MANILA: The Philippines’ probe into the misuse of public funds for flood control projects could uncover trillions of pesos in losses, according to Public Works Secretary Vince Dizon, highlighting the extent of corruption that has fanned public outrage in the disaster-prone nation.
A commission created by President Ferdinand Marcos Jr. has been mandated to cover the last 10 years as it investigates how much was allegedly stolen from government funds for flood projects, Dizon told a Senate hearing on Thursday (Sept 18), adding that the amount would be sizable.
Asked if it could reach trillions of pesos, he said: "There’s a possibility.”
The Marcos administration has toughened its crackdown on graft in government-funded flood mitigation projects, many of which are substandard or non-existent. The public anger has led to pockets of protests mainly in the capital, where various groups are planning to stage a major rally on Sunday.
The uproar has already led to the resignation of Marcos’s cousin as the speaker of the House of Representatives, and the change in Senate leadership, though lawmakers who were implicated deny wrongdoing.
A series of devastating typhoons in 2024 led to repeated evacuations and damage to infrastructure, while parts of Manila were submerged earlier this year in heavy rains. That spurred questions over the money spent on flood-control initiatives.
Dizon said the questionable projects aren’t concentrated only in Bulacan province, located north of Manila, which has emerged as the top recipient of flood alleviation projects. "This appears prevalent in the whole country,” he said.
Business groups earlier this month endorsed sweeping moves that include helping prosecute corrupt officials and blacklisting businesspeople who conspire with them.
The public works chief and lawmakers at the hearing said the goal should be not only to jail corrupt officials and erring contractors, but also to recover any stolen funds.
A Philippine court this week ordered a freeze on 135 bank accounts linked to the anomalies after Dizon asked the Anti-Money Laundering Council’s help in restricting 26 public works officials and private contractors from withdrawing or transferring money out of their accounts. - Bloomberg
