Probe of Romualdez, Co tags firms, ‘maleta’ use

Former Rep. Zaldy Co and Leyte Rep. Martin Romualdez A special panel of investigators of the Office of the Ombudsman said billions of pesos in kickbacks from corruption-tainted flood control projects allegedly received by former Speaker Martin Romualdez were funneled to holding companies owned by one of his close associates. This and other allegations were contained in a July 20 supplemental complaint-affidavit for plunder, direct bribery, graft and corruption and money laundering against Romualdez, former Ako Bicol Rep. Elizaldy “Zaldy” Co, lawyer Jose Raulito Paras, two other individuals, a law firm, and a foreign exchange company and five of its board members. Article continues after this advertisement Assistant Ombudsman Eliseo DC Cruz, the head of the investigation panel, certified the 104-page supplemental complaint-affidavit, copies of which were obtained by the media on Friday. Assistant Ombudsman Mico Clavano said early this week that the criminal complaints against Romualdez were now at the preliminary investigation stage—one step away from determining whether cases could be filed before the Sandiganbayan. The alleged kickbacks came from flood control projects from 2022 to 2025, investigators said. The amounts represented about 10 percent to 25 percent of each project, according to the panel of investigators, citing state witness and former Public Works Undersecretary Roberto Bernardo. “The funds were transported in luggage or suitcases (“maleta”) and were typically coursed through aides or drivers to ensure the anonymity of the primary recipients,” the panel said in their supplemental complaint-affidavit. Co’s security personnel estimated that small suitcases held from P15 million to P25 million, medium sizes from P30 million to P40 million, and large sizes from P50 million to P70 million each. Article continues after this advertisement The supplemental complaint disclosed that “several corporate entities appear to have been utilized as conduits for the diversion and disposition of substantial amounts of funds through the abuse of public office and the use of dummies, nominees and closely-held corporations.” Five holding companies It said at least five holding companies were involved, all of them allegedly linked to Paras, a fraternity brother of Romualdez. The former Speaker belonged to the Upsilon Sigma Phi fraternity at the University of the Philippines. Article continues after this advertisement The holding companies allegedly involved were Golden Pheasant Holdings Corp., Clearspring Holdings Corp., Brightnews Corp., Braavos Holdings OPC, and Valiant Consolidated Resources Inc. Prosecutors said these companies were either linked to or were controlled by Paras through majority ownership stakes. Neither Paras nor Co, who is outside the country, could be reached for comment. Elaine Atienza, a lawyer for Romualdez, said he was ready to face any charges against him and was confident he would be proven innocent. “We believe that if there will be a fair fight and a fair judgment based on evidence, Rep. Romualdez will prove his side. We only ask the public to allow the process and evidence to decide the case,” Atienza said. No other conclusion The investigation panel, however, asserted that the “records point to no conclusion other than that Romualdez, through Paras, transacted the proceeds of the aforementioned unlawful activities through Golden Pheasant, Clearspring, Brightnews, Braavos and Valiant.” Holding companies like these primarily own controlling interest in other companies, sometimes known as subsidiaries, through ownership of majority shares. They generate earnings through dividends, interests, royalties and capital gains from their subsidiaries instead of direct sales. The supplemental complaint said Clearspring had a paid-up capital of only P4 million, but it reported total assets amounting to P5.643 billion based on its 2025 audited financial statement (AFS). Most of its assets consist primarily of investment in 330,000 shares of DigiPlus Interactive Corp. with a fair value of P5.355 billion. DigiPlus, formerly known as Leisure and Resorts World Corp., is one of the Philippines’ leading digital entertainment and gaming companies. In its 2024 AFS, Brightnews reported total assets amounting to P1.376 billion. During the same year, it reported a P7-million loss but recorded “advances from shareholders” amounting to P950 million. Spanish property Braavos is a one-person corporation registered in 2023 and was an alleged member of Cecil Property PTE Ltd., a company registered in Singapore. Cecil’s principal office is located in a condominium in Makati, which is also the principal address of Paras’ law firm, Golden Pheasant, Clearspring, Brightnews and Braavos, according to the investigators, leading them to believe that this was “a common nexus among these entities.” Cecil Property has acquired a residential property known as Villa Kabila in Sotogrande, Cadiz, Spain, which was marketed for sale for up to P471.8 million, the investigators said. They noted that Romualdez’s son Ferdinand Martin “Marty” Romualdez Jr. has been identified as a polo player in Sotogrande. “While such a circumstance is not conclusive of ownership or beneficial interest, it nevertheless establishes a discernible connection between the Romualdez family and the locality in which Villa Kabila is situated,” they said. Valiant is almost entirely owned and controlled by Paras, who holds 99 percent of its shares, according to the investigators. The company has a substantial investment in Prime Media of P768.4 million despite having reported no revenues and incurring substantial losses in 2023 and 2024. In its 2024 AFS, Valiant disclosed that its assets were primarily funded through advances from shareholders and additional paid-up capital amounting to P593.7 million, the investigators said, adding that Prime Media had reported no revenues for 2023 and 2024 and even incurred a net loss of P212.9 million. AMLC report “In the absence of any lawful source of funds capable of explaining the capital contributions, shareholder advances and acquisitions undertaken by the foregoing corporations, there can be no other reasonable conclusion that the funds utilized therefor originated from the proceeds of the unlawful activities,” according to the investigators. They cited an Anti-Money Laundering Council (AMLC) report which “established that Romualdez and Paras deliberately organized and utilized corporate entities as conduits for the laundering of proceeds of corruption.” The panel of investigators recommended that Romualdez be charged specifically with plunder, graft, direct and indirect bribery, and money laundering; Co with plunder, graft and direct bribery; and Paras with money laundering. Your subscription could not be saved. Please try again. Your subscription has been successful. In April, the Court of Appeals ordered the freezing of assets of Romualdez at the request of the AMLC. The Sandiganbayan has issued a precautionary hold departure order against him at the request of the Office of the Ombudsman. —WITH REPORTS FROM GABRIEL PABICO LALU AND INQUIRER RESEARCH