THE Bureau of Internal Revenue (BIR) has filed a P1.6-billion tax evasion case against dismissed Department of Public Works and Highways (DPWH) officials implicated in anomalous flood control projects in Bulacan.
BIR Commissioner Romeo Lumagui Jr. filed on Thursday, November 6, 2025, before the Department of Justice (DOJ) criminal complaints against former DPWH Bulacan First District Engineer Henry Alcantara and assistant engineers Brice Hernandez and Jaypee Mendoza for violations of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a), and 74(A) of the National Internal Revenue Code of 1997.
“We conducted a lifestyle check on Alcantara, Hernandez, and Mendoza. These three ex-DPWH officials lived lavish lifestyles. We discovered P1.6 billion in income tax deficiencies alone after investigating their financial transactions, properties, business interests, and tax returns. This is a clear case of tax evasion,” Lumagui said.
Lumagui said Alcantara, Hernandez, and Mendoza earned substantial income from kickbacks from anomalous flood control projects and allegedly “cleaned” the money through casino gambling.
He said based on records from th (e Philippine Amusement and Gaming Corporation (Pagcor) and casino establishments, the three exchanged cash for casino chips that were “grossly disproportionate” to their declared sources of income.
Lumagui added that through these illegal activities, the dismissed DPWH officials were able to acquire luxury vehicles, high-value properties, and other personal assets.
“The SALNs (statements of assets, liabilities, and net worth) and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle. Their casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income. We will continue investigating government officials with direct evidence linking them to anomalous flood control projects,” he said.
The BIR earlier filed a P7.1-billion tax evasion case against contractor couple Pacifico and Sarah Discaya over unpaid individual income taxes, excise taxes on their nine luxury vehicles, and documentary stamp taxes related to their reported divestment from four construction firms.
The Discaya couple owns two of the 15 construction firms that secured the most flood control projects from the government between 2022 and 2025.
Over the past three years, the Discaya firms bagged around P31 billion worth of government infrastructure contracts, including flood control projects. (TPM/SunStar Philippines)