Philippine politics in 2025–2026 has been completely dominated by the "flood control scandal"
Broke August 2025, ongoing
2
Transparency indicators have clearly worsened
CPI 2025: score 32, ranked 120th of 182 countries (Transparency International, released February 10, 2026)
3
Two sitting senators have been arrested and jailed on plunder charges
① Senator Jinggoy Estrada — June 1, 2026 / ② Senator Rodante Marcoleta — July 6, 2026 (corrected 2026-08-25 through cross-checking; the previous draft mentioned only Estrada, and Marcoleta's arrest was missing entirely. The 4 topic files "Key Figures — Politics," "Electoral System," "Judiciary and Legal System," and "Military, Police, and Security Institutions" all agree on an arrest date of July 6, 2026. 2026-08-27, source replaced — the previous draft cited the English-language Wikipedia article "Rodante Marcoleta." Sources: Philstar, "Marcoleta arrested in P75-M plunder case," 2026-07-06; GMA News, 2026-07-06; PNA, "Marcoleta, Defensor now under PNP custody over plunder raps." Retrieved 2026-08-27)
4
The corruption scandal has spilled over into the macroeconomy
Q2 2026 GDP growth of 2.3% (Philippine Statistics Authority, PSA, released August 7, 2026) — the lowest since the pandemic
5
注 Institutions (laws, courts, audit bodies) exist, but enforcement is weak — a structural gap
Don't mistake the mere existence of anti-graft agencies for evidence that they are "working"
1. Numbers on where things stand now: transparency indicators
1-1. Transparency International Corruption Perceptions Index (CPI)
Year
Score (0–100, higher = cleaner)
Rank
Countries covered
Source
CPI 2024
33
114th
180 countries/territories
Transparency International
CPI 2025
32
120th
182 countries/territories
Transparency International (released February 10, 2026)
Local reporting (Philstar and others) describes the 2025 edition as the Philippines' "worst-ever ranking." However, 注the pool of countries grew from 180 to 182, so a simple rank comparison needs care. The 1-point drop in score, from 33 to 32, is easier to treat as genuine evidence of deterioration.
Southeast Asia comparison (CPI 2025, Transparency International)
Country
Score
Rank
Singapore
84
3rd
Malaysia
52
54th
Viet Nam
41
81st
Indonesia
34
109th
Thailand
33
116th
Philippines
32
120th
注The CPI is a "perception" index, not a measure of the actual amount of corruption. It is a composite of expert surveys and business-risk assessments, so the score can fall even in "a year when more got exposed," once a large scandal is widely reported. Reading "CPI fell = corruption increased" is a misreading.
注 The CPI covers public-sector corruption only; it does not measure private-to-private bribery or a country's role as a destination for laundered money.
1-2. World Bank Worldwide Governance Indicators (WGI)
Indicator
Value
Year
Notes
Control of Corruption
-0.58
2024
Scale runs from -2.5 (weak) to +2.5 (strong)
Same, prior year
-0.57
2023
Essentially flat to slightly worse
Same, long-run average
-0.61
Average, 1996–2024
World average
-0.03
2024
194 countries
Source: World Bank Worldwide Governance Indicators (as compiled by TheGlobalEconomy). 注 The WGI, too, is a composite of various surveys, so it is inappropriate to describe a single year's move in the second decimal place as "improvement" or "deterioration." The fact worth taking away is the long-run flatness — the Philippines has been stuck around -0.6 for close to 30 years.
2. Institutions: who investigates corruption
2-1. The four pillars
Agency
Standing
Powers
Head as of August 2026
Office of the Ombudsman
Independent constitutional body (established May 12, 1988)
Independent investigation and prosecution, administrative discipline (suspension/dismissal), and exclusive authority to file cases with the Sandiganbayan
Jesus Crispin Remulla (7th Ombudsman, took office October 2025; previously Justice Secretary, 2022–2025)
Sandiganbayan (anti-graft special court)
Special court
Exclusive original jurisdiction over graft/plunder cases involving officials of Salary Grade 27 and above
Presiding Justice: Geraldine Faith Econg (since January 7, 2025)
COA (Commission on Audit)
Independent constitutional body
Auditing of government funds/property, Notices of Disallowance, publication of Annual Audit Reports (AAR)
Chairperson: Gamaliel Cordoba (took office October 21, 2022; term to February 2, 2029)
PCGG (Presidential Commission on Good Government)
Under the President (since 2007, under the Department of Justice)
Recovery of ill-gotten wealth of the Marcos family and associates
2023 budget of approximately ₱166.47 million; about 97 staff
The Ombudsman serves a 7-year, non-renewable term, removable only by impeachment. The President appoints from a shortlist recommended by the Judicial and Bar Council (JBC). 注The design of "an independent body whose head the President appoints" reliably triggers an independence controversy whenever someone close to the administration takes the post. Remulla, too, was the sitting administration's immediately preceding Justice Secretary, and conflict-of-interest objections were raised when he took office.
The Sandiganbayan is composed of 1 Presiding Justice plus 14 Associate Justices (15 total), organized into 7 Divisions of 3 each (expanded from 5 Divisions under RA 10660, 2015).
注COA can audit and disallow, but has no power to impose administrative penalties on officials (Supreme Court, Biong v. COA, 2024). A COA "finding" is neither an indictment nor a conviction. When reporting says "COA flagged irregularities," that is an accounting-level question, not a determination of criminal fact.
2-2. Key statutes
Statute
Common name
Enacted
Key points
RA 3019
Anti-Graft and Corrupt Practices Act
August 17, 1960
Section 3 lists corrupt practices. Section 3(e) — "causing undue injury to any party, or giving unwarranted benefits, through manifest partiality, evident bad faith, or gross inexcusable negligence" — is the provision used most often in practice. Section 3(b) covers receiving money or gifts in exchange for intervening in a contract. 注The penalty is not "1 to 10 years' imprisonment." Section 9(a) was amended by Batas Pambansa Blg. 195 (March 16, 1982) Section 2, and the current penalty is "imprisonment of 6 years and 1 day to 15 years, plus perpetual disqualification from public office, plus forfeiture of ill-gotten property." The prescriptive period (Section 11) was also extended from 15 to 20 years by RA 10910 (July 21, 2016) Section 1 (confirmed against the amended text, 2026-08-26. The RA 3019 text posted on LawPhil is the original as enacted, not the current text. Source: BP 195 original text on LawPhil / RA 10910 original text, "An Act Increasing the Prescriptive Period for Violations of Republic Act No. 3019 … from Fifteen (15) Years to Twenty (20) Years, Amending Section 11 Thereof"). Section 7 mandates the filing of statements of assets and liabilities
RA 6713
Code of Conduct and Ethical Standards for Public Officials
February 20, 1989
Requires the annual filing of a SALN (Statement of Assets, Liabilities and Net Worth) and sets out conflict-of-interest rules. As of August 2026, the statute itself has not been amended.注 However, the filing practice has changed — CSC Resolution No. 2500632, the "Omnibus SALN Rules" (adopted June 25, 2025; took effect September 29, 2025), requires use of the 2025 form and electronic filing, and applies to SALNs for 2026 and after (the Judiciary implements this via OCA Circular No. 77-2026). Do not conflate "amending the statute" with "amending the CSC rules" (confirmed 2026-08-26)
RA 7080
Plunder Law
July 12, 1991
A capital-level offense committed when a public official amasses ill-gotten wealth above a set threshold through a series of criminal acts. 注The original text set the threshold at ₱75 million, but RA 7659 Section 12 (1993) lowered it to ₱50 million (which is why the figures circulating in different sources disagree). The penalty is equivalent to reclusion perpetua (life imprisonment), plus perpetual disqualification from public office, plus total forfeiture. It is treated as a non-bailable offense as a rule, and retirement benefits are also forfeited. Prescriptive period of 20 years, though the state's right to recover the property never prescribes. The prosecution need not prove every individual act — proof of "a pattern of acts" suffices
RA 12009
New Government Procurement Act
Approved July 20, 2024
Discussed in Section 6 below
RA 9184
Government Procurement Reform Act (the old procurement law)
January 10, 2003
Repealed by RA 12009 Section 115 (the repeal took legal effect, under RA 12009 Section 113's transitory provision, from the IRR's effectivity date of February 25, 2025; confirmed 2026-08-26)
注"Plunder" and "Graft" are separate offenses. Japanese-language reporting tends to translate both as "corruption," but Plunder — with its ₱50 million-plus threshold, non-bailable status, and life-imprisonment-level penalty — is a different, more severe class of crime, with an entirely different political impact.
3. The 2025–2026 flood control scandal
3-1. Discovery and scale
Item
Figure
Timing/Source
Total flood-mitigation budget
₱545.6 billion (approx. US$11 billion)
July 2022–May 2025, allocations under the Marcos administration
Amount awarded to just 15 contractors
Approx. ₱100 billion (about 20% of the total)
Disclosed by President Marcos himself on August 11, 2025
The Manila Times, August 16, 2026. A media tabulation, not an official government statistic
Trigger: In July 2025, Cardinal Pablo Virgilio David raised questions about a ₱5 billion flood project in Malabon/Navotas, and President Marcos himself addressed flood-control projects in his July 28 State of the Nation Address (SONA). On August 11, the President disclosed that "₱100 billion was concentrated in 15 companies" and opened the "Sumbong sa Pangulo" whistleblower site. On August 22, DPWH Batangas district engineer Abelardo Calalo was caught in the act and arrested for attempted bribery involving ₱3.1 million.
Anatomy of the scheme: bid-rigging (the same group of contractors bidding on a single project under multiple company names), license-renting, legislators inserting pet items into the budget in exchange for kickbacks, and "ghost projects" that either never break ground or fall short of standards. The Senate Blue Ribbon Committee's "Philippines Under Water" inquiry made visible a three-way structure linking contractors, district engineers, and legislators.
3-2. ICI (Independent Commission for Infrastructure)
Item
Details
Legal basis
Executive Order No. 94, September 11, 2025
Character
A 3-member ad hoc fact-finding commission under the Office of the President (no criminal prosecution authority)
Scope
Flood-control and infrastructure projects from 2015 onward
Powers
Issuing subpoenas, recommending admission into the Witness Protection Program, recommending referral to the DOJ/Ombudsman
Chair
Andres Reyes Jr. (former Supreme Court Associate Justice)
Executive Director
Brian Keith Hosaka (former Supreme Court spokesperson)
Departures from the commission
Special Adviser Benjamin Magalong resigned September 26, 2025 (succeeded by Rodolfo Azurin Jr., former PNP chief); Commissioner Rogelio Singson resigned December 3; Commissioner Rossana Fajardo resigned December 31
Track record
32 hearings and 36 witnesses (through January 2026); 65 individuals referred to the Ombudsman; issuance of Immigration Lookout Bulletin Orders (ILBOs) requested for 66
Final report
Submitted its final report on February 6, 2026
Disbandment
Stood down as of March 31, 2026. The Chair explained that the commission "had fulfilled its mandate" and turned over all evidence to the Ombudsman and the DOJ
注ICI's numbers vary hugely depending on the context. On November 21, 2025, the ICI stated "as many as 1,200 could be subject to prosecution" (Philstar), but only 65 were actually formally referred to the Ombudsman. Do not reuse the headline "1,200 to be prosecuted" as-is.
注 The ICI's disbandment drew criticism. On March 23, 2026, reporting surfaced that "the ICI's internal findings had cleared former House Speaker Romualdez," and the Palace found itself explaining that "the investigation continues even after the ICI closes" (PNA, March 15, 2026). Since the ICI was a fact-finding body, not a prosecuting one, its findings do not determine criminal liability.
3-3. Senate and House investigations
Body
Development
Senate Blue Ribbon Committee
Opened the "Philippines Under Water" inquiry in August 2025. As of May 2026, its partial report was stalled, having secured only 7 of the 9 signatures required. The chairmanship shifted from Panfilo Lacson to Pia Cayetano in May 2026. The Supreme Court ruled that the draft report is protected by legislative privilege and cannot be compelled to be disclosed, rejecting a public-disclosure request
Senate findings
Recommended investigation of several senators. The phrase "corruption with no mastermind" was used, framing this as a structural problem rather than an individual crime
House of Representatives
Conducted its own corruption inquiry, but the investigation stalled as the scandal widened. 注Because the House itself was at the center of the allegations, its legitimacy as an investigating body was repeatedly called into question
3-4. Politicians prosecuted or facing prosecution (as of August 25, 2026)
Person
Position
Status
Jinggoy Estrada
Sitting Senator
Indicted by the Ombudsman for plunder and graft on May 28, 2026. Surrendered to the CIDG and was arrested on June 1, 2026, and jailed at Quezon City Jail (Payatas). Accused of receiving roughly ₱573 million in kickbacks over flood-control projects in Bulacan (Malolos/Hagonoy). The Sandiganbayan imposed a 90-day preventive suspension from office on June 16, 2026. Remains in detention while retaining his Senate seat
Manuel Bonoan
Former DPWH Secretary
The DOJ recommended plunder and graft charges in May 2026; indicted at the same time as Estrada. He is reported to have subsequently shifted, in effect through a plea arrangement, toward cooperating as a state witness
Martin Romualdez
Former House Speaker
Resigned the speakership on September 17, 2025. On December 18, 2025, the DPWH recommended plunder charges against him and 86 others. An Ombudsman investigation reportedly identified him as a "central figure" on July 20, 2026 (Rappler). On July 24, 2026, a committee sought the opening of a preliminary investigation for plunder, bribery, and money laundering. As of August 20, 2026, he has filed a motion to dismiss, and no formal indictment has yet been handed down
Elizaldy "Zaldy" Co
Former Ako Bicol party-list representative, House Appropriations Committee chair (July 2022–January 2025), CEO of Sunwest Group
Resigned his House seat in September 2025. His family's group of companies won ₱15.7 billion in flood-control contracts (Sunwest Inc. alone was the largest, with 79 projects worth ₱10.15 billion). In November 2025 he claimed he had "inserted about ₱100 billion into the budget on the instructions of the President and the former Speaker." An arrest warrant was issued November 21, 2025, and an Interpol Blue Notice on November 24. Detained in Prague on April 16, 2026 for a document irregularity, and as of April 28, 2026 was a fugitive seeking asylum in France. 8 vehicles (worth ₱145 million) and an aircraft (worth ₱4.7 billion) were seized
Francis Escudero
Senator, former Senate President
Removed as Senate President on September 8, 2025. Placed under an Immigration Lookout Bulletin Order on October 8, 2025. Reported in April–May 2026 to be under Ombudsman consideration for plunder charges
Joel Villanueva
Senator
Placed under an Immigration Lookout Bulletin Order on October 8, 2025. A malversation case. Became subject to a preliminary investigation on June 29, 2026 (added 2026-08-25 through cross-checking; source: topic file "Judiciary and Legal System," §11-3. 注 Within this cluster of files, at least one document confused this June 29 date with "Marcoleta's indictment date" — always cite a date paired with the specific person)
Rodante Marcoleta
Sitting Senator
A plunder case over ₱75 million in undeclared donations received in 3 tranches over 4 days in January 2025, while he was a House member (SAGIP party-list) — above plunder's statutory threshold of ₱50 million (donors: former Representative Mike Defensor, ₱30 million; Joseph Varias Espiritu, ₱25 million; Aristotle Baluyut Viray, ₱20 million). The Ombudsman formally filed plunder charges with the Sandiganbayan on July 3, 2026 (corrected 2026-08-27: the previous draft's "May 2026" was wrong — the Ombudsman's filing was July 3) → arrested on July 6, 2026 pursuant to a Sandiganbayan warrant, and jailed at Quezon City Jail (Payatas). Co-accused Mike Defensor was also taken into custody the same day (added 2026-08-25 through cross-checking; the previous entry consisted of only a single line about "a plunder case involving campaign funds," and the single biggest milestone — the indictment and arrest — was missing entirely. 2026-08-27, source replaced: the previous draft cited the English-language Wikipedia article "Rodante Marcoleta"; this was re-verified against primary reporting. Sources: Philstar, "Ombudsman files plunder charges vs Rodante Marcoleta," 2026-07-03; Philstar, "Marcoleta arrested in P75-M plunder case," 2026-07-06; GMA News, "Arrest warrant out for Rodante Marcoleta, 3 others over P75-M plunder case," 2026-07-06; Bloomberg, "Philippine Ombudsman Files Plunder Case Against Duterte Ally Rodante Marcoleta," 2026-07-03; PNA, "Marcoleta, Defensor now under PNP custody over plunder raps." All retrieved 2026-08-27 / topic files "Key Figures — Politics," "Electoral System," "Judiciary and Legal System," "Military, Police, and Security Institutions")
Key contractors
Contractor
Details
St. Timothy Construction / Alpha and Omega General Contractor (the Discaya couple)
A ₱96.49 million project in Bulacan. Owned about 40 luxury vehicles (worth ₱300–465 million). On September 1, 2025, Sarah Discaya admitted to bidding on the same project under multiple company names
Sunwest Inc. (linked to Zaldy Co)
The largest, with 79 flood-control projects worth ₱10.15 billion (2022–2025)
Sto. Cristo Construction
₱3.5 billion in flood-control work (2022–2024)
Rudhil Construction & Enterprises
Its owner donated ₱20 million to the Marcos campaign, and won a ₱243 million sewage-treatment-plant contract
3-5. Political fallout
The large-scale protests of September 21, 2025: approximately 100,000 at "Baha sa Luneta" in Rizal Park (Luneta), and approximately 70,000 at the "Trillion Peso March" at the EDSA Shrine, with simultaneous rallies in Cebu, Baguio, Davao, Iloilo, and elsewhere. Clashes broke out in some areas (around Mendiola/Recto/Ayala), leaving 2 dead, roughly 76 civilians and 95 police officers injured, and 244 arrests. Further large rallies followed on November 30, 2025 (a second round) and February 25, 2026 (the 40th anniversary of People Power).
A cascading collapse of legislative leadership: House Speaker went from Romualdez → Faustino "Bojie" Dy III (from September 17, 2025). Senate President went from Escudero (31st, May 20, 2024–September 8, 2025) → (September 8, 2025) Tito Sotto (32nd) → (May 11, 2026) Alan Peter Cayetano (33rd, until June 3) → 注the presidency was vacant June 3–17 (with Gatchalian acting as President Pro Tempore) → (June 17, 2026) Sherwin Gatchalian (34th, incumbent; the same day, Tito Sotto was elected acting Senate President Pro Tempore, and both former presidents Zubiri and Escudero witnessed Gatchalian's oath of office). (The vacancy period and the numbering of presidencies were filled in through cross-checking on 2026-08-25. 2026-08-27, source replaced: the previous draft cited the English-language Wikipedia articles "List of presidents of the Senate of the Philippines" and "Sherwin Gatchalian"; this was re-verified against primary reporting. Sources: Philippine News Agency, "Gatchalian formally elected as Senate President," 2026-06-17; GMA News, "Sherwin Gatchalian elected Senate president," 2026-06-17; Rappler, "Win Gatchalian is elected Senate president," 2026-06-17; the Commission on Appointments' official site (comappt.gov.ph), article dated 2026-06-17. All retrieved 2026-08-27. The numbering itself [31st–34th] could not be explicitly confirmed in the primary reporting above and is being provisionally retained as the value on which multiple search results agree = needs re-verification) 注Having 4 different Senate Presidents in a single year is an extraordinary situation that has severely undermined the predictability of legislative deliberation.
The DPWH Secretary changed from Bonoan to Vince Dizon (from September 1, 2025), who was directed to "clean up" the ₱881.3 billion DPWH budget.
Public opinion: In SWS's Q2 2026 survey, President Marcos's trust rating was 34% (Vice President Sara Duterte's was 57%). The SWS survey also found that corruption/governance had overtaken economic issues as the public's top concern, and that 59% of Metro Manila residents said DPWH corruption had "gotten worse over the past 3 years."
3-6. Economic spillover
Indicator
Value
Source/timing
Q1 2026 GDP growth
2.8%
PSA (flash estimate May 7, 2026; confirmed unrevised August 7)
Q2 2026 GDP growth
2.3%
PSA (released August 7, 2026) — the lowest since the pandemic
Infrastructure spending
Reported down approximately 48% year-on-year
2026, reporting-based. 注 The period covered and the definition used vary by article — needs verification
注Do not misread the mechanism. The direct cause of the GDP slowdown is less that "corruption made money disappear" than a "chilling effect" — bureaucrats, fearing prosecution, freezing bidding and spending. Both the World Bank and the ADB cite the corruption issue as a risk factor for the Philippines' 2026 growth outlook. In other words, the country is in the politically awkward position where exposing corruption is itself becoming a short-term drag on growth.
3-7. The 2027 budget: scrutiny of ₱107 billion
DPWH requested ₱107.4 billion for flood-control projects in the 2027 budget (Rappler, August 11, 2026 / Philstar, August 12) — the lowest level since 2019.
Following major flooding in Metro Manila on August 17, 2026, the ₱107 billion request itself became the target of intense congressional scrutiny (BusinessWorld, August 17, 2026 / Philstar, "Senate to scrutinize ₱107-B flood control budget," August 22, 2026).
Transparency measures floated include a requirement to publish GPS coordinates for every project (Philstar, August 16, 2026) and the Ombudsman announcing monitoring at every stage (Daily Tribune, August 18, 2026).
For reference: in the 2026 budget, ₱225 billion was reallocated from flood control to education and health, and ₱36 billion to social welfare, and on September 8, 2025 President Marcos had stated "no new flood-control budget will be allocated for 2026."
4. Pork Barrel: the two 2013–2014 unconstitutionality rulings
Mechanism
Details
CDF (Countrywide Development Fund)
A discretionary legislator's fund created in 1990. The origin of "pork barrel"
PDAF (Priority Development Assistance Fund)
CDF's successor. Discretionary funds that let legislators designate the specific projects it goes to
The 2013 PDAF scandal
Masterminded by Janet Lim Napoles, who channeled funds through the JLN Group into fake NGOs and dummy foundations. Legislators received a 40–50% kickback; Napoles's side took a 10–15% cut. Losses of approximately ₱10 billion (2000–2013), plus ₱900 million from the Malampaya natural gas fund
Belgica v. Ochoa (Supreme Court, November 19, 2013)
Ruled PDAF and past pork-barrel laws (including the 1990 CDF) unconstitutional, on grounds of a separation-of-powers violation (legislators intervening in budget execution after the appropriations act's passage). The current premise that "pork barrel is unconstitutional" traces to this ruling
DAP (Disbursement Acceleration Program)
A budget-execution acceleration scheme introduced by the Aquino III administration in 2011. It clawed back unexecuted allocations as "savings" and reallocated them
Araullo v. Aquino III (G.R. No. 209287, Supreme Court, July 1, 2014)
Ruled the following aspects of DAP unconstitutional: ① treating unexecuted allocations as "savings" and withdrawing them; ② spending on items not itemized in the General Appropriations Act (GAA); ③ increasing discretionary lump-sum appropriations; ④ cross-border transfers of funds outside the executive branch (e.g., to the Senate)
注"Pork barrel was abolished in 2013" is inaccurate. What was ruled unconstitutional was the specific PDAF mechanism; afterward it survived in new forms such as "budget insertions," "lump-sum items," and "ayuda (assistance) programs." The 2025–2026 flood-control scandal is precisely the latest incarnation of this "insertion"-style pork barrel. Zaldy Co's claim that he "inserted about ₱100 billion" into the budget shows that, after PDAF's abolition, legislative discretion simply moved to the budget-deliberation stage.
注The criminal outcomes of the PDAF scandal were extremely limited.
Defendant
Outcome
Janet Lim Napoles
Convicted on 7 counts of graft, totaling 62 years' imprisonment
Former Senate President Juan Ponce Enrile
Acquitted of plunder in October 2024
Senator Jinggoy Estrada
Convicted of bribery in January 2024 → overturned and acquitted (reasonable doubt) by the Sandiganbayan in August 2024
Former Representative Ruffy Biazon
Convicted of graft over the misappropriation of ₱3 million, May 2025
Over more than a decade, the major plunder charges against the senators accused turned out, almost across the board, to end in acquittal or an unresolved outcome. Do not read "indicted" as "will eventually be convicted." This is the single most important reference point when thinking through where the 2026 flood-control case is likely to end up.
5. The history of ill-gotten wealth: the Marcos family and the June 2026 ruling
Item
Details
PCGG established
February 28, 1986, by Corazon Aquino's Executive Order No. 1
Target
Recovery of ill-gotten wealth of former President Ferdinand E. Marcos, his family, relatives, subordinates, and associates
Estimated fortune
Most often put at US$5–10 billion. Some economists put it as high as $30 billion if assets dating back to the 1950s are included. 注 All of these are estimates, not confirmed figures
Amount recovered
Over ₱171 billion (as of 2019, PCGG). By law, recovered funds are automatically applied to agrarian reform, and have funded roughly 80% of the agrarian reform budget
Still contested
Roughly ₱70 billion worth remains in litigation (PCGG)
注 "Guinness World Record for the largest government theft in history"
Frequently quoted in media, but could not be verified against a primary source within the scope of this article = unconfirmed. If used, avoid asserting anything stronger than "it is said that..."
Related to Imelda Marcos
Multiple corruption cases since 1991 (a Swiss foundation, art valued at US$24 million, etc.) have dragged on for over 26 years, prolonged by delays and defendants' non-appearance
The June 2026 Sandiganbayan ruling
In June 2026, the Sandiganbayan dismissed the "remaining asset claims" in the ill-gotten-wealth case against the Marcos family (Bloomberg, June 5, 2026; ABS-CBN, June 6, 2026). Reporting identifies the claims affected as including Civil Case No. 0141. This legally closed the main part of a recovery case that had run for 35 years since it was filed in 1991.
注Reporting does not agree on the legal grounds for the dismissal (insufficient evidence versus a procedural reason), and it cannot be stated definitively as of this article = needs verification.
Civil society groups such as ATOM (August Twenty-One Movement) condemned the ruling as "utterly unacceptable" and called it "a pattern of impunity for the Marcos family" (ABS-CBN/Manila Times, June 6–7, 2026).
In August 2026, President Marcos himself stated that "it has never been proven that the family's assets were ill-gotten," reigniting the controversy (Inquirer, August 15, 2026; Daily Tribune, August 14, 2026).
注This is an extremely politically sensitive area. When covering it, always keep separate: the "₱171 billion recovered" (an actual, confirmed figure), the "US$5–10 billion in ill-gotten wealth" (an estimate), and the "dismissed claims" (a judicial ruling).
6. Procurement: RA 12009 (the New Government Procurement Act)
Item
Details
Official title
An Act Revising Republic Act No. 9184, Otherwise Known as the "Government Procurement Reform Act," and for Other Purposes
Common name
New Government Procurement Act (NGPA)
Approved
July 20, 2024 (by President Ferdinand R. Marcos Jr.) / the statute itself took effect August 13, 2024 (published in Manila Bulletin and BusinessMirror July 29, 2024)
IRR (implementing rules)
GPPB approval February 4, 2025 (GPPB Resolution No. 02-2025) → Official Gazette publication February 10, 2025 → took effect February 25, 2025 (date confirmed through cross-checking against amended text, 2026-08-26; the previous entry, "promulgated February 2025," could not pin down the actual dividing line between the old and new laws. Sources: GPPB-TSO, "Important Update: Effectivity and Transitory Periods under RA 12009"; the IRR as published in the Official Gazette, 2025-02-10; GPPB Resolution No. 05-2025)
Standard procurement forms
Published June 23, 2025 → their use became mandatory from September 21, 2025 (90 days later). The old forms remained acceptable up to that date (GPPB Resolution No. 05-2025)
Oversight
GPPB (Government Procurement Policy Board)
注 (Confirmed against amended text, 2026-08-26) Describing "RA 12009 as a comprehensive revision of RA 9184" is inaccurate.
The official title is "An Act Revising Republic Act No. 9184…," but RA 12009 Section 115 (the Repealing Clause) "repeals" RA 9184 and Commonwealth Act No. 138 outright. The original text reads: "Republic Act No. 9184 otherwise known as the 'Government Procurement Reform Act' and Commonwealth Act No. 138 are hereby repealed."
However, since RA 12009 Section 113 (Transitory Provision) states that "Prior to the effectivity of the IRR of this Act, the provisions of Republic Act No. 9184 and its IRR shall remain in force and effect...," the repeal actually took legal effect only on the IRR's effectivity date of February 25, 2025.
A procurement project publicly announced before February 25, 2025 therefore falls under RA 9184.注Do not confuse "a section of the amending law" with "the law amended/repealed" — Sections 113 and 115 are both section numbers of RA 12009 itself, not of RA 9184.
(Source: GPPB Resolution No. 05-2025, which quotes Sections 113 and 115 verbatim / GPPB-TSO's official page)
Main changes
Item
Details
MEARB
Most Economically Advantageous Responsive Bid — moves away from the old "lowest price wins" approach exclusively, building technical superiority, environmental impact, and social characteristics into the evaluation. Price is weighted at 15–40% of the score
Expanded procurement modes
Competitive bidding, limited source bidding, competitive dialogue, unsolicited offers with bid matching, direct contracting, negotiated procurement, and other modes — 11 in total, with room to add modes suited to new technology
E-procurement
Positions PhilGEPS as the "single electronic portal" for government procurement, providing for e-bidding, reverse auctions, e-payment, and data analytics. The PS-DBM's PhilGEPS eMarketplace went live in December 2024
Timeline
Optimizes the procurement process to 60 days
Infrastructure
Emphasizes detailed engineering, lifecycle assessment, and design-and-build
Sanctions
Administrative penalty of blacklisting (barred from participating in procurement for a set period)
注Note the irony of the timing. Even though RA 12009 was enacted in July 2024 and its IRR issued in February 2025, most of the projects implicated in the 2025 flood-control scandal were actually awarded under the old law (RA 9184). "A new law exists" does not equal "the problem is solved." If anything, some argue that by adding "evaluation criteria beyond price," MEARB widens the evaluation committee's discretion, and, depending on implementation, could open the door to new forms of discretionary corruption. In July 2026, KPMG published a piece discussing "closing procurement gaps with digital tools (Accountability by Design)."
7. Whistleblower protection: the biggest institutional gap
Item
Status
Comprehensive whistleblower protection law
Not yet enacted as of August 2026. The Philippines has no comprehensive Whistleblower Protection Law
Substitute mechanism
The Witness Protection Program (RA 6981, 1991) is the only fallback. 注 This protects "witnesses in criminal cases" — it does not shield whistleblowers from employment retaliation, dismissal, or defamation suits
International pressure
On February 12, 2026, the UNODC (United Nations Office on Drugs and Crime) urged the Philippines that enacting whistleblower-protection legislation is "essential to breaking corruption" (Gulf News)
State of debate
An op-ed titled "why the Philippines urgently needs a whistleblower protection law" appeared in international media as recently as April 17, 2026 — suggesting the movement remains mostly at the advocacy/op-ed level; no reporting identifying a specific bill number or its stage in deliberation could be found within the scope of this article = unconfirmed
注This is shaping how the flood-control case is being investigated. The arrests and indictments that have gone forward have relied on confessions and testimony from insiders themselves — the Discaya couple, a former DPWH engineer. But with no permanent legal framework protecting them, on August 18, 2026, the Ombudsman was reported to be "considering plunder charges against 4 of Zaldy Co's former bodyguards themselves, following their recantation of earlier statements" (Manila Bulletin). The constant risk of recantation is a direct consequence of having no protection law.
8. Estimates of the economic losses from corruption, and how to read them
Estimate
Figure
Source and character
DOF (Department of Finance) estimate
₱42.3–118.5 billion
Published September 2025. An estimate of lost economic activity and employment from "ghost" flood-control projects over roughly the preceding 2 years. 注This is not the amount stolen — it is an estimate of economic opportunity cost
Statement attributed to Ralph Recto
Up to ₱119 billion
Part of the same DOF estimate above. 注As of September 2025 his title was "Finance Secretary," not "senator" (corrected 2026-08-25 through cross-checking; the previous entry, "Senator Recto," was wrong. Recto served as Finance Secretary from January 2024 to November 17, 2025, and as Executive Secretary from November 17, 2025. Source: topic file "Key Figures — Politics," Chapter 5 / topic file "Local Politics and Political Dynasties," §8-2, which likewise identifies him as "Executive Secretary Ralph Recto")
Greenpeace
Cumulative ₱1 trillion
An NGO's claimed figure. The methodology has not been disclosed, and this is not a government statistic
SCMP
US$2 billion over 2 years
A media outlet's own conversion
注It is wrong to blend these four figures together and write "the Philippines' corruption losses total ₱1 trillion." The principle for telling them apart:
Category
Meaning
Example
Confirmed figure
An amount settled by a court ruling or an audit
The amount established in Napoles's conviction
Government estimate
A figure derived by an agency using a stated methodology
DOF's ₱42.3–118.5 billion
Advocacy figure
A claim made by an NGO or industry group
Greenpeace's ₱1 trillion
Allocated amount
Money budgeted for a purpose (≠ money that all vanished)
The ₱545.6 billion flood-control budget
In particular, articles even in the Japanese-language sphere are seen misreading "the ₱545.6 billion flood-control budget" as "₱545.6 billion was stolen." ₱545.6 billion is the total budget allocation, of which only a portion is suspected of fraud.
注 The long-circulating claim that "20% of the national budget disappears to corruption in the Philippines" also, when its origin is traced, most often leads back to statements by the Ombudsman or the World Bank from the 1990s–2000s, and no updated government statistic confirming it as of 2025–2026 has been found = unconfirmed. If you use it, always attach the year and the source.
9. Local corruption
Corruption in the Philippines is not just a national-government problem. Local government units (LGUs) have, since the 1991 Local Government Code (RA 7160), controlled substantial funding through the internal revenue allotment (now the National Tax Allotment), giving mayors and governors considerable discretion.
Examples of local cases the Ombudsman acted on in 2025–2026 (reporting-based)
Case
Details
Catanduanes
The Ombudsman suspended the Vice Governor and 11 provincial board members for 6 months
Surigao del Sur
Plunder/graft charges filed against provincial officials
A mayor in Iloilo province
Removed over an irregular land deal
Mayor of Minglanilla (Cebu province)
Suspended over a corruption case
Bohol governor and others
Disciplined over resort development
Antique provincial board member
Sanctioned by the Ombudsman over a budget dispute
Local governments are also central to the flood-control scandal. The Ombudsman's investigations cover roughly ₱60 billion worth of flood-control projects in Cebu province alone. 注 The clearest structural finding to emerge from the 2025–2026 investigations is that DPWH's "District Engineering Offices" (DEOs) have become the nodes connecting the national budget with local contractors and local legislators.
Practical implication: for a Japanese company doing business in the provinces, corruption risk concentrates less in "permits from the capital" and more around "local permits, local contractors, and local power brokers." Note that this exposure can trigger extraterritorial application of Japan's Unfair Competition Prevention Act (the foreign-bribery offense), the U.S. FCPA, and the UK Bribery Act.
10. Efforts at reform
Measure
Details
Assessment
The FOI Executive Order (Executive Order No. 2, s. 2016)
Signed July 23, 2016. Mandates disclosure across the entire executive branch (departments, bureaus, GOCCs, state universities included). Response deadline of 15 working days (extendable up to 20 for voluminous documents). If refused, appeal to a higher agency within 15 working days, which must decide within 30. States a principle of "presumptive access" to information
注Covers the executive branch only. The legislature, judiciary, independent constitutional bodies, and LGUs are not bound (LGUs are only "encouraged to participate"). This is the biggest gap
eFOI (the eFOI portal)
An online system for filing and publishing FOI requests
Continues to operate
The FOI bill (Right to Information)
Has gone unenacted for close to 30 years. In 2026 there was reporting that "House leadership has united and access-to-information legislation is nearing passage," with the DBM also signaling support under the banner "Towards a Transparent Tomorrow: Advancing FOI Legislation"
注As of August 2026, passage cannot be confirmed = not yet enacted
Reopening SALN disclosure
Former Ombudsman Samuel Martires's 2020-era restriction barring disclosure of a SALN without the subject's consent was lifted by Ombudsman Remulla in a memo dated October 14, 2025, and disclosure resumed from November 15, 2025. A wave of legislators voluntarily publishing their own SALNs followed
The most concrete transparency advance to come out of the flood-control scandal. Restored the practical usefulness of "lifestyle checks"
Lifestyle checks
President Marcos directed these be conducted for public officials on August 27, 2025
Digitalizing procurement
Consolidating PhilGEPS into a single portal (RA 12009); the PhilGEPS eMarketplace (went live December 2024)
DPWH's "Integrity Chain"
On February 10, 2026, DPWH partnered with the Philippine Blockchain Council to launch a portal publishing infrastructure-project records on a blockchain
注 New; too early to assess effectiveness
GPS coordinate disclosure
In August 2026, publication of GPS coordinates for every project was demanded for the ₱107 billion 2027 flood-control budget
Aimed at making physical verification of "ghost projects" possible
Reporting channel
"Sumbong sa Pangulo" (opened August 11, 2025, a whistleblower site reporting directly to the Office of the President)
11. Checklist for Japanese business practitioners
#
Item to check
1
For a public-works project, check whether the award falls under RA 9184 (old law) or RA 12009 (new law). The dividing line is the IRR's effectivity date of February 25, 2025 (a project publicly announced before that date is under RA 9184; confirmed 2026-08-26)
2
Check whether the counterparty contractor appears on the blacklist (posted on PhilGEPS) or on the ICI/Ombudsman's list of persons of interest
3
A referral routed through a "District Engineering Office (DEO)" is the channel that the 2025–2026 crackdown found to carry the highest concentration of corruption risk. Exercise particular caution
4
Japan's Unfair Competition Prevention Act (the foreign-bribery offense) applies extraterritorially. A facilitation payment justified as "local practice" is not exempt under Japanese law
5
The flood-control/infrastructure sector is heading into a period of shrinking budgets plus intensified scrutiny through 2026–2027. Plan project timelines with more slack than before
6
注 Government counterpart positions remain fluid (4 different Senate presidents in one year, a change of DPWH secretary). Verify the authority of each signatory on contracts and agreements each time
7
SALNs have again become available on request since November 2025. Usable as a due-diligence tool
12. Key sources
Area
Source
Corruption Perceptions Index
Transparency International, Corruption Perceptions Index 2025 (released February 10, 2026)
Governance indicators
World Bank, Worldwide Governance Indicators (2024 values)
Statutory text
LawPhil Project (RA 3019 / RA 7080 / RA 12009 / EO 2 s.2016 / G.R. 209287, Araullo v. Aquino)
Economic statistics
Philippine Statistics Authority (PSA) quarterly GDP (released May 7 and August 7, 2026)
Loss estimates
Philippine Department of Finance (DOF), September 2025