By: Villamor Visaya Jr. – Philippine Daily Inquirer Correspondent / @VillVisayaJrINQ 04:30 AM August 26, 2025
CITY OF ILAGAN, ISABELA, Philippines — Mayor Josemarie Diaz of this city on Monday denied any involvement in flood control projects awarded to his brother’s construction company, following data released by the Office of the President showing that nearly 70 percent of such projects in Isabela’s first district went to Dragon Twelve Builders and Construction Supply Corp.
“Again, I do not have any involvement [in contracts] entered between Dragon Twelve and the [Department of Public Works and Highways (DPWH)]” Diaz said in a statement.
“There is an interagency respect, and we have our own mandate while the DPWH has its own,” he added, noting that government offices operate independently.
Records published by the national government show that from 2022 to 2025, Dragon Twelve secured 16 flood control projects worth P1.076 billion in Ilagan City and nearby towns—about 69 percent of the P1.5 billion allocated by the DPWH Isabela First District Engineering Office (DEO). The firm is owned by Diaz’s brother, Jonathan.
Force majeure
But the mayor, speaking in a separate video posted on the city’s Facebook page on Monday afternoon, maintained the undertakings between his brother and the DPWH had nothing to do with him or the city government.
“I am not privy of my brother’s business dealings. But on our part as city government … it was clear that there was no conflict of interest because it is not involved in the funding, bidding and award of these projects.”
The mayor pointed out that Ilagan’s wide coverage area makes it impossible for the city government to handle all services, which is why the DPWH executes its own projects.
“Be that as it may, I am not speaking for anyone but there are cases of force majeure or fortuitous events that may cause delay in some cases. But then again, if there is an anomaly, they can file sanctions,” Diaz said.
Dragon Twelve had previously been flagged in 2021 for “substantial delays” in project implementation. Diaz, however, said that any wrongdoing by any company should be addressed legally.
“Whoever that person, give them a day in court and address such in a proper forum,” he added.
However, Diaz maintained Dragon Twelve has “no business dealings in Ilagan,” stressing that the flood control works were “national and congressional projects” that went through the DPWH’s regular bidding process.
He described the flood control projects in the city as “legitimate, existing and up to standards” and not “ghost projects” like those reported in other areas. Diaz branded reports linking him to the controversy as “malicious” and “unethical.”
