In a privilege speech at the Senate plenary, Senator Panfilo “Ping” Lacson revealed that only about 40 percent of the budget for certain flood control projects actually goes into implementation due to alleged systemic corruption.
“Corruption has been so pervasive and systemic that doing so is like a piece of cake,” Lacson said.
According to him, funds are divided among multiple players, including district engineers, engineering offices, bidding committees, Commission on Audit personnel, and politicians. He presented a breakdown of alleged kickbacks based on information his office gathered from case studies and investigations across the country.
From a sample ₱100 million project fund, standard deductions such as 5% value-added tax, 2% withholding tax, 1% for bonds and insurances, 1% for materials testing, and 8–11% allowable contractors’ profit leave around ₱82 million for project execution.
However, Lacson said this amount is further reduced through unauthorized cuts:
• 8–10% for district engineers
• 2–3% for the District Engineering Office (“reseta”) if contractors’ profit exceeds allowable limits
• 5–6% for the bids and awards committee
• 0.5–1% for the Commission on Audit
• 5–6% “royalty” for the politician who controls the district where the project will be implemented
• 20–25% for the project funder or proponent, often a politician who sourced the funding
“After all these deductions, the remaining funds for the actual project implementation are fortunate if they reach 40% of the original allocation,” Lacson said.
He added that the alleged scheme follows a recurring pattern in flood control projects nationwide.
It can be recalled that during his State of the Nation Address last month, President Ferdinand “Bongbong” Marcos Jr. raised the issue of anomalous flood control projects and addressed those benefitting from questionable contracts:
“Mahiya naman kayo sa inyong kapwa Pilipino. Mahiya naman kayo sa mga kababayan nating naanod o nalubog sa baha. Mahiya naman kayo lalo sa mga anak nating magmamana sa mga utang na ginawa n’yo.”
Following the address, Malacañang launched the upgraded Sumbong sa Pangulo website, enabling citizens to report and scrutinize flood control projects directly.
The President also disclosed that since mid-2022, about one-fifth of all flood control project funds — amounting to roughly ₱100 billion — had been awarded to only 15 contractors, five of which secured projects in nearly every region of the country.
