When floods swallowed parts of Bulacan in recent years, few suspected that beneath the murky waters lay a billion-peso paper trail of deception.
At the center of this widening scandal is a little-known figure with enormous influence: Brice Ericson D. Hernandez, former assistant district engineer of the Department of Public Works and Highways (DPWH)-Bulacan First District Engineering Office (DEO).
Over the past few months, Hernandez has emerged as a central figure in what government auditors and lawmakers now refer to as one of the largest infrastructure corruption schemes in Philippine history.
The Commission on Audit (COA) has so far filed 29 fraud audit reports implicating Hernandez in a spree of anomalous flood control projects, which include ghost work, overpriced structures, mismatched sites, and the systematic misuse of contractor licenses – many of them orchestrated under his watch.
‘The projects were paid in full despite the fact that they were not physically implemented,’ the state auditors said in their fraud audit reports.
A pattern of ‘ghosts’
In September and October 2025 alone, the COA filed nine fraud audit reports with the Office of the Ombudsman and 20 additional reports with the Independent Commission for Infrastructure (ICI), all of which were traced back to Hernandez’s office.
In nearly every case, COA found a disturbing pattern:
Projects were fully paid despite zero or incomplete implementation.
Progress billing was supported by falsified documents and site photos.
Signatures of resident engineers, end-users, and contractors were forged.
Contractors’ licenses were borrowed or used without their knowledge.
A similar anomaly emerged in Pulilan, Bulacan, where SYMS Construction Trading was awarded a ?92.88 million contract to construct a flood control structure in Barangays Santo Cristo and Taal. During inspection, COA found that the DPWH-Bulacan 1st DEO pointed to a different project site.
Again, no explanation was given for the change, and COA noted that a slope protection structure already existed at the approved location, even before the contract took effect, raising suspicions of double-counting project accomplishments.
In another case involving SYMS Construction Trading, a ?55.73 million reinforced concrete river wall project in Barangay Piel, Baliuag, was also fully paid by June 2025.
But during COA’s field validation, the agency discovered that no construction had been undertaken. The site shown by DPWH did not match the plan, and the actual location was already covered by another project. COA concluded there was a clear indication that the project had not commenced at all.
In every one of these projects, Hernandez was among those COA held liable. In official reports, the agency recommended charges for graft and corruption under Republic Act No. 3019, as well as malversation and falsification of public documents under the Revised Penal Code.
‘The audit’s findings will be crucial for the Office of the Ombudsman’s proceedings,’ COA said, ‘and may lead to administrative or criminal charges, including for graft and corruption, against those found responsible.’
Contractors say they were forced
At the heart of the alleged flood control scam is the systemic misuse of contractor licenses – a scheme made clear in testimonies delivered under oath at the Senate Blue Ribbon Committee.
On Sept. 8, 2025, Mark Allan Arevalo, general manager of Wawao Builders, stunned lawmakers when he claimed that his firm’s license had been used without consent for government-funded flood control projects.
Under questioning by Sen. Erwin Tulfo, Arevalo admitted the use was ‘sapilitan’ or forced, naming a certain Sally Santos as the intermediary.
‘Pero kanina sinabi mong sapilitan na ginagamit ang inyong lisensya. Sino ang gumagamit ng inyong lisensya?’ Tulfo asked. Arevalo pointed to Santos.
(But earlier, you said your license is being used without your consent. Who is using your license?)
When pressed, Arevalo clarified he was not receiving a share from the project proceeds-a common setup in ‘license for hire’ deals-and was instead acting ‘out of fear.’ He added, ‘As far as I know, those who are behind this are insiders. That’s why we’re afraid.’
Later in the hearing, Tulfo confronted Hernandez directly: ‘Brice, is it true that Wawao’s license is being used for forced ghost projects?’
Hernandez neither confirmed nor denied the allegation, saying instead that ‘everything’ he did had been ‘instructed by my predecessor,’ then-district engineer Henry Alcantara.
But the testimonies didn’t stop there.
Santos – the same woman named by Arevalo – appeared in the same hearing and admitted to delivering ?245 million in cash in a single day to Hernandez’s office. The cash, she said, came in sealed boxes ‘minsan boxes ng mga noodles (at times, just boxes of instant noodles),’ and was picked up from Hernandez’s desk by another DPWH official.
Santos told the committee she could have delivered as much as ?1 billion to the DPWH officials from 2022 to 2025.
She also confirmed that Hernandez ordered her to ‘manghiram ng lisensya'(borrow licenses) from other contractors for use in his projects. ‘Ako daw po yung pwede niyang kausapin para manghiram,’ she said. ‘Siyempre po ako may takot din po ako. Kasi nandoon po ako sa DPWH, nagpa-project po ako. Kung hindi ako susunod sa kanila, paano po ako?’
(He said I was the one he could talk to when borrowing money. Of course, I was afraid too, because I was with the DPWH, and I had a project. If I didn’t follow them, what would happen to me?)
On Sept. 18, Santos formally sought protective custody from the Senate, citing fear for her safety. In exchange for protection, she vowed to tell the full story behind the corruption ring involving Hernandez and other DPWH officials.
‘Lavish’ lifestyle
Before his name became synonymous with corruption, Hernandez was just another mid-level bureaucrat in the labyrinthine world of government infrastructure. As an assistant district engineer at the First District Engineering Office of Bulacan, Hernandez operated largely under the radar-until a series of investigations, whistleblower testimonies, and a sweeping COA fraud audit revealed the scale of the rot under his watch.
Despite earning a modest government salary of ?70,000 per month, Hernandez was seen driving a ?30 million Lamborghini Urus and a ?10.8 million Toyota Supra. He also allegedly owned a Ducati motorcycle and a BMW.
When pressed by senators to explain his wealth, Hernandez claimed he and his wife pooled savings for a buy-and-sell business capital, he said, provided by a sibling.
Eventually, amid mounting scrutiny and in what his camp described as a gesture of ‘sincerity,’ Hernandez began surrendering his luxury vehicles to the Independent Commission for Infrastructure (ICI).
On Sept. 19, he turned over a black GMC Yukon Denali SUV – valued at roughly ?12 million – to ICI officials, who said more vehicles would follow.
At the Senate blue ribbon committee hearing, Hernandez testified that the Denali was a gift from him and another DPWH engineer, Jayper Mendoza, to their then-boss, Alcantara. Alcantara confirmed this in the same hearing but said he returned the vehicle.
‘Mr. Hernandez is voluntarily surrendering one of his luxury vehicles to the Commission, and others to follow,’ said ICI Chair and retired Supreme Court Justice Andres Reyes Jr., adding that Hernandez’s testimony was ‘free-flowing’ following the handover.
Just days later, on Sept. 24, Hernandez returned with a ?30 million Lamborghini Urus, the second of his high-end vehicles to be surrendered to ICI.
‘Even without prodding from the government or any official, we had told him – if you truly want the public and the government to see your sincerity, and if you wish to be considered as a potential state witness, then you need to start turning over what you still have,’ said his lawyer, Raymond Fortun, in a radio interview.
Casino nights, code names, collapsing fortunes
While residents of Bulacan were wading through floodwaters, Hernandez and several DPWH colleagues were allegedly spending taxpayer money under the neon lights of Manila’s casinos.
Senate President Pro Tempore Panfilo ‘Ping’ Lacson dubbed them as the ‘BGC Boys’ – not for Bonifacio Global City, but the ‘Bulacan Group of Contractors.’ He revealed that the group used fake driver’s licenses and aliases like ‘Marvin de Guzman’ (Hernandez), ‘Joseph Villegas’ (Alcantara), and ‘Peejay Asuncion’ (former Assistant District Engineer Jaypee Mendoza) to enter casinos, despite a standing prohibition under Republic Act 6713 and various administrative circulars.
Lacson also revealed that Hernandez had allegedly incurred ?435 million in gross losses across 13 casinos in Metro Manila, Cebu, and Pampanga from 2023 to 2025. Records gathered by the senator’s team showed that Hernandez converted ?659.91 million in cash into casino chips, but later cashed out ?1.385 billion worth of chips – a discrepancy that raised red flags for potential money laundering schemes.
‘Did they coincidentally win that much, or is it a money laundering scheme?’ Lacson asked, citing how gambling chips may have been used to mask illicit funds. He also noted that Hernandez, Alcantara, and the rest of the ‘BGC boys’ would exchange their cash into casino chips when they win, but would immediately cash out if they lose and declare their chips as winnings.
In March 2025, Hernandez reportedly won over ?6 million in a single night at Okada Manila. But just weeks later, he lost ?25 million. More losses followed: ?10 million in May, ?14 million in June, and ?15 million in July.
Meanwhile, based on ‘official and validated’ documents and records, Lacson stressed that the five DPWH officials incurred ?950 million in gross losses while gambling in those 13 casinos.
He said Hernandez had combined gross losses of P435 million while Mendoza incurred P418 million. Alcantara incurred P36.7 million in losses using his alias alone, while DPWH Engineer II Arjay Domasig lost P16.9 million, and San Diego lost P42.4 million.
Despite these massive transactions, Hernandez insisted he only entered casinos with his boss, former District Engineer Alcantara. However, Alcantara denied fronting any money for Hernandez: ‘Kung pera ko po yun, bakit ko po ipahihiram sa kanya ipagagamit ko po sa kanya,’ he said.
The Department of Transportation (DOTr) and the Land Transportation Office (LTO) have since filed criminal complaints against Hernandez and other officials for allegedly using fake driver’s licenses to enter casinos.
Meanwhile, the Anti-Money Laundering Council (AMLC) has secured a court-approved freeze order on 135 bank accounts and 27 insurance policies linked to individuals and companies allegedly involved in the anomalous flood control projects – including Hernandez and his cohorts.
What Hernandez has told investigators
Initially evasive, Hernandez was cited in contempt by the Senate on September 8 after denying knowledge of his own gambling records. When confronted with Okada’s documented win-loss reports, Hernandez said, ‘Hindi po talaga, hindi po totoo ‘yan, Your Honor.’
(That’s not true at all, Your Honor.)
But the following day, in a hearing at the House of Representatives, he turned the tide.
In a sworn testimony, Hernandez dropped a bombshell: senators Jinggoy Estrada and Joel Villanueva, along with Undersecretary Robert Bernardo and DPWH officials, benefited from project allocations in Bulacan. Estrada, he claimed, had ?355 million worth of 2025 insertions with a ’30 percent SOP,’ while Villanueva had ?600 million in 2023 projects with the same ‘standard operating procedure.’
‘Para magsalita po ako nang ano, involved dito, syempre natatakot din po ako sa buhay, sa pamilya,’ Hernandez said, pleading not to be returned to Senate custody. ‘Hindi naman pong birong tao ‘yong mga involved dito eh.’
(To speak out about being involved in this, of course, I fear for my life, for my family. The people involved here aren’t ordinary.)
He also told lawmakers that bundles of cash were ‘normal’ at the DPWH-Bulacan 1st DEO. ‘Sa office po namin normal po ‘yan (In our office, that’s considered normal),’ he said, referring to a photo showing stacks of ?1,000 bills on a table. He claimed the cash was ‘allocated for someone,’ though he admitted he did not know exactly who.
In a later Senate hearing, Hernandez revealed the group’s internal profit-sharing scheme: 40 percent for Alcantara, and 20 percent each for himself, Mendoza, and Engineer Paul Duya.
Still, he walked back some of his earlier claims-particularly those linking Estrada. ‘Specifically, it’s really not Sen. Jinggoy,’ Hernandez said under questioning by Senator Marcoleta during the Senate Blue Ribbon Committee hearing on September 18, shifting the blame to an unnamed ‘proponent’ allegedly linked by his boss.
What’s next for Hernandez?
Following his explosive testimony, Hernandez filed a petition for a writ of amparo on Sept. 11, citing ‘serious active threats’ to his life. His legal counsel, Ernest Levansa, said, ‘This is not speculative, this is real.’
By mid-September, Public Works Secretary Vince Dizon signed Hernandez’s dismissal order. He was found guilty of disloyalty, grave misconduct, and conduct prejudicial to the service. The penalty includes perpetual disqualification from public office, forfeiture of benefits, and cancellation from civil service.
On Sept. 18, Senate President Vicente Sotto III confirmed that Hernandez had also been summoned by the Independent Commission for Infrastructure (ICI) to testify under oath. The ICI is a ‘different story from the in-aid-of-legislation’ that the Senate is doing, Sotto warned.
But as of now, there is no official word on whether Hernandez will be offered – or granted – state witness status. His request for witness protection remains pending.
What’s certain is this: whether he speaks more, backpedals again, or falls silent, Hernandez now stands as one of the most notorious figures in a scandal that has rocked public trust in the country’s infrastructure system.