San Carlos City Mayor Uncovers Possible Multi-Million Ghost Projects, Calls for Accountability
SAN CARLOS CITY – A possible multimillion-peso scam involving supposed DPWH flood control projects in San Carlos City has been exposed by Mayor Renato Gustilo, who is now calling for a probe.
San Carlos City Mayor Renato Gustilo has called on the National Bureau of Investigation (NBI) to conduct a thorough inquiry into three alleged “ghost” flood control projects worth P306.4 million, supposedly carried out by the Department of Public Works and Highways (DPWH) in partnership with contractors from the Cordillera region.
“These anomalous ghost projects involving millions or even billions of pesos perpetrated by DPWH personnel in cahoots with unscrupulous contractors must be thoroughly investigated so that those responsible will be flushed out and be held accountable,” Gustilo said in his letter to NBI Director Jaime Santiago dated August 18.

The controversy surfaced after DPWH Central Office Procurement Service Director Ma. Victoria Gregorio sent several letters to Gustilo from March to June requesting confirmation of the legitimacy of certain documents tied to the three projects. Surprised, the mayor clarified that there were “no existing record pertaining to the to construction of flood control projects at Andoon River, Jigalaman River and Palampas River in San Carlos City, Negros Occidental, by the contractors named by Gregorio.”
According to the DPWH documents, the projects included: a P151.5-million Palampas River flood control project in Barangay 1 by APO General Construction of Mountain Province; a P77.5-million Andoon River project in Poblacion by EKC Construction and Aggregates from Benguet; and a P77.3-million Jigalaman River project in Barangay Guadalupe by Jaben General Contracting & Engineering Services from Baguio City. All were listed as completed between December 2023 and January 2024.
Gustilo, however, maintained that these projects never existed in the city. He noted that his signature and that of Engineer Rodney Flores from the City Engineer’s Office were forged on several official documents, including certificates of completion. “Flores was not the San Carlos City Engineer, not even an OIC-City Engineer, at the time he allegedly affixed his signature, because he was and still is Engineer III at the City Engineering Department,” the mayor stressed.

Adding to the irregularities, Gustilo pointed out that the contracts were notarized by a supposed lawyer named “Maria Luisa Cecilia E. Garcia.” He clarified, “To the best of my knowledge there is no Notary Public bearing such a name here in San Carlos City.”
Citing President Marcos’ State of the Nation Address, where irregularities in flood control projects were condemned, Gustilo said the NBI probe is vital. He also submitted certifications proving the contractors involved are not listed in San Carlos City’s official registry of suppliers or contractors.
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