Former House Speaker and Leyte Representative Martin Romualdez. Photo courtesy of PNA.
A special panel of investigators from the Office of the Ombudsman alleged that kickbacks from flood control projects were funneled through several holding companies reportedly linked to a close associate of former House Speaker Martin Romualdez.
The allegations were contained in a supplemental complaint affidavit filed on July 20, which sought preliminary investigation into Romualdez, former Ako Bicol Rep. Zaldy Co, lawyer Jose Raulito Paras and several others for plunder, graft, direct and indirect bribery, and money laundering.
The Office of the Ombudsman said the case was already under preliminary investigation, the stage that determines whether sufficient grounds exist to file charges before the Sandiganbayan.
Investigators alleged that commissions from flood control projects implemented between 2022 and 2025 ranged from 10 percent to 25 percent of project costs. The panel cited testimony from former Public Works Undersecretary Roberto Bernardo, who claimed the money was delivered in suitcases through intermediaries.
The complaint identified five holding companies that investigators said were connected to Paras and allegedly used to move and conceal funds. Prosecutors claimed the firms received substantial capital despite limited declared business activity.
The panel also cited financial records that it said showed significant assets, shareholder advances and investments that were inconsistent with the companies’ reported revenues and operating performance.
Romualdez’s lawyer, Elaine Atienza, said the Leyte lawmaker was prepared to answer the allegations and remained confident that he would be cleared once the evidence was fully examined. Co and Paras did not immediately issue statements.
The investigators recommended filing charges against Romualdez for plunder, graft, bribery and money laundering, while Co was recommended to face plunder, graft and direct bribery charges. Paras was recommended for prosecution on money laundering allegations.