Things are moving quite fast at the anti-graft court Sandiganbayan.

The prosecutors from the Office of the Ombudsman have presented their last witness and wrapped up the presentation of evidence in the malversation case against fugitive former Ako Bicol representative Zaldy Co and former Department of Public Works and Highways (DPHW) Mimaropa officials on April 7.

Co and fellow accused are facing the malversation case at the anti-graft court’s 6th Division, and another set of graft cases in other divisions, due to alleged irregularities in the procurement and construction of a P289.4-million flood control project in Naujan, Oriental Mindoro.

This was the first set of cases that reached the courts in relation to the multi-billion-peso flood control corruption that hounded President Ferdinand Marcos Jr.’s administration. Apart from Co and the former DPWH officials, some board directors of Sunwest — a company founded by Co — are also among the respondents.

However, Co and Sunwest directors remain at-large, and have yet to be arrested and face the court for trial. Interior chief Juanito Victor “Jonvic” Remulla teased on Tuesday that the Interpol red notice — which can be used to arrest Co even overseas — will be out soon.

But Co’s absence did not stop the prosecution from disclosing their evidence and illustrating his alleged links to Sunwest and the allegedly anomalous Oriental Mindoro project in the hearings so far that have been running for weeks.

‘Balato’ from Co

When state witness and former DPWH undersecretary Roberto Bernardo took the witness stand on March 17, he revealed that Co allegedly gave him “balato” (share) or token money as a sign of gratitude.

Bernardo told the anti-graft court division that he allegedly received shares from the former lawmaker amounting to P130 million in total, from 2023 to 2025. Former DPWH Mimaropa regional director Gerald Pacanan, one of Co’s co-accused, is also aware of Co’s “balato” (share), according Bernardo.

“I’ve known (Pacanan) since 2016. Officially, we encountered many times. During the meetings, he gave me balato and he told me it came from Zaldy Co,” Bernardo said.

When asked by Sandiganbayan 6th Division chairperson Sarah Jane Fernandez why he was given the said amount, Bernardo said it was probably a “token of gratitude.” He said he was told by former DPWH district engineer Henry Alcantara that the money came from Co.

“Your Honor, it was token of gratitude for guaranteeing that [former district engineer Henry] Alcantara is cooperative,” Bernardo said. “I can tell that it’s [given to me] third quarter of every year.”

The state witness said he was forced to accept the “balato” because if he did not, he would be seen by Co as a hindrance to their DPWH transactions.

Prior to testifying against Co, Bernardo was among the officials who revealed that there was an alleged kickback system inside the DPWH. He alleged in his Senate testimony that former DPWH chiefs Mark Villar and Manuel Bonoan allegedly ran the kickback system, with late former undersecretary Cathy Cabral as the main operator of the scheme.

Co the contractor

To indict Co and fellow accused further, the Ombudsman prosecutors brought former DPWH Bulacan district engineer Henry Alcantara, another state witness, to the stand on March 24.

At first, Pacanan’s camp objected to Alcantara’s presentation, arguing that his testimony would be “undeniably irrelevant” because the project in question was in Mimaropa, and not in Bulacan. But the prosecution explained that they were presenting Alcantara not as an engineer, but as someone who has had alleged dealings with Co. 

But later, the 3rd Division justices allowed Alcantara’s testimony.

Alcantara’s testimony, as it turned out, was vital to the prosecution’s case because his testimony offered to prove that Co was indeed a contractor of Sunwest.

Co is among the founders of Sunwest, but claimed that he already divested or left the company in 2019 to supposedly avoid conflict of interest. However, a Rappler investigation in 2025 showed that the former lawmaker is still the corporation’s beneficial owner.

Under many laws, including the 1987 Constitution no less, conflict of interest is strictly prohibited. Aside from banning politicians from having other occupations other than their elective positions, the laws also bar them from having direct or indirect financial interests in government contracts.

Alcantara revealed he met Co sometime in the 3rd or 4th quarter of 2021. It was Bernardo who gave Co’s number to Alcantara, because Co was allegedly looking for a DPWH district where he can allocate infrastructure funds through the district engineer.

The two communicated and had a meeting in Bonifacio Global City with former assistant district engineer Brice Hernandez, based on the testimony. According to Alcantara, Co allegedly also wanted to participate as a contractor of projects in Bulacan.

“Zaldy Co wanted to enter as a contractor for Bulacan projects. So that’s why we know that at that time, he was already engaged in the construction business,” the prosecution team told reporters in a mix of Filipino and English on March 24. “And then after that, they frequently met each other.”

The former lawmaker, according to Alcantara, even asked him to submit a list of flood control projects, which were later given funds. These acts were referred to as delivered “commitments.”

For the prosecution, Alcantara’s testimony proves that even after supposedly divesting from Sunwest to avoid conflict of interest, Co remained a contractor and Sunwest’s beneficial owner.

“We alleged that Zaldy Co is the controller of the beneficial owner of Sunwest. That’s in our information…. The contractor in this project is Sunwest. And who owns Sunwest? It’s Zaldy Co. It’s him really,” the prosecution added.

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Another proof

The prosecution rested their case against Co by bringing a witness who attempted to further strengthen the link between Co and Sunwest.

Anti-Money Laundering Council (AMLC) field investigator Jan Mark Busa said that Co has allegedly received a bank inflow of P802 million through check deposits from Sunwest’s accounts from 2019 to 2025. The prosecution, on April 7, said this was additional proof that the resigned lawmaker is the Sunwest’s beneficial owner.

Busa is the investigator who looked into Co’s bank accounts and business interests. His AMLC investigation was the basis of the preliminary and initial bank inquiry reports needed to file a petition with the Court of Appeals (CA).

The petition sought the issuance of a freeze and bank inquiry order against Co’s accounts. Later, the CA granted the AMLC’s request and issued a freeze order against Co’s assets.

“In summary, based on the bank records that the AMLC was able to secure, there were transactions, cash inflows, deposits from Sunwest to the accounts of Zaldy Co,” the prosecution team said. “These are strong indicators of the beneficial ownership of economic benefits, receiving money from Sunwest.”

For the prosecution, what is vital is to connect Co to Sunwest, and not necessarily to the Oriental Mindoro project.

“Of course, he (Co) has no direct participation in the transaction per se because the ones contracting with the DPWH is Sunwest. But the fact that he is the beneficial owner, which we are trying to prove, essentially, the benefits went to him and the amounts malversed in this case,” the team said.

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What now?

Since the prosecution has already finished with their presentation, the defense lawyers are expected to lodge a motion for leave to file a demurrer to evidence.

Demurrer to evidence, if granted, has the effect of an acquittal. It is sought if the accused believes that the prosecution’s evidence is weak enough that they don’t have to present their own. It can be filed after the prosecution’s presentation of evidence.

If the division denies the motion for leave, then the trial continues and the accused will present their evidence.

But while this motion has yet to be filed, the Sandiganbayan 6th division has already set the initial presentation of the defense on June 2, where the defense are expected to present at least 66 witnesses. The hearings will be held twice a week from then on, every Tuesdays and Thursdays.

“We’re confident, especially after the resolution denying bail and there were strong evidence of guilt, we’re confident. So far, we were able to establish our case,” the prosecution team said, when asked about their assessment of their evidence against Co. – Rappler.com