Recto: Expedite probe of contractors
FINANCE SECRETARY Ralph G. Recto has directed the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) to expedite investigations into contractors allegedly involved in irregularities tied to flood control projects.
In a social media post on Friday, the Department of Finance said Mr. Recto met with BIR Commissioner Romeo D. Lumagui, Jr. and Customs Commissioner Ariel F. Nepomuceno to discuss their parallel investigations, including lifestyle checks, and tax and customs fraud audit.
This probe follows President Ferdinand R. Marcos, Jr.’s disclosure that 15 contractors cornered around P100 billion, or roughly 20% of the P545-billion flood control budget since 2022.
“We will ensure that the hard-earned money of our fellow citizens is truly put to good use. We will protect public funds and make sure that every peso collected goes to programs and real solutions for the needs of the Filipino people,” Mr. Recto said.
For the BIR’s part, Mr. Lumagui said the agency has begun issuing letters of authority to formally audit the 15 mentioned contractors, focusing on possible underreported revenues, inflated costs, fake invoices, and questionable asset declarations.
It also threatened that it will deny updated tax clearance for contractors found to evade taxes.
The BIR chief earlier said failure to present this clearance will result in the suspension of contract settlements and the imposition of a tax line over the contract amount in favor of the government.
Meanwhile, the BoC is investigating the Discaya family, and their 40 imported luxury vehicles featured in a so-called lifestyle program of journalists.
The renewed public scrutiny comes after heavy rains over the weekend once again submerged roads in several areas, intensifying calls for transparency in flood control spending.
The Philippine Center for Investigative Journalism also released corporate records of flood control contractors this week, including articles of incorporation and general information sheets.
According to the 2026 Budget of Expenditures and Sources of Financing, the BIR is tasked with collecting P3.22 trillion in revenues this year, while the BoC is expected to raise P958.7 billion. — Aubrey Rose A. Inosante
