Corruption in Flood Control Projects Costs Philippine Economy Up to P118.5 Billion
MANILA, PHILIPPINES – Corruption in flood control projects has drained teh philippine economy of an estimated P118.5 billion, according to a recent assessment prompting a review of the proposed 2026 national budget. President Ferdinand Marcos Jr. has expressed concern over “insertions” within the budget, signaling a need for a thorough overhaul of spending allocations for infrastructure. This comes as the Department of Public Works and Highways (DPWH) faces scrutiny over potentially irregular funding within its proposed budget.
The scale of potential economic loss underscores systemic issues within infrastructure spending,impacting the nation’s ability to effectively address climate change vulnerabilities and hindering economic growth. The controversy centers on allocations within the proposed P6.73 trillion National Expenditure Program (NEP) for 2026, with questions raised about the transparency and justification of specific project funding. The situation has triggered debate among lawmakers regarding the best course of action to rectify the budget and ensure responsible use of public funds.
Budget Secretary Amenah Pangandaman stated that the current budget does not align with constitutional guidelines or existing regulations. DPWH Secretary Vince Dizon, recently appointed after the resignation of his predecessor Manuel Bonoan, is currently reviewing the budget to identify and address the problematic allocations.
Senator Loren Legarda has proposed a drastic solution: “deleting” the entire DPWH budget and requiring Dizon to resubmit amendments or a supplemental budget. Pangandaman acknowledged the possibility of submitting a “department errata” to the House of Representatives, but could not guarantee its acceptance. “so si [Secretary] Vince po, aayusin po niya, it will be a department errata which will be provided to the House of Representatives. Pero I cannot answer naman sa House if they will accept it wholeheartedly,” Pangandaman explained.President Marcos previously voiced his frustration with the “insertions” discovered in the 2026 NEP, emphasizing the necessity to “clean out” the budget properly. The ongoing review and potential revisions highlight a commitment to greater fiscal accountability and transparency in infrastructure projects, crucial for mitigating the economic impact of corruption and ensuring effective disaster preparedness.
