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Philippine watchdog flags lawmaker, officials in P289.5-M flood scandal

AN AERIAL view of a flooded town in Batangas province after Tropical Storm Kristine hit Luzon in November 2024. — BW FILE PHOTO/PPA POOL/MARIANNE BERMUDEZ

By Adrian H. Halili, Chloe Mari A. Hufana, Reporters and Erika Mae P. Sinaking

THE Independent Commission for Infrastructure (ICI) has tagged 18 people as being “potentially responsible” for irregularities in a P289.5-million flood control project in Naujan, Oriental Mindoro.

In an initial report submitted to the Office of the Ombudsman on Monday, the agency said the project, carried out by the Department of Public Works and Highways (DPWH) Region IV-B through contractor Sunwest, Inc., used steel sheet piles 2.5 to 3 meters long instead of the required 12 meters, which could have led to losses worth more than P63 million.

The commission also cited incomplete documentation and the reuse of photographs in billing submissions.

Party-list Rep. Elizaldy S. Co, former chairman of the House committee on appropriations, was among those identified. Sunwest had been linked to Mr. Co, though he has said he had divested from the company.

Other names included DPWH regional officials, division engineers, bids and awards committee members and Sunwest executives.

ICI Executive Director Brian Keith Hosaka told reporters the panel had recommended possible graft, procurement and falsification charges, while noting that the findings were preliminary.

Mr. Co, who is overseas, said he was resigning from his congressional post as allegations mounted over his alleged role in questionable flood control projects and budget insertions.

“With a heavy heart, I submit my resignation as a representative,” he said in a Facebook post in Filipino. He added that his decision was “not easy” but was “for the good of my family and the people I continue to serve.”

In a separate letter to Speaker Faustino “Bojie” Dy III, he denied accusations by Navotas Rep. Tobias Reynald M. Tiangco that he had orchestrated insertions of billions of pesos in unprogrammed funds and steered allocations toward lucrative infrastructure projects.

“I categorically deny these baseless accusations,” Mr. Co said, rejecting claims that he masterminded or tolerated last-minute budget realignments in the 2025 General Appropriations Act.

Mr. Tiangco earlier filed an ethics complaint against Mr. Co, citing conflicts of interest, his prolonged absence since the 20th Congress began, and ties to contractors accused of paying kickbacks.

The controversy follows criticism of the 2025 budget after bicameral conferees raised unprogrammed appropriations to more than P500 billion and added vague line items after Congress ratified the bill.

Mr. Co has also been accused of collecting as much as 25% commissions from congressional insertions — charges he dismissed as unfounded.

The scandal underscores growing scrutiny of billions of pesos in flood control projects, with multiple congressional committees and the palace-backed Independent Commission for Infrastructure probing allegations of corruption.

Critics warn the controversy threatens to weaken disaster-preparedness spending in a country hit by an average of 20 storms a year and widely seen as the world’s most disaster-prone nation.

INTERPOL NOTICE
Meanwhile, the Department of Justice  has asked the International Criminal Police Organization (Interpol) to issue a blue notice for Mr. Co, Malacañang said.

Palace Press Officer Clarissa A. Castro told reporters the request is meant to track Mr. Co’s movements abroad. “The blue notice is not an authorization to arrest; it is merely for monitoring where the person is going,” she said in Filipino.

“Our country will be informed and updated about the whereabouts and location of the individual subject to the blue notice,” she added.

Mr. Co is in the US for what he described as a medical procedure. The Speaker has revoked his travel clearance and ordered him to return to the Philippines by Sept. 29.

The corruption scandal came to light after President Ferdinand R. Marcos, Jr. used his July State of the Nation Address to accuse lawmakers of profiting from government projects. Since then, the President has ordered lifestyle checks on officials, conducted surprise inspections of projects and created the ICI to pursue cases.

Subsequent inquiries by several agencies have flagged irregularities, citing recycled documentation and substandard construction materials.

Mr. Co has been repeatedly identified in hearings as one of the recipients of alleged kickbacks. His construction firms were also named by the President among companies that secured billions of pesos in public contracts.

Political analysts at the weekend said the President’s anti-corruption drive on flood control project risks being dismissed as political theater unless it delivers prosecutions and convictions, as business groups pressed him to match rhetoric with accountability and reforms.

On Sept. 21, thousands of Filipinos marched in the capital in the biggest protest in years against the multibillion-peso flood control scandal, turning weeks of online outrage over corruption into mass street demonstrations that rattled the political establishment.

Palace vows clean 2026 budget after insertions

PRESIDENT FERDINAND “BONGBONG” R. MARCOS, JR. — PRESIDENTIAL COMMUNICATIONS OFFICE

THE presidential palace on Monday sought to assure the public that the Marcos administration would strictly manage the 2026 national budget, after mounting concerns over congressional insertions and alleged irregularities in infrastructure spending.

“The public can be assured that the 2026 budget will be managed properly, and the President will not allow anomalous projects,” Palace Press Officer Clarissa A. Castro told a news briefing in Filipino.

She added that President Ferdinand R. Marcos, Jr. wants to ensure funds are allocated to priority programs that directly benefit Filipinos.

The assurance comes after Senator Panfilo M. Lacson disclosed that senators of the 19th Congress had introduced insertions worth P5 billion to P9 billion each in the 2025 General Appropriations Act totaling at least P100 billion.

The items were allegedly tagged “for later release.” Mr. Lacson, who heads the Senate blue ribbon committee, called the amounts unprecedented and warned they could threaten fiscal discipline.

Ms. Castro said the President was not initially aware of the scale of the insertions but ordered investigations after irregularities in Department of Public Works and Highways (DPWH) flood control projects surfaced.

These issues prompted him to veto more than P194 billion in questionable items in the 2025 spending plan and redirect funds to social services.

A House of Representatives subcommittee on Sept. 22 moved to channel billions worth of flood control funds to education and health as they began revising the proposed P6.793-trillion national budget for 2026.

The body redirected P255 billion in flood control funding originally allocated for the Public Works department toward the Health and Education departments, in line with President Ferdinand R. Marcos, Jr.’s call to strengthen human capital development.

Ms. Castro said essential flood mitigation projects would continue, but contractors remain accountable for incomplete works already funded and paid for by the government. She added that probes would determine how much of the insertions were released and implemented.

Budget transparency has become a flashpoint after Mr. Marcos used his July State of the Nation Address to call out lawmakers allegedly profiting from flood control projects. Successive storms and monsoon rains that month exposed weak flood management systems, which aggravated public frustration.

In response, the President ordered reforms at DPWH, installed new leadership and created the Independent Commission for Infrastructure (ICI) to review big-ticket projects.

The commission has submitted an interim report flagging procurement irregularities and recommending possible graft and falsification charges against officials and contractors.

Congress is now deliberating on the 2026 national budget, with expectations of tighter scrutiny.

“This is exactly what the President wants to oppose, which is why we are conducting investigations into anomalous flood control projects,” Ms. Castro said. — Chloe Mari A. Hufana

PCAB halts contractor license approvals amid probe of flood mitigation projects

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE Contractors Accreditation Board (PCAB) has suspended approvals and revocations of contractor licenses after its board members resigned, as the government intensifies its probe of irregularities in multibillion-peso flood control projects.

“The board is still functioning but those that require board approval, they cannot do,” Quezon City Rep. Keith Micah D.L. Tan told the House of Representatives plenary on Monday. “Approval of license, accreditation and revocation are not being done.”

The lawmaker said PCAB is investigating 16 contractors linked to the flood control scheme.

The review focuses on potential violations of Republic Act 4566 or the Contractors’ License Law, which requires contractors to secure licenses before operating. He said the agency’s limited manpower has slowed the probe.

The controversy stems from the Marcos administration’s scrutiny of some P500 billion in flood control projects since 2022. The President earlier identified contractors that allegedly cornered about P100 billion worth of projects, raising concerns over kickbacks and anomalous bidding.

Documents related to PCAB’s probe have been submitted to the Office of the Ombudsman, Mr. Tan said.

He added that the Department of Trade and Industry (DTI), which oversees PCAB, has a shortlist of potential replacements for its board, though no appointments have been made.

“As of now, there is no one designated to man the board. It remains vacant,” he said.

The flood control controversy has triggered separate investigations by Congress, the Ombudsman and the administration’s newly formed Independent Commission for Infrastructure.

The probes have also revived concerns over “insertions” in the national budget, after senators were accused of pushing billions in allocations for public works.

President Ferdinand R. Marcos, Jr. has vowed to block questionable projects and reallocate funds toward social services.

THE Department of Trade and Industry (DTI) earlier said it is studying a more stringent licensing regime for contractors to deter corruption in public works.

Trade Secretary Ma. Cristina A. Roque said a fact-finding body created by the DTI would let the agency look at what reforms should be put in place to improve the licensing process for contractors, which is overseen by the PCAB. — Adrian H. Halili

OVP budget hurdles Senate panel

VICE-PRESIDENT Sara Duterte-Carpio, in this Aug. 27, 2024 photo, attended the deliberations on the proposed 2025 budget for the Office of the Vice-President at the House of Representatives in Quezon City. — PHILIPPINE STAR FILE PHOTO/MIGUEL DE GUZMAN

SENATE finance committee on Monday swiftly approved the Office of the Vice-President’s (OVP) proposed P902.9-million budget for 2026, without any opposition from legislators.

The Senate’s Finance Committee swiftly approved the OVP’s budget after 40 minutes of deliberations, with senators extending parliamentary courtesy to the country’s second highest official.

For 2026, the OVP is seeking a 20% increase in its budget from the P744 million allocated this year.

During the hearing, Senator Juan Miguel F. Zubiri moved for the committee to approve the budget, citing courtesy to the OVP.

“The budget of the Vice-President is already a lean and mean budget. Maybe we can afford them courtesy, and we can approve the budget,” Mr. Zubiri said.

The budget deliberations have been a far cry from last year’s where the Vice-President faced questions regarding her secret fund use.

“Despite challenges, nothing has so far been insurmountable enough to take OVP off its track, derail its course, or completely incapacitate the institution and stop it from serving the interests of the people,” Vice-President Sara Duterte-Carpio told senators.

She was earlier impeached by the House of Representatives on charges of budget misuse, unexplained wealth, and allegedly conspiring to assassinate President Ferdinand R. Marcos, Jr., his wife, and former Speaker Ferdinand Martin G. Romualdez. She has denied all accusations.

The impeachment complaint against the Vice-President has since been archived by the Senate, which was constitutionally mandated to try the case. — Adrian H. Halili

New ICI special advisor named

Portions of the revetment wall along the Tullahan River collapsed in North Fairview, Quezon City, Aug. 29, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

MALACAÑANG on Monday named a former police chief as the new special advisor for the Independent Commission for Infrastructure (ICI).

President Ferdinand R. Marcos, Jr. named former Philippine National Police Chief Gen. Rodolfo S. Azurin, Jr. (Ret.), as special adviser and investigator of the anti-graft body after the resignation of Baguio City Mayor Benjamin B. Magalong over the weekend.

“The administration is confident that General Azurin’s experience and leadership will further strengthen the Commission’s mandate to uphold accountability and transparency in the use of public funds,” the President said in a Facebook post.

Mr. Azurin served as police chief from 2022-2023. He tendered his courtesy resignation in January 2023 after the call of then Interior Secretary Benjamin C. Abalos, Jr.

Mr. Magalong resigned over the weekend, citing Malacañang’s statements that contradicted the terms of his appointment.

He said the Palace’s pronouncements undermined his role and mandate, and coupled with doubts about the commission’s independence, made his continued service “no longer tenable.”

The President thanked Mr. Magalong for his tenure as ICI special advisor.

“His efforts in safeguarding the integrity and credibility of the Commission have been vital to the government’s campaign against corruption in infrastructure projects.” — Chloe Mari A. Hufana

Escudero files disbarment case

SENATOR Francis G. Escudero addresses senators after he was voted as Senate president during the opening of sessions on July 28. — SENATE PUBLIC RELATIONS AND INFORMATION BUREAU

A SENATOR on Monday filed a disbarment case before the Supreme Court against a lawyer for alleged defamatory statements on social media.

In a verified complaint, Senator Francis Joseph “Chiz” G. Escudero accused Jesus Nicardo M. Falcis III of making “insulting, accusatory and malicious” Facebook posts against him in relation to the 2025 national budget and flood control programs.

The complaint, filed under the Code of Professional Responsibility and Accountability, cited provisions on propriety and fidelity, asserting that the remarks were “unbecoming of a member of the Philippine Bar.”

Mr. Escudero, himself a lawyer, alleged that Mr. Falcis publicly humiliated him through unverified claims of pork barrel insertions in the budget and requested the Court to order Mr. Falcis’ disbarment and removal from the Roll of Attorneys.

In a response, Mr. Falcis, defended his posts and said in a statement shared with reporters that “By disclosing and disseminating the fact of his filing of a disbarment complaint against me, Atty. Chiz Escudero himself has committed an act worthy of disbarment.”

Mr. Falcis, admitted to the Bar in 2015, said Mr. Escudero should explain alleged budget irregularities, including a P160-million kickback and P142-billion 2025 budget insertions, instead of filing disbarment cases against lawyers. — Erika Mae P. Sinaking

DBM open to budget changes for SUCs

SENIOR HIGH School graduates preparing to take the UPCAT at the University of the Philippines in Diliman, Quezon City. — PHILIPPINE STAR/MICHAEL VARCAS

BUDGET Secretary Amenah F. Pangandaman is open to adjust education allocations together with legislative counterpart to address potential funding gap in state universities and colleges (SUCs).

In a statement on Monday, the Department of Budget and Management (DBM) said it is open for adjustments and committed to work closely with lawmakers to “calibrate funding levels that reflect realistic enrollment projections.”

This came as Senator Paolo Benigno “Bam” Aquino IV flagged a potential funding gap, citing data from the Philippine Association of State Colleges and Universities which projected that SUC enrollment, currently at 1.97 million students, may rise by 300,000 in 2026.

Mr. Aquino warned that the DBM’s package might fall short by P3.29 billion if allocations don’t match projections.

“We must ensure alignment between projections per SUC and the corresponding Free Higher Education funding — so that no institution is left behind or underfunded,” she said, echoing calls from Senate leadership,” Ms. Pangandaman said in response.

President Ferdinand R. Marcos, Jr. has called for the reallocation of the P255.5-billion slashed budget of the Department of Public Works and Highways to priority programs, including the education sector.

“We stand with this realignment, and we will make sure it is implemented properly so that our students, teachers, and SUCs receive the support they deserve,” the DBM Chief said. — Aubrey Rose A. Inosante

LANDBANK says DPWH transactions legal

LANDBANK PHOTO

LAND BANK of the Philippines (LANDBANK) assured that its handling of government transactions and accounts related to anomalous state-run flood control projects were within Philippine banking laws.

“LANDBANK strongly refutes any insinuations that its handling of government contractor accounts, particularly those related to the Department of Public Works and Highways’ (DPWH) flood control projects, involved any irregular or unlawful activity,” the state-run lender said in a statement on Monday.

The government is currently investigating alleged corruption in state flood-control and infrastructure projects, with some lawmakers and Public Works officials being accused of receiving payoffs and using the national budget to make insertions to fund these kickbacks.

Under Department of Budget and Management Circular No. 2018-4 and Bureau of the Treasury (BTr) Circular No. 3-2018, all government contract creditors, suppliers, or payees, including contractors, are required to open and maintain deposit accounts with state-run banks, such as LANDBANK.

“The bank has fully observed ‘Know Your Client’ (KYC) protocols, risk management procedures, and documentation requirements for the opening of their LANDBANK accounts,” the bank said.

As mandated by the Anti-Money Laundering Act (AMLA), all cash withdrawals exceeding P500,000 are automatically reported to the Anti-Money Laundering Council (AMLC) through a Covered Transaction Report (CTR), and any transaction deemed “suspicious” at the time of execution is immediately flagged to AMLC via a Suspicious Transaction Report (STR).

LANDBANK said that the funds deposited by DPWH contractors originated from the DBM and were released in line with the General Appropriations Act (GAA) and disbursed by the DPWH.

“These funds are legitimate government allocations, not private or unverified sources. LANDBANK, or any other financial institution, has no legal authority to block or question duly appropriated government disbursements,” LANDBANK said.

LANDBANK added that it has properly established and recorded the legitimacy of the source of funds, including the government releases through DPWH, the lawful purpose of the payments, and the KYC account opening documentation of the contractors.

“There was, therefore, no basis under the law to withhold the release of funds.”

The bank reiterated it had no authority to investigate funds outside of its legal mandate but is ready to fully cooperate with the proper authorities and investigating bodies. — Aaron Michael C. Sy

NBI gets P50-M grant vs illegal gambling

NBI FACEBOOK PAGE

THE Philippine Amusement and Gaming Corp. (PAGCOR) granted the National Bureau of Investigation (NBI) P50 million worth of assistance to boost its campaign against illegal gambling.

In a statement on Monday, the regulator said an initial P25 million was given to the NBI on Sept. 29, the first tranche of the assistance to curb illegal gambling, including banned Philippine offshore gaming operators (POGOs).

“This assistance will defray the cost of food and expenses for POGO detainees, as well as support the Bureau’s legitimate operations against illegal gaming activities,” PAGCOR Chairman and Chief Executive Officer Alejandro H. Tengco said.

The two government agencies signed a memorandum of agreement at the PAGCOR Corporate Office in Pasay City on Monday.

“The NBI welcomes PAGCOR’s assistance as it will enable us to step up our operations against illegal POGOs and other unlawful gaming activities. This partnership affirms our shared duty to uphold the law and protect the Filipino people,” NBI Director Jaime B. Santiago said.

The POGO ban officially took effect on  Jan. 1 this year after President Ferdinand R. Marcos, Jr. signed Executive Order No. 74 in November 2024. — Aubrey Rose A. Inosante

Filipino youth use social media for reproductive health info, says group

FREEPIK

AN ADVOCACY GROUP on Monday said that Filipino youth rely on social media to learn more about their reproductive health and rights amid rising abortion cases in the Philippines.

“There’s an improvement when it comes to access to information, but again, there are still platforms or accounts that disseminate misinformation about abortion.” Philippine Safe Abortion Advocacy Network (PINSAN) Steering Committee Member Jihan A. Jacob told BusinessWorld in an interview.

“So, it’s either you can use that as a tool for good to be able to share accurate information, or as a tool to perpetrate myths and misconceptions around abortion,” she added.

Under Articles 256 to 259 of the Revised Penal Code (RPC), individuals who perform, facilitate, or are otherwise involved in abortion, whether intentional or unintentional, are subject to penalties.

Given the restrictive laws in the country, Ms. Jacob said that a lot of young Filipinos use social media to access not just information about reproductive health but also medical abortion medicine.

“We’ve seen how there are many platforms online that would offer access to these drugs,” she said on the mifepristone and misoprostol drugs recommended by the World Health Organization (WHO) for medical abortion. “They would either receive fake drugs or a wrong regimen, and that makes it more dangerous.”

“We always give the caveat that, given the legal framework, the safety and the efficacy of this medical abortion drugs are not guaranteed,” she added.

Citing the Guttmacher Institute, PINSAN said abortion cases in the Philippines between 2015 and 2019 have increased by 51%.

The University of the Philippines Population Institute (UPPI) estimated that about 1.2 million induced abortions occurred at the height of the COVID-19 pandemic.

Ms. Jacob added that the lack of access to formal reproductive health education also led to children resorting to social media.

“Now with social media, the amount of misinformation and disinformation on social media is not being properly fact-checked through formal education,” she said. “If we can provide education and accurate science-based information to them, then we can increase the literacy of our adolescents.”

The Department of Education (DepEd) has issued Order 25 adopting a policy on the implementation of Reproductive Health Education (RHE) for adolescent learners in basic education to ensure accessible, age- and developmentally appropriate lessons for young Filipinos.

Some of the topics included in RHE are women’s and children’s rights, teen pregnancy, and protection against sexual abuse.

“It would help address the unintended pregnancies,” Ms. Jacob said, noting that around half of pregnancies that result in abortion are due to unintended pregnancies.

“So, if you’re able to address that, the education part, then you’ll be able to have an impact on the number of abortions,” she added. — Almira Louise S. Martinez

Power restoration works still ongoing in Masbate

BW FILE PHOTO

THE Department of Energy (DoE) said on Monday that various agencies, electric cooperatives, and oil industry players have been mobilized to accelerate power restoration in Masbate which was affected by Typhoon Opong (International name: Bualoi).

“Every resource and partner are now on the ground or on the move for Masbate. The full force of the energy sector is united to restore electricity swiftly, protect lifeline facilities, and bring relief to every community affected by the storm,” Energy Secretary Sharon S. Garin said in a statement.

The DoE said that a team from First Catanduanes Electric Cooperative, Inc. have arrived in the province, with nine more teams coming from the Bicol region to provide support to Masbate Electric Cooperative, Inc. Meanwhile, three to four others will be dispatched to Ticao Island to back up Tablas Island Electric Cooperative, Inc.

According to DoE, nine units of 12-kW single-phase 240 VAC generator sets were put up at the Mobo Substation for immediate deployment to critical facilities.

Fuel supply has likewise been secured, with both Filoil’s depot in Mobo and Shell’s depot in Masbate City fully operational.

Last week, the island province of Masbate was placed under a state of calamity following the impact of Typhoon Opong. — Sheldeen Joy Talavera

Baguio, UK Embassy to boost transparency in infra projects

BAGUIO CITY — The Baguio City government is teaming up with the British Embassy to improve transparency and accountability in local infrastructure projects, especially those related to water security.

According to Aileen R. Refuerzo of the Baguio City Public Information Office, Mayor Benjamin B. Magalong said the partnership is part of the Infrastructure Transparency Initiative (CoST), which aims to make project data more accessible to the public.

The mayor stressed that “giving people clear information about how public funds are spent helps build trust and ensures projects meet the city’s needs,” Ms. Refuerzo added.

The collaboration accordingly includes mapping and reviewing existing project data, consulting with agencies like the Public-Private Partnership (PPP) Center and working with local water authorities. A key output will be a transparency roadmap to guide better data management.

Baguio City also plans to upgrade its infrastructure transparency portal to be more interactive and user-friendly.

Training for city staff and the development of new data standards are also part of the plan, according to the Baguio City public information office.

Baguio is also considering getting ISO 37001 certification, an international anti-bribery standard. This would require audits, new systems, and staff training, possibly starting with a limited scope to make the process easier.

Mr. Magalong had said the city hopes to be a model for other local governments, “showing that open data and community involvement can lead to better, more accountable infrastructure development.”— Artemio A. Dumlao