Cabral's lawyer: Zaldy Co overrode DPWH budget formula in flood control scandal

In a new development in the DPWH flood control scandal probe—following Sen. Lacson’s handover of the late undersecretary Maria Catalina Cabral’s documents—the legal counsel of Cabral revealed that House leaders, particularly Rep. Elizaldy Co, overrode a parametric formula designed to eliminate discretion in district budget allocations.

Mae Divinagracia, legal counsel for the late DPWH undersecretary Maria Catalina Cabral, disclosed on January 5, 2026, details from conversations with Cabral. As previously reported in this series, Cabral died in late December 2025 amid the ongoing Senate and Ombudsman investigations into alleged budget insertions for ghost flood control projects.

Divinagracia said Cabral developed a 'parametric formula'—based on historical allocations, population density, and poverty incidence—under instructions from former Secretary Manuel Bonoan. An economist and former agency consultant helped create the algorithm to remove discretion in allocations.

The formula was presented to House leadership but was overridden, restoring budgets to prior-year levels. Adjustments reportedly originated from then-Rep. Elizaldy Co’s office (former House appropriations chair in the 19th Congress), emailed to Cabral and forwarded to Bonoan. Divinagracia has not seen the email but believes it remains in Cabral’s DPWH account.

Co faces allegations of budget manipulation for a kickback scheme in the scandal. He admitted inserting P100 billion in the 2025 budget per the president’s directive but denied personal cuts. Figures under 'NEP computed' followed the formula, reducing allocations, while 'NEP restored' reverted them.

Cabral also revealed a separate 'Senate and House leadership fund' favoring districts of Martin Romualdez and Sandro Marcos, which she reported to the Ombudsman. Previously, allocations were needs-based or per prior GAAs; the 'legislative district allocables' were introduced under Bonoan.

Batangas Rep. Leandro Leviste thanked Divinagracia for confirming his earlier claims on the 'Cabral files,' legally obtained from her office.

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In the ongoing Senate probe into alleged DPWH budget insertions for ghost flood control projects, Senate President Pro Tempore Panfilo Lacson has handed over documents linked to the late former undersecretary Catalina Cabral to authorities including the Ombudsman and DOJ. He urged restraint in public discussions, while a contractor paid P15 million in restitution via the Witness Protection Program.

Department of Public Works and Highways Secretary Vince Dizon announced that the agency will scrap the so-called 'parametric formula' used for district budget allocations amid corruption allegations. The reform aims to base projects on actual needs rather than political influence. He expressed confidence that President Marcos will approve the changes.

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The National Bureau of Investigation has requested an Interpol Red Notice against former lawmaker Zaldy Co in connection with corruption cases involving a flood control project. The NBI confirmed the request was made as early as November 23, 2025, while President Ferdinand Marcos Jr. announced that Co's passport has been cancelled. This forms part of a broader probe into anomalous projects by the Department of Public Works and Highways.

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The Professional Regulatory Board of Civil Engineering has ordered the revocation of the civil engineering license of former Department of Public Works and Highways district engineer Henry Alcantara due to his confessed involvement in non-existent flood control projects in Bulacan. Alcantara has turned over P181.37 million to the Department of Justice as part of repaying the P300 million he admitted pocketing through kickbacks. He remains entitled to legal remedies under due process.

 

 

 

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