Cebu’s Most Controversial Building Projects: What’s the Real Story?

In September 2025, the Cebu Provincial Government terminated 13 infrastructure projects due to significant delays, while the National Bureau of Investigation in Central Visayas (NBI 7) simultaneously announced it was probing 15 flood control projects for appearing substandard. For residents and taxpayers, this means that millions of pesos in public funds may have been spent on structures that are either unfinished or potentially unsafe, directly affecting the quality of flood protection and basic infrastructure in their communities.

154
Projects initially suspended for audit
SunStar Cebu

13
Projects terminated due to delays or right-of-way issues
SunStar Cebu

15
Flood control projects under NBI investigation for poor quality
SunStar Cebu

77
Projects cleared to resume after initial review
SunStar Cebu

This two-pronged scrutiny — administrative from the Capitol and criminal from the NBI — marks one of the most aggressive crackdowns on public works in the province in recent memory. The developments raise immediate questions about how infrastructure contracts are awarded, monitored, and completed, and what recourse citizens have when projects fall short. For anyone living in or investing in Cebu, understanding the mechanics of this controversy is essential, as it directly impacts the long-term value and safety of real estate in areas dependent on flood control and road networks.

What the Crackdown on Cebu Infrastructure Actually Means

🏗️
Terminated Projects
Ten projects were scrapped due to “negative 15 percent slippage,” meaning they were at least 15 percent behind schedule. Three others were halted because of unresolved right-of-way issues. Costs ranged from P1.1 million to P5.9 million each.

🔍
NBI Criminal Probe
The NBI 7 is investigating 15 flood control projects in Cebu City and southern Cebu for substandard quality. While no “ghost projects” were found, agents are gathering documents and witness statements to build a case.

⚖️
Blacklisting Threat
Governor Pamela Baricuatro has threatened to blacklist contractors behind the terminated projects, which could bar them from future government bids. This serves as a potential deterrent against poor performance.

The core issue here is not just about a few bad projects — it is about a system of oversight that, until recently, appeared to be failing. The Capitol’s review, initiated on August 22, 2025, suspended all 154 infrastructure projects to allow for a full audit and compliance check. By September 11, the governor had cleared 77 projects to resume, but the remaining 64 stayed suspended or, in the case of 13, were terminated outright. This suggests that roughly half of the projects under review had issues serious enough to warrant continued suspension or cancellation.

Negative 15 Percent Slippage
A technical term meaning a project is at least 15 percent behind its scheduled completion date. This is a common benchmark used in government contracting to determine if a project is significantly delayed and may warrant termination.

For contractors, the message is clear: delays and quality failures now carry real consequences. For residents, the immediate benefit is that problematic projects are being stopped before they waste more money or, in the case of flood control, fail during a typhoon. But the process is far from over, and many questions remain unanswered.

How the Capitol and NBI Investigations Unfolded

The timeline of events reveals a coordinated but distinct set of actions. On August 22, 2025, Governor Baricuatro ordered the suspension of all 154 provincial infrastructure projects. This sweeping move was described as a preventive measure against substandard work. By September 11, 77 projects were cleared to resume, including the Malabuyoc bulk water project, which involves SBK Construction Inc., a firm linked to Cezarah Rowena “Sarah” Discaya, who is facing investigations over allegedly anomalous projects elsewhere. Another SBK project in Alegria, however, remains suspended.

Just days later, on September 24, the NBI 7 announced its own findings. Director Rennan Augustus Oliva revealed that an initial probe had identified 15 flood control projects in Cebu City and southern Cebu that appeared substandard. The NBI’s investigation was launched following an order from the Department of Justice, indicating pressure from the national level to address potential irregularities. While agents found no evidence of “ghost projects” — projects that exist only on paper — Oliva stated that many appeared to be of poor quality.

Watch Out
Preliminary Findings, Not Final Verdicts
The NBI’s finding that 15 projects are “substandard” is still preliminary. This conclusion must be confirmed by a formal technical audit from the Commission on Audit (COA), which will determine if the projects failed to meet contract specifications. Until then, these remain allegations under investigation.

The two investigations represent different approaches. The Capitol’s action is administrative: it can terminate contracts, blacklist contractors, and rebid projects. The NBI’s probe is criminal: it seeks to determine if laws were broken, which could lead to charges against contractors and government officials. This dual-track approach means that even if a contractor avoids administrative penalties, they could still face criminal liability. For the public, this creates a more robust accountability mechanism, but it also means the process will take longer to resolve.

One critical unknown is whether the 13 projects terminated by the Capitol are the same ones being examined by the NBI. There is no public confirmation of overlap, which means the scope of the problem could be broader than either investigation alone suggests. The NBI is required to submit weekly progress reports to the DOJ, so more findings could emerge in the coming weeks. The crucial next step is securing the COA’s technical audit to solidify the case against the builders of the allegedly substandard projects.

What Gets Missed in the Headlines: Nuances and Complications

While the news focuses on terminated contracts and criminal probes, several important nuances are often overlooked. Understanding these details is key to grasping the full picture of what is happening with Cebu’s public works.

→ Scroll right to see all columns

Source: SunStar Cebu report
IssueCapitol ActionNBI ActionWhat’s at Stake
Project DelaysTerminated 10 projects with 15% slippageNot directly involvedWasted taxpayer money; services never delivered
Right-of-Way IssuesTerminated 3 projectsNot directly involvedLegal disputes block construction; no resolution in sight
Substandard QualityReviewing all suspended projectsProbing 15 flood control projectsPublic safety risk during extreme weather
Contractor AccountabilityThreatens blacklistingBuilding criminal caseDeterrence against future poor performance

The Distinction Between Delay and Poor Quality

Not all terminated projects were substandard. Ten were scrapped because they were at least 15 percent behind schedule — a performance issue, not necessarily a quality one. The other three were halted due to right-of-way issues, which are often legal disputes over land access that can stall construction indefinitely. This distinction matters because it affects how the public should interpret the news. A delayed project may still be built to specification once completed; a substandard one may need to be torn down and rebuilt. The NBI’s focus on flood control projects is particularly concerning because defective flood control directly threatens public safety during typhoons, a recurring reality in Cebu.

The Role of the Commission on Audit

The NBI’s preliminary finding of substandard work is not yet a final determination. The bureau must secure a formal technical audit from the COA to confirm whether the projects failed to meet contract specifications. This is a critical step that could take weeks or months. Without the COA’s audit, the NBI’s case remains circumstantial. This procedural requirement is often misunderstood by the public, who may see the NBI’s announcement as a final verdict when it is actually the beginning of a longer legal process.

The Unanswered Question of Overlap

As noted earlier, there is no public confirmation showing whether the projects terminated by the Capitol are the same ones being examined by the NBI. If they are different sets of projects, the total number of problematic infrastructure works could be significantly higher than either figure alone suggests. This uncertainty makes it difficult for residents to know which specific projects in their communities are affected. The lack of transparency on this point is a gap that the Capitol and the NBI have yet to address.

The SBK Construction Connection

The Malabuyoc bulk water project, which was cleared to resume, involves SBK Construction Inc., a firm linked to Cezarah Rowena “Sarah” Discaya, who is facing investigations over allegedly anomalous projects elsewhere. Another SBK project in Alegria remains suspended. This connection raises questions about how the Capitol’s review process works. Why was one SBK project cleared while another was not? The answer may lie in the specific compliance status of each project, but the public has not been given a detailed explanation. This selective treatment can erode trust in the review process, even if the decisions are technically justified.

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What Residents and Taxpayers Should Know and Do

For ordinary citizens, the flurry of government actions can feel distant and bureaucratic. But the outcomes of these investigations have direct, tangible consequences for anyone living in or near areas with public infrastructure projects. Here is what you need to know and what you can do.

Understand Which Projects Affect Your Community

The terminated projects include road concreting, multi-purpose buildings, and solar lamp post installations, with costs ranging from P1.1 million to P5.9 million each. The NBI’s probe targets flood control structures in Cebu City and southern Cebu. If you live in these areas, the quality of flood control directly affects your safety during heavy rains. Check with your local barangay or city engineering office for updates on specific projects in your neighborhood. The Capitol has not publicly named the contractors responsible for the 13 terminated projects, but local officials may have more detailed information.

Report Questionable Projects to the NBI

Director Oliva has called on the public to report other questionable projects. If you see a public works project in your area that appears to be poorly constructed, abandoned, or otherwise suspicious, you can report it to the NBI 7. The bureau is actively gathering documents and witness statements from residents to build its cases. This is a concrete way for citizens to participate in accountability. To report, you can contact the NBI 7 office in Cebu City or visit their website for contact details. Be prepared to provide the project location, contractor name (if visible), and a description of the issue.

Key Insight
The Power of the COA Audit
The Commission on Audit’s technical audit is the definitive step that will determine whether the 15 flood control projects are truly substandard. Without it, the NBI’s findings remain preliminary. Residents should watch for the release of the COA audit, as it will provide the most authoritative assessment of project quality.

Monitor the Rebidding Process

The 13 terminated provincial projects will be put up for rebidding to find new contractors. This means that the same infrastructure needs — roads, buildings, solar lamps — will eventually be addressed, but with new contractors. If you are a contractor or supplier, this represents a business opportunity. If you are a resident, it means you should expect delays in the completion of these projects. The rebidding process can take months, and the new contractors will need time to mobilize. Patience is required, but so is vigilance: ensure that the new projects are completed on time and to specification.

Watch for Future-Phase Developments

The NBI is required to submit weekly progress reports to the DOJ, suggesting that more findings could be made public in the coming weeks. The crucial next step is securing the COA’s technical audit. Additionally, the Capitol will continue its review of the dozens of other projects that remain suspended. This means the story is far from over. Residents should stay informed by following local news and official announcements from the Capitol and the NBI. The outcome of these investigations could lead to policy changes in how infrastructure projects are awarded and monitored in Cebu.

Frequently Asked Questions

What exactly does “negative 15 percent slippage” mean?
It is a project management term indicating that a project is at least 15 percent behind its scheduled completion date. In government contracting, this is often used as a threshold for considering contract termination due to unacceptable delays.
Are the terminated projects the same as the ones the NBI is investigating?
There is no public confirmation of overlap. The Capitol terminated 13 projects for delays and right-of-way issues, while the NBI is probing 15 flood control projects for substandard quality. They could be entirely different sets of projects.
Can contractors who were terminated still bid on future government projects?
Governor Baricuatro has threatened to blacklist the firms behind the terminated projects, which would bar them from future government bids. However, no official blacklist has been published yet, so the status of these contractors remains uncertain.
How can I find out if a project in my barangay is affected?
Contact your local barangay captain or the Cebu Provincial Engineering Office. The Capitol has not released a detailed list of all affected projects, but local officials may have access to information about specific infrastructure works in your area.
What happens to the money already spent on terminated projects?
The funds spent on partially completed work may be considered a loss to the government, depending on contract terms. The projects will be rebid, meaning new contractors will be hired to complete the work, but the original funds spent on delays and incomplete work are unlikely to be recovered.
Is the NBI investigation likely to lead to criminal charges?
It could, but only if the COA’s technical audit confirms the projects are substandard. The NBI is building a case based on documents and witness statements, but a formal audit is needed to prove that contract specifications were violated. This process could take months.

What to Watch for Next

The developments in September 2025 represent a significant shift in how Cebu handles problematic infrastructure projects, but the real test will be in the follow-through. The Capitol must complete its review of the remaining suspended projects and decide whether to terminate or clear them. The NBI must secure the COA audit to move its criminal investigation forward. And the public must remain engaged, reporting questionable projects and holding officials accountable. The outcome of these processes will determine whether this moment becomes a genuine turning point for infrastructure accountability in Cebu or just another headline. If this was useful, you might also want to read our look at hidden risks in Cebu’s most popular neighborhoods.

Sources

The Dark Side of Paradise: Hidden Risks in Cebu’s Most Popular Neighborhoods — Explores infrastructure and safety concerns that complement the project accountability issues discussed here.

Capitol terminates 13 projects; NBI 7 probes 15 for ‘poor quality’. SunStar Cebu, 2025.

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