The Bureau of Internal Revenue (BIR) has filed criminal complaints before the Department of Justice against a major flood-control contractor over an alleged P48.39-million tax deficiency linked to a ghost project in Malolos City, Bulacan.
The cases were filed against Mark Allan Villamor Arevalo, sole proprietor of Wawao Builders, for alleged violations of Sections 254 and 255 of the National Internal Revenue Code. These cover tax evasion and the failure to supply correct and accurate information in income tax and VAT returns for the first and second quarters of 2024.
“This case reflects the BIR’s active participation in the President’s anti-corruption crusade,” BIR Commissioner Charlito Martin R. Mendoza said. “While other agencies address irregularities in project implementation, we are doing our part by filing criminal complaints against those who misuse public funds and evade their tax obligations.”
Records show that Wawao Builders was awarded a P77.20-million contract in January 2024 to construct a riverbank protection structure in Barangay Caingin, Malolos City. The firm later collected P72.37 million, net of withholding taxes, in three tranches between March and April 2025.
However, a physical inspection by the Commission on Audit and the BIR found that no riverbank structure was built, despite reports indicating 100 percent completion. Based on these findings, the BIR disallowed the contractor’s claimed deductions and input VAT.
Commissioner Mendoza warned that investigations are ongoing, not only into Wawao Builders’ other projects but also into other flood-control contractors flagged in recent probes. “We will continue to file cases to protect public funds and strengthen accountability,” he said.
The latest filing brings to 13 the number of BIR criminal complaints tied to anomalous flood-control projects, with potential tax liabilities of P8.92 billion now under investigation.
