The Securities and Exchange Commission (SEC) has revoked the registrations of two construction firms linked to controversial contractor Sarah Discaya for submitting false beneficial ownership information.
In separate orders dated November 26 and made public on December 4, the SEC canceled the certificates of incorporation of St. Timothy Construction Corporation and St. Gerrard Construction General Contractor and Development Corporation.
St. Timothy is among the top contractors that secured billions of pesos in flood control projects now under corruption scrutiny.
The SEC imposed a P2-million penalty on each firm for the false declarations, with an additional P1,000 daily administrative fine for failure to comply after 15 days.
In Senate blue ribbon hearings in September, Discaya admitted she owned and held positions in both companies.
However, filings with the SEC showed that from 2022 to 2024, neither St. Timothy nor St. Gerrard declared Discaya as a beneficial owner.
The regulator noted that the firms did not submit any explanation despite being given the opportunity, adding that a motion for extension filed by a law firm was a prohibited pleading.
“The Corporation could have easily reconciled the inconsistency… by providing a simple written explanation,” the SEC said, adding that the firms’ silence amounted to “an implied admission” of the facts on record.
The SEC also disqualified the firms’ directors from serving as director, trustee, or officer of any corporation for five years.
In September, the Philippine Contractors Accreditation Board (PCAB) revoked the licenses of nine Discaya-associated firms after she admitted that her companies sometimes submitted bids for the same government projects.
Discaya and her husband, Curlee, also face tax evasion complaints for allegedly failing to pay P7.18 billion in income taxes.
The Bureau of Customs (BOC) is currently auctioning off several luxury vehicles belonging to the couple, allegedly part of the wealth amassed from the flood control corruption scheme.