Palace says blacklisting of 16 contractors in flood mess underway

THE PHILIPPINE government has started blacklisting 16 contractors linked to anomalous flood control and infrastructure projects, the Palace said on Tuesday, while assuring the crackdown will not disrupt the administration’s infrastructure rollout.

Citing data from the Philippine Contractors Accreditation Board (PCAB), Palace Press Officer Clarissa A. Castro said in a briefing that the 16 contractors are undergoing blacklisting proceedings, with four already stripped of their licenses.

She added that the Department of Public Works and Highways estimated more than 60 contractors could ultimately face blacklisting.

Despite this, Ms. Castro said the President remains confident that ongoing infrastructure projects will continue despite the potential removal of some firms, citing the availability of other qualified contractors.

“The President said that even if we blacklist some contractors, the continuous implementation of infrastructure in our country will not be affected because there are still many contractors who we can say will work properly,” Ms. Castro said in Filipino.

President Ferdinand R. Marcos, Jr. earlier ordered government agencies to settle payments for well-performing contractors as soon as possible to spur state spending following a lackluster economic growth in 2025 due to the flood control scandal.

The multibillion flood scandal dragged the country’s full-year economic growth to 4.4% in 2025, well-below the government’s 5.5% to 6.5% target for the year. This was the weakest annual growth since the 3.9% in 2011.

The government is targeting a 5% to 6% gross domestic product this year.

“Contractors and those in the industry need not be afraid to negotiate and transact with the government because the President has promised that all contractors who work properly will be paid,” added Ms. Castro.

In July 2025, Mr. Marcos revealed a kickback scheme involving government officials, lawmakers, and private contractors in various flood control projects. — Chloe Mari A. Hufana