Manila, Philippines – The Bureau of Internal Revenue (BIR) opens the new year with a new criminal case filed against contractors and companies involved in the flood control mess–the newest being against Mark Allan Villamor Arevalo, sole proprietor of Wawao Builders.
The case rooted from alleged P48.39 million tax liabilities of the company from its ghost flood control projects in Malolos City, Bulacan.
The complaint alleges Wawao Builders of violating the National Internal Revenue Code of 1997 over millions worth of tax evasion and supplying incorrect information on their income tax and VAT returns in 2024.
BIR records show that Wawao Builders was awarded with a P77.20 million government contract for the construction of a riverbank protection structure in Barangay Caingin.
From this project, the company collected P72.37 million net of withholding taxes in three tranches from March to April 2025.
However, on Commission on Audit and BIR’s review, there was no structure of that kind built in the site even though documents claimed that the project is supposedly 100% completed.
With this, BIR’s filed complaints spiked to 13 flood control-related cases, with an estimate of P8.92 billion tax liabilities under investigation.
Following this, BIR warned that the government continues its active investigation to hold not only Wawao Builders, but other implicated contractors and companies accountable for their tax liabilities.
“This case reflects the BIR’s active participation in the President’s anti-corruption crusade. While other agencies address the irregularities in project implementation, we at the BIR are doing our part by filing criminal complaints against those who misuse public funds and evade their tax obligations through these ghost projects,” BIR said.- Mia Layaguin, Eurotv News