MANILA, Philippines – The Office the Ombudsman filed a plunder case against former House speaker Martin Romualdez over the flood control scam.

The Ombudsman charged Romualdez before the anti-graft court Sandiganbayan on Monday, September 7, making the former speaker one of the highest officials to be charged over the multi-billion flood control anomaly.

According to the Ombudsman, Romualdez, the cousin of President Ferdinand Marcos Jr., is the “central figure” in the alleged scheme involving “diversion of public funds meant for flood control projects.”

The plunder case also includes former Ako Bicol representative Zaldy Co and private individuals Joselyn Serenio and Felicito Guevarra.

Earlier, the investigative body said the allegedly anomalous projects supposedly reached P56 billion.

The Leyte lawmaker denied masterminding the alleged kickback scheme, claiming that the national budget process is done not by the House speaker alone but by the entire House, the Senate, and the executive branch.

The Ombudsman filing was the latest blow against the once powerful speaker.

A source told Rappler that the money laundering allegation – which is originally part of the Romualdez complaints – was returned to the fact-finding phase. This means the Ombudsman investigators are seeking additional evidence and may include additional respondents in the complaint if ever.

“Investigators found more personalities should have been further investigated and then included in the charge,” said the source.

A source said the plunder case “absorbed” the bribery complaints. Bribery is a predicate crime of plunder.

To put this into perspective, Senator Jinggoy Estrada was acquitted of plunder in connection with the pork barrel scam in 2024, but the court convicted him of three counts of bribery. Although the prosecution failed to establish plunder, it was able to prove that bribery existed. However, the bribery conviction was later reversed as well.

In April, the Court of Appeals ordered the freezing of assets linked to him after finding probable cause to believe they were connected to alleged plunder, graft, and direct and indirect bribery. He has also been placed under a preliminary hold departure order that month.

Romualdez asked the anti-graft court to lift his travel ban, but the Sandiganbayan denied the request. 

The US government has also canceled Romualdez’s diplomatic and tourist/business visas. 

As of April 22, Romualdez has already been barred from leaving the Philippines – the Sandiganbayan granted the Ombudsman’s precautionary hold departure order request against Marcos’ cousin.

A Rappler investigation revealed there were multimillion-peso properties linked to Romualdez, including a P445-million mansion in Sotogrande, Spain.  Another investigation also recently showed that the former speaker has ties to Tropics Hotel and to the Tacloban Golf and Country Club.

The Ombudsman’s latest ammunition against Romualdez is former public works secretary Manuel Bonoan, whom it sought to be a state witness.

It believes that Bonoan’s testimony can pin Romualdez and shed light on how lawmakers allegedly inserted allocations in the national budget through the Department of Public Works and Highways.

“We are requesting the Ombudsman to inform us if there is any allegation from Secretary Bonoan against former Speaker Romualdez and to give us ample time to comment on it,” Romualdez lawyer Ade Fajardo said. 

“There is also the report that the Ombudsman has 28 new witnesses. We would like to know if there is any statement from them against our client, and we would like as well to have the opportunity to respond,” he added.

The case was raffled to the Sandiganbayan’s 3rd Division shortly after 1:30 pm on Friday. The same division handles the cases of Senator Rodante Marcoleta and former senator Bong Revilla.

In July, the division granted Revilla’s request for bail in a split decision. The division chairperson, Associate Justice Karl Miranda, dissented, but he was outvoted by Associate Justices Ronald Moreno and Fritz Bryn Anthony delos Santos.

In a statement on Monday afternoon, Fajardo said his client respects the courts and legal process, adding that Romualdez will face his allegations in accordance with the law. 

“We recognize the public interest surrounding this case. But ultimately, criminal liability must be determined by the evidence presented in court, under the rules and safeguards of our justice system,” said Fajardo. 

“Representative Romualdez asks for no special treatment. He asks only for the same due process and fair hearing guaranteed to every Filipino,” he added. 

P7.4-billion kickbacks

What sets apart plunder from other corruption cases is it has a threshold of P50 million. Ombudsman Jesus Crispin “Boying” Remulla said in Roamualdez’s case, they alleged that he got P7.44 billion in kickbacks.

“By repeatedly receiving, directly or indirectly, on at least fifteen (15) occasions, commissions, shares, percentages. kickbacks, ‘commitments’ and/or other pecuniary benefits aggregating at least PhP7,440,000,000.00, by reason or on account of the respective public offices and positions of Romualdez and Co. including monies derived from contractors, persons and entities with interests in flood control, infrastructure and/or other government projects funded under the General Appropriations Acts for fiscal years 2022 to 2025,” said the charge. 

“…. Monies were delivered to properties owned by, occupied by, or associated with Romualdez and received by Serenio and other persons acting for and [on] his behalf,” it added.

Another challenge for the Ombudsman is to prove who is the main plunderer in the case. This doctrine was triggered by former president Gloria Macapagal Arroyo’s Supreme Court case which ruled that there cannot be a crime of plunder if there is no main plunderer.

Asked if Romualdez or Co would be considered the main plunderer, Remulla said: “Parehong sila. Kaya ito, kahit na gamitin mo ‘yong doctrine na ‘yan, na napakalabo…. Pero sobrang daming pera nito. Maraming plunderer talaga ito (They both are the main plunderers. Even when you used that doctrine, which is very unclear. There’s lots of money involved. There are many plunderers here),” Remulla explained. 

But is Romualdez the “big fish” in the alleged scheme?

“Sa ngayon, sa ngayon (For now),” said Remulla, adding that what makes the case of Romualdez different from others is that it sends a message that no one would be spared in the government’s anti-corruption crackdown.

How did Romualdez commit plunder?

The Ombudsman said Romualdez had “institutional influence” as the then-speaker. His power extended to the committees, to appointing Co as appropriations chairperson, and even in the legislative and budget process. 

Romualdez had “uninterrupted control and meaningful participation over the national budget” due to his position and closeness to Co. The latter, meanwhile, had the power and influence to include projects in the budgeting process.

“Based on our investigation, Romualdez allegedly received kickbacks around 15 times from Co’s staff, from September 2022 to 2025. That’s for the P2-billion monthly quota or collected Romualdez imposed on Co,” the Ombudsman said in Filipino. 

“Serenio received the cash delivery in the lawmaker’s different houses and properties. Romualdez used nearly P5 billion from these kickbacks to establish shell or dummy companies like Golden Pheasant Holdings Corporation, Braavos Holdings Opc, and Valiant Consolidated Resources, Inc.,” said 

The Ombudsman also alleged that money was changed into another currency with the help of Guevarra, an owner of a foreign exchange company. Several shell companies, according to the investigative body, were used to transfer the money and buy other properties and assets, like Romualdez’s P1.5-billion property in Tamarind Road in Forbes Park, Makati.

These assets also include the property in Narra Street also in Forbes Park bought by Trans Middle East Equities, Inc., a corporation owned by the Romualdez family.

All in all, the Ombudsman said their case had met the elements of plunder:

• Romualdez is a public official
• He allegedly received ill-gotten wealth through a series or combination of illegal or criminal acts
• The ill-gotten wealth was over the P50-million threshold

“[These allegations] are based on the evidence and testimonies from several witnesses, including former DPWH undersecretary Roberto Bernardo, former DPWH Bulacan district engineer Henry Alcantara, and Co’s security aides, among others,” the Ombudsman said. – Rappler.com