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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Courtroom testimony of contractor Sally Santos on P1.72 billion payments to ex-DPWH engineer during Revilla bail hearing.
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Contractor testifies on P1.72 billion payment to ex-DPWH engineer

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Sally Santos, owner of SYMS Construction, testified at the Sandiganbayan on April 8 that she delivered nearly P1.72 billion to former DPWH engineer Brice Hernandez from 42 projects. This occurred during the bail hearing for former senator Bong Revilla and others in a malversation case over a ghost P92.8-million flood control project in Pandi, Bulacan. The court questioned her credibility.

Henry Alcantara, a former district engineer at the DPWH Bulacan regional office and now a state witness, will testify in the malversation trial against resigned lawmaker and fugitive Zaldy Co and 15 others over an alleged substandard P289.5-million flood control project in Naujan, Oriental Mindoro.

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A coalition of activists filed a graft complaint with the Ombudsman on Monday, March 30, against former undersecretaries Adrian Bersamin and Trygve Olaivar over an alleged multibillion-peso kickback scheme in flood control projects. The complaint draws from testimonies by former DPWH undersecretary Roberto Bernardo. The Ombudsman is also investigating them for plunder conspiracy.

The Sandiganbayan Fifth Division has issued a writ of preliminary attachment against 16 properties of former lawmaker Zaldy Co to secure over P215 million in potential civil liabilities from alleged graft and malversation in a flood control project in Naujan, Oriental Mindoro. The decision was promulgated on March 4, 2026, and made public on March 9. Co faces the charges and has been declared a fugitive after leaving the Philippines before the Ombudsman filed the case in November 2025.

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