The Office of the Ombudsman has taken formal steps toward prosecuting former House Speaker Martin Romualdez and former Ako Bicol Representative Elizaldy "Zaldy" Co over what investigators describe as a multibillion-peso scheme to divert public funds originally earmarked for flood control infrastructure across the country.
On July 20, Assistant Ombudsman Jose Dominic "Mico" Clavano IV publicly read out the announcement that two separate complaints — one charging plunder under Republic Act No. 7080 and another alleging violation of the Anti-Money Laundering Act, as amended — had been prepared for preliminary investigation. The Ombudsman's office identified Romualdez as the "central figure" in the alleged diversion scheme.
Former Marines Serve as Cornerstone Witnesses
The evidentiary backbone of both complaints consists of sworn statements from eight men who formerly served as personal security personnel for Co, according to Clavano. These individuals stated that they were physically present during alleged exchanges in which money was delivered from Co to Romualdez. Clavano described the testimony as direct and firsthand — not derived from rumor or secondary accounts — because the witnesses personally moved with Co and observed the transactions as they occurred.
In distinguishing the testimony from hearsay, the Ombudsman's office stressed that the affidavits came from people who were directly on the scene during the alleged cash transfers, giving the complaints a testimonial foundation that prosecutors say is substantive enough to warrant formal investigation.
Eight Selected From a Pool of 18 Potential Witnesses
The eight former marines whose statements anchor the filing are not the full extent of the available witnesses, according to Atty. Levito Baligod, counsel for the group. Baligod disclosed that the eight were randomly chosen from a larger pool of 18 individuals, each of whom was separately interviewed by Ombudsman lawyers and asked to execute an individual affidavit. He added that the Ombudsman's office informed him the sworn statements of the remaining ten witnesses would be secured at a later date, summarizing the situation with the remark, "Walo pa lang yan" — signaling that more testimony is still forthcoming.
A Preliminary Step, Not a Conviction
Clavano took care to define what the July 20 announcement actually represents in procedural terms. Filing a complaint for preliminary investigation means the Ombudsman's office has determined that the evidence gathered is sufficiently substantial to justify a full formal inquiry into whether the case should ultimately be elevated to a court of law. It does not constitute a conviction, nor does it amount to a formal charge before any judicial body, Clavano clarified.
He further emphasized that all respondents retain the presumption of innocence and will be given the proper opportunity to respond to the allegations before any further action is taken. A panel of prosecutors will subsequently assess those responses and decide whether to bring the case before the Sandiganbayan for trial.
Romualdez Already Faces Asset Freeze and Travel Ban
The Ombudsman's complaints arrive against a backdrop of mounting legal and administrative constraints on Romualdez. Court records show that the Court of Appeals ordered the freezing of assets linked to him in April, after finding probable cause connecting those assets to alleged plunder, graft, and bribery. The Sandiganbayan has also upheld a hold departure order that bars him from leaving the Philippines.
Beyond domestic restrictions, the United States government separately canceled Romualdez's diplomatic and tourist visas. Despite these measures, Clavano said the Ombudsman's office had received credible intelligence indicating that Romualdez was still attempting to depart the country, and called on all concerned government agencies to enforce his travel restrictions rigorously.
Co, who previously served as chair of the House appropriations committee, is currently outside the Philippines and has been classified as a fugitive.
Defense Camp Rejects the Allegations
Lawyers representing Romualdez told the Daily Tribune that they are prepared to engage the legal process but maintain there is no clear or conclusive evidence linking their client to the anomalies. They noted that the matter remains at the case build-up stage and characterized the proceedings as far from a definitive finding against him.
The defense has additionally challenged the credibility of the affidavits submitted by Co's alleged bagmen, pointing to what it described as inconsistencies in those accounts. Romualdez himself has consistently denied being the architect of the scheme and has directed attention toward other individuals as those responsible for the relevant budget decisions.
Charges Had Been Signaled Days Earlier
The July 20 filing did not come entirely without warning. According to Rappler, Ombudsman Jesus Crispin Remulla stated on July 17 — three days before the formal announcement — that his office was "very close" to filing plunder charges against Romualdez. The Philippine Daily Inquirer reported that state prosecutors have pegged the total alleged kickbacks tied to the flood control projects at approximately ₱56 billion, underscoring the scale of what investigators say was a systematic diversion of public funds.
By the Numbers
- ₱56 billion — estimated total alleged kickbacks from flood control projects, as reported by state prosecutors and cited by the Philippine Daily Inquirer
- 2 — separate complaints filed: one for plunder under R.A. 7080, one for Anti-Money Laundering Act violations
- 8 — former personal security personnel whose sworn affidavits form the core of the complaints
- 18 — total witnesses in the pool identified by Atty. Baligod, with 10 yet to give sworn statements
- July 17, 2025 — date Ombudsman Remulla publicly signaled that filing was imminent, three days ahead of the announcement
Why This Matters
Plunder charges against a former House Speaker represent one of the most consequential corruption proceedings in recent Philippine legislative history, and the Ombudsman's designation of Romualdez as the "central figure" signals the seriousness with which investigators view the alleged diversion of funds meant to shield communities from flooding. The reliance on eyewitness testimony from individuals who say they personally observed cash deliveries — rather than purely documentary or circumstantial evidence — gives the complaints an unusual degree of direct testimonial support that the Office has publicly emphasized. With ten additional witnesses still to provide affidavits and a co-respondent abroad and considered a fugitive, the full scope of the case before the Sandiganbayan is expected to grow considerably in the months ahead.
Source: Daily Tribune / Rappler / Philippine Daily Inquirer