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.
On December 4, 2025, the Court of Appeals issued a freeze order against a private construction company with the most 'ghost' flood-control projects, according to the Anti-Money Laundering Council (AMLC). This covers 280 bank accounts, 22 insurance policies, three securities accounts, and eight air assets. It relates to potential violations of Republic Act 3019 and malversation under Article 217 of the Revised Penal Code. So far, the AMLC has frozen 4,679 bank accounts, 283 insurance policies, 255 motor vehicles, 178 real properties, 16 e-wallet accounts, and three securities accounts. 'The filing of this petition for a freeze order underscores the AMLC’s firm commitment to recover every peso of public funds that may have been misused,' said AMLC executive director Matthew David.
Meanwhile, Justice Undersecretary Jojo Cadiz resigned amid allegations of receiving kickbacks from flood control projects, as claimed by resigned Ako Bicol representative Zaldy Co. Cadiz has ties to a construction company incorporated in 2023 through his 19-year-old son, based on SEC documents. 'As of the moment we have not talked about that. But if there’s a need for investigation on that issue, let the investigation be done,' said Presidential Communications Undersecretary Claire Castro. The Ombudsman will probe his involvement, according to Assistant Ombudsman Mico Clavano.
President Marcos ordered the Department of the Interior and Local Government (DILG) and Philippine National Police (PNP) to locate Sarah Discaya and other respondents linked to a P100-million ghost flood control project in Davao Occidental from 2022. The project, awarded to St. Timothy Construction Corporation, was never started despite being paid as completed. 'Based on the investigation, this project was supposedly completed in 2022 but was never started,' Marcos said. The Ombudsman recommended charges for malversation through falsification and RA 3019 against Discaya, Maria Roma Angeline Remando, and DPWH officials. The PNP is ready to arrest them upon warrant issuance, per Acting PNP chief Lt. Gen. Jose Melencio Nartatez Jr. and Interior Secretary Jonvic Remulla.
Additionally, the Pasig local government closed nine construction firms tied to Sarah and Curlee Discaya for unpaid taxes and lack of permits. Three former DPWH engineers—Henry Alcantara, Brice Hernandez, and Jaypee Mendoza—will face jail before Christmas, according to Public Works Secretary Vince Dizon.
