The Philippines is grappling with a corruption scandal of truly seismic proportions, one that doesn’t just involve stolen money but the systemic subversion of critical infrastructure, costing lives and livelihoods with every rainy season. The DPWH flood control fiasco, now under investigation by the newly formed Independent Commission for Infrastructure (ICI), has peeled back the curtain on a deeply entrenched system of graft where the greed of powerful political “proponents” is quantified with a shocking figure: a minimum 25% kickback on project costs.

This isn’t just bad governance; it is a meticulously documented scheme of plunder that threatens to undermine public faith in every major government undertaking. The testimonies of key witnesses—specifically former Department of Public Works and Highways (DPWH) officials and contractors—have become the fragile key to unlocking this massive conspiracy, yet recent developments suggest that the ‘big fish’ are using their immense power to sway the narrative, intimidating witnesses, and strategically steering the direction of the investigation.

The Standard Operating Procedure of Greed: A $25\%$ Minimum Cut

 

The core of the scandal, as revealed in the sworn affidavits of witnesses like former DPWH engineers, revolves around an unwritten but strictly enforced “Standard Operating Procedure” (SOP) for infrastructure projects. Once a project is included in the National Expenditure Program (NEP) or the General Appropriations Act (GAA), a staggering minimum of 25% of the project’s total budget is allegedly reserved as a payoff to the political “proponent”—the legislator or political figure who facilitated the funding insertion.

This massive fee is not paid upon completion; it is advanced by the contractors to ensure the project will be awarded to them. As witnesses detailed, a 10% advance is paid when the NEP is released, with the remaining 15% settled when the GAA is passed. In a $100$ million project, this means $25$ million immediately goes into the pocket of the proponent.

The consequences of this legalized theft are devastatingly clear:

Substandard Work: With $25\%$ to $30\%$ siphoned off the top, contractors are forced to use cheaper materials, leading to $7.2$ million riverbank protection structures that are riddled with irregularities and fail almost immediately, turning vital infrastructure into useless rubble.

Overpricing and Ghost Projects: The only way to recoup the huge advance and still turn a profit is to grossly overprice materials or, in the most brazen cases, declare projects as completed and paid for when they are, in fact, non-existent—the infamous “ghost projects.”

Systemic Suffering: The people, especially in flood-prone areas like Bulacan, are the ultimate victims. Their taxes fund structures that offer no protection, ensuring that the cycle of perennial flooding, loss, and displacement continues unabated, all while the proponents and their cohorts live in luxury.

The Political Smokescreen: Ilocos Norte and the Danger of Diversion

 

In a move that has drawn intense scrutiny and cynicism, ICI Special Adviser Rodolfo Azurin Jr. recently announced an inspection of flood control projects in Ilocos Norte, a known bailiwick of the current administration. Critics argue that this visit, which conveniently reported finding “no ghost projects” in the area, is a strategic political maneuver designed to divert the narrative.

The argument is simple yet compelling: by focusing on the administration’s stronghold and clearing it of major anomalies—despite reports that the construction companies involved, such as S. Gerard and S. Timothy, have a notorious track record—the ICI appears to be creating a justification to shift its heavy-hitting investigation back to other areas, such as Davao City, and away from the heart of the scandal in Luzon.

As commentator Manong Ted Philon noted, this “galawang bangag” (idiotic move) suggests a lack of seriousness in pursuing the truth wherever it leads, prioritizing political image over genuine public service. This move risks making the ICI look like a tool for political targeting rather than an independent investigative body.

The Real Battleground: Bulacan and the COA Audit

 

Meanwhile, the Commission on Audit (COA) continues its painstaking work, submitting new fraud audit reports that confirm the systemic nature of the corruption, particularly in the hardest-hit areas. The seventh fraud audit filed with the ICI has once again flagged multiple anomalous flood control projects in Bulacan, totaling hundreds of millions of pesos.

The COA reports reveal an astonishing level of deceit:

Projects declared 100% complete and fully paid were found to be either entirely non-existent—a P74.5 million riverbank structure in San Roque, Baliuag, was one such “ghost”—or were built in the wrong location and failed to meet specifications.

Projects were listed as “new” even if structures already existed, allowing for fresh funding for essentially redundant or ghost works.

Contractors like Sims Construction Trading, M3 Construct Corporation, Elite General Contractor, and Wawa Builders have been named in connection with these irregular projects, highlighting a network of collusion.

Bulacan, with $668$ flood control projects totaling a staggering $43.75$ billion in allocation from 2022 to 2025—the largest allocation in Region 3—is the epicenter of the tragedy. Yet, despite this massive investment, the province continues to suffer from devastating floods, a clear, physical manifestation of the $25\%$ corruption rule.

The Fragility of Justice: Witnesses Under Siege

 

The most alarming development is the swirling rumor that a key witness scheduled to testify before the Senate Blue Ribbon Committee may be pressured to change their sworn statement. The testimonies of whistleblowers, including former DPWH engineers Henry Alcantara, Brice Ericson Hernandez, and Jaypee Mendoza, are the prosecution’s most powerful weapons, as they directly link the proponents to the kickback system.

The potential retraction of a witness’s statement raises the grim prospect that the powerful individuals implicated—those who allegedly received the 25% pay-off—are using intimidation to protect themselves. The concern is that while the ‘small fish’—the DPWH personnel who signed off on the irregularities—may be used as scapegoats and face jail time, the ‘big fish’ will go unpunished.

The warning from Manong Ted Philon is stark: those who received the $25\%$ are enjoying a “merry Christmas” in Europe, America, or in luxury at home, while the lower-level employees who acted on their behalf risk having their comfort and safety inside the prison system threatened unless they remain silent.

Breaking the Cycle of Impunity

 

The ultimate test of the current administration and the ICI is not whether they can file cases, but whether they can secure convictions against the true masterminds, the “proponents” who fueled the corruption. The $25\%$ SOP is the financial engine of this massive scandal, and until the proponents who instituted it are held accountable, this cycle of corruption will never end.

The challenge to the public is clear: “Papayag ba tayo?” (Will we allow this?) Will the people accept a predetermined outcome where only the low-level operators are sacrificed, or will they demand the full, unvarnished truth that implicates everyone, regardless of political standing, and finally, permanently, drain the swamp of greed that keeps a nation perpetually underwater? The future of genuine good governance hinges on this very question.