Businesswoman Sarah Discaya and eight co-accused entered not guilty pleas on Tuesday to charges of graft and malversation over the alleged P96.5-million “ghost” flood control project in Davao Occidental.

The arraignment was held before the Regional Trial Court Branch 27 in Lapu-Lapu City, Cebu, where the court also denied the accused’s motions to quash the information and to remain under the custody of the National Bureau of Investigation (NBI).

In a statement to DZRH News, NBI spokesperson Palmer Mallari said the denial of the motions means the court has already acquired jurisdiction over the accused, allowing the trial to proceed.

The court ordered that Discaya and her co-accused remain detained at the Lapu-Lapu City Jail.

Earlier, the contractor had sought to be returned to NBI custody, where she initially surrendered, before being transferred to the city jail. The court, however, rejected the request.

The case stems from allegations that public funds amounting to P96.5 million were released for a flood control project that was either non-existent or not implemented as claimed. Proceedings are expected to continue following the completion of the arraignment.