Thursday, May 21, 2026

DA files with Ombudsman complaints over PHP94M ‘ghost’ FMRs in Davao Occidental

The Department of Agriculture (DA) on Thursday lodged formal complaints with the Office of the Ombudsman against several officials of the Department of Public Works and Highways (DPWH) and private contractors over alleged irregularities involving eight “ghost” Farm-to-Market Road (FMR) projects in Davao Occidental, totaling approximately PHP94million.

DA Secretary Francisco P. Tiu Laurel Jr. led the filing of the complaints, which allege corrupt practices, malversation, falsification of public documents, grave misconduct, and serious dishonesty, against the respondents.

One of the complaints named DPWH Davao Occidental District Engineer Rodrigo C. Larete; Project Engineer and OIC-Chief of Construction Section Joel M. Lumogdang; OIC-Assistant District Engineer Michael P. Awa; Quality Assurance Officer Jafel C. Faunillan; Acting Finance Chief Czar Ryan S. Ubungen; Project Engineer Harold John C. Villaver; and private contractor Leonila P. Urgel of RDF Construction and Supply. The case centers on a “ghost” FMR project in Brgy. Caburan, Jose Abad Santos, which was allegedly paid in full at P11.94 million despite not being implemented.

According to the complaint, the respondents falsified Statements of Work Accomplished (SWA), Certificates of Payment, and Disbursement Vouchers to make the project appear complete, thereby facilitating the release of public funds.

Another complaint was filed against the same DPWH officials and Masulot Construction, represented by Maligamama L. Medtamak, over the Brgy. Caburan Small FMR in Jose Abad Santos. The project, with a contract amount of P11.92 million under the DA FMR Development Program, was allegedly falsely certified as complete, resulting in disbursement of government funds despite field validation by the DA-Internal Audit Service (IAS) showing that the project had not been implemented.

Additional complaints involve DPWH officials Larete, Lumogdang, Villaver, Awa, Faunillan, Ubungen, and contractors Florentino D. Pesigan Jr. of YPR General Contractor, Abdulaziz U. Kadil of Al Handasa Construction, Marivic B. Juanites of Janmarie Construction, Diana S. Borbon of DISEM Construction and Supply, Allen P. Borbon of Adan Builders Co., and Marvin Lata Cumbe and Honorio Cumbe of HVC Sagittarius Commercial and Construction.

These cases concern FMR projects in Brgys. Culaman, Datu Danwata, Demoloc, Tical, and Manuel Peralta, with contract values ranging from PHP10.02 million to PHP14.92 million. In each case, the DA alleges that respondents conspired to submit falsified SWAs, Certificates of Payment, Project Status Reports, and Disbursement Vouchers to make the projects appear completed, thereby securing payments for not implemented FMR projects.

The complaints cite violations of the complex crime of malversation of public funds through falsification of public documents under Articles 217, 171 and 172 of the Revised Penal Code, in relation to Article 48 of the same Code; Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act; and administrative offenses such as grave misconduct and serious dishonesty.

The DA asserted that the actions of the respondents caused undue injury to the government and granted unwarranted benefits to private contractors.

“The DA remains committed to ensuring accountability and transparency in the use of public funds, particularly in programs intended to benefit our farmers and rural communities,” Secretary Tiu Laurel said in a statement.

Secretary Laurel Jr. further stated that the agency’s Internal Audit Service, together with Inspectorate and Enforcement, will continue investigating possible collusion between DA regional personnel and the DPWH officials and contractors charged in connection with the alleged “ghost” FMR projects, despite the filing of complaints. “We will not stop until everyone involved in this corruption is held accountable for their crimes,” Secretary Laurel said.

The total value of the eight allegedly irregular FMR projects amounts to approximately PHP94 million, with the DA calling on the Ombudsman to investigate and hold the responsible parties liable for alleged malfeasance and corruption.

The alleged violations carry penalties of imprisonment of up to 40 years, fines, and perpetual disqualification from holding public office.

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