Philippine President Ferdinand Marcos Jr., waves during his keynote speech at the Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea, last year. - AP File Photo
MANILA (Bloomberg): Last year, Philippine President Ferdinand Marcos Jr. bet he could boost his political fortunes by taking aim at a brewing graft scandal that had stirred public outrage. Building on his 2022 landslide election victory, tackling corruption would cement his reputation and fend off rivals.
It backfired.
Although he survived attempts to impeach him this week - he denies accusations that he abetted the $2 billion scandal - Marcos still faces a tough road ahead. His popularity has sunk to all-time lows while that of his vice president and nemesis Sara Duterte has risen.
The anti-corruption drive he launched in July has flipped into a liability mainly because he’s failed to hold the powerful to account, while accusations against him and his allies multiply, according to Lesther Balmatero, lecturer at the University of the Philippines National College of Public Administration and Governance.
The president is also beset with economic challenges, after the downturn caused by the scandal deepened last quarter. The Philippine economy posted its slowest growth in 14 years, outside the pandemic, as the graft mess paralyzed spending, consumption and investments.
"This is one of the biggest scandals in the country, and the people are not satisfied with the pace and the outcome of the accountability efforts,” Balmatero said. He added that the failure to deliver on promises to jail high-profile politicians was aggravated by "out-of-touch” comments from his Cabinet on affordability issues.
Government officials and private contractors allegedly colluded to siphon billions of dollars worth of funds allocated for flood-mitigation projects, angering many in the nation of roughly 113 million people that’s perennially battered by typhoons. Only a handful of officials and private builders have been arrested.
"The flood control scandal turned what should have been President Marcos’ strongest reform moment into his most damaging political setback,” said Cleve Arguelles, head of public opinion company WR Numero Research. Recent polls "reflect a presidency whose legitimacy and prospective legacy are now under serious challenge.”
Marcos’ press officer, Claire Castro, said in a response to questions that "the administration is serious about going after the culprits, and doing so will benefit both the people and the business sector.”
Finance Secretary Frederick Go said this month that restoring confidence hinges on a resolution to the scandal.
"The solution to that is simply prosecution, restitution and genuine reform. The people want to see people punished and go to jail,” said Go, former chief executive officer of Robinsons Land Corp., one of the country’s major developers. "People know that money has been taken, they want to see restitution.”
Politicians who have been implicated so far include the president’s cousin, former Speaker Martin Romualdez, who has denied wrongdoing and not been charged.
The scandal has chilled consumer and business confidence, putting economic growth - which came in at 3% in the fourth quarter and one of the weakest in the region - far off from Marcos’ vision of as fast as 8%.
At the same time, Marcos is under pressure to deliver more benefits and services to the public to assuage dismay over the corruption scandal. That could further strain the nation’s already limited fiscal space.
"The government has to show that if the budget is clean, then more benefits should be felt by the public. Otherwise, what’s the point of clean budget when there are no other benefits for the public?” Congressman Toby Tiangco, an independent lawmaker, said by phone.
The president’s ability to anoint a friendly successor in 2028 is on the line, especially with Duterte remaining popular. Marcos’ approval rating stood at 34%, while that of Sara Duterte was at 56%, according to a Pulse Asia poll in December.
Duterte herself is now facing two impeachment complaints, over allegations that she misused public funds. She denies wrongdoing and her supporters say the accusations are aimed at blocking her potential presidential bid when Marcos is constitutionally mandated to step down after one six-year term.
An impeachment bid last year was tossed by the courts on procedural grounds. Her rivals have revived those attacks, and on Friday they were sent to the House speaker and could soon be forwarded to the same committee that voted down the accusations against Marcos. It’s likely they’ll move ahead soon given the lower chamber is run by Marcos allies.
"If Sara Duterte wins, there will be retribution. This is a very important phase in Marcos’ political life as it’s already about his survival,” Balmatero said. "We’ve seen in the past, presidents who win elections tend to take revenge on their predecessor.”
--With assistance from Manolo Serapio Jr.. -- ©2026 Bloomberg L.P.
