LAPU-LAPU CITY — The first arguments raised in court were not about missing concrete or unfinished dikes, but about where the case should be tried.
Defense lawyers for contractor Cezarah Rowena “Sarah” Discaya and eight officials of the Department of Public Works and Highways (DPWH) on Monday asked the Regional Trial Court (RTC) Branch 27 in Lapu-Lapu City to dismiss the charges and void the arrest warrants issued against their clients over the alleged P96.5-million “ghost” flood control project in Davao Occidental.
Discaya, owner of St. Timothy Construction, appeared during the Jan. 5 hearing remotely from the Lapu-Lapu City jail.
She was joined by company president Maria Roma Rimando and officials of the DPWH Davao Occidental District Engineering Office, marking their first court appearance in the case.
The accused DPWH officials are officer in charge Rodrigo Larete, Michael Awa, Joel Lumogdang, Harold John Villaver, Jafael Faunillan, Josephine Valdez, Ranulfo Flores and Czar Ryan Ubungen.
The defense filed motions to quash both the information and the warrants of arrest, arguing that the Lapu-Lapu City RTC has no jurisdiction over the case.
They maintained that the alleged malversation occurred in Jose Abad Santos, Davao Occidental, and should therefore be heard by RTC Branch 20 in Malita.
Joseph Randi Torregosa, counsel for Larete, said Supreme Court Office of the Court Administrator (OCA) Circular 328-2025 — which allows the transfer of cases to an RTC outside the judicial region where the accused holds office — “does not apply to the case.” He argued that the circular applies only to high-ranking public officials with Salary Grade 27 or higher.
“We filed a motion to quash information, which is the subject of the hearing today, contending that the circular of the Supreme Court ordering the transfer… does not apply,” Torregosa said.
Torregosa said the highest salary grade among the accused is Salary Grade 25, held by Larete, and argued that because the officials are below Salary Grade 27, the circular allowing the transfer of the case to the RTC of Lapu-Lapu City does not apply.
He added that for public officials below Salary Grade 27, jurisdiction is determined by the penalty imposable, noting that regardless of whether the case falls under the Regional Trial Court or the Municipal Trial Court, it should be filed in the court of the place where the alleged crime was committed.
Lawyer Paul Tristan Sato, representing the seven other DPWH officials, filed a similar motion to quash, raising the same arguments on jurisdiction.
Discaya’s counsel also sought to nullify the arrest warrant issued against the contractor following her arrest and detention on Dec. 18, 2025.
The defense also questioned the transfer of the case to Lapu-Lapu City, claiming it did not comply with proper notice and procedures.
The case was moved after the Supreme Court designated RTC Branch 27 as the nearest special anti-graft court under OCA Circular 328-2025.
Prosecutor Marie Josephine De Vera of the Office of the Ombudsman Mindanao requested that the case be returned to Malita, Davao Occidental.
The charges stem from the alleged non-implementation of a flood control project in Jose Abad Santos, Davao Occidental, reportedly funded with P96.5 million in public funds.
The Office of the Ombudsman said its investigation, which included document reviews, site inspections and sworn statements from community witnesses, established probable cause for malversation of public funds through falsification, a non-bailable offense.
On Dec. 19, 2025, the cases were transferred to the Lapu-Lapu City RTC, which issued warrants of arrest and ordered the detention of the accused at the Bureau of Jail Management and Penology facility in the city.
Discaya was initially detained at the National Bureau of Investigation central office in Muntinlupa City before being flown to Cebu under tight security.
The court has yet to rule on the motions. Arraignment for all the accused is scheduled on Jan. 13.
