THE Cebu Provincial Government’s “due diligence” review of two suspended bulk water projects is part of a wider effort to clean up “irregularities” that began from the previous administration.
Why the projects are under review
Provincial Assistant Administrator Aldwin Empaces, in an interview on Monday, Sept. 8, 2025, said the projects, which were undertaken by a firm linked to the controversial Discaya family, did not necessarily have irregularities.
The projects were flagged for a routine compliance check.
Gov. Pamela Baricuatro issued two executive orders: to review projects
First order targets 154 contracts with transactions that began during the previous administration
Second order specifically focuses on all projects connected to Cezarah Rowena “Sarah” Discaya and her company, St. Gerard Construction. St. Gerard is a joint venture partner of SBK Construction Inc. in the bulk water projects in Alegria and Malabuyoc.
Empaces explained that the issues began under the previous administration, and the current government is working to ensure all paperwork is complete.
Former governor Gwendolyn Garcia denied any knowledge of the suspended projects, stating that she was only aware of SBK Construction Inc.
Empaces noted that a member of the previous Bids and Awards Committee (BAC) referred the contractor to its joint venture partner. He also said that St. Gerard Construction failed to fulfill its part of the agreement, forcing SBK to continue the projects alone.
Contractor’s perspective
A representative of SBK, Joe Kenneth Kwan Arbas, said his company needed a joint venture partner because its Category B license did not qualify for a P100-million project.
Arbas said he first searched for partners in Cebu, but local contractors were already committed to other water projects. This led him to ask the BAC for a recommendation.
He said the BAC recommended St. Gerard Construction. Arbas went to Manila to meet the owner, Pacifico “Curlee” Discaya, whom he described as a “decent man.”
According to Arbas, St. Gerard did not continue the project but offered technical assistance and sent people to help with the piping.
Project status and payment
Arbas said the Malabuyoc project is considered “done,” with a 95.28 percent completion rate. The only remaining issue is the lack of electricity, even though the project was finished in March.
Arbas learned on Sunday, Sept. 7, that the Provincial Board had approved a resolution for Cebeco to provide electricity.
The Alegria project, meanwhile, was also delayed due to the location of its water treatment plant and reservoir.
“Whatever there is now is actually not our fault, not the contractor’s fault. It’s actually the problem of the location,” Arbas said.
His company has not received payment, including a down payment for either project, as they cannot declare the Malabuyoc project 100 percent complete without electricity.
Next steps
Of the 154 suspended projects, 49 are cleared to continue this week. Most are road projects, according to Empaces.
The suspension of the projects lasted less than two weeks.
The bulk water projects will not be among those cleared this month due to their size and complexity.