ASEANEWS HEADLINE-GRAFT & CORRUPTION | MANILA: 15 contractors cornered 20% of flood control deals
‘Disturbing’ assessment: 20% of flood control budget went to 15 contractors
Marcos: Allies won’t be spared
MANILA, Philippines — About a fifth of the P545-billion funding for flood control projects since the start of the Marcos administration went to just 15 contractors, while more than 6,000 projects did not provide specifics on the nature of the construction works they covered.
These are some of the initial findings of an ongoing probe into flood control projects, made upon the orders of President Marcos, who had assailed those behind substandard projects for causing suffering to people in storm-hit areas.
While he was quick to clarify that no one is being accused of anything for now, Marcos said the findings disclosed yesterday provided an idea of how the projects were conducted, even describing some of the observations as “disturbing” and “impossible.”
“We are going to keep going. This is something that is, I think, absolutely necessary. We have to clean our ranks. It might be a little painful. Some people close to us might get dragged into this. But if they are close to me, the people are closer to my heart and we will prioritize them,” Marcos said during a press conference at Malacañang.
“It will be premature for me to name names, et cetera, until we really know what’s going on. But you know, go out there, check it out. Talk to the people. We need to hear from everyone… That I think is something that we can all play a part in,” he added.
The findings were based on a list of projects submitted to Marcos by the Department of Public Works and Highways (DPWH). The Department of Economy, Planning and Development (DEPDev) is carrying out the probe.
Marcos noted that the total cost of all flood control projects since July 2022 is P545.64 billion, an amount he described as “very big” and “enormous.”
He added that 6,021 projects worth more than P350 billion “did not specify the exact type of flood control being built.” This means that there was no information as to whether the projects involved the construction, rehabilitation or repair of structures.
The President also pointed out that there were 2,409 contracting entities, all of them without co-contracting agreements. Of the more than P545-billion outlay, P100 billion was awarded to only 15 contractors, an information Marcos found disturbing.
“This is another disturbing assessment, statistic: 20 percent of the entire P545-billion budget went to just 15 contractors. Of the 15 contractors, five had projects in the entire Philippines,” he said.
“Again, my experience as governor is that as much as possible, we try to do it by local (contractors)… But that one, that for me was the one that stood out very much. Five of these contractors had projects in almost the entire country. So, those are the ones that immediately pop out that I think should be looked into.”
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The 15 contractors with the most flood control projects were Legacy Construction Corp., Alpha & Omega Gen. Contractor & Development Corp., St. Timothy Construction Corp., QM Builders, EGB Construction Corp., Topnotch Catalyst Builders Inc., Centerways Construction and Development Inc., Sunwest Inc., Hi-Tone Construction & Development Corp., Triple 8 Construction & Supply Inc., Royal Crown Monarch Construction & Supplies Corp., Wawao Builders, MG Samidan Construction, L.R. Tiqui Builders Inc. and Road Edge Trading & Development Services.
The five firms with projects in almost all regions are Legacy, Alpha & Omega, St. Timothy, EGB and Road Edge.
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Mismatch?
The President also disclosed that many projects in different locations had exactly the same contract cost.
“I think anybody who works in either the private sector or the public sector, if there are 50 projects and all of them cost P150 million, that is impossible,” he said.
“It is impossible for one barangay, even if they are the next barangay, to have the exact same project to the exact same amount with the exact same contractor. That’s impossible. And that is why that is significant… finding already that we have made,” the President added.
Marcos also cited what appeared to be a mismatch between regions with the most number of projects and the most flood-prone areas.
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“These are the provinces with the most projects. And at the same time, here’s a list of the top 10 provinces that are most flood prone, that have been assessed to be the most flood prone. I think you will notice they don’t necessarily match,” the Chief Executive said.
“Now, I’m sure there are explanations for that. We will have to study it further. But you would intuitively say that… the provinces or regions, whatever you want to do, whatever is the most flood prone should have the most number of projects. But they do not seem to match. So we need to study carefully why that is the case… That’s something that we have to dig deeper into.”
Data presented by Marcos showed that Bulacan was the province with the most projects with 668, followed by Cebu (414), Isabela (341), Pangasinan (313), Pampanga (292), Albay (273), Leyte (262), Tarlac (258), Camarines Sur (252) and Ilocos Norte (224).
The top ten flood-prone areas are Pampanga, Nueva Ecija, Pangasinan, Tarlac, Bulacan, Metro Manila, Maguindanao, North Cotabato, Oriental Mindoro and Ilocos Norte.
Marcos also noted that out of 170 pumping station projects, 157 were in Metro Manila.
“This really, more than anything, manifests how the pumping stations have become ineffective because of the garbage collection problem. So, that’s indicative of that… That’s just to bring home the message that we really have to do something about the garbage problem,” he said.
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Although the initial findings have been released, Marcos cited the need to be careful about making allegations as the failure of projects may be linked to various reasons, including the effects of climate change.
“If I’m to stand up here and then say this person is wrong, that’s not fair. So, let’s be – let’s be circumspect about pointing fingers and shouting at people. Let us look into this carefully,” the Chief Executive said.
“We have to be careful about this. Of course, we want to get to the bottom. Of course, we want the people who have taken advantage of the system to pay and to be answerable to the shortcomings that (have) been demonstrated. And if there is evidence of corruption, then of embezzlement, of any kind of wrongdoing, that’s when we will move,” he added.
DPWH Secretary Manuel Bonoan has yet to comment on the matter. DPWH Stakeholder Relations Service Director Randy del Rosario has likewise not responded to requests for comment.
‘Sumbong sa Pangulo’
While the DEPDev is already looking into the flood control projects, Marcos acknowledged that the government cannot do it alone and needs the assistance of the public.
“What DEPDev will do is look at the papers and see what happened where… Perhaps they will go to the really very, very problematic areas. But how many – how many areas can they go to? We were talking about 9,000 projects. They cannot go to all of them,” the Chief Executive said.
“For me, the contribution, comments, complaints, videos and pictures sent by our people are very important. This will not work – this whole process will not work unless people are involved. It is not going to be enough if only government is involved… We need everyone involved,” he added.
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To allow the public to provide information about the status of flood control projects in their area, Marcos yesterday launched the website sumbongsapangulo.ph, an online portal that contains detailed information about the projects. Through the website, Filipinos can look for the projects in their localities and provide feedback.
“We have provided you with some of the initial information that we have had. They are not assessments. We are not accusing anyone of anything yet. However, it gives us an idea of… how this has been conducted. So, I hope the people… will take advantage of this. And as I said, there is always a way for them to give their comments,” Marcos said.
He gave assurance that he himself would read every report sent through the website.
“If you are complaining, if you are frustrated because you think you do not have anyone to turn to, this is your chance,” he said.
Vico vows legal action
Meanwhile, Pasig City Mayor Vico Sotto vowed to pursue legal action against construction firms allegedly engaged in systemic corruption, with two of the top 15 contractors doing business within his jurisdiction.
In a statement on his Facebook page, Sotto said Alpha & Omega General Contractor & Development Corp. and St. Timothy Construction Corp., ranked second and third on the DPWH’s list, are owned by the Discaya family.
The family also owns St. Gerrard Construction, whose projects in Barangay Bambang were halted in January 2024 over building permit issues.
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Sotto, who ran against Sarah Discaya in the 2025 midterm elections, alleged that the firms are involved in a six-stage pattern of corruption – from collusion during procurement, substandard or non-existent project implementation and alleged kickbacks of over half the project cost, to tax evasion, underpayment of local business taxes and eventual entry into politics using illicit funds.
“It may be difficult and even dangerous, but let’s do our part in exposing and ending these systemic practices of corruption,” Sotto said.
“We will continue the cases against these people so that we can collect the millions if not billions of pesos they owe the LGU in business taxes,” he added.
Sotto said collecting these unpaid taxes would provide enough funds for the city to build a facility for the judiciary and national government agencies without cutting budgets for other programs.
He added that the city government will submit to the President all information and red flags on the firms’ transactions to aid in the administration’s anti-corruption drive.
‘No senators implicated’
Following Marcos’ announcement, Senate Majority Leader Joel Villanueva declared that no senator is connected to any of the 15 construction firms named in the exposé.
“I can only speak for this House, not the other House,” Villanueva told reporters yesterday.
Asked whether the public should look to the House of Representatives, Villanueva said: “I will just give you documents so that they would speak for themselves.”
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He described the President’s disclosure of the list as both a “vindication and clarification” for him and Senate President Francis Escudero, who were both linked to flood control fund corruption.
He added that many members of the Senate are raring to investigate where flood control funds have gone and who benefited from them. — Mark Ernest Villeza, Neil Jayson Servallos, Rainier Allan Ronda
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