Exposed: Fugitive lawmaker’s $13-million ghost flood cash trail in the Philippines
Anti-graft probe uncovers ₱802m flow from bogus flood works to ex-Rep Zaldy Co
Manila: Bombshell testimony in the Philippines’ ghost flood control mega-scandal has unmasked a staggering ₱802 million ($13.3 million) money trail linking a fugitive lawmaker to a shady construction firm, as prosecutors tighten the noose on corruption plaguing disaster infrastructure.
Cash flood from ghost projects
In A gripping courtroom drama at the Sandiganbayan anti-graft court, AMLC lawyer Jan Mark Busa dropped the hammer on Tuesday (April 7).
He revealed that Sunwest Construction and Development Corp funnelled ₱802 million into accounts of former AKO Bicol party-list Rep. Elizalde "Zaldy" Co from 2019 to 2025.
Under Philippine law, the Anti-Money Laundering Council (AMLC) is allowed to examine bank records without owner consent, provided they have a court order based on probable cause that the accounts are linked to unlawful activities.
Exceptions also exist for specific crimes where no court order is required to inquire.
The AMLC acts as a legal exception to the Philippines Secrecy of Bank Deposits Act (R.A. 1405, passed on September 9, 1955), allowing them to probe accounts suspected of money laundering or related to unlawful activities.
Cash flood from ghost projects
In gripping courtroom drama at the Sandiganbayan anti-graft court, AMLC lawyer Jan Mark Busa dropped the hammer on Tuesday.
He revealed Sunwest Construction and Development Corp funnelled ₱802 million into accounts of former AKO Bicol party-list Rep. Elizalde "Zaldy" Co from 2019 to 2025.
These deposits, prosecutors say, prove Co’s "beneficial ownership" of the firm despite his denials.
The cash ties directly to a ₱289.4 million DPWH road dike project riddled with structural defects, part of broader allegations that "ghost" flood control works siphoned disaster funds while Filipinos drowned.
Hiding in Europe, finger points at Marcos
Co, now a ghost himself, is believed hiding in Europe using a non-Philippine passport.
In videos shared online, Co lashed out at President Ferdinand Marcos Jr., specifically blaming him for the 2025 budget "insertions" for the mess.
The government has fired back with an Interpol Red Notice request to drag him home.
'Benefits went straight to Co'
Prosecutors painted Co as the kingpin: "He has no direct participation... but as beneficial owner, the benefits went to him. The amounts were misappropriated."
Busa’s numbers demolish Co’s claim he divested Sunwest shares in 2019 per party-list rules – transactions kept flowing for six more years.
Co’s the final prosecution witness in a case with 15 co-accused.
If convicted, this floodgates scandal could drown more politicians as public fury boils over disaster pork vanishing into elite pockets.
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