Senator Reveals Systematic Corruption in Flood Control Projects
Senator Ping Lacson recently exposed the widespread and systematic corruption embedded within the country’s flood control projects. According to officials, the “pie-sharing” of funds varies with each project, revealing a deeply entrenched pattern of greed that undermines genuine development efforts.
During his privilege speech, the senator emphasized how corruption has become so normalized that participating in these schemes is considered “like a piece of cake.” He warned that this systematic corruption in flood control projects has severely impacted the efficient use of public funds.
How Funds Are Divided and Diminished
The senator explained that the allocated budget for flood control projects undergoes numerous deductions before actual implementation. Taxes and mandatory fees such as a 5% Value Added Tax, 2% withholding tax, 1% for bonds and insurance, and 1% for materials testing are automatically deducted. Additionally, contractors typically take 8 to 10 percent as profit.
For example, if a flood control project has a budget of ₱100 million, only about ₱82 million remains after these standard deductions, community members reported. However, this is just the beginning of further fund reductions.
Additional Deductions and Commissions
Further slices of the budget are taken as commissions and “standard operating procedures” fees. Sources outlined the following distribution of funds:
- 8–10% for officials of the Department of Public Works and Highways (DPWH)
- 2–3% for the District Engineering Office, depending on contractor profits
- 5–6% for members of the Bids and Awards Committee
- 0.5–1% for the Commission on Audit (COA)
Moreover, a so-called “passing through or parking fee” deducts another 5 to 6 percent of the total budget. Local leaders noted that 20 to 25 percent often ends up with the funder or politician who proposed the project.
Impact on Project Implementation
After all these deductions, it is a rare occurrence if the actual implementation receives even 40 percent of the original budget. This reality highlights the devastating effect of corruption on flood control initiatives.
“There is an evident pattern of this nasty distribution of public funds among crooks,” the senator concluded, citing case studies investigated across various regions. These findings underscore the urgent need for reform to protect public resources and ensure effective flood control measures.
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