Marilyn Cahatol

The Department of Public Works and Highways (DPWH) building is seen in this photo taken on August 25, 2025. Jonathan Cellona, ABS-CBN News

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ABS-CBN News

<p>MANILA — Contractors on Monday alleged that officials from the Department of Public Works and Highways Bulacan 1st District are involved in the “hiram lisensiya” scheme.</p><p>During the Senate Blue Ribbon Committee hearing on the anomalous flood control projects, Mark Allan Arevalo, general manager of Wawao Builders, said he was forced by the DPWH to let them borrow his contracting license to bid on projects, in fear of sabotaging his business.</p><p>Quoting his fellow contractor, Syms Construction Trading General Manager Sally Santos, Arevalo claimed Bulacan 1st District Assistant District Engineer Bryce Ericson Hernandez was the person behind the scheme.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/9/8/senate-panel-cites-ex-dpwh-exec-in-contempt-over-casino-grilling-1247">Senate Blue Ribbon panel cites ex-DPWH exec in contempt over casino grilling</a></div><p>Arevalo explained that DPWH, through Santos, would instruct him to bid on projects. But only Santos would know if his contracting firm won or not.</p><p>DPWH, then, would do all processes required for the project, he said.</p><p>“Ang sinasabi lang po nila sa akin ay sila na daw po ang bahala gumawa. Wala na akong aalalahanin. Basta po yung tagaloob na lang daw po ang gagawa. Yun po ang sinasabi sa akin,” he said.</p><p>“Pinapadala na lang po sa akin yung mga dokumentong pipirmahan. Minsan nga po wala akong natatanggap,” he added.</p><p>Arevalo noted this was the case for the exposed ghost projects under Wawao Builders, including those in Bulacan.</p><p>When asked why he let the agency use his license, he said: “Sa takot po na pag-initan yung negosyo po namin, kasi may mga kontrata rin po kami.”</p><div><strong>SANTOS ADMITS</strong></div><p>Santos initially denied that the DPWH has in-house contracting and that she was assigned by the agency to pick the contracting firm responsible on paper. But she later admitted borrowing licenses for the agency’s projects.</p><p>She said: “Si Engineer Bryce Ericson Hernandez, siya po ang nag-uutos sa akin na humiram ng lisensiya. Ako po, pinagpaalam ko po sa kanila na hihiramin po yung lisensiya nila.”</p><p>Santos cited fear of losing livelihood on why she agreed with the scheme. “Ako daw po yung pwede niyang kausapin para manghiram. Nakikisuyo po sa akin. Syempre po ako po, may takot din po ako kasi po nandun din po ako sa DPWH, may project din po ako eh. Kung hindi naman po ako susunod sa kanila, paano po ako?”</p><p>Santos, however, denied she is involved in the ghost projects, saying she trusted that Hernandez and Jaypee Mendoza, the chief of the construction section of the Bulacan 1st District, would not abandon a project. </p><p>“Nagtiwala po kasi ako. Kaya po ako nakapaghiram ng lisensiya, nagtiwala po ako sa dalawang ito na gagawin po nila yung proyekto,” she said.</p><p>“Eh iisipin ko po ba na isa pong opisyal ng DPWH na nirerespeto ay gagawa po ng ghost project?” she added.</p><p>She said Hernandez and Mendoza were the masterminds behind the ghost river wall project in Baliuag, Bulacan.</p><p>The Senate ordered Santos to submit a list of all the projects made by borrowing licenses from Wawao Builders and Syms Construction Trading.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/9/8/dpwh-chief-eyes-charges-vs-contractors-insiders-taps-outsiders-for-usec-posts-1054">DPWH chief eyes charges vs contractors, insiders; taps outsiders for usec posts</a></div><div> </div><div><strong>&#x27;DPWH GETS THE MONEY&#x27;</strong></div><p>Upon payment for the ghost projects, Wawao Builders’ Arevalo explained that the money was immediately sent to Santos’ account, except for the 2.8 percent portion given to him.</p><p>“Ang mga bayad po dito, pumasok po sa account namin tapos po agad din pong itina-transfer sa account ni Sally. Parang dumadaan lang po. Sa katunayan po, yung passbook ko po ay hawak niya,” he said.</p><p>Santos, meanwhile, said she sends those money to Hernandez after taking her 3% part.</p><p>“Sa dami po ng mga flood-control projects na binid nila, lahat po iyon pinakolekta nila,” she said.  </p><p>Hernandez, for his part, said all the money he received was sealed and fetched by his “boss,” Bulacan 1st District Engineer Henry Alcantara.</p><p>Santos estimated to have delivered a total of P1 billion to Hernandez’s office from 2022 to 2025.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/9/8/contractor-admits-sending-p1-b-cash-to-dpwh-1552">Contractor admits sending P1-B cash to DPWH from 2022 to 2025</a></div><p>Alcantara denied the allegations, saying he even scolded all the officials involved when Mendoza supposedly discovered the anomalies.</p><p>“Hindi po ako kausap ng sinumang contractor regarding po diyan sa paggawa po. Wala po akong direct na kausap, hindi po nakikipag-usap sa akin. Ang paliwanag ko po, after the bidding, kung ano po ang irekomenda sa akin ng BAC (Bids and Awards Committee) na for approval po na resolution, yun lang po ang pinipirmahan ko,” he said.</p><p>“Inaamin ko po na may pagkukulang ako dahil ako po yung pumipirma. Sinasabi ko nga po yung pagtitiwala ko po sa mga tao ko, yun po ang naging kasalanan ko,” he added.</p><div><br/></div><div><strong>OTHER CONTRACTORS DENY GIVING 25% OF PROJECT FUNDS TO LAWMAKERS</strong></div><p><strong></strong>Other contractors who attended the Senate hearing denied giving 25 percent of project funds to lawmakers. </p><div><a href="https://www.abs-cbn.com/news/nation/2025/9/8/lawmakers-deny-discaya-corruption-claims-in-flood-control-mess-1217">Romualdez, lawmakers deny &#x27;false, malicious&#x27; Discaya corruption claims</a></div><p>This after Curlee Discaya revealed that lawmakers and DPWH officials required at least 10-25% of project funds, naming some lawmakers allegedly involved. </p><p>Discaya couple says lawmakers, DPWH execs &#x27;used&#x27; them in flood control anomalies</p><p>The firms that denied are the Sunwest Inc., Legacy Construction Corporation, QM Builders, Topnotch Catalyst Builders Inc., Centerways Construction and Development Inc., MG Samidan Construction and Development Corp., LR Tiqui Builders, HI-Tone Construction and Development Corp., Road Edge Trading &amp; Development Services and Eight J&#x27;s Construction Services. </p><div><a href="https://www.abs-cbn.com/news/nation/2025/9/8/3-contractors-face-raps-before-ombudsman-over-ghost-or-substandard-projects-1423">3 contractors, Bulacan engineers could face raps before Ombudsman over ghost or substandard projects</a></div><div><br/></div><div><strong>RELATED VIDEO</strong></div><div style="text-align:center"><iframe width="560" height="315" src="https://www.youtube.com/embed/C7015A7H8VM?si=T91sdfRx7t-tOnoG" title="YouTube video player" frameBorder="0" allowfullscreen=""></iframe><br/></div>

<p>Contractors on Monday alleged that officials from the Department of Public Works and Highways Bulacan 1st District are involved in the “hiram lisensiya” scheme.</p>

Contractors on Monday alleged that officials from the Department of Public Works and Highways Bulacan 1st District are involved in the “hiram lisensiya” scheme.

Contractors claim DPWH officials involved in ‘hiram lisensiya’ scheme

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Contractors claim DPWH officials involved in ‘hiram lisensiya’ scheme

Marilyn Cahatol,

ABS-CBN News

Published Sep 08, 2025 06:49 PM PHT

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Wawao Builders

Syms Construction Trading

DPWH

Flood-control

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