Ombudsman pursues plunder probe vs Cagayan Rep. Lara, family, over billions in DPWH contracts

The Office of the Ombudsman has initiated a preliminary investigation against incumbent Cagayan Third District Representative Joseph Lasam Lara and members of his family over alleged financial interests in construction companies linked to billions of pesos in government infrastructure contracts.

Ombudsman Jesus Crispin Remulla said Lara faces complaints for plunder under Republic Act No. 7080, as amended, and violation of Section 3(h) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, in connection with infrastructure projects awarded by the Department of Public Works and Highways (DPWH).

Also included in the preliminary investigation are Lara’s wife, Zarah Rose Lara; their children, Joseph Joshua, Joseph Jeremy, Joseph Kyle, and Joseph II; and daughter-in-law Jessa Lara.

According to the complaint, Rep. Lara, who served as Vice Chairperson of the House Committee on Appropriations during the 19th Congress, allegedly maintained financial interests in three construction companies that entered into government infrastructure contracts with the DPWH.

These companies were identified as JLL Pulsar Construction Corporation, JDL5 Construction Corporation, and Pulsar Construction Corporation.

An Anti-Money Laundering Council (AMLC) Field Intelligence Report cited in the complaint indicated that Rep. Lara received more than P1.9 billion from relatives, affiliated entities, and DPWH offices between 2019 and 2025.

The investigation also uncovered allegations that Lara received approximately P3.8 billion from the DPWH, affiliated construction companies, and joint ventures in connection with government infrastructure projects.

Together with his wife, Lara allegedly acquired additional financial interests amounting to approximately P6.1 billion linked to DPWH infrastructure contracts.

Investigators further alleged that Lara failed to fully divest himself of his financial interests in construction companies while serving as a member of Congress, despite constitutional restrictions against lawmakers holding direct or indirect financial interests in government contracts.

The complaint also raised allegations that Lara and several family members concealed their identities as beneficial owners of construction firms involved in the government projects.

Under Article VI, Section 14 of the 1987 Constitution, members of Congress are prohibited from having direct or indirect financial interests in government contracts during their term of office.

Rep. Lara was said to have, in conspiracy with his family members, illegally amassed approximately P10.02 billion while holding public office.

Remulla emphasized that the Ombudsman will continue examining financial transactions and corporate arrangements that may have been used to conceal prohibited interests in government contracts.

The preliminary investigation will determine whether sufficient evidence exists to warrant the filing of criminal charges before the appropriate court.

The allegations remain subject to preliminary investigation, during which Lara and the other respondents will have the opportunity to answer the complaints and present their defenses. #