Senator Panfilo Lacson has disclosed a staggering financial hemorrhage in the country's flood control programs, estimating that the Philippines may have lost more than P180 billion to ghost or non-existent projects. The revelation came during a radio interview on Wednesday, December 3, 2025.
Massive Scale of Corruption Uncovered
As chairman of the Senate Blue Ribbon Committee investigating the anomalies, Lacson explained that the estimate was extrapolated from an ongoing probe. He and Senator Sherwin Gatchalian, who chairs the Finance Committee, based their calculation on the initial batch of 10,000 inspected projects out of a total universe of roughly 30,000 flood control projects initiated from 2016 to the present.
From the 10,000 projects reviewed so far, over 600 were identified as ghost projects. "If we extrapolate, that's easily six percent," Lacson stated, highlighting that the discovered anomalies represent only a "minuscule" portion of the widespread corruption plaguing the nation's flood control programs. He also noted that these estimated losses do not yet account for substandard projects, which would further inflate the figure.
Kickbacks, Luxury Auctions, and Contractor Kings
The probe has brought several shocking details to light. Dismissed DPWH Bulacan district engineer Henry Alcantara admitted his involvement and has begun returning funds, with P110 million already handed back. Lacson called this amount a "pittance," as Alcantara is expected to return an additional P200 million in the coming weeks.
Alcantara's testimony implicated a network of officials, including retired DPWH Undersecretary Roberto Bernardo, Senators Joel Villanueva and Jinggoy Estrada, and Caloocan Representative Mary Mitzi 'Mitch' Cajayon-Uy, all allegedly receiving kickbacks.
In a related development, the Bureau of Customs (BOC) sold three luxury vehicles seized from contractor couple Pacifico and Sarah Discaya for P38.2 million at a public auction. The BOC expects to collect over P103 million from the full sale of the Discayas' vehicles, believed to be purchased with ill-gotten wealth.
The Discayas own two of the 15 construction firms that secured the most flood control contracts from 2022 to 2025. Their firms amassed approximately P31 billion in government infrastructure contracts during this period. They have also exposed alleged bid-rigging within the DPWH and tagged several congressmen as recipients of project kickbacks.
A Systemic Problem Demanding Action
The Senate investigation paints a picture of deeply entrenched corruption within a critical public service sector. The massive scale of potential losses—P180 billion—highlights a systemic failure in project implementation and fund oversight. This money, intended to protect communities from flooding, has allegedly been siphoned off through non-existent projects and elaborate kickback schemes.
The ongoing probe by the Blue Ribbon Committee continues to unravel the complex web involving contractors, district engineers, and high-ranking officials, signaling that more revelations and accountability may be forthcoming.
