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Ping Lacson Reveals Alleged Flood Control Corruption Network
Photo credit: Senate PH
Senator Panfilo Lacson detailed what he described as a massive and deeply organized corruption network tied to flood control projects across the country, saying the alleged anomalies have become one of the biggest corruption scandals in Philippine history.
Speaking before the Senate, Lacson presented the progress report of the Senate Blue Ribbon Committee’s investigation into controversial flood control projects, claiming the committee uncovered a systematic scheme involving government officials, contractors, intermediaries, and other actors connected to billions of pesos in public funds.
The senator said the country’s recurring flooding problem is not due to a lack of budget, but because flood control funds were allegedly exploited through a coordinated system of corruption that weakened oversight and allowed questionable projects to move forward.
Lacson pointed to communities such as Barangay Mercado in Hagonoy, Bulacan, where residents continue to suffer severe flooding despite years of government spending on flood mitigation projects. He said many Filipinos remain vulnerable every rainy season while public funds intended for flood control are allegedly diverted through corrupt practices.
The Blue Ribbon Committee chairman described the alleged scheme as a modern evolution of the controversial pork barrel scam exposed in 2013. According to him, the system allegedly operates through project allocations referred to as “allocables,” “leadership funds,” and insertions in the national budget, including unprogrammed appropriations.
Lacson said the investigation identified several groups allegedly involved in the operation, including project proponents, intermediaries or “bagmen,” senior Department of Public Works and Highways (DPWH) officials, contractors, bankers, and members of oversight groups.
He claimed the committee uncovered various corruption mechanisms such as fixed-percentage commissions, cash kickbacks, rigged bidding, favored suppliers, and in-house contracting arrangements designed to bypass accountability measures.
Among the testimonies presented during the hearings was the case involving contractor Sally Santos of SYMS Construction, who allegedly withdrew hundreds of millions of pesos in cash from a LandBank branch in Bulacan that were later handed over to individuals connected to the Bulacan 1st District Engineering Office.
Lacson also said the committee found evidence suggesting that weaknesses in the government’s budget formulation, procurement, project implementation, and auditing systems were exploited to facilitate the alleged anomalies.
Despite the committee’s partial report still awaiting enough signatures from senators before formal filing, Lacson said several government agencies have already begun acting on the findings of the investigation.
He disclosed that criminal complaints have already been filed before the Sandiganbayan against former and incumbent public officials, contractors, and private individuals linked to alleged anomalous flood control projects in Bulacan and Oriental Mindoro.
The Department of Justice has also formed special prosecution panels to investigate several alleged ghost flood control projects, while the National Bureau of Investigation conducted separate fact-finding operations connected to the controversy.
Lacson further revealed that the Anti-Money Laundering Council (AMLC) has frozen more than ₱21.8 billion in assets allegedly linked to irregular flood control projects as of April 30, 2026. Civil forfeiture proceedings involving additional billions of pesos in assets are also underway.
Among those reportedly covered by freeze orders was former Speaker of the House Martin Romualdez, along with several corporations and business associates.
The senator also defended the committee against criticism that certain personalities were not invited to testify. He clarified that Romualdez was formally invited through the Office of the Speaker in accordance with inter-chamber courtesy between the Senate and the House of Representatives.
Lacson likewise addressed issues surrounding former congressman Zaldy Co, saying the committee had issued invitations, a subpoena, and a show-cause order for him to appear before the hearings.
As part of the committee’s recommendations, Lacson pushed for sweeping reforms, including stricter anti-corruption laws, stronger whistleblower protection, tighter oversight of infrastructure spending, reforms in the Office of the Ombudsman and Commission on Audit, and laws targeting bid-rigging and infrastructure fraud.
He also proposed abolishing “allocables” and “leadership funds,” which he described as new forms of pork barrel practices embedded in the budget process.
Lacson said the investigation and proposed reforms aim to recover public funds, strengthen accountability, and prevent future abuse of government infrastructure projects while millions of Filipinos continue to face devastating floods during typhoon season.
Speaking before the Senate, Lacson presented the progress report of the Senate Blue Ribbon Committee’s investigation into controversial flood control projects, claiming the committee uncovered a systematic scheme involving government officials, contractors, intermediaries, and other actors connected to billions of pesos in public funds.
The senator said the country’s recurring flooding problem is not due to a lack of budget, but because flood control funds were allegedly exploited through a coordinated system of corruption that weakened oversight and allowed questionable projects to move forward.
Lacson pointed to communities such as Barangay Mercado in Hagonoy, Bulacan, where residents continue to suffer severe flooding despite years of government spending on flood mitigation projects. He said many Filipinos remain vulnerable every rainy season while public funds intended for flood control are allegedly diverted through corrupt practices.
The Blue Ribbon Committee chairman described the alleged scheme as a modern evolution of the controversial pork barrel scam exposed in 2013. According to him, the system allegedly operates through project allocations referred to as “allocables,” “leadership funds,” and insertions in the national budget, including unprogrammed appropriations.
Lacson said the investigation identified several groups allegedly involved in the operation, including project proponents, intermediaries or “bagmen,” senior Department of Public Works and Highways (DPWH) officials, contractors, bankers, and members of oversight groups.
He claimed the committee uncovered various corruption mechanisms such as fixed-percentage commissions, cash kickbacks, rigged bidding, favored suppliers, and in-house contracting arrangements designed to bypass accountability measures.
Among the testimonies presented during the hearings was the case involving contractor Sally Santos of SYMS Construction, who allegedly withdrew hundreds of millions of pesos in cash from a LandBank branch in Bulacan that were later handed over to individuals connected to the Bulacan 1st District Engineering Office.
Lacson also said the committee found evidence suggesting that weaknesses in the government’s budget formulation, procurement, project implementation, and auditing systems were exploited to facilitate the alleged anomalies.
Despite the committee’s partial report still awaiting enough signatures from senators before formal filing, Lacson said several government agencies have already begun acting on the findings of the investigation.
He disclosed that criminal complaints have already been filed before the Sandiganbayan against former and incumbent public officials, contractors, and private individuals linked to alleged anomalous flood control projects in Bulacan and Oriental Mindoro.
The Department of Justice has also formed special prosecution panels to investigate several alleged ghost flood control projects, while the National Bureau of Investigation conducted separate fact-finding operations connected to the controversy.
Lacson further revealed that the Anti-Money Laundering Council (AMLC) has frozen more than ₱21.8 billion in assets allegedly linked to irregular flood control projects as of April 30, 2026. Civil forfeiture proceedings involving additional billions of pesos in assets are also underway.
Among those reportedly covered by freeze orders was former Speaker of the House Martin Romualdez, along with several corporations and business associates.
The senator also defended the committee against criticism that certain personalities were not invited to testify. He clarified that Romualdez was formally invited through the Office of the Speaker in accordance with inter-chamber courtesy between the Senate and the House of Representatives.
Lacson likewise addressed issues surrounding former congressman Zaldy Co, saying the committee had issued invitations, a subpoena, and a show-cause order for him to appear before the hearings.
As part of the committee’s recommendations, Lacson pushed for sweeping reforms, including stricter anti-corruption laws, stronger whistleblower protection, tighter oversight of infrastructure spending, reforms in the Office of the Ombudsman and Commission on Audit, and laws targeting bid-rigging and infrastructure fraud.
He also proposed abolishing “allocables” and “leadership funds,” which he described as new forms of pork barrel practices embedded in the budget process.
Lacson said the investigation and proposed reforms aim to recover public funds, strengthen accountability, and prevent future abuse of government infrastructure projects while millions of Filipinos continue to face devastating floods during typhoon season.
May 5, 2026
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