The Philippines, a nation perpetually battered by typhoons and flooding, now faces a man-made catastrophe far more insidious: a colossal corruption scandal involving flood control projects that lays bare a rot of graft, greed, and systemic impunity. At the epicentre of the storm is the alleged looting of ₱118 billion (USD $2.06 billion) – public funds earmarked to shield vulnerable communities from disaster. These funds were instead funnelled into the pockets of politicians, bureaucrats, and a network of favoured contractors.
The scandal spilled into public view during President Ferdinand Marcos Jr.’s State of the Nation Address on 28 July 2025 – igniting nationwide protests, forcing high-profile resignations, and exposing a chilling trail of ghost projects, kickbacks, and brazen displays of ill-gotten wealth.
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The Unravelling
The investigation began when Marcos publicly named 15 contractors who had collectively secured ₱100 billion in projects since 2022. Days later, his personal inspection of substandard projects in Bulacan – broadcast live – exposed structures that had been fully paid for but never built. The Department of Public Works and Highways (DPWH) was forced to admit the existence of these ‘ghost’ projects during a Senate Blue Ribbon Committee inquiry.
The audacity of the corruption was further highlighted by the arrest of a DPWH engineer for the attempted bribery of a lawmaker directly overseeing the probe. In a decisive response, President Marcos ordered immediate lifestyle checks on all officials connected to infrastructure contracts. The political fallout swiftly reached the highest levels of government, culminating in the resignation of Public Works Secretary Manny Bonoan. His successor, Vince Dizon, moved to dismantle the entrenched system by demanding courtesy resignations from all top DPWH officials.
Inside The Scheme
Central to the scandal were contractors Sarah and Pacifico Discaya. Their nine construction firms secured ₱31 billion in government contracts since 2022, often bidding against one another to rig outcomes. Congressional hearings revealed the extent of their wealth – 28 luxury cars, including Bentleys and Rolls-Royces – and their testimony implicated 17 lawmakers who allegedly demanded 25-30% kickbacks on project costs.
Other whistleblowers described how DPWH officials facilitated bribes and falsified documents. Former engineer Brice Hernandez testified that payoffs were delivered in cash – even presenting photos of stacked bills as evidence.
These schemes weren’t just financial fiction. Investigators found that many ‘completed’ projects lacked coordinates or were untraceable. In Quezon City alone, dozens of projects were either non-existent or shoddily built. A ₱55 million river wall never materialised. A ₱77 million flood mitigation structure existed only on paper. Most damningly, a ₱100 million flood control project collapsed soon after completion – exposing substandard materials and putting thousands of lives at risk.
The Expanding Fallout
By early September, the scandal’s scope had widened dramatically, implicating not only contractors but 17 members of Congress and several senators as well. The DPWH itself was found heavily complicit, approving ghost projects and shielding corrupt networks. To cut through the political resistance, Marcos established an independent investigative commission led by former Supreme Court Justice Andres Reyes. Their mandate: investigate a system where falsified documents were used to approve payments and conceal the absence of any actual construction.
Meanwhile, the economic damage was quantified. The Department of Finance estimated ₱118.5 billion in losses between 2023 and 2025 due to corruption in flood projects. The human toll was worse: recent typhoons displaced 300,000 people and killed dozens – a catastrophe compounded by corruption.
In response, Marcos scrapped all 2026 flood control projects, redirecting funds to education, health, and agriculture instead.
Public Outrage
In response, citizens erupted in protest. Students, church leaders, and activists demanded accountability in the streets. Marcos, acknowledging public anger, remarked that if he weren’t president, he might be protesting alongside them. Online, attention turned to the children of contractors and politicians – dubbed ‘nepo babies’ – who flaunted wealth on social media. One figure, Claudine Co, drew particular ire for posting designer outfits and private jet trips; netizens calculated that a single outfit of hers cost more than what a minimum-wage worker earns in 31 months.
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A System On Trial
Government response has escalated dramatically. The Bureau of Customs seized luxury cars linked to the Discayas, while the DOJ issued lookout bulletins to prevent implicated figures from fleeing. Senate President Chiz Escudero resigned after admitting to receiving a ₱30 million ‘donation’ from a contractor. Additionally, multiple DPWH officials were dismissed or suspended.
Still, the challenge remains. The independent commission continues to face resistance from entrenched interests. Its success will hinge on judicial independence and relentless public scrutiny.
Beyond Graft: The Climate Cost
At its core, this scandal is not only about money stolen but protection denied. Corruption has deepened the country’s climate vulnerability – turning lifesaving infrastructure into empty promises. What was meant to shield the public instead enriched a few, leaving millions to face the floods unprotected.
Catherine Pun
A Hong Kong native with Filipino-Chinese roots, Catherine infuses every part of her life with zest, whether she’s belting out karaoke tunes or exploring off-the-beaten-path destinations. Her downtime often includes unwinding with Netflix and indulging in a 10-step skincare routine. As the Editorial Director of Friday Club., Catherine brings her wealth of experience from major publishing houses, where she refined her craft and even authored a book. Her sharp editorial insight makes her a dynamic force, always on the lookout for the next compelling narrative.
