BIR files tax evasion cases vs ex-DPWH officials

The Bureau of Internal Revenue (BIR) has filed criminal complaints against three former Department of Public Works and Highways (DPWH) officials over PHP 1.6 billion in alleged income tax deficiencies linked to ghost flood-control projects.

BIR Commissioner Romeo D. Lumagui Jr. filed the charges on Nov. 6, 2025, before the Department of Justice (DOJ), naming former DPWH officials Henry Condecido Alcantara, Brice Ericson Diaz Hernandez, and Jaypee de Leon Mendoza.

“We conducted a lifestyle check on Alcantara, Hernandez, and Mendoza,” Lumagui said, adding, “These three ex-DPWH officials led lavish lifestyles.”

“We discovered PHP 1.6 billion in income tax deficiencies after investigating their financial transactions, properties, business interests, and tax returns,” he continued, stating, “This is a clear case of tax evasion.”

The BIR investigation found the officials allegedly received large sums through “proponents’ shares” or kickbacks from non-existent flood-control projects.

Authorities said these funds were laundered through casino gambling, with records from the Philippine Amusement and Gaming Corporation (PAGCOR) showing excessive cash-to-chip exchanges.

The casino transactions were deemed highly disproportionate to the officials’ declared income, raising suspicions of illicit enrichment.

Records from the BIR, Land Registration Authority (LRA), and Land Transportation Office (LTO) also revealed the acquisition of luxury vehicles, real estate, and other high-value assets not supported by their income declarations.

“The SALNs and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyles,” Lumagui said.

“Their casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income,” he added.

Lumagui emphasized that this marks the second batch of criminal cases related to anomalous flood-control projects filed by the BIR.

“As of now, we have filed a total of 10 criminal cases, amounting to PHP 8,860,269,333.36 in total tax liabilities,” he said, adding, “Expect more tax cases to be filed.”

The three former officials are charged with tax evasion, willful failure to file returns, and willful failure to provide accurate information in their income tax filings.

These charges are in violation of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a), and 74(A) of the National Internal Revenue Code of 1997, as amended.

The BIR credited a whole-of-government approach for building the case, with congressional hearings, agency coordination, and SALN records from DPWH providing crucial evidence.

The investigation was supported by the Independent Commission on Infrastructure (ICI), Anti–Money Laundering Council (AMLC), LRA, LTO, PAGCOR, and licensed casinos.