On September 2, 2025, the Philippines found itself at the center of a storm—one not whipped up by typhoons, but by a political scandal that’s threatening to shake the very foundations of the country’s infrastructure development. Allegations of massive corruption in flood control projects have prompted urgent investigations by both the president and Congress, implicating public works officials, engineers, construction firms, and politicians. The scandal, which has erupted into public outrage, comes at a time when the nation is still reeling from devastating floods that left millions affected and exposed the dire consequences of failed infrastructure.
According to a report from ABC - International and corroborated by multiple sources, President Ferdinand Marcos Jr. and the Philippine Congress began their inquiry after a series of typhoons and monsoon downpours in July 2025 caused catastrophic flooding. These floods displaced over 300,000 people, damaged nearly 3,000 homes, and resulted in at least 26 deaths. The losses, both human and material, were compounded by the revelation that the very projects meant to protect citizens may have been compromised by graft.
At the heart of the controversy is the staggering claim made by Finance Secretary Ralph Recto during a Senate budget hearing on September 2. As reported by Bloomberg and South China Morning Post, Recto stated, "Up to 70% of government funds for flood-control projects in the Philippines have been lost to corruption." He quantified the economic losses from such corruption under the Public Works Department from 2023 to 2025 at between 42.3 billion pesos (about $739 million) and 118.5 billion pesos (almost $2 billion). These losses, he emphasized, have hampered the country’s economic growth over the past two years.
"There are ghost projects and poor-quality projects, and the people end up losing because government funds, which come from citizens’ taxes, are being wasted," Recto told reporters. He further lamented that better spending could have propelled economic growth to 6% in 2023 and 2024, but instead, the economy expanded by 5.5% in 2023 and 5.7% in 2024—figures that, while among the fastest in the region, still fell short of government targets.
The flood control budget for 2025 alone exceeds 308 billion pesos (around $5.4 billion), according to Representative Elajiah San Fernando. During a nationally televised hearing of the House of Representatives infrastructure committee, San Fernando didn’t mince words: the scale of corruption could be "of the grandest kind." Addressing those involved in anomalies or so-called "ghost projects," he warned, "Congress has no other objective but to see your heads rolling, to hold you into account and lock you up in jail."
San Fernando’s outrage was echoed by his colleague, Representative Walfredo Dimaguila Jr., who blamed previous public works officials for poorly planned projects that were supposed to alleviate flooding in metropolitan Manila but have instead worsened flooding in Laguna province. Video footage presented during the hearing showed school buildings and homes submerged in knee-deep water, with villagers forced to wade or row along flooded streets.
President Marcos Jr., after inspecting a riverbank concreting project in Bulacan province on August 20, voiced his own frustration. The project had been reported as completed, yet no actual work had been done. "I’m getting very angry," Marcos told reporters, underscoring the gravity of the situation. On September 1, he announced the formation of an independent commission to investigate the corruption and pledged to file criminal charges against those responsible. According to Marcos, more than 6,000 of the 9,000 flood control projects implemented during his three years in office have "inadequate or unusual specifications that should be looked into."
To facilitate public involvement, a website was launched to allow citizens to report potential anomalies in flood control projects. The response was overwhelming, with the site swamped by complaints—a testament to the depth of public frustration and the perceived pervasiveness of the problem.
The Senate’s blue ribbon committee, known for its powerful oversight, resumed its own inquiry on September 1. Senators grilled Sarah Discaya, a private contractor who, along with her husband, owns nine construction companies. Discaya, a former dental clinic receptionist and nurse abroad, faced intense questioning over her family’s fleet of at least 28 luxury cars and SUVs. Senator Jinggoy Estrada expressed disbelief, remarking, "It’s only now that I’ve heard of one person or a couple owning such a big number of very expensive cars." Despite the scrutiny, Discaya repeatedly denied any wrongdoing, insisting that neither she nor her companies resorted to corruption or bribery to win contracts from the Department of Public Works and Highways—a department long dogged by allegations of corrupt dealings.
Another contractor, Mark Allan Arevalo, was less forthcoming. When asked by senators if his company had any "ghost" flood control projects, Arevalo invoked his right against self-incrimination and refused to answer, bowing his head in silence.
The public’s anger has been further stoked by reports of billions of pesos in flood-control projects that were awarded but never materialized or were completed to substandard levels. These revelations have struck a nerve in a country that, as South China Morning Post points out, is one of the most vulnerable to typhoons and seasonal flooding in the world.
Beyond the halls of government, the scandal has drawn the attention of civil society and religious leaders. Cardinal Pablo Virgilio David, a prominent leader in the Catholic Church, called on young Filipinos to "expose injustice" and to "make corruption shameful again." His words resonated with a population that has seen too many cycles of scandal and impunity.
Despite the mounting evidence and public pressure, the path to accountability remains fraught. While Discaya and her husband face no specific allegations of wrongdoing at this stage, and Arevalo has not been charged, the investigations are ongoing. The president’s vow to pursue criminal charges and the House’s determination to "see your heads rolling" suggest that the coming months may see more dramatic developments.
For the millions of Filipinos who have suffered the consequences of failed flood control—those who have lost homes, livelihoods, and even loved ones—the hope is that this latest scandal will finally lead to meaningful reform. As the investigations unfold, the nation watches closely, determined that this time, those responsible will be held to account, and that the cycle of corruption will be broken.