Businesswoman Sarah Discaya and nine co-accused pleaded not guilty on Tuesday, Jan. 13, to charges of graft and malversation of public funds involving an alleged ₱96.5-million “ghost” flood control project in Davao Occidental.
The arraignment took place at the Regional Trial Court (RTC) Branch 27 in Lapu-Lapu City. Appearing before Presiding Judge Nelson Leyco, Discaya—owner of St. Timothy Construction—entered her plea alongside Maria Roma Rimando, the firm’s president, and eight officials from the Department of Public Works and Highways (DPWH).
The case involves a funded revetment project in Barangay Culaman, Jose Abad Santos, which investigators claim was never built despite full payment being released to the contractor.
Before the pleas were entered, the court denied several motions from the defense, including a request to quash the charges and a bid to transfer custody of the accused back to the National Bureau of Investigation (NBI).
The court ordered that Discaya and her co-accused remain detained at the Lapu-Lapu City Jail.
Following the arraignment, the court placed the involved DPWH officials under a 90-day preventive suspension, with the exception of one official who had already retired.
The trial is set to proceed with the marking of exhibits on Jan. 27, followed by a pre-trial conference on Feb. 3.
The proceedings were transferred from Davao to Cebu late last year following Supreme Court guidelines that mandate corruption cases involving infrastructure projects be heard by the nearest designated anti-graft court within the judicial region.
