The Securities and Exchange Commission (SEC) has canceled the registration of two construction companies owned by the Discaya family, who are linked to a flood-control corruption probe.
In separate orders issued on November 26, the SEC’s Enforcement and Investor Protection Department revoked the incorporation of St. Timothy Construction Corp. and St. Gerrard Construction General Contractor and Development Corp. for submitting false beneficial ownership information.
Each company was fined ₱2 million, plus ₱1,000 per day until the violations are corrected. Their directors were also barred from serving as corporate officers for five years for failing to ensure accurate ownership disclosures.
The move follows testimony at a Senate Blue Ribbon Committee hearing on September 1, where Cezarah Rowena Cruz-Discaya said she owned and held positions in both firms. SEC records showed she was not listed as a beneficial owner in filings from 2022 onward.
The SEC said the failure to disclose Cruz-Discaya violated rules requiring companies to provide truthful beneficial ownership details in their General Information Sheets. The agency had previously issued notices demanding penalties and explanations, but neither company responded within the deadline.
The SEC stressed that accurate reporting is crucial to market integrity and warned that noncompliance—whether by omission or false declaration—will be met with firm sanctions.
The agency also said the administrative penalties do not prevent further administrative, civil, or criminal actionsunder the Revised Corporation Code or other laws.
