The Office of the Ombudsman has filed graft and malversation charges Tuesday, Nov. 18, 2025, against former Ako Bicol party-list Rep. Elizaldy “Zaldy” Co and several officials from the Department of Public Works and Highways (DPWH).

The complaint is considered the first court case in a sprawling corruption scandal involving billions of pesos in flood control projects in the country.

The charges, lodged before the antigraft Sandiganbayan court, stem from alleged irregularities in a P289.5 million-peso road dike project along the Mag-Asawang Tubig River in Naujan town, Oriental Mindoro province.

The project, funded under the 2024 national budget and implemented by the DPWH’s Mimaropa Region 4-B office, was awarded to Sunwest Construction and Development Corp. on Feb. 14, 2024, with a notice to proceed issued March 2 and a 360-day completion timeline.

As of the latest inspection, the project reportedly stood at 92% completion.

Prosecutors accused Co, who resigned from Congress in October 2025 after fleeing the country, along with former DPWH Region 4 officials and Sunwest executives, including board members of the firm co-founded by Co and his brother Christopher, of one count of malversation of public funds through falsification of public documents and two counts of violating the Anti-Graft and Corrupt Practices Act (Republic Act 3019).

Co faces an additional charge under Section 3(h) for allegedly receiving unwarranted financial benefits.

The allegations center on the use of substandard steel sheet piles that fell short of the required 12-meter specification, potentially affecting the entire structure and exposing the government to losses exceeding P63 million pesos.

Investigators said DPWH officials issued false certifications and approved progress payments despite the deficiencies, while Co is alleged to have retained beneficial ownership in Sunwest and interfered in the project.

The malversated amount alone surpasses P8.8 million pesos, a nonbailable offense under Philippine law.

“This is the first case that was referred by the Independent Commission on Infrastructure and, as a result, it is the first case to be filed in court,” Assistant Ombudsman Mico Clavano said in a statement. “I would like to emphasize that this is the first of many cases that will be filed in court. There are several cases in the preliminary investigation stage and more in the fact-finding stage.”

The complaint originated from a Sept. 29, 2025 report by the Independent Commission on Infrastructure (ICI), citing procurement flaws, substandard construction and implementation irregularities in flood control projects worth over 10 billion pesos in MIMAROPA region.

Co, a three-term lawmaker, has been linked to billions in proposed budget insertions for similar infrastructure in the 2025 national spending plan, which lawmakers approved last month.

On Tuesday, prosecutors recommended no bail for the malversation charge and filed a motion for the urgent issuance of arrest warrants and hold departure orders against the respondents.

The Office of the Ombudsman said investigators are vetting a sworn statement from ex-DPWH Undersecretary Roberto Bernardo, deemed “credible” in implicating higher officials.

Reports said the Ombudsman may seek additional Sandiganbayan divisions to handle an expected surge in cases, potentially involving senators and more congressmen.

The corruption scandal has drawn public outrage before and after recurring floods in Mindoro and provinces, with critics accusing lawmakers of prioritizing pet projects over disaster resilience.

Clavano told the press that the anti-graft body has vowed to pursue the cases “firmly, independently and without fear or favor,” stressing that “public funds were meant to protect communities from flooding — not to enrich officials or private contractors.”