Cebu court grants P1 million bail to Sarah Discaya over Davao Occidental ghost project raps
Contractor Sarah Discaya has been allowed to post P1 million bail after a court in Lapu-Lapu City granted her petition while she faces trial over the alleged P96.5 million ghost flood control project in Davao Occidental. Despite the ruling, she remains detained due to a separate non-bailable malversation case filed by the Ombudsman.
As reported by The Freeman, Judge Nelson G. Leyco of RTC Branch 27, in a July 7 resolution, ruled that the prosecution had not presented strong evidence showing that Discaya actively participated in the alleged crime.
The court said no prosecution witness testified about Discaya's involvement in implementing the project.
“As far as Discaya is concerned, the evidence is not strong in showing her active participation in the crime,” the 15-page resolution read.
“At this point in time, the pieces of evidence highlighted by the prosecution are not yet enough to prove Discaya's instrumental participation in committing the criminal act of falsifying the documents, or in conspiring with the other accused. As such, this Court has to afford her the Constitutional right to post bail during the pendency of the main trial in this case,” the resolution continued.
Leyco also cited Supreme Court decisions stating that company officers cannot be held criminally liable solely because of their position. He added that there must be proof that the officer joined the offense or had the authority to stop it.
The court also granted bail to DPWH Davao Occidental Acting Finance Section Chief Czar Ryan S. Ubungen, setting it at P300,000, while the eight remaining accused were denied bail after the court found strong evidence against them.
The charges are linked to the alleged ghost flood control project worth P96.5 million along the Culaman River in Jose Abad Santos, Davao Occidental.
Prosecutors claimed St. Timothy Construction Corp. reported the project as completed in 2022 and received full payment despite allegations that the project was never completed. Reportedly, a DPWH Central Office inspection found several irregularities and discrepancies in the project documents.
The prosecution also alleged that Discaya was the beneficial owner of the company and took part in the scheme.
The contractor and her husband, Curlee, have been embroiled in the flood control issue since 2025, when it was discovered that several of their construction firms were connected to numerous "ghost" flood control projects across the country.
In December, Discaya was arrested and detained in connection with the alleged ghost flood control project.
Discaya will likely remain in detention due to a separate, non-bailable malversation warrant from the Malolos City RTC. The Ombudsman filed the charges after finding that payments for a P53.9-million flood control project in Calumpit, Bulacan, were released without an approved disbursement voucher.