MANILA — Businesswoman Sarah Discaya pleaded not guilty on Tuesday to graft and malversation of public funds charges linked to an alleged P96.5-million “ghost” flood control project in Davao Occidental.

In a report, Discaya entered her plea during her arraignment before Regional Trial Court Branch 27 in Lapu-Lapu City, alongside Maria Roma Rimando, president of Discaya-owned St. Timothy Construction, and eight officials of the Department of Public Works and Highways (DPWH) facing similar charges.

The case involves a flood control project in Davao Occidental that investigators allege was paid for with public funds despite being partially completed or not implemented at all. Authorities claimed that documents were processed and payments released as if the project had been properly carried out, resulting in the alleged misuse of P96.5 million in government funds.

Prosecutors accused the respondents of conspiring to approve, fund, and release payments for the questioned project in violation of the Anti-Graft and Corrupt Practices Act and laws on malversation of public funds.

All the accused denied the allegations and maintained their innocence during the arraignment.

The court set the pre-trial conference for February 3, where issues will be defined and evidence marked ahead of the trial.

The case is among several high-profile prosecutions involving alleged irregularities in government infrastructure projects.