MANILA – In a decisive blow to contractors ensnared in the escalating flood control corruption probe, the Securities and Exchange Commission (SEC) has revoked the corporate licenses of two construction companies owned by the controversial Discaya couple, citing falsified ownership declarations that masked ties to a convicted human trafficker. The move, announced on December 5, 2025, strips St. Timothy Construction Corporation and T. Discaya Construction and Development Corporation of their legal standing, effectively sidelining them from future government bids amid revelations that the firms were fronts for illicit operations.
The revocation stems from a meticulous SEC investigation triggered by complaints from whistleblowers and House probes into the P20-billion flood mitigation fiasco, where the Discaya entities allegedly pocketed kickbacks through ghost projects and substandard dikes. SEC Chairperson Emilio Santiago Jr. detailed the infractions in a strongly worded order: Both firms, incorporated in 2018 and 2019 respectively, falsely listed spouses Curlee T. Discaya and Sarah Discaya as sole owners, concealing that the real beneficiary was Jinky Mejares, a convicted human trafficking mastermind serving a life sentence for exploiting over 100 women in POGO (Philippine Offshore Gaming Operator) dens.
Mejares, alias “Jinky Discaya,” was exposed as the puppet master in a 2023 Sandiganbayan conviction, her fingerprints all over the companies’ formation documents despite her incarceration. “The Discayas committed fraud by misrepresenting ownership to evade scrutiny and secure contracts,” Santiago declared, emphasizing the SEC’s zero-tolerance for shell games that undermine public trust. The probe unearthed forged signatures, backdated papers, and a web of nominees designed to funnel public funds into private pockets – a scheme that netted the firms over P5.4 billion in DPWH contracts from 2022 to 2025, mostly in Bulacan and Oriental Mindoro.
The fallout is seismic: With licenses null and void, the Discaya outfits face immediate asset freezes and potential liquidation, halting any ongoing works and clawing back payments from the DPWH. Public Works Secretary Vince Dizon, already knee-deep in audits, hailed the ruling as a “crucial step” in purging the graft-riddled roster. “This validates our zero-tolerance policy; no more fronts for fugitives,” Dizon told reporters, vowing to blacklist the pair and pursue civil forfeitures under the Anti-Graft and Corrupt Practices Act (RA 3019).
For the Discayas – once hailed as “reformed” after Mejares’ 2019 trafficking bust – the revocation is a rude awakening. Curlee, a former beauty queen turned contractor, and Sarah, her business partner, have dodged House summons with medical excuses, but the SEC’s hammer falls harder than any subpoena. Their lawyer, Atty. Ferdinand Topacio, decried it as “overreach,” insisting the ownership was “legitimate at incorporation” and vowing a motion for reconsideration. “This is punitive, not protective,” Topacio fumed, hinting at a Supreme Court appeal to stay the order.
The scandal’s tentacles twist further: The Discayas’ firms were among the top 15 contractors cornering Marcos-era flood funds, with P3.2 billion in Bulacan alone tied to alleged duplicates and delays. Whistleblower Zaldy Co’s videos implicated them in kickback rings, while the Independent Commission for Infrastructure (ICI) eyes their role in a “trillion-peso tragedy.” For communities still scarred by Typhoon Uwan’s unmitigated wrath – where phantom dikes left homes in havoc – the SEC’s strike feels like a small solace in a saga of stolen safeguards.
As the holidays dawn with their calls for reflection, this license loss isn’t just corporate cleanup; it’s a clarion for cleaner coffers. In a nation where every peso should plug potholes, not pad pockets, the Discaya downfall serves as a stark reminder: When fronts fall, the flood of accountability might finally flow.