The Philippines is grappling with a widespread controversy surrounding its flood control programme, with allegations of billions of pesos being siphoned off from projects meant to protect vulnerable communities from worsening floods. The issue came to prominence after President Ferdinand Marcos Jr highlighted irregularities in his State of the Nation Address on July 28, prompting an avalanche of revelations, resignations and calls for accountability.

According to ABS-CBN News, the scandal centres on the suspected misuse of around PHP118bn from the Department of Public Works and Highways (DPWH) over the past three years. Funds allocated for flood mitigation are alleged to have been channelled into a network of favoured contractors, lawmakers and civil servants. Although some 5,500 projects have been reported as completed since 2022, extensive media inquiries have found evidence of poorly built or non-existent works — dubbed “ghost projects” — which failed to protect communities during this year’s heavy monsoon rains and typhoons.

A trail of alarming discoveries

A timeline published by ABS-CBN outlines how the controversy unfolded. Immediately after his July address, President Marcos ordered an inquiry into possible fraud. On August 4, Senator Panfilo Lacson disclosed that 67 legislators in 2022 acted as contractors for their own schemes. A week later, the president identified 15 companies that collectively obtained PHP100bn in contracts, many located in areas not especially prone to flooding.

Further probes exposed glaring deficiencies. On August 15, the president inspected structures in Bulacan province that had been signed off as complete despite missing vital elements. Days later, a dike in Oriental Mindoro collapsed, its interior reportedly filled with sand and thin concrete. ABS-CBN also obtained records revealing that one leading contractor, awarded substantial flood works, had a paid-up capital of only PHP250,000 in 2019.

By late August, the Senate’s Blue Ribbon Committee had begun hearings. Several major contractors refused to attend, while Public Works Secretary Manny Bonoan admitted learning only recently of “ghost” projects, including a PHP77mn scheme in Hagonoy that existed only on paper. Growing pressure culminated in Bonoan’s resignation on August 31, with Vince Dizon assuming leadership of the DPWH and demanding courtesy resignations from senior staff.

Expanding probes - political fallout

Investigations widened in early September. The House of Representatives launched its own inquiry after Finance Secretary Ralph Recto estimated losses from fraudulent flood control works at more than PHP100bn between 2023 and 2025. Authorities raided the compound of high-profile contractors Pacifico and Sarah Discaya, seizing luxury vehicles. The Philippine Contractors Accreditation Board subsequently revoked licences of nine companies linked to the pair, while the Justice Department issued lookout bulletins for officials and builders implicated in the affair.

Names of prominent politicians have surfaced. Former DPWH engineer Brice Hernandez accused Senators Jinggoy Estrada and Joel Villanueva of receiving kickbacks, claims both deny. Other allegations touched on senior figures in Congress, prompting Senate President Chiz Escudero to step down, replaced by Tito Sotto. President Marcos later formed the Independent Commission on Infrastructure, led by former Supreme Court Justice Andres Reyes Jr, to steer the investigation.

The Associated Press reports that Marcos has urged Filipinos to express their indignation but appealed for calm. “Of course they are angry; I am angry,” he said, while warning against unrest. Security chiefs stressed the armed forces would remain neutral amid appeals from some protest leaders for a “people power” revolt akin to uprisings that unseated past presidents.

Public anger has been most visible online, though rallies have taken place in Manila and other cities. A larger demonstration is expected at the capital’s pro-democracy shrine on September 21. Police and troops have been placed on alert, but gatherings so far have been peaceful, in contrast to violent protests recently seen elsewhere in Asia.

Climate adaptation tragedy

Beyond corruption, environmental advocates argue that the scandal undermines the country’s ability to face intensifying climate risks. Greenpeace Philippines warned that as much as PHP1.029 trillion of climate-linked public spending may have been lost to graft since 2023, including PHP560bn this year alone. Of the DPWH’s PHP800bn climate-tagged budget for 2025, an estimated PHP173bn allocated to flood protection may be vulnerable.

Jefferson Chua of Greenpeace described the diversion of climate funds as “atrocious,” equating the culprits to “climate criminals.” He said the plunder leaves Filipinos exposed to increasingly destructive floods while pushing the country deeper into debt through loans for disaster recovery. The group also criticised the government’s reliance on grey infrastructure, urging investment in watershed restoration, community-led measures and bans on plastic waste to complement engineering solutions.

Next steps, accountability

President Marcos has pledged that the independent commission’s probe will spare no one, including allies. Meanwhile, thousands of citizens have lodged complaints via a government portal, demanding transparency and restitution. The administration has reportedly suspended 2026 funding for flood mitigation pending a thorough review, redirecting some resources towards health, education and agriculture.

For millions living in flood-prone districts, the outcome of these inquiries carries urgent significance. Failed or substandard defences translate directly into lost homes, livelihoods and lives during seasonal storms. Civil society groups, Catholic leaders and business organisations have joined calls for stringent prosecutions, reforms to procurement systems, and safeguards to protect climate finance from corruption.

The scandal has exposed systemic weaknesses in oversight and a culture of impunity in public works. A key question now is whether the Marcos administration can rebuild public confidence and ensure that infrastructure spending fulfils its intended role in protecting communities from worsening floods and other climate-related risks. Effective accountability will need to cover both those involved in misusing funds and broader systemic issues that leave disaster-prone areas vulnerable.