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Overview of the Scandal The allegations against Quezon City 1st District Representative Juan Carlos "Arjo" Atayde stem from a major corruption probe into anomalous Department of Public Works and Highways (DPWH) flood control projects, where billions in public funds were allegedly siphoned through ghost (non-existent or incomplete) infrastructure, rigged bids, and kickbacks. The scandal erupted in mid-2025, triggered by President Ferdinand Marcos Jr.'s State of the Nation Address in July, highlighting irregularities in flood mitigation efforts amid worsening typhoons. As of December 2, 2025, investigations by the Senate Blue Ribbon Committee, the Independent Commission for Infrastructure (ICI), the Commission on Audit (COA), and the Department of Justice (DOJ) are ongoing, with multiple arrests and asset seizures but no final convictions yet. Arjo Atayde, an actor-turned-politician, was named alongside 16 other lawmakers and officials by contractors Cezarah "Sarah" and Pacifico "Curlee" Discaya during a September 8 Senate hearing. The couple, owners of St. Timothy Construction and linked to Wawao Builders, accused him of demanding 25% kickbacks (standard operating procedure or "SOP") on projects in exchange for smooth approvals. They claimed payments were made in cash, documented in ledgers and vouchers, to avoid project delays or blacklisting. Atayde's father, Arturo Atayde, was also implicated as a direct recipient. Prima facie evidence cited includes: Photos and documents: Resurfaced images show Atayde posing with the Discayas (which he called a "quick hello") and at a P50-million flood control project's groundbreaking with Wawao Builders (later deleted from his Facebook). A courtside basketball photo places him next to dismissed DPWH engineer Henry Alcantara, a key figure in the Bulacan ghost projects. COA audits: Reports flagged Wawao Builders and SYMS Construction (Discaya-linked) for P297 million in fraudulent claims on incomplete Bulacan projects, with falsified progress reports and photos. Discaya affidavits: Sworn statements detail 10-25% kickbacks to Atayde and others, with Wawao Builders' GM Mark Allan Arevalo testifying that licenses were "forcibly used" for ghost bids. Budget insertions: Alleged insertions of P1.1 billion for seven anomalous projects (2024-2025) involving Wawao and partners like Octagon Concrete Solutions, funneled through congressional priorities. Atayde has no role in DPWH bidding or bicameral insertions, and personally inspected seven projects in his district (Bahay Toro, Del Monte, Project 6, San Antonio), confirming five are complete with proper documentation. His wife, actress Maine Mendoza, defended him on social media, urging restraint until "facts come out. "Timeline of Key Developments ========================= Date Event Details Description July 2025 Marcos SONA exposes anomalies President flags P14 billion in questionable flood projects; DPWH blacklists Wawao and SYMS for ghost works in Bulacan. Sept 4, 2025 Protests erupt Demonstrators vandalize Discaya-linked St. Gerrard Construction in Pasig; Senate hearings begin. Sept 8, 2025 Discayas testify Name Atayde among 17 recipients of kickbacks; DOJ Sec. Remulla says they must return ill-gotten gains for state witness status. Atayde deletes Wawao project post; photos with Discayas surface. Sept 11, 2025 Criminal complaints filed Ombudsman charges Discayas, Wawao's Arevalo, and DPWH engineers (Alcantara, Hernandez, Mendoza) with graft and falsification; plunder threshold (P50M+) eyed. Sept 15-21, 2025 More denials and evidence Atayde holds relief ops amid backlash; COA files fraud audits on Wawao/Topnotch Catalyst. Basketball photo with Alcantara leaks. Oct 28-30, 2025 Atayde inspects sites Reiterates "no ghosts in District 1"; DOJ clarifies Discayas' witness application pending. BOC auctions 7 of their 12 luxury cars (e.g., Maserati, Escalade). Nov 5-14, 2025 Senate summons Atayde 7th Blue Ribbon hearing lists him; DTI lifts sanctions on contractors for PCAB probe; AMLC issues 7th freeze order on assets (high-profile names withheld). Nov 20-25, 2025 DOJ probe; ICI hearing Discayas face BIR tax evasion; Atayde emotional at closed-door ICI session, denies ties, vows cooperation. DPWH Sec. Dizon: Alcantara, Hernandez, Discayas to be jailed by Christmas. Nov 28, 2025 COA escalates Files 4 more fraud reports on P297M Bulacan projects. Nov 29, 2025 Auction proceeds BOC sells Discaya vehicles; public outrage grows on X/Reddit over Atayde's "Bagman" role (ironic nod to his film).