Where The Water Goes, The Money Follows: Why?

By Martin Pupos

TLDR:

In September 2025, the Philippine Department of Finance reported that corruption and irregularities may have drained up to 70% of flood-control spending.

This amounted to billions of pesos, prompting broader public scrutiny of infrastructure corruption.

This followed a series of government disclosures and citizen complaints that then cast doubts on the execution and oversight of flood-control projects nationwide.

President Ferdinand “Bongbong” Marcos Jr. had earlier made flood-control issues a high-profile concern in his July 28, 2025, State of the Nation Address, noting that over 5,500 flood-control projects had been implemented and outlining plans for additional investment.

However, as independent audits, legislative probes, and civil-society complaints unfolded through late 2025 and early 2026, evidence showed the problem was systemic and widespread, spanning misallocated funds, substandard work, “ghost” projects, and potential collusion between officials and contractors.

What is the issue and why is it important? We size up why in a nutshell.

What is flood-control spending meant to achieve:

• Protect communities from typhoons and flooding
• Reduce economic and infrastructure losses
• Strengthen public trust in state projects
• Improve long-term climate resilience

If so, WHY has flood-control corruption persisted then?

• Commission on Audit (COA) audit reports indicate that payments were released based on documentation rather than on-site physical verification.
• Senate committee hearings and COA findings suggest procurement processes repeatedly favoured the same contractors across regions.
• Inter-agency reviews by the Department of Justice and COA show that oversight responsibilities were split across multiple bodies, creating accountability gaps.
• Department of Justice disclosures indicate that investigations and prosecutions, particularly involving senior officials, moved slowly.

What the President is doing now:

• President Ferdinand Marcos Jr. directed a nationwide audit of flood-control projects implemented by the Department of Public Works and Highways.
• The Department of Budget and Management confirmed that new flood-control allocations were withheld pending full accounting of existing funds.
• The Department of Public Works and Highways reported the reassignment or relief of several district engineers linked to flagged projects.
• The Department of Justice stated it is prioritising the review of cases arising from the audits.

The Ground Sentiment

• Why do floods persist despite massive public spending?
• How were non-existent projects approved and paid for?
• Citizens are demanding transparency on contractors and locations
• Critics say accountability remains uneven