UK Fawlty Towers actress Prunella Scales, 93

October 30, 2025 | 12:02 am

Prunella-Scales-(R)-and-John-Cleese-in-a-scene-from-Fawlty-Towers.- — PRUNELLA SCALES (R) and John Cleese in a scene from Fawlty Towers.

LONDON — British actress Prunella Scales, best known for playing the formidable Sybil Fawlty in comedy show Fawlty Towers, has died age 93, her sons said in a statement on Tuesday.

Sybil was the wife of John Cleese’s Basil Fawlty, in the show’s two series made in 1975 and 1979. Set in a dysfunctional hotel in the seaside resort of Torquay, it became one of Britain’s best-known comedies and was shown around the world.

It continues to be broadcast and referenced in popular culture now.

“Our darling mother Prunella Scales died peacefully at home in London yesterday,” her two sons said in a statement.

“She was watching Fawlty Towers the day before she died.”

Ms. Scales was married to actor Timothy West for 61 years. He died last November. She had been suffering from dementia.

Fawlty Towers was named as the greatest ever British TV sitcom by the Radio Times magazine in 2019. It was developed into a theater production in Australia in 2016, and it moved to London’s West End in 2024.

In the show, Sybil was often on the phone saying “oooh I knoooow,” her braying laugh described by Basil’s character as akin to “someone machine-gunning a seal.”

Her seven-decade acting career included multiple roles from the 1950s, including in 1960s sitcom Marriage Lines. She starred in the 1992 Oscar-winning film Howards End alongside her son, the actor Samuel West.

In the 2010s, Ms. Scales and her husband traveled on their narrowboat in the Great Canal Journeys TV series.

She was born in Surrey in 1932 and started her acting career at The Old Vic Theatre School in Bristol. — Reuters

Salmon Bank to boost capital as it targets to apply for thrift bank license by next year

October 30, 2025 | 12:02 am

SALMON BANK (Rural Bank), Inc., owned by financial technology company Salmon Group Ltd, is looking to increase its capitalization to fund its growth as it seeks to apply for a thrift banking license next year.

“So, we continue to be preparing ourselves to apply for a thrift bank next year. In terms of capital, we’re already there. We meet the minimum capital required for a thrift bank. But we want to make sure we complete the key investments in people and in technology before we apply,” Salmon Co-founder and Director and Salmon Bank Chairperson Raffy Montemayor said at a briefing on Wednesday.

The bank plans to inject an additional P600 million in fresh funding before the year ends and another P600 million next year, which would bring its total equity to P2 billion from P1.4 billion as of end-September.

“And if the bank grows faster, then we’ll inject more. So, it’s really dependent on the growth we’re seeing,” Mr. Montemayor said.

This will be used to fund the bank’s aggressive expansion, he said.

Salmon Co-Founder Pavel Fedorov said he expects the bank to double its key financial metrics every six to nine months.

“I don’t know how long we’re gonna stick with that, but the reality is that we’ll be doubling every six to nine months, and we expect to keep on doubling every six to nine months in terms of key financing and operating methods for the foreseeable future,” he said, adding that this includes the bank’s profitability.

Mr. Montemayor said the bank booked a net income of P189 million in the first eight months of 2025.

They expect strong growth in both deposits and loans, he said.

“There’s so much room for growth. I think just to give you a sense, there’s a rough estimate of 175,000 retail stores in the Philippines. And our product loan, which is roughly 60% of our loan portfolio, we’re present at 5,000 stores. We expect to roughly double that by next year.”

Salmon Bank had P1.6 billion in loans at end-September, more than double the P691 million booked in the same period last year.

Meanwhile, deposits were at P1.77 billion in deposits, surging from P522.1 million a year ago.

Deposit growth will be driven by its customer base expansion as the rural lender plans to launch more products and online services and open new branches next year, Mr. Montemayor said.

He added that Salmon Bank applied for an advanced Electronic Payment and Financial Services (EPFS) license from the Bangko Sentral ng Pilipinas in August.

Financial institutions must get an EPFS license to offer products and services via digital channels. An advanced license allows them to enable fund transfers and bills payment, among others, in addition to basic functions like balance inquiry. — A.M.C. Sy

Reducing spending and public debt, raising credit ratings

October 30, 2025 | 12:02 am

Last Monday, Oct. 27, I attended the 2025 Fiscal Policy Conference organized by the Department of Budget and Management (DBM), held at the UP College of Law. In the afternoon there were simultaneous panel sessions. I attended the panels on “Digitalization and Process Innovations” with three speakers: Department of Finance (DoF) Undersecretary Renato Reside, Jr., Ateneo de Manila University Professor Albert Matthew Alejo, and Department of Economy, Planning and Development (DEPDev) Undersecretary Joseph Capuno.

In the second set of simultaneous discussions, I attended the panel on “Fiscal Stability and Sustainability,” also with three speakers: Ateneo Professor Elvira de Lara-Tuprio, Congressional Policy and Budget Research Department (CPBRD) Director Ricardo Mira, and Bangko Sentral Director John Michael Hallig.

Among the topics discussed in the two sets of panels was why countries with high Public Debt/GDP ratios of above 100% (like Singapore, Japan, the US, France) have high credit ratings of A+ to AAA and hence, can borrow at lower interest rates, while countries with Debt/GDP ratios below 90% (like India, Thailand, and the Philippines) have lower credit ratings of BBB.

One explanation given is that high ratings countries have higher GDP per capita income, of $30,000 or higher, while those with BBB have GDP per capita of below $8,000. But there are exceptions here. There are economies with low Debt/GDP ratios and per capita income and high ratings — Taiwan and Hong Kong (see Table 1).

The Philippine economic team — the secretaries of the DoF, DBM, DEPDev, and the Special Assistant to the President for Investment and Economic Affairs — continue to aspire and hope that we reach credit ratings of A before the end of the Marcos Jr. administration. And rightly so because our annual borrowings are not declining despite the absence of any economic or virus-caused crisis like the lockdowns of 2020-2021.

Before the lockdown, the Philippines’ outstanding debt (actual plus guaranteed) was only P8.22 trillion in 2019. Then it jumped to P10.25 trillion in 2020, P12.15 trillion in 2021, P13.82 trillion in 2022, P14.97 trillion in 2023, P16.40 trillion in 2024, and P17.81 trillion in August 2025. In other words, public debt was rising by an average of P1.64 trillion/year, which is roughly the budget deficit of around P1.55 trillion/year over the same period.

Guaranteed debt is generally flat below P400 billion, it is the actual debt that keeps rising — P17.47 trillion as of last August (see Table 2).

One thing I noticed on Monday, was that in order to reduce public debt, there were few or no proposals from the speakers to make significant spending cuts, to reign in expenditures at least to balance with projected revenues.

Perhaps that is one reason why the DBM invited me to participate in the forum, to inject this point of view. But I chose not to ask questions during the panels as there was little time. I preferred to listen and understand the concepts and methodologies that the academics and speakers from government presented, including their complicated Greek mathematical and regression equations.

One thing I notice among the agencies — if they see that new sources of revenue or borrowing are available next year, they quickly invent new ways of spending and new subsidies or expand existing ones. High Debt/GDP ratios and high interest payments (an average of around P2.6 billion/day in 2025) do not seem to bother them. They just focus on asking for even higher budgets every single year despite the absence of a clear economic or social crisis which are the basis of raising subsidies in the first place, like the lockdowns of 2020-2021.

Finally, that military and uniformed personnel (MUP) pensions, from an average of about P110 billion/year until 2024, jumped to P144 billion this year and are proposed to increase to P198 billion next year. That is one clear example of wasteful and abusive spending that will penalize taxpayers today and tomorrow. Congress and the President should rein in that spending. Better yet, if active MUP officials were more sensitive to taxpayers and admit the public finance burden of the scheme, they themselves volunteer to contribute to their own pension someday. And stop the injustice of pension indexation to the salaries of active MUPs.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

GCash says no user data compromised

October 30, 2025 | 12:02 am

ELECTRONIC WALLET platform GCash on Wednesday said no user data was leaked or compromised, assuring customers their accounts remain secure despite reports of information being sold on the dark web.

“GCash assures the public that there has been no breach, no leak, and no compromise in its systems,” the company said in a statement.

Information and Communications Technology Secretary Henry Rhoel R. Aguda said the agency has been monitoring the issue and reminded the public to remain vigilant against online scams and misinformation.

“If you see data allegedly being sold online, do not panic or share personal information. Always verify through legitimate sources and be cautious about what you post or click,” he said.

GCash also urged the public to refrain from reposting unverified information and to rely solely on official channels for accurate updates.

The company warned that it would pursue legal action against individuals or groups spreading false or malicious claims that cause public confusion and undermine user trust.

On Tuesday, the Department of Information and Communications Technology (DICT), through its Cybercrime Investigation and Coordinating Center (CICC), said the alleged data leak involving G-Xchange, Inc., the operator of GCash, did not originate from the company’s systems. — Ashley Erika O. Jose

Fintechs edge closer to banks’ payments privilege

October 30, 2025 | 12:01 am

close-up-hand-holding-smartphone — FREEPIK

IN A POTENTIALLY far-reaching shift, the US Federal Reserve is weighing whether to redraw the perimeter of the US financial system. A proposal under consideration would grant financial technology (fintech) giants like Circle Internet Group, Inc. and Stripe, Inc. a form of direct access to the central bank’s core payment infrastructure — a privilege historically reserved for banks.

Fed Governor Christopher Waller has asked staff to explore a model for so-called “skinny” master accounts available to legally eligible entities: stripped-down versions of the accounts banks use to move trillions through Fed systems daily. These accounts would exclude access to interest, overdraft privileges and discount window borrowing among other potential restrictions, but would still give select fintechs a direct line into the heart of the system.

“He’s trying to give these novel charters access to the payment rails without also implicitly or explicitly putting the Fed on the hook to bail them out,” said Roman Goldstein, senior director at Klaros Group and former lead innovation policy analyst for the Federal Reserve Board.

For companies like Circle, it could mean holding customer reserves directly at the Fed and managing flows without relying on commercial banks — a shift that cuts costs, reduces counterparty risk, and offers tighter control over funds.

“The upshot is that, in my view, the payments landscape, as well as the types of providers, has evolved dramatically in recent years, and, accordingly, a new payments account could better reflect this new reality,” Mr. Waller said at a conference in Washington, DC, on Oct. 21. Waller is one of five candidates to succeed Jerome H. Powell when his term as Fed chair expires in May, according to Treasury Secretary Scott Bessent.

The implications go beyond plumbing. Sponsor banks — many of which have built profitable businesses by acting as fintechs’ backend providers — stand to lose a key revenue stream.

“The business model for a lot of sponsor banks is basically serving as a gatekeeper to the payment system,” Mr. Goldstein said. “With these skinny master accounts, a fintech doesn’t need to go through one of these gatekeepers anymore.”

But their role isn’t merely transactional: they provide compliance infrastructure, including anti-money-laundering monitoring and account reconciliation. Fintechs would likely need to replicate or outsource those functions to go it alone.

“Typically, we’re not solving just for payments with these partnerships,” said Sean Willet, chief executive of Lincoln Savings Bank, a Reinbeck, Iowa-based lender that partners with fintechs like Qapital and Acorns. “As long as we stick to our knitting in terms of what we deliver, we should be OK.”

For that reason, some sponsor banks strike a sanguine tone, for now. Yet the Fed’s move would mark a quiet but consequential step toward treating fintechs more like regulated banks, at a time when their business models are converging fast.

Beyond sponsor banks, firms have long pursued alternative ways to plug into the Fed’s infrastructure — chief among them: specialty banking charters. But so far they have struggled to get payment systems up and running.

For example, Wyoming’s Special Purpose Depository Institution (SPDI) charter was designed for digital asset firms. But when Custodia Bank, one of its earliest holders, sued both the Federal Reserve Board and the Kansas City Fed for “a patently unlawful delay,” the case was dismissed in court. Custodia has appealed the decision and the litigation is ongoing at the appellate level.

In response to mounting legal and industry pressure, the Fed introduced a tiered review system for account approvals. Anchorage Digital Bank, a crypto custodian with a national trust charter, recently applied under a “tier 3” designation which generally comes with the strictest level of review. Its application is widely seen as a bellwether for other firms that may want to apply, including Circle and Stripe’s Bridge platform.

Meanwhile, in Europe, fintechs already access payment infrastructure via Electronic Money Institution licenses — a model that offers payments access without lending rights. Governor Waller’s plan would echo this structure, narrowing privileges to core rails and excluding bailout protections.

“This is a new era for the Federal Reserve in payments,” Mr. Waller said at the conference. — Bloomberg

Adobe reworks its apps for AI assistants, pursues ChatGPT integration

October 30, 2025 | 12:01 am

SAN FRANCISCO — Adobe said on Tuesday its video and image editing tools can be controlled by chatting with them, adding that it is working with ChatGPT creator OpenAI to let users directly control one of its apps with the popular chatbot service.

Adobe is the creator of Photoshop and Premiere, widely used tools in the photography and film industries. In 2023, it rolled out Firefly, a service for generating images and other content with text prompts.

On Tuesday, Adobe executives said the company overhauled its apps to work with artificial intelligence (AI) assistants that can create and edit content by having a conversation. Behind the scenes, multiple AI “agents” would tap buttons and move sliders in the app to make those changes happen, similar to how a human assistant would carry out requests.

But human users will still also be able to take hold of those sliders and buttons to make edits, rather than relying solely on a text chat.

Now that Adobe has revamped its apps to work with AI assistants, it can more easily integrate them with third-party services, said Ely Greenfield, Adobe’s chief technology officer for its digital media business. The company is working to integrate its Adobe Express app with OpenAI’s ChatGPT, which will let users start a conversation in the chatbot to start a project there. It can then be edited in ChatGPT or finished in Adobe’s apps.

“You can adjust the edits that the agent in ChatGPT is making, so you can do a little bit of direct manipulation there,” Mr. Greenfield said. “And then, if you want, you can bring it into the Express app, where you can continue to have a conversation with it using the design agent that’s built into Express now, and you have access to the full suite of editing capabilities and tools that are part of Express.”

On Tuesday, Adobe said the AI assistant in Express is available now, but did not give a timeline for when the ChatGPT integration would become available. — Reuters

Dining In/Out (10/30/25)

October 30, 2025 | 12:01 am

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inDrive releases list of Halloween parties

TO HELP Halloween partygoers plan their night out, inDrive shares a guide to some upcoming Halloween events this week – plus a reminder that getting around before and after the spooky festivities need not be scary. On Oct. 30, there’s Ghostbusters: Hidden Nights at Las Casas Quezon City. The heritage homes turn into haunted houses for one night only, with a blend of mystery and live music. The same day sees the Madhouse Halloween Party and Night Market at Stratosphere Events Place in Makati, featuring live music, costumes, and merch. Oct. 31 sees EDM performers &Friends at The Cove in Okada Manila for a Halloween rave. Finally, there’s Greenbelt After Dark, where Greenbelt 3’s bars turn into a scary extravaganza. Download the inDrive app via the App Store or Google Play for rides on Halloween night.

Magic nights at Discovery Samal

ON OCT. 31, the island transforms into a magical playground for kids and adults alike with “Black Magic.” Guests are invited to kick off their Halloween adventure with a lunch at Morning Catch where they can indulge in a feast of flavors and be entertained with a special Halloween program. As the afternoon unfolds, the magic continues with Halloween Trick or Treat where guests can explore the resort and collect sweet surprises. Rates are at P2,800 net for one child under seven and one guardian, P1,400 net for kids seven to 11 years old, and extra charges for each additional child or guardian. Guests 12 and above are charged adult rates. Other activities include a magic show and a bubbly spectacle, a human claw machine, and a themed photo booth. Each pass includes round‑trip boat transfers from the Davao Welcome Center, a lunch buffet with one round of drinks, full access to the Halloween party and activities, photobooth use, and loot bags for kids, plus access to the Magic Show, Bubble Show, and the Human Claw Machine. Other fun activities include face painting, a meet‑and‑greet with Discover Samal mascots Coco and Pearl, parlor and trivia games, a costume parade, and a resort‑wide trick‑or‑treat activity. The festivities will end with an awarding of guests who arrive in their best costume. Five standouts will win Best in Costume and receive plush bears and F&B buffet gift certificates. One guest will win the Best in Character award and receive a Junior Suite stay. The festivities will run from 2 to 5 p.m., with snack buffet service within the window. For more information and for reservations, contact Discovery Samal at +6308-4308-2998 or e-mail fb@discoverysamal.com.

Upgraded spooky monster cookie-do

CHEF Lovely Jiao, the baker behind Sugarplum Pastries’ innovative desserts, has brought back the Boo!-Do Kit. The season-inspired package has been around for years, encouraging kids — and kids at heart — to unleash their creativity. The set features a selection of wacky monsters: sugar cookies in various shapes and sizes. It comes with a watercolor palette complete with a piping bag of frosting and a paintbrush. Ms. Jiao assures that the watercolors are, of course, edible. Each box also comes with candies and chocolates for the youngsters to share and enjoy. For more information, visit facebook.com/sugarplumpastriesph.

Araneta City’s Oktoberfest

UNTIL OCT. 31, try the Double the Cheers Around the World offer at World Kitchens. Order any featured appetizer with two bottles of San Miguel Pale Pilsen or San Mig Light, and enjoy two extra beers on the house, plus a chance to win a set meal for six, all for P599. The menu features familiar favorites and a few unexpected bites, like crispy calamares, deep-fried karaage, mozzarella dynamite, pizza margherita, and spicy frog legs. Meanwhile, Farmers Plaza’s Food Plaza offers the Happy Hour Promo until Oct. 31. Drop by from 2 to 5 p.m. and enjoy a buy-one-get-one deal on San Miguel Pale Pilsen (P100 per mug) or San Mig Light (P110 per mug). For a Spanish twist on Oktoberfest, Novotel Manila Araneta City invites the public to España en tu Mesa: Olé to Spanish Fiesta Feasts at Food Exchange Manila. Ongoing until Nov. 30, enjoy a weekend buffet with the rustic flavors of Spain. There are free-flowing local beers alongside paellas, tapas, and desserts. Families are welcome, with kids aged eight and below dining for free, and special offers available through My Novotel Manila Boutique. Visit www.aranetacity.com for more details.

Pet peeve

October 30, 2025 | 12:01 am

beautiful-young-woman-walking-with-her-dog-park — STOCK PHOTO | Image by Nensuria from Freepik

Those who consider four-footed animals as part of the family to be taken around with them to malls and restaurants, either in chains or in prams, may equate “pet-less” with “heartless.” “Fur babies” as a term of endearment when referring to pets can also be used warmly to two-footed partners and close friends who will not find that phrase cringeworthy.

Here’s a warning — those who love dogs and even sleep with them for warmth and companionship not offered by less furry substitutes, can skip this piece altogether. Kindly jump to the latest posts on flood billionaires abroad and get your aggravation for the day there.

Pets that make noises, like loud barking and hostile snarling, are not warmly embraced by some, especially those who love to meditate on their navels.

A village walker, who has a phobia for four-footed creatures that snarl and bark at him for no other reason than being engaged in a non-threatening aerobic occupation, is sure to understand an aversion to pets crossing his path. Some households prefer quieter company like terrapins and canaries. The soft movement of fins and legs as well as cooing sounds on the terrace can be soothing.

Here are some actuations of dog walkers that turn some against the species canis familaris. These habits occur more frequently now in malls and other public places like parks and even restaurants.

“Don’t worry, Sir. She doesn’t bite.” Respectful assurances from a dog handler to an older person with a walking stick is intended to allay fears of being attacked by a snarling dog. The use of gender for a pet that should be referred to in the neuter form shows the affection of the assurer regarding the dog’s history dealing with the exposed ankles of passing strangers.

The retractable leash as a dog accessory is a new twist that increases the radius of movement for the pet. It allows greater leeway to stray without dragging its owner along, as in the case of the old fixed-length leash. The pet can frolic in a wider area and cross paths with a greater number of passers-by. It’s the dog that determines how far it wants to wander.

The maximum length of this new leash is unknown. Only the swishing sound of the retractable chain provides a clue. And this version of the uncertainty principle adds to the delight of the owner in seeing the panic-stricken faces of other pedestrians, including those walking their dogs too.

Dogs have become part of an individual’s accessories. They’re brought along almost everywhere. It is then a short step for dogs themselves to be accessorized. There are multicolored dog collars, sunglasses, and even tube attire (with poop catchers) to elicit even from the hard-hearted non-dog-lovers a grudging conviction that there is no economic recession in the country.

Even the most responsible dog walkers allow the loathsome and, to their mind inevitable, habit of dogs doing their business, usually in the grassy portions of the parks or on vacant lots. The first three letters of “poodle” summarize the most offensive aspect of pets.

Dog owners are required by malls and parks to clean up their doggy mess. Some upright citizens scoop up dog poo by picking this up with a hand encased in a plastic bag they carry which is then turned inside out to neatly store away the feces. This bagged souvenir can then be disposed of in the nearest bin. Dog diapers are more practical for this reason. (See above on accessories.)

Not all dog owners are so scrupulous. If two-legged animals can pee against a tire on the side of a road, they are given some latitude to provide sticky offerings underfoot for unwary strollers.

An aversion to pets especially in public places, including restaurants, may be considered a form of heartlessness. Is it possible to have a pet peeve and still retain a sense of humanity? (Can you still be against corruption?) It’s a balancing kind of love-hate relationship. Truly, there are some cute and well-behaved poodles to be admired — at a distance.

Do dogs have an instinct in recognizing human hostility, or even indifference? Why else do they snarl at some on sight? It’s best to let sleeping dogs lie.

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

AboitizPower income rises 5% in Q3 on stronger generation margins

October 30, 2025 | 12:01 am

ABOITIZ POWER Corp. (AboitizPower) reported a 5% year-on-year increase in attributable net income to P10.6 billion for the third quarter, driven by improved margins in its power generation business.

In a stock exchange disclosure on Wednesday, the company said the higher contribution from the generation segment was due to reduced exposure to the spot market and increased water inflow at its hydro plants.

Beneficial earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 12% to P22.2 billion from P19.8 billion a year earlier.

For the nine months ending September, AboitizPower’s core net income dropped 15% to P23.1 billion, reflecting the full impact of depreciation and interest expenses from GNPower Dinginin Ltd. Co. (GNPD). Including foreign exchange and derivative gains, net income reached P23.3 billion.

Beneficial EBITDA for the nine-month period was nearly unchanged at P56.3 billion, compared with P56.1 billion last year. The company said this was supported by new contributions from Chromite Gas Holdings, Inc. and newly commissioned solar plants, offset by lower spot market prices.

AboitizPower recently energized several solar facilities — including the 159-megawatt (MW) Laoag, 45-MW Armenia, and 173-MW Calatrava plants — as part of its ongoing renewable energy expansion.

Energy sales for the three-quarter period climbed 19% to 32,138 gigawatt-hours (GWh). The EBITDA of its generation and retail supply business rose 1% to P50.9 billion, while the distribution segment’s EBITDA increased 2% to P7 billion, supported by a 5% rise in energy sold to 5,166 GWh.

For 2025, AboitizPower has allocated P78 billion in capital expenditures, primarily for its renewable energy portfolio.

The company, the Aboitiz Group’s power arm, targets to expand its total attributable net sellable capacity to 9.2 gigawatts by 2030, with a 50:50 mix of renewable and thermal energy.

Shares in AboitizPower fell 0.49%, or two centavos, to P41 each on Wednesday. — Sheldeen Joy Talavera

Surfshark: Philippines 2^nd most breached country among neighbors in Q3 2025

October 30, 2025 | 12:00 am

The Philippines placed 16^th out of 250 countries and territories with a total of 437,922 breached accounts in the third quarter, latest data from Surfshark’s Global Data Breach Statistics showed. This was higher by 25.7% from the previous quarter. Among its peers in the East and Southeast Asian region, the Philippines was the second most breached country/territory during the period.

How PSEi member stocks performed — October 29, 2025

October 30, 2025 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, October 29, 2025.

Philippine anti-graft body recommends charges vs lawmakers in flood scandal

October 29, 2025 | 9:05 pm

By Erika Mae P. Sinaking

THE Philippines’ Independent Commission for Infrastructure (ICI) on Wednesday recommended the filing of administrative and criminal charges against lawmakers and public works officials linked to a multibillion-peso kickback scheme involving flood control projects, marking one of the biggest corruption probes under President Ferdinand R. Marcos, Jr.’s administration.

In a statement, the ICI said its investigation found “indications of collusion” among legislators, Department of Public Works and Highways (DPWH) officials and private contractors in the insertion and implementation of flood control allocations in the national budget.

Among those named in the recommendation to the Office of the Ombudsman were Senators Joel J. Villanueva and Jose “Jinggoy” P. Estrada, resigned Party-list Rep. Elizaldy S. Co and ex-DPWH Undersecretary Roberto R. Bernardo.

The ICI also sought charges against a former Caloocan congresswoman and an Audit commissioner.

Mr. Villanueva denied any wrongdoing, saying Senate records would prove he had questioned flood control allocations that were never implemented. “I have been against flood control projects from the start,” he told reporters in a Viber message, adding that the testimony from a former DPWH engineer would support his defense.

“All these, at the proper time, will prove my innocence,” he added.

Mr. Estrada also rejected the allegations, saying he never received any kickbacks from the projects.

“The allegations against me are purely hearsay or based solely on rumors,” he said in a statement in Filipino. “I will clear my name, and I am fully confident that in due time, the truth will prevail.”

Mr. Co, who is overseas supposedly for a medical procedure, has rejected allegations of misconduct, while Mr. Bernardo insists he neither had knowledge nor participated in the irregularities.

The ICI said its recommendation was based on initial findings, and that determining liability would rest with the Ombudsman. “This move underscores the commission’s commitment to transparency and accountability in public infrastructure spending,” it added.

If proven, the acts could constitute violations of the Anti-Graft and Corrupt Practices Act, Plunder Law and bribery provisions of the Revised Penal Code, as well as administrative breaches of the Code of Conduct for Public Officials.

‘KICKBACK’ TRAIL
Sworn affidavits and documentary evidence from former DPWH engineers showed that lawmakers endorsed or inserted flood control projects in the national budget from 2022 to 2025 in exchange for kickbacks of 20% to 30% of project costs, the ICI said.

Payments were routed through field engineers and cooperating contractors to secure project awards and facilitate fund releases, it said. The arrangement was described as a “systematic kickback structure,” with legislators acting as project proponents and DPWH officials serving as intermediaries.

The scheme began at the budgeting stage, when proposed projects were inserted into the National Expenditure Program (NEP), passed through the bicameral conference committee and retained in the final General Appropriations Act (GAA).

Once the funds were released, favored contractors allegedly remitted percentages to officials who approved project documents, variation orders and disbursement vouchers. The ICI said several projects were nonexistent, redundant, or grossly overpriced, diverting billions in public funds.

It cited examples in Bulacan, Pampanga and Quezon City where allocations in 2023 and 2024 had “identical scopes” despite being awarded to different contractors.

The ICI reached its conclusions based on the sworn affidavits and supporting evidence from former DPWH engineers Henry C. Alcantara, Brice Ericson D. Hernandez and Jaypee M. Mendoza.

During the Ombudsman filing, ICI Chairman Andres B. Reyes, Jr. named John Carlo Rivera, a former public works project engineer, as a key intermediary who allegedly facilitated the transactions. Mr. Rivera was among 16 DPWH personnel suspended last month over the same scandal.

Witnesses said Mr. Rivera transmitted project lists prepared by DPWH engineers to regional offices or lawmakers, after which summaries were compiled and contractors were selected. Kickbacks were allegedly paid in two tranches — an initial 10% advance upon NEP approval and the remaining 15% after the GAA enactment.

“If the insertions were included in the GAA, the whole 25% special allotment portion is given to the proponent,” Mr. Reyes said. “This 25% payoff is advanced by the contractor to ensure the project will be awarded to them.”

He said the pattern pointed to “an entrenched culture of fund manipulation” within infrastructure budgeting.

“We will continue to investigate, follow the evidence and pursue charges to the very last man involved,” Mr. Reyes said. “Justice will not be delayed this time. This is our promise to our countrymen.”

The filing marks the ICI’s second referral to the ombudsman and comes seven weeks after the commission was set up. Since launching its inquiry on Sept. 19, the body has summoned a number of witnesses, formed a technical working group to fast-track fund recovery and confirmed more than 421 ghost flood control projects nationwide.

The commission has also coordinated with the Philippine National Police for site inspections and is working to overhaul the licensing of government contractors.

On Tuesday, ICI Executive Director Brian Keith F. Hosaka said the body is reviewing the rules for livestreaming proceedings to promote transparency. However, he noted that additional powers — such as the ability to cite uncooperative witnesses for contempt — might require legislation.