(UPDATE) MALACAÑANG on Saturday slammed contractor couple Cezarah “Sarah” and Pacifico “Curlee” Discaya after they denied involvement in the second phase of the Philippine Film Heritage Building (PFHB) construction project.

In a statement, Palace Press Officer Claire Casto dismissed the claim of the couple’s lawyer, Cornelio Samaniego, that Great Pacific Builders only handled Phase 1 of the PFHB project, which was completed in December 2024.

Castro said Great Pacific Builders also entered into a contract with the Department of Public Works and Highways (DPWH) for Phase 2, signed on Jan. 2, 2025, for a total of P107.98 million.

“The Discayas should study first all the contracts entered into by and between Great Pacific Builders and General Contractor, Inc. and DPWH. They might have forgotten their commitments, considering the numerous projects that they got from the government,” Castro said.

“Wrong information given to the media may cause confusion to the people,” she added.

The Palace official said Great Pacific Builders “voluntarily entered” into a contract agreement for Phase 2 of the project with DPWH representative Manny Bulusan from the Office of the District Engineer.

She said the Discayas had agreed to execute work under Contract ID 230H0119: Local Program/National Building Program/Buildings and other Structures — Multi-Purpose/Facilities — Construction of FDCP Film Heritage Building in Intramuros, Manila for a total contract price of P107.98 million.

Castro also said the contract has a project duration of 240 calendar days with the original expiry date set for Sept. 4, 2025.

“In addition, this contract was duly notarized by attorney M. Laguerta of the City of Manila. Moreover, this ‘contract’ is not the same work/contract mentioned by the counsel (for the Discayas), which was allegedly completed by his clients in December 2024,” Castro said.

“How is it possible that the contract ended in December 2024 when the contract starts in January 2025?” she added.

Samaniego earlier said the project was divided into two phases.

He said Great Pacific Builders and General Contractor Inc., owned by the Discayas, turned over Phase 1 in December 2024 and received a certificate of completion.

The lawyer said the project’s completion was now uncertain after the Philippine Contractors Accreditation Board revoked the licenses of nine Discaya-linked firms, including Great Pacific.

On Thursday, Castro warned of possible legal action against the Discayas over the sloppy construction of the PFHB in Intramuros, Manila.

Castro said the scheduled turnover of the PFHB on Thursday failed to materialize due to unfinished construction work.

“It is disappointing. And the contractor of this building is the Great Pacific Builders and General Contractor Inc. It is one of the corporations of the Discayas,” Castro said after inspecting the PFHB.

Palace slams Discaya couple's denial in Film Heritage Building debacle

She pointed to several issues, such as water leakage, faulty elevator doors, and poorly designed downspout drainage.

The site inspection also revealed that the cinematheque, an archive of films and film-related objects with an exhibition venue, remained unfinished.

“As you know, the First Lady is deeply committed to the growth and promotion of Filipino films,” Castro said.

“The government, through this very project, seems to have been cheated by the Discayas,” she added.

On Friday, First Lady Liza Araneta-Marcos posted on her official Instagram page, calling the project a “rotten monument of incompetence.”

Palace slams Discaya couple's denial in Film Heritage Building debacle

The Great Pacific Builders and General Contractor Inc. is one of the nine companies owned or controlled by the controversial contractor couple.

Several companies of the Discayas are among the top 15 contractors who were awarded billions of pesos worth of flood control contracts that are now under investigation by the government.

Damning proof

Meanwhile, Sen. Panfilo Lacson said he will provide Public Works Secretary Vince Dizon “damning” proof against “rotten fruits” in the DPWH.

“Godspeed, Sec[retary] Vince Dizon.... My office will provide you with damning evidence against some ‘low hanging rotten fruits’ but will instill fear so that others will think twice before following their bad examples,” Lacson, a former chief of the Philippine National Police, said in a post on X on Saturday.

Both the Senate and the House are conducting flood control probes.

President Ferdinand Marcos Jr. has said that an independent commission would be created to look into how billions of pesos were channeled into non-existent or substandard flood control projects.

Fraud audit

Last month, the Commission on Audit (COA) said it would conduct a fraud audit of flood control projects of the DPWH in the province of Bulacan.

“Given the critical issues raised by President Ferdinand R. Marcos Jr. regarding the implementation of these projects, particularly in the Province of Bulacan, a fraud audit is an immediate and unequivocal necessity,” a memo issued on Aug. 12 read.

Dizon succeeded Manuel Bonoan as DPWH chief earlier this month after the latter resigned.

“In his resignation letter, Secretary Bonoan expressed support for the president’s call for accountability, transparency, and reform within the DPWH,” the statement read.

Bonoan has said he was not involved in any alleged corruption.

Dizon served as Transportation secretary before becoming DPWH chief.

Denial of wrongdoing

Also on Saturday, dismissed DPWH Bulacan First District engineer Henry Alcantara rejected allegations that he was the “kingpin” behind ghost flood control projects in the province, and said he was being unfairly vilified.

Alcantara’s lawyers from Flaminiano Arroyo & Dueñas issued a statement emphasizing that their client “did not author these alleged ghost projects. Any wrongdoing occurred without his knowledge, acquiescence, or approval.”

The rebuttal comes after Alcantara was dismissed from government service after being found guilty of several administrative offenses linked to the ghost projects and was barred from holding public office.

“Engineer Alcantara will contest every accusation that he participated in or benefited from any unlawful scheme,” his lawyers said, pledging to challenge the legality of his summary dismissal and defend him before the proper forum.

Authorities, however, noted that Alcantara’s name repeatedly appeared in reports documenting systemic irregularities in project implementation. Some officials even labeled him the alleged “kingpin” of the network behind the ghost projects — a characterization his legal team calls defamatory.

Despite the scrutiny, Alcantara said he will cooperate with investigators. His lawyers expressed confidence that the truth would eventually prevail.

“We are confident that in due time, the truth will surface and Alcantara will be cleared of the baseless accusations levied against him,” the statement read.

The DPWH earlier released the dispositive portion of its decision, which cited Alcantara for disloyalty to the Republic of the Philippines and the Filipino people, grave misconduct, gross neglect of duty, and conduct prejudicial to the service.

He was dismissed with the accessory penalty of perpetual disqualification from public office. The Sept. 4 decision was signed by Dizon., This news data comes from:http://yktooi.ycyzqzxyh.com

The case stemmed from a motu proprio complaint filed by former DPWH secretary Bonoan after it was discovered that two projects in Baliwag and Bulacan town had been paid in full, yet no structures or works existed.

“Respondent’s failure to safeguard public interest, resulting in the payment of ‘ghost’ projects, tarnished the image and integrity of DPWH,” the department said.

The DPWH also noted that Alcantara’s dismissal does not preclude civil or criminal charges against him and any co-conspirators.

Before his dismissal, Alcantara served as assistant regional director of DPWH Region 4A and was initially suspended amid the investigation into Bulacan’s ghost projects.