The following is a summary of the facts related to the "ghost flood control projects" issue in the
Philippines, which has become a significant and current controversy.
The Core Allegations
The issue revolves around widespread corruption, mismanagement, and irregularities in
government-funded flood control projects. The central accusation is the existence of "ghost
projects"—initiatives that were fully funded and marked as completed on paper but were either
never built or were of substandard quality.
● Massive Financial Losses: The Department of Finance (DOF) estimates that
anomalous flood control projects have cost the Philippine economy up to ₱118.5 billion
from 2023 to 2025. This amount, according to the DOF, could have created up to
266,000 jobs.
● "Ghost" Projects and Substandard Work: A key part of the controversy involves
projects that were never built. For example, President Ferdinand "Bongbong" Marcos Jr.
personally inspected a ₱55 million river wall project in Bulacan that was officially
"completed" and paid for, but he found no evidence of any construction. In other cases,
projects were found to be of poor quality, with insufficient materials and shoddy
workmanship.
● Monopolization of Contracts: The President revealed that just 15 out of 2,409
accredited contractors were awarded ₱100 billion, or 18% of the total ₱545.6 billion flood
mitigation budget from July 2022 to May 2025. This raises concerns about a small group
of favored contractors allegedly cornering a large portion of the government's budget.
● High Kickbacks: A lawyer who has come forward as a potential whistleblower alleged
that contractors can receive up to 40% of the project cost for "ghost" projects. A senator
has also claimed that kickbacks and commissions can be as high as 25%, leaving only
30-40% of the funds for the actual construction.
Key Players and Entities Involved
● Department of Public Works and Highways (DPWH): The primary government
agency responsible for implementing these projects. A district engineer in Bulacan
admitted to signing completion certificates for "ghost projects" without personally
inspecting the sites. The former DPWH Secretary, Manuel Bonoan, recently resigned
amid the scandal, and a new chief, Vivencio "Vince" Dizon, has been appointed with a
directive to root out corruption.
● Contractors: A small number of contractors have been identified as receiving the lion's
share of the flood control projects. These include:
○ Wawao Builders: Reportedly bagged ₱9 billion worth of contracts, including
"ghost projects" in Bulacan.
○ SYMS Construction Trading: The firm involved in the "ghost" river wall project
in Baliwag, Bulacan, that the President inspected.
○ Alpha & Omega Construction Corp. and St. Timothy Construction Corp.:
Two of the top 15 contractors identified by the President. A part-owner of these
firms, Cezarah Rowena "Sarah" Discaya, has been a central figure in the Senate
inquiry.
● Government Officials:
○ President Ferdinand "Bongbong" Marcos Jr.: Has called for a review of the
projects and has personally inspected "ghost projects." He has also ordered
lifestyle checks on all government officials and is set to create an independent
body to investigate the anomalies.
○ Legislators: Both the Senate and the House of Representatives have launched
probes. There are also allegations that some lawmakers have ties to contractors
and may have made "insertions" in the national budget for these projects. One
representative from Batangas reported a bribery attempt by a DPWH district
engineer to stop an investigation into the matter.
● Oversight Bodies:
○ Senate Blue Ribbon Committee: Launched a motu proprio investigation into the
alleged irregularities.
○ Commission on Audit (COA): Has been flagged for being "slow" in its audits,
with senators pointing out that funds are often already spent before auditors take
action. The COA has stated it will begin filing charges against officials and
contractors soon.
Broader Context and Implications
● Impact on the Economy and Public: The controversy is not just about financial waste;
it has severe real-world consequences. The failure to build effective flood control
infrastructure leaves communities vulnerable to perennial flooding, particularly in areas
like Bulacan, which receives a massive portion of the flood control budget.
● Historical Precedent: Lawmakers have pointed out that the issue of "ghost" projects is
not new and has been flagged by the COA as far back as 2017.
● Calls for Reform: The scandal has led to calls for significant reforms, including stricter
scrutiny of the national budget, the creation of an independent investigative body, and a
complete overhaul of the DPWH. There is also a push for a more science-based and
integrated approach to flood control planning.
