Last month, the Philippines was rocked by a flood control project corruption scandal, with at least 15 contractors accused of colluding with government officials and lawmakers to embezzle project funds, including "ghost projects" that received budgets but were never actually constructed.

According to estimates by the Philippine Department of Finance, flood control corruption has caused losses exceeding 118.5 billion pesos (approximately 14.8 billion yuan) to the Philippine economy from 2023 to present. Philippine President Ferdinand Romualdez Marcos Jr. has ordered the establishment of an independent committee to investigate corruption in infrastructure construction.

On September 21st local time, the Philippines erupted in a "Trillion Peso March," with protesters holding anti-corruption demonstrations in Manila and other cities, urging the Philippine government to recover stolen public funds and pursue criminal charges against those responsible. This marks the largest-scale demonstration since Marcos took office in 2022.

Analysts believe this corruption scandal has become a major political crisis that could shake the Marcos government. However, given that the Marcos family itself is considered part of the Philippines' "corrupt elite," whether he can actually take action against corruption remains to be seen. Other analysts warn that if the scandal is not resolved, it could drive more investors away from the Philippines, creating a "vicious cycle" of problems.

**Flood Control Corruption Causes Hundreds of Billions in Losses**

According to ABS-CBN News Network, typhoons triggered floods across the Philippines in July this year, exposing many substandard or non-existent flood control projects and drawing widespread public attention. On July 28th, Marcos ordered an investigation into possible corruption in Philippine flood control projects.

On August 11th, Marcos questioned contracts with 15 Philippine contractors. He pointed out that from July 2022 to May 2025, 545 billion Philippine pesos in public funds were allocated for flood projects, with these 15 contractors handling about 20% of nearly 10,000 flood control projects nationwide, securing contracts worth over 100 billion Philippine pesos.

The Philippine Department of Public Works and Highways announced on August 13th that it would review infrastructure projects built by the 15 contractors. In the following days, government officials across the Philippines discovered a series of substandard flood control facilities with poor construction quality, and identified several "ghost projects" that received budget allocations but were never actually built.

For example, a flood control project in Bulacan Province that cost 77 million pesos was supposed to be completed in July 2023, but this facility does not actually exist, leaving the local residential area still threatened by floods. On August 20th, Marcos stated that the Philippine government allocated 55 million pesos for another flood control project in Bulacan Province, but when he inspected the site, he found that the project had never begun construction.

Philippine Senator Panfilo Lacson also gave a speech on the same day, accusing Philippine contractors and government officials of colluding, embezzling funds, and using substandard materials to build flood control facilities.

On September 1st, flood control contractor Sarah Discaya testified at a Philippine Senate hearing, admitting she owns 28 luxury cars and that she and her husband control 9 construction companies that sometimes bid against each other for government projects. While Discaya insisted this practice complied with procurement regulations, senators believed it blurred ethical boundaries.

During the investigation, many Philippine lawmakers also faced accusations. For instance, Senate President Chiz Escudero admitted that during the 2022 election, a contractor that received flood control contracts donated 30 million pesos to him. Although Escudero insisted he never interfered with contracts, he was quickly removed from office.

House Speaker Martin Romualdez, Marcos' cousin, was also implicated in the scandal, with accusations linking him to suspicious public works projects. Romualdez resigned from his position as House Speaker on the 17th, stating the resignation was to better cooperate with anti-corruption investigations.

After the corruption scandal was exposed, Department of Public Works and Highways Secretary Manuel Bonoan resigned on August 31st, with Transportation Secretary Vince Dizon taking his place. On September 11th, Marcos issued an executive order establishing an independent committee to investigate irregularities in infrastructure projects.

Marcos promised the Philippine public that the investigation committee would hold all wrongdoers accountable. He has cancelled all flood projects for 2026, redirecting the saved funds to education, health, and agriculture. He urged all sectors not to politicize the corruption investigation: "Let's not politicize the issue. This is a simple matter of numbers. We need to find out how much public money these fraudsters stole."

According to Nikkei Asia, the Philippines is a flood-prone country with an average of more than 20 typhoons making landfall annually. In 2016, then-President Rodrigo Duterte launched large-scale infrastructure construction, including nationwide flood control facilities. After Marcos took office in 2022, the program continued under his administration's guidance.

The Philippine Department of Finance estimates that flood control corruption has caused economic losses exceeding 118.5 billion Philippine pesos from 2023 to 2025. Marcos stated that during his three-plus years in office, over 9,000 flood control projects have been implemented nationwide, with more than 6,000 having substandard or irregular conditions requiring investigation.

However, environmental group EcoWaste Coalition warned that since 2023, over 1 trillion pesos in climate-related spending may have been lost to corruption: "These shocking figures indicate that systemic corruption in climate and infrastructure spending has deprived Filipinos of urgently needed protection and resilience."

**Largest Protests Since Marcos Took Office**

Following the exposure of flood control corruption, large-scale demonstrations erupted nationwide. On September 21st, a coalition of civil society groups, political organizations, religious groups, students, cultural movement organizations, and flood victims held the largest protests since Marcos took office in Manila and over 20 other cities.

The timing of the protests was symbolic, as September 21st marks the 53rd anniversary of martial law declared by Marcos' father, former Philippine President Ferdinand Emmanuel Edralin Marcos. Called the "Trillion Peso March," over 30,000 people participated in the demonstrations.

Aly Villahermosa, a nursing student from Manila, called the theft of public funds extremely shameful: "I've waded through floods several times. If there's budget for ghost projects, then why is there no budget for the health sector?"

Teddy Casino, chairman of the leftist group "New Patriotic Alliance," said protesters' demands were to recover stolen public funds and hold those involved accountable: "Corruption has forced people to take to the streets to express their anger. They want to pressure the government to actually do their job properly."

81-year-old resident Elizabeth Abanilla believes both Philippine politicians and contractors are responsible for the corruption: "They shouldn't pay before projects are completed. Both sides are guilty."

The Catholic Bishops' Conference of the Philippines called on believers to join the protests, with conference president Cardinal Pablo Virgilio David stating: "This is a time for prayer, solidarity, and action against the deeply rooted culture of corruption that robs our people of dignity, deepens poverty, and betrays our future."

The Philippines' largest labor federation, the Trade Union Congress, also called on people to join protests expressing dissatisfaction with corruption, stating: "Trillions of pesos flowing into flood control and other infrastructure, then flowing to lawmakers, government officials and their business cronies is outrageous. This behavior is shocking and must stop immediately."

Acting Philippine National Police Chief Jose Melencio Nartatez Jr. said police deployed over 50,000 personnel nationwide to maintain order during protests, stating: "The Philippine National Police respects citizens' rights to express opinions peacefully, but will not allow any individual or group to use this situation to spread chaos and violence."

**Marcos Faces Major Political Crisis**

Corruption has long plagued the Philippines, with the Marcos family also viewed as part of the Philippine "corrupt elite," though corrupt officials frequently escape punishment. According to the South China Morning Post, more than half a century after former Philippine dictator Marcos Sr. implemented martial law, his son now faces a major political crisis.

University of the Philippines political scientist Jean Franco stated: "He (Marcos) is in trouble. This is a major crisis. This could make or break his political legacy."

Although Marcos has promised to take action against corruption, analysts like Franco believe this may just be political theater. Franco said: "Given his family's legacy, it's hard to believe his anti-corruption campaign from the start. People will wait and see how far he can actually go."

Philippine political commentator Vergel Santos told the South China Morning Post that the scale of protests matches "the scale of corruption, the hundreds of billions of pesos involved in flood control contracts, and the brazenness of the conspiracy behind it."

Santos said: "We see a president forced to do good... Of course, considering the crimes his family committed against the Philippines, what he can do is still far from enough."

Nikkei Asia pointed out that since flood control projects began during former President Duterte's term, corruption investigations could implicate Duterte's political allies. Duterte's eldest son, Congressman Paolo Duterte, has been accused of receiving 51 billion pesos in kickbacks, though he denies this.

Paolo stated on social media: "If you really want to find the ghost projects involving this 51 billion pesos, then go ahead, investigate it. Check the records and see the actual situation. The truth is there - in the visible, completed projects being used by the people of Davao."

The South China Morning Post also noted that as the corruption scandal triggered a "reshuffle" in both houses of the Philippine Congress, a pro-Marcos group narrowly replaced the fragile pro-Duterte group in the Senate. After Romualdez resigned as House Speaker, Marcos' Federal Party member Fausto Lee succeeded him as Speaker.

However, "Trillion Peso March" protest organizers emphasized that the protests did not intend to overthrow Marcos or target Duterte.

Some analysts also warned that the corruption scandal would affect the Philippines' economy and investment. Philippine Chamber of Commerce and Industry President George Barcelon said the scandal amounted to "economic sabotage": "Taxpayers' money is lost, we're cutting budgets in other areas while wasting huge amounts on ghost projects."

De La Salle University Associate Professor Anthony Lawrence Borja believes: "If the scandal isn't resolved, investors who dislike high-cost transactions will stay away from the Philippines. So ultimately we might be left with those who are capable but simultaneously suspicious enough to be willing to pay transaction fees for corruption, thereby exacerbating the problems."