Isko Moreno Flags Discaya Firms, 100 Other Contractors for ₱255 Million in Unpaid Taxes

Manila Confronts Massive Tax Delinquency Amid Flood-Control Controversy

Manila, Philippines — September 4, 2025.
Manila Mayor Francisco “Isko” Moreno has raised alarm over an estimated ₱255 million in unpaid contractor taxes tied to flood-control projects across the nation’s capital. Out of 315 registered contractors, only nine companies have fulfilled their obligations, leaving a staggering shortfall that threatens both public trust and government coffers. Among those delinquent are construction firms linked to the influential Discaya family, a clan already under public scrutiny for alleged irregularities in infrastructure deals.

The Numbers Behind the Scandal

According to data released by City Hall, nine firms settled about ₱8 million in dues. The remaining 306 contractors have failed to remit payments, despite receiving Statements of Account (SOAs) from the city treasurer.

Mayor Moreno described the situation as unacceptable:

“We issued proper notices, yet many companies refused to respond. Some even declined to accept the documents. This is clear defiance. We are giving them every chance to comply, but we will not hesitate to pursue legal action if necessary.”

The ₱255 million liability represents a significant revenue stream for Manila, funds that could have been directed toward essential services such as flood mitigation, healthcare, and education.

Spotlight on the Discaya Family

Among the contractors in arrears are several tied to the Discaya family, a well-known group in the construction industry. One of the most prominent, Saint Timothy Construction Corporation, was specifically named by Mayor Moreno as a delinquent taxpayer.

The Discayas, through entities like Alpha and Omega, St. Gerrard, St. Timothy, and Elite General Contractor, have secured numerous contracts for flood-control works. Their heavy presence in the sector has prompted concerns over monopolization, especially as allegations of “ghost projects” and substandard construction have surfaced in recent years.

The family’s influence has made their inclusion in the delinquency list particularly explosive, fueling public anger and renewed calls for transparency in infrastructure procurement.

Manila’s Next Steps

Despite the gravity of the situation, Mayor Moreno stressed that the city government prefers a diplomatic approach.

“As much as possible, we want to resolve this peacefully,” he explained. “But we are duty-bound to protect the city’s interests. If these firms continue to ignore their obligations, we will blacklist them and coordinate with national agencies to bar them from future projects.”

The city plans to work closely with the Department of Public Works and Highways (DPWH), the City Engineering Office, and the Office of the Building Official to enforce sanctions. Blacklisting would prevent delinquent companies from obtaining new permits or bidding on future government projects—a punishment that could cripple even the most established contractors.

Part of a Larger Controversy

The unpaid taxes are only one chapter in a broader saga involving questionable flood-control projects across Metro Manila and beyond. In 2024, reports of substandard constructions, contract monopolization, and even “ghost projects” triggered investigations at both local and national levels.

Earlier this year, the Office of the Ombudsman convened a special panel to examine the irregularities, with authority to recommend both criminal and administrative charges against those found liable. The inclusion of Discaya-linked firms in the current tax scandal only deepens suspicions of systemic abuse in public works contracting.

Public Anger Boiling Over

The revelations have sparked public outrage, particularly among communities most affected by flooding. On September 4, protesters gathered outside the St. Gerrard Construction offices in Pasig, a company tied to the Discayas. Demonstrators hurled mud at the building and spray-painted accusations such as “magnanakaw” (thieves) and “ikulong” (jail them).

While the protests reflect widespread frustration, government leaders, including Pasig Mayor Vico Sotto, have urged citizens to channel their anger constructively and avoid violence.

Implications for Governance

This unfolding controversy raises critical questions about governance and accountability in Manila:

Revenue Loss: ₱255 million could have strengthened city programs and improved resilience against flooding. Instead, it sits unpaid.

Rule of Law: The refusal of some companies to even accept official notices suggests deep-rooted disregard for regulatory authority.

Political Ramifications: With powerful names like the Discayas implicated, the scandal could reshape alliances and influence the trajectory of anti-corruption reforms.

Public Trust: Residents weary of recurring floods and stalled projects now question whether the system is designed to protect communities—or private interests.

Summary Table

Aspect
Details

Total contractors
315

Paid so far
9 companies (~₱8M)

Outstanding liability
~₱255M

Key delinquent firms
Includes Saint Timothy Construction (Discaya-linked)

City response
SOAs issued, blacklisting imminent, possible legal cases

Wider context
Linked to 2024–2025 flood-control controversy

Public reaction
Protests, demands for accountability, calls to jail offenders

Looking Ahead

The controversy surrounding unpaid taxes is not merely a financial issue. It underscores systemic weaknesses in governance, procurement, and enforcement. For Manila, a city already vulnerable to flooding and in need of resilient infrastructure, the scandal carries high stakes.

As Mayor Moreno pushes for accountability, he walks a fine line between diplomacy and confrontation. The looming threat of blacklisting and legal action signals a turning point. Either delinquent contractors will comply, or the city will make an example of them.

For the public, the bigger question lingers: can Manila ever break free from the cycle of corruption and mismanagement that has long plagued its infrastructure projects?

The answer may well determine not just the outcome of this scandal, but the very future of flood-control and governance in the capital.