As part of a massive crackdown on infrastructure-related corruption, the Bureau of Internal Revenue (BIR) filed criminal complaints before the Department of Justice (DOJ) against Mark Allan Villamor Arevalo, the sole proprietor of Wawao Builders.
The complaints allege an estimated tax deficiency of ₱48.39 million stemming from a “ghost” flood-control project in Malolos City, Bulacan.
Records show that Wawao Builders was awarded a ₱77.20 million contract in January 2024 to build a riverbank protection structure in Barangay Caingin. Between March and April 2025, the firm collected ₱72.37 million in payments.
However, a joint investigation by the Commission on Audit (COA) and the BIR revealed:
Physical Verification: No structure was ever built at the designated project site.
Falsified Reporting: Official reports claimed the project was 100% complete to facilitate payment.
Tax Violations: Wawao Builders allegedly violated Sections 254 and 255 of the National Internal Revenue Code by evading taxes and failing to provide accurate information in their 2024 Income Tax and VAT returns.
BIR Commissioner Charlito Martin R. Mendoza emphasized that this filing is a direct result of President Ferdinand R. Marcos Jr.’s anti-corruption crusade and Finance Secretary Frederick D. Go’s directive to prioritize irregularities in government spending.
“While other agencies address the irregularities in project implementation, the BIR is doing its part by filing criminal complaints against those who misuse public funds and evade their tax obligations through these ghost projects,” said Commissioner Mendoza.
Wawao Builders is just one of several entities under the microscope. The BIR confirmed that it is currently building evidence against multiple contractors involved in suspicious flood-control projects.
Total Complaints Filed to Date: 13 criminal cases linked to anomalous flood-control projects.
Total Potential Tax Liabilities: ₱8.92 billion currently under investigation.
The BIR remains committed to protecting public funds and ensuring that contractors who benefit from government projects strictly adhere to the country’s tax laws.
