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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Senator Lacson formally hands over Cabral documents to Ombudsman and DOJ officials during DPWH ghost projects probe in the Senate.
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Lacson turns over Cabral documents as DPWH probe advances

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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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There is no clear confirmation whether Rep. Leandro Leviste lawfully obtained or forcibly took files on the infrastructure budget from the DPWH, even from the legal counsel of the late Public Works Undersecretary Maria Catalina Cabral. Cabral's lawyer, Mae Divinagracia, stated that Cabral did not discuss the details of how Leviste acquired the documents. Leviste's claims of authorization from Secretary Vince Dizon and Cabral remain unverified.

Former Executive Secretary Lucas Bersamin has rejected claims that he is the 'ES' referenced in the Cabral Files, linked to P8.3 billion in questionable Department of Public Works and Highways (DPWH) projects for the 2025 budget. Following recent Senate disclosures and probes into DPWH anomalies, Bersamin denied ever requesting, endorsing, or approving such allocations.

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The Office of the Ombudsman has placed around 30 cases involving the Department of Public Works and Highways under preliminary investigation amid allegations of anomalies in flood control projects. Ombudsman Jesus Crispin Remulla announced the development on November 4, 2025, as part of a broader government crackdown. A new task force will also examine projects linked to the Villar family.

The Anti-Money Laundering Council has frozen assets worth P13 billion linked to the flood control scandal, with the amount expected to rise as investigations continue. Justice Undersecretary Jojo Cadiz resigned amid allegations of involvement in the anomalies, while President Marcos ordered the DILG and PNP to track down Sarah Discaya and others connected to a P100-million ghost project.

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Malacañang expects more individuals involved in flood control project irregularities to be jailed in the New Year. Critics have slammed the administration for failing to fulfill President Marcos' promise to imprison the so-called big fish before Christmas. The investigation continues, implicating contractors like Sarah and Curlee Discaya.

 

 

 

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