Ombudsman Alleges Romualdez Funneled Kickbacks Through Corporate Entities

State prosecutors have put forth a theory that former House Speaker Martin Romualdez allegedly funneled kickbacks through corporate entities owned or controlled by an associate. This theory is part of a 104-page supplemental complaint-affidavit filed on July 20, recommending that case information be filed against Romualdez and his co-respondents in the Sandiganbayan for allegedly engaging in "concerted and coordinated acts" to "unlawfully amass, accumulate, and acquire ill-gotten wealth" amounting to approximately P56 billion from 2022 to 2025. Romualdez and former Ako Bicol party-list Rep. Zaldy Co were accused by prosecutors of these alleged concerted and coordinated acts. These amounts were mostly delivered for Romualdez by Co’s bodyguards, through usage of suitcases or “maleta,” according to prosecutors. Prosecutors said additional evidence revealed that “several corporate entities appear to have been utilized as conduits for the diversion and disposition of substantial amounts of funds through the abuse of public office and the use of dummies, nominees and closely-held corporations.” Particularly, prosecutors mentioned Golden Pheasant Holdings Corporation, Clearspring Holdings Corporation, Brightnews Corporation, Braavos Holdings OPC, and Valiant Consolidated Resources Inc. Prosecutors said these companies are either linked or had Jose Raulito Paras holding controlling ownership stakes. Paras is a lawyer and founding partner of Andres Paternal & Paras Law (APP Law) and a business associate and Upsilon fraternity brother of Romualdez, according to a Rappler report. “The records point to no conclusion other than that Romualdez, through Paras, transacted the proceeds of the aforementioned unlawful activities through Golden Pheasant, Clearspring, Brightnews, Braavos and Valiant,” the prosecutors said. Clearspring only had a paid-up capital of only P4 million, but it reported total assets amounting to P5.643 billion based on its 2025 Audit Financial Statements (AFS). Most of its assets consist primarily of investment in 330 thousand shares of DigiPlus Interactive Corp. with a fair value of P5.355 billion. In its 2024 AFS, Brightnews reported an asset total amounting to P1.376 billion. During the same year, it reported a P7 million loss but the company recorded “advances from shareholders” amounting to P950 million. Braavos is a one-person corporation registered in 2023 and was an alleged member of Cecil Property PTE LTD, a company registered in Singapore. Cecil’s principal office was located in a condominium in Makati which is likewise the principal address of APP Law, Golden Pheasant, Clearspring, Brightnews, and Braavos, prosecutors said, leading them to believe that this indicates “a common nexus among these entities.” Cecil Property, prosecutors said, has acquired a residential property known as Villa Kabila in Sotogrande, Cadiz, Spain which is marketed for sale up to P471.8 million. Prosecutors noted that Romualdez’s son Ferdinand Martin “Marty” Romualdez has been identified as a polo player in Sotogrande. “While such a circumstance is not conclusive of ownership or beneficial interest, it nevertheless establishes a discernible connection between the Romualdez family and the locality in which Villa Kabila is situated,” prosecutors said. Meanwhile, prosecutors said Valiant is almost entirely owned and controlled by Paras, who holds 99 percent of its shares, the company having a substantial investment in Prime Media totaling P768.4 million despite having reported no revenues and incurring substantial losses from 2023 and 2024. In its 2024 AFS, prosecutors said Valiant disclosed that its assets were primarily funded through advances from shareholders and additional paid-up capital amounting to P593.7 million. They added that it has reported no revenues for 2023 and 2024 and even incurred a net loss of P212.9 million. In view of these, prosecutors said the Anti Money Laundering Council (AMLC) “established that Romualdez and Paras deliberately organized and utilized corporate entities as conduits for the laundering of proceeds of corruption.” Prosecutors recommended charges of plunder, graft, direct and indirect bribery, and money laundering against Romualdez. Co should also be charged with plunder, graft and direct bribery, while Paras should be charged for the crime of money laundering, according to them. The Court of Appeals has ordered the freezing of assets of Romualdez, while the Sandiganbayan issued a precautionary hold departure order against him. /mr