BIR probes contractors in P100B flood control scam

The Bureau of Internal Revenue (BIR) has begun its tax fraud investigation into contractors implicated in anomalous flood control projects, as directed by President Ferdinand R. Marcos Jr.

BIR Commissioner Romeo Lumagui Jr. confirmed that the BIR has issued letters of authority to commence the formal audit process for these contractors.

The investigation follows President Marcos Jr.'s disclosure that 15 contractors allegedly cornered approximately P100 billion of the flood control budget since 2022.

Among the firms being investigated are Omega & Alpha Construction and St. Timothy Construction, reportedly linked to former Pasig mayoral candidate Cezarah Rowena "Sarah" Discaya.

The BIR audit will prioritize contractors involved in "ghost projects," which are reported as completed but are found to be non-existent.

Contractors found to have underpaid or evaded taxes will be denied updated tax clearances, disqualified from future government procurements, and may face suspension of final settlements for existing contracts.