Ombudsman Seeks Graft, Malversation Raps vs. Matugas Father, Son, DPWH Officials

In a recent ANC 24/7 report, the Office of the Ombudsman dropped a bombshell that could reshape how infrastructure money flows in the provinces. On Friday, the anti-graft body announced it has filed graft and malversation charges against Surigao del Norte 1st District Rep. Francisco "Lalo" Matugas and his son, former Rep. Francisco "Bingo" Matugas II, over an allegedly phantom-completed road project on Siargao Island — a case that strikes at the heart of how taxpayer money is spent on the roads that farmers, fishers, and tourism workers depend on every single day.

Ombudsman Seeks Graft, Malversation Raps vs. Matugas Father, Son, DPWH Officials

Manila, Philippines – Friday — The Office of the Ombudsman has formally submitted criminal complaints for preliminary investigation against Surigao del Norte 1st District Rep. Francisco "Lalo" Matugas, his son and predecessor in Congress, Francisco "Bingo" Matugas II, several Department of Public Works and Highways (DPWH) officials, and personalities linked to construction firm Boometrix Development Corporation. The charges stem from an P80.61-million road project in Del Carmen, Surigao del Norte, that investigators say was paid in full despite being only 65 to 70 percent complete when inspected on site in April 2026.

The Story: A Father-Son Duo and a Questionable Road

Assistant Ombudsman Mico Clavano announced the filing at a press briefing in Manila on Friday, detailing how the case against the Matugases and their alleged business associates came together. The complaints seek two counts of graft under Sections 3(e) and 3(h) of the Anti-Graft and Corrupt Practices Act (Republic Act 3019), plus one count of malversation through falsification of public documents. The elder Matugas, who currently represents the district covering Siargao Island, and his son, who held the seat before him, are both named as respondents alongside DPWH personnel and individuals tied to Boometrix.

The case centers on a road project in Del Carmen, a municipality on Siargao Island that has become a global surfing and tourism destination. According to the Ombudsman's findings, DPWH recorded the project as fully complete, which allowed contractor Boometrix to receive full payment. But when Ombudsman investigators conducted a site inspection in April 2026, they found the actual accomplishment stood at only 65 to 70 percent. That gap between paperwork and reality is what prosecutors say amounts to malversation and graft.

The Charges and the Project: P80.61 Million, P457 Million in Loans

The P80.61-million road project was supposed to be a straightforward infrastructure undertaking in Del Carmen. Instead, investigators uncovered a web of financial entanglements that they say proves the Matugases had a direct stake in the contract. Clavano revealed that the Ombudsman documented P457 million in loans between the Matugases and Boometrix Development Corporation — a figure that, in the investigators' view, supports the conclusion that both father and son held direct pecuniary interest in the contract awarded to the firm.

Under Section 3(h) of RA 3019, public officers are prohibited from having any pecuniary interest in any contract or transaction connected with their office. Section 3(e) covers causing undue injury to the government through manifest partiality, evident bad faith, or gross inexcusable negligence. The malversation charge, meanwhile, relates to the alleged falsification of documents that made the incomplete project appear fully done, allowing public funds to be released improperly.

Boometrix was no fly-by-night operator. The company was previously tagged as one of the top contractors in Surigao del Norte, having been awarded a total of 125 projects from 2017 to 2024. That track record, Clavano suggested, is precisely the pattern the Ombudsman has been tracking in its broader investigation of so-called "cong-tractors" — a term investigators use for congressional members with links to construction firms that consistently win infrastructure projects in their districts.

Philippine Context: The "Cong-tractor" Crackdown and Constitutional Limits

The Matugas case is not an isolated incident. The Ombudsman has been investigating a number of supposed cong-tractors across the country, and the elder Matugas is one of the identified figures in that probe. The term itself has entered the Philippine political lexicon as a shorthand for a practice that critics say has long undermined public infrastructure: lawmakers who, either directly or through family and business associates, profit from the very projects they help fund through congressional allocations.

Clavano was blunt about the constitutional dimension of the case. "The findings here show that they still have pecuniary interest or financial interest in contracts funded by Congress. This is a conflict of interest," he said at the briefing. He added: "Members of Congress should not benefit from government contracts." The arrangement, he said, is prohibited under the Constitution, which bars members of Congress from holding interests in government contracts during their term of office.

The case also highlights the persistence of political dynasties in Philippine governance. The Matugases represent a father-son succession in the 1st District of Surigao del Norte, a pattern repeated across the archipelago where surnames rotate through congressional seats, mayoralties, and governorships. While political dynasties are not per se illegal — the Constitution leaves it to Congress to define the limits — the Ombudsman's action shows how dynastic continuity can also mean continuity of questionable business arrangements.

Impact on Filipinos: Siargao's Roads, Taxpayers' Money, and Public Trust

For the residents of Siargao Island, this case is not abstract. The 1st District of Surigao del Norte covers the entire island, and road infrastructure there matters deeply to farmers who need to bring produce to market, fishers who depend on coastal access, small business owners who serve tourists, and the thousands of workers in the island's booming hospitality sector. A road that is only two-thirds complete but paid for in full means those communities are not getting the connectivity they were promised — and that they paid for with their taxes.

The P80.61 million at the center of this case represents real money that could have resurfaced roads, built drainage, or improved access to remote barangays. Instead, investigators say, it went to a contractor that did not finish the job, with the apparent blessing of officials who certified the work as complete. For ordinary Filipinos who watch their hard-earned pesos go to government projects, the message is stark: when oversight fails, the poorest and most isolated communities suffer first.

There is also a broader trust dimension. Every time a public official is accused of profiting from government contracts, it erodes confidence in the entire system of public works. The DPWH, which employs thousands of engineers and project managers across the country, now faces administrative charges against some of its officials in connection with this case. That taint affects the morale of honest public works employees and the public's willingness to believe that infrastructure projects are delivered as promised.

Reactions and Responses: Clavano's Words, the House Ethics Referral, and Silence from the Matugases

Clavano's statements at Friday's briefing left little room for ambiguity about the Ombudsman's position. "The findings here show that they still have pecuniary interest or financial interest in contracts funded by Congress. This is a conflict of interest," he reiterated, emphasizing that the arrangement violates constitutional prohibitions. He also stressed the broader principle: "Members of Congress should not benefit from government contracts."

Beyond the criminal complaints, the Ombudsman is seeking additional actions. These include administrative charges against the DPWH officials involved, a referral of Rep. Matugas to the House Committee on Ethics, and the transmission of the complaint to the Anti-Money Laundering Council (AMLC). The AMLC referral is particularly significant, as it opens the door to potential investigation of the financial flows between the Matugases and Boometrix, including the P457 million in documented loans.

As of Friday, neither GMA News nor NewsWatch Plus had received any statement from the Matugases. Both news organizations said they were trying to reach the congressman and his son for comment, but no response had been published by the end of the day. The silence is notable, given the severity of the allegations and the public nature of the Ombudsman's announcement. In Philippine politics, where public officials often rush to defend themselves against accusations, the absence of an immediate denial or explanation may itself become a talking point in the coming days.

What to Watch For: Preliminary Investigation, Counter-Affidavits, and the Sandiganbayan

The case now moves to the preliminary investigation stage, where the respondents — the Matugases, the DPWH officials, and the Boometrix-linked personalities — will be asked to file counter-affidavits. This is a critical phase in Philippine criminal procedure. The respondents will have the opportunity to present their side of the story, challenge the Ombudsman's evidence, and argue why the charges should be dismissed. The Ombudsman will then evaluate the evidence and decide whether there is probable cause to file the case in court.

If the case proceeds, it will likely be filed before the Sandiganbayan, the anti-graft court that handles cases involving public officials. A Sandiganbayan filing would mean the Matugases face a full trial, with all the legal costs, public scrutiny, and political consequences that come with it. For Rep. Matugas, who currently sits in the House of Representatives, a criminal case could also have implications for his legislative work, even before any conviction.

The AMLC referral adds another layer. If the Anti-Money Laundering Council finds suspicious transactions in the P457 million in loans between the Matugases and Boometrix, it could lead to separate charges or asset forfeiture proceedings. That would extend the legal battle beyond the criminal case and into the financial realm, potentially affecting properties, bank accounts, and other assets.

The House Committee on Ethics referral is also worth watching. While the ethics committee's powers are limited — it cannot impose criminal penalties — a finding against Rep. Matugas could result in censure, suspension, or even expulsion from the House. In a chamber where party discipline and political alliances often shape outcomes, how the ethics committee handles this referral will be a test of whether Congress can police its own members on matters of corruption.

For the people of Siargao, the timeline matters. The preliminary investigation could take months, and a trial, if it happens, could take years. In the meantime, the road in Del Carmen remains what it is: a project paid for in full but only partially built. The Ombudsman's action Friday is a step toward accountability, but it is not the final word. The coming weeks will show whether the Matugases can mount a credible defense, whether the DPWH officials will cooperate or resist, and whether the AMLC finds anything that deepens the case.

What is clear is that the Ombudsman has drawn a line. The message from Clavano and his team is that congressional office and construction profits do not mix — and that the Constitution's prohibition on public officials benefiting from government contracts is not a dead letter. For a country that has long struggled with corruption in public works, that message, backed by a concrete case with specific numbers and documented financial links, is a significant development. The road to justice may be long, but for the residents of Del Carmen and the millions of Filipinos who depend on honest infrastructure spending, Friday's announcement is a reminder that someone is watching.

By Bella Reyes, Staff Writer

This article was produced with AI-assisted research and editorial support. Reporting is based on sources cited in the article.