announced they will file a motion for a joint ocular inspection. This move aims to prove that the infrastructure is real and was completed, countering the ghost project allegation. Samaniego stated his client is willing to shoulder all expenses for the inspection.
Next Steps and Bail Petition
The court has scheduled the start of the pre-trial proceedings in Lapu-Lapu City for February 3, 2026. Separately, the defense camp has expressed its intention to file a petition for bail for the accused in the coming days, seeking their provisional liberty as the trial progresses.
The court's decision to retain the case in Cebu sets the stage for a protracted legal battle over one of the recent high-profile corruption cases involving public infrastructure funds.
