A shadow hangs over flood control projects in Bulacan, as the Bureau of Internal Revenue cracks down on alleged fraud. Two construction firms, IM Construction Corp. and SYMS Construction Trading, now face criminal charges for what authorities describe as “ghost” projects and deliberate tax evasion.
The accusations center around millions of pesos paid for work that simply never happened. Newly appointed BIR Commissioner Charlito Martin Mendoza vowed to relentlessly pursue those who exploit public funds, stating the agency will “recover every peso” lost to these schemes.
Investigations revealed IM Construction Corp. received full payment for a pumping station and flood gate in Hagonoy, Bulacan. Yet, when inspectors arrived, the site was barren – no structure existed to justify the substantial funds received. The company’s claimed expenses were entirely fabricated.
Similarly, SYMS Construction Trading collected the complete contract price for a reinforced river wall in Baliuag, Bulacan. But a site inspection revealed a shocking truth: no river wall had ever been built. The firm attempted to claim deductions and input taxes on a project that existed only on paper.
The combined tax deficiencies for both companies total P13.8 million, but officials believe the scope of the fraud extends far beyond this initial figure. These false declarations aren’t merely tax offenses; they represent a misuse of vital funds earmarked for critical infrastructure.
These cases aren’t isolated incidents. The BIR has now filed a total of 12 criminal complaints related to questionable flood control projects, with potential tax liabilities under investigation reaching a staggering P8.87 billion.
Adding to the legal pressure, Public Works Secretary Vivencio Dizon confirmed that both IM Construction Corp. and SYMS Construction Trading are also facing separate complaints of bid-rigging and manipulation, suggesting a systemic effort to defraud the government.
The investigations underscore a commitment to accountability and a determination to safeguard public resources. The message from authorities is clear: those who attempt to profit from fictitious projects will be held responsible.
