Who Is Zaldy Co? The 'VIP Witness' Linking Marcos and Romualdez to a Deepening Flood-Control Funds Controversy

A billionaire contractor-turned-lawmaker now sits at the centre of the Philippines' most explosive political scandal of the year. Zaldy Co, once one of the country's most influential congressmen, has emerged as a pivotal figure in the widening investigation into alleged corruption in flood-control projects, triggering political ripples that now reach President Ferdinand Marcos Jr and former House Speaker Martin Romualdez.

Who Is Zaldy Co? Businessman, Lawmaker and Power Broker

Zaldy Co, born Elizaldy Salcedo Co in Albay, rose to prominence long before he entered politics. He co-founded the Sunwest Group of Companies, an expanding conglomerate with interests in construction, real estate, energy and tourism.

The group includes Sunwest Construction and Development Corporation and the upscale Misibis Bay Resort in Albay, both widely associated with the Co family.

Already a billionaire before joining the government, Co entered the House of Representatives in 2019 as a party-list representative for Ako Bicol. His influence grew rapidly.

In 2022, he was appointed chair of the House Committee on Appropriations, a post that placed him at the centre of national budget negotiations. He held this role until January 2025, stepping down months before resigning from Congress altogether in September.

Co's Accusations: Linking Marcos and Romualdez to Budget Insertions

In a development that escalated the political stakes, Co publicly alleged that President Marcos and Martin Romualdez ordered about one hundred billion pesos in budget insertions during bicameral meetings on the national budget.

According to Co, a senior official informed him that the instruction came directly from the President. He said the alleged order involved inserting projects into the budget shortly before final approval.

Malacañang and Romualdez's office have denied wrongdoing in previous statements, saying investigations should run their course.

Flood-Control Contracts and Conflict-of-Interest Questions

Co's political rise coincided with the expansion of government contracts awarded to companies linked to his family. Investigations by Filipino media outlets reported that Sunwest and sister firms secured billions of pesos worth of flood-control and road projects across several regions.

Critics argue that this overlap between his legislative role and business interests created a potential conflict of interest, particularly as flood-control budgets grew to extraordinary levels during his tenure.

Public concern intensified in late 2024 when fact-checkers contradicted Co's claim that Bicol had no billion-peso allocation for flood-control works. Budget documents showed more than one billion pesos earmarked for the region, raising questions about transparency.

The 2025 Flood-Control Scandal and Independent Probes

By 2025, the Philippines was engulfed in national anger over allegations of substandard, delayed or incomplete flood-control projects.

The Senate Blue Ribbon Committee convened multiple hearings, with witnesses claiming that contractors deliberately left works unfinished to allow for larger kickbacks.

President Marcos ordered an independent investigation, saying that irregularities in flood-control spending had reached an unacceptable scale. The Independent Commission for Infrastructure was formed in response, running in parallel with the Senate inquiry.

Travel Restrictions, Asset Freezes and Co's Overseas Absence

As scrutiny deepened, Co became increasingly difficult to locate. His travel clearance was revoked, and the Anti-Money Laundering Council was asked to freeze billions of pesos worth of aircraft tied to his companies.

Aviation records showed helicopters and a private jet linked to Co's firms departing for Malaysia and Singapore during the height of the controversy.

The Department of Justice confirmed that authorities sought assistance abroad to establish his whereabouts. Co's camp maintains that he is overseas for medical treatment and has cited safety concerns for his extended stay.

Political Fallout and Co's Defence

Co's claims have contributed to rising tensions within the ruling coalition. Some senators say his statements have reshaped the direction of the investigation, while others argue he is using the hearings to shift blame.

The Senate eventually stopped allowing him to appear via video link, citing concerns about turning proceedings into political theatre.

Through his lawyers, Co maintains that he is innocent, insists his wealth predates his political career and argues that he is being targeted to protect more powerful figures.

The Senate and the Independent Commission for Infrastructure continue to review allegations surrounding his activities, his companies and his claims involving the country's top leaders.