THE Palace on Tuesday said nobody would be spared in the crackdown on anomalous flood control projects and urged all local government units (LGUs) to follow the example of Pasig City Mayor Vico Sotto, who reported such anomalies in his jurisdiction to President Ferdinand Marcos Jr.
Speaking to reporters, Palace Press Officer Claire Castro said the Marcos administration will ensure that sanctions will be meted out to contractors or even anyone close to him found involved in irregularities in flood mitigation projects.
“Even if it’s close to the heart, even if it’s a friend, the president will not spare anyone. Those who should be held accountable will be held accountable,” Castro said in Filipino and English.
President Ferdinand Marcos Jr with Dpwh Sec. Manuel Bonoan,, MMDA Chairman Romando Artes, Marikina Mayor Maan Teodoro, Congressman Marcy Teodoro and Congressman Miro Quimbo during the inspection of installation of giant culvert pipe in Sumulong Highway, Marikina City August 11, 2025. Photo by Revoli Cortez/PPA POOL
She said the Department of Public Works and Highways (DPWH) will not be part of the investigating body, stressing that the agency’s role in the ongoing investigation is limited to providing information on the flood control projects.
Despite the alarming patterns in the awarding of flood control projects, DPWH Secretary Manuel Bonoan continues to enjoy the trust and confidence of Marcos, Castro said.
She also noted that in the coming days, there will be an inspection of more areas with ongoing flood control projects.
She said the government will also be stricter in entering into new contracts for flood control projects.
Castro issued the call to LGUs to work with the national government after Sen. Panfilo Lacson revealed what he described as a “passing through” scheme in flood control and other infrastructure projects, where up to 60 percent of public funds are lost to corruption.
“Malacañang is encouraging all local government officials to join the government’s call to report to the president any anomalous flood control projects, similar to what Mayor Vico Sotto did,” Castro said.
Castro said Sotto’s endorsement of the “Sumbong sa Pangulo” platform exemplifies the vital partnership needed between national and local governments to ensure accountability and integrity in public works.
Shortly after the president’s revelation on Monday that 15 contractors had cornered P100 billion in public flood control contracts, Sotto said two of the 15 companies mentioned — Alpha & Omega Gen. Contractor & Development Corp. and St. Timothy Construction Corp. — were owned by the Discayas, the family of his political rival in the 2025 elections, Sarah Discaya.
Sotto said the Pasig City government under his leadership would provide the president with all information and red flags it had uncovered regarding corruption in government contracting.
Iloilo projects
On Tuesday, Sotto cited a public statement from Iloilo City Mayor Raisa Treñas on two major contractors flagged by the president.
In a social media post, Sotto said the case in Iloilo underscored why residents must demand transparency and accountability from contractors and implementing agencies alike.
Treñas said she “takes serious note” of Marcos’ pronouncement naming the country’s top 15 contractors for flood control works, including St. Timothy Construction Corp. and Alpha & Omega General Contractor & Development Corp., both handling major projects in Iloilo City.
Treñas said St. Timothy has three projects in the city — two P150-million flood mitigation structures in Lapuz and another P125-million section in Iloilo City proper that was suspended on June 9, 2025, due to obstructions and unclear site identification.
Alpha & Omega, meanwhile, is handling a P150-million section of the Iloilo Comprehensive Flood Mitigation Project with a target completion date of March 24, 2026, but with no clear address indicated in reports.
“These projects are either nonfunctional, have caused flooding, or are, in some cases, practically nonexistent,” Treñas said, adding that the city will fully cooperate with the ongoing investigation ordered by the president.
List of insiders
Meanwhile, the Department of Public Works and Highways (DPWH) said it would come out with the names of government officials who may be in cahoots with unscrupulous contractors in the bidding and implementation of substandard flood control projects and other infrastructure programs.
Public Works Secretary Manuel Bonoan on Tuesday said he has already created a special team to check the status of all the projects bagged by the 15 contractors that the president flagged.
“We will find that out. We are not just looking at the contractors [but also those inside the department who are in cahoots with them]. That’s what I want to see,” Bonoan added.
Bonoan said he will come out with the list of public works officials who may be in cahoots with unscrupulous contractors after the DPWH special team comes out with its report.
He said collusion between contractors and DPWH officials is not being tolerated, and that the department will not hesitate to impose disciplinary action against erring officials or employees.
As of now, the DPWH said that focus is only on the 15 contractors but they will also look into other contractors outside of the president’s list.
As part of due process, Bonoan said the 15 contractors will also be asked to clarify any findings on the projects awarded to them.
Budget insertions
The DPWH chief admitted that they have no monitoring mechanism for riders or budget insertions by lawmakers in the yearly national budgeting process.
“We only see them after the GAA (General Appropriations Act) has been enacted. These new items that were added or inserted did not pass our validation and initial engineering assessment,” Bonoan said. “There is no monitoring for this because we are not part of the bicameral conference committee.”
These insertions bloated the budget of the DPWH in the 2025 GAA, which prompted the president to veto P26.065 billion in line items for the flood control related projects.
Among those vetoed were flood control projects in Central Luzon, amounting to P7 billion, followed by Cagayan Valley with P3.2 billion, the Bicol Region, P2.73 billion; the National Capital Region,P1.75 billion; and the Ilocos Region, P1.1 billion.
Most of the vetoed items were not part of the president’s original budget proposal under the National Expenditure Program (NEP).
In a way, some Cabinet secretaries also participated in the insertions because of their practice to lobby with the lawmakers to restore the amount slashed from their original budget. It is during the lobby period that insertions do happen in exchange for the lawmakers’ support for their additional budget request.
Bonoan said that DPWH implements all infrastructure projects funded under the national budget but pointed out that inserted projects often suffer delays because of right-of-way problems, because they did not undergo prior validation and engineering assessments.
These insertions, Bonoan admitted, were a cause for concern amid public perception that they are the source of corruption in the DPWH.
“These are things that we have to be concerned about. We at the DPWH just want to undertake the projects in the most transparent and technically viable manner,” he said.
Bonoan said contractors who violate the terms and conditions of contracts may face blacklisting or be suspended from participating in any government project, among other sanctions, in accordance with existing laws and policies.
Castro added that Marcos has not issued any directive for Bonoan to remove himself from the ongoing probe on questionable flood control projects, as the DPWH is not the main agency involved in the investigation, but the Department of Economy, Planning, and Development (DEPDev).
“He is not one of those investigating [the projects], but of course, records would be needed to be submitted by the DPWH,” Castro said.
Escudero denial
Also on Tuesday, Senate President Francis Escudero defended himself from allegations of favoritism after it was revealed that one of the 15 contractors identified by the president, Centerways Construction and Development Inc., was owned by a campaign donor and friend.
In a press briefing, Escudero admitted that the Sorsogon-based company is owned by a long-time friend and supporter. However, he strongly denied any involvement in helping the firm win contracts, emphasizing that the projects were awarded either when he was governor of Sorsogon or before his return to the Senate in 2022.
“I did not intervene or assist in the awarding of any project. When those contracts were secured, I had no influence, nor was I in a position to help,” he said.
Escudero clarified that accepting campaign contributions from the businessman was not illegal, and the donation had been properly declared and even reported in the media.
Centerways reportedly secured P5.4 billion worth of flood control projects from 2020 to 2024 — just 1 percent of the P545 billion total awarded to the 15 firms cited by the president. Escudero questioned why public scrutiny is focused on this “minor share,” instead of the larger 99 percent that went to other firms.
“Why is there so much focus on the 1 percent that went to a company from my province, and none on the 99 percent? Why not investigate those in government who are themselves contractors or suppliers?” he asked.
Improvements in Marikina
Meanwhile, Castro said that Marcos also recognized the city of Marikina, under Mayor Marjorie Ann Teodoro, for significant improvements in flood mitigation efforts.
She said measures taken by the Marikina LGU prevented widespread flooding whenever the Marikina River threatened to overflow.
“It’s not perfect because there were still reports of flooding, but it’s a far cry from the previous frequent incidents of rising water in the city,” Castro said, adding that Marikina’s functioning flood control system proves the value of preparedness and proactive governance.
The Palace also reiterated that LGUs nationwide must work hand in hand with the national government to ensure flood control funds were used efficiently and effectively for the benefit of all communities.
WITH WILLIAM B. DEPASUPIL, JAVIER JOE ISMAEL AND JAMES DANIEL DANIO
