The Bureau of Internal Revenue (BIR) has filed criminal charges with the Department of Justice against Mark Allan Villamor Arevalo, sole proprietor of Wawao Builders, over an alleged ₱48.39 million tax deficiency related to a purported “ghost” flood control project in Malolos City, Bulacan.

According to the BIR, Wawao Builders allegedly violated Sections 254 and 255 of the National Internal Revenue Code of 1997, as amended, for tax evasion and willful failure to provide accurate and complete information in filing income tax and value-added tax (VAT) returns for the first and second quarters of 2024.

BIR Commissioner Charlito Martin Mendoza said the filing of the case is part of the government’s campaign against corruption in infrastructure projects.

Records show that a contract for the construction of a riverbank protection structure in Barangay Kaingin, Malolos City, Bulacan, was awarded to Wawao Builders in January 2024, with a contract price of ₱77.20 million.

The contractor reportedly received a total of ₱72.37 million, net of withholding taxes, in three tranches from March to April 2025.

However, a review by the Commission on Audit and physical verification by the BIR revealed that no riverbank protection structure was actually constructed at the project site, despite reports claiming that the project had been completed 100 percent.

The BIR has recognized declared expenses and input taxes by the contractor, but the alleged discrepancies prompted criminal proceedings.

This case marks the 13th criminal complaint filed in connection with anomalous flood control projects, which involve a total potential tax liability of around ₱8.92 billion that remains under investigation.