Senator Panfilo Lacson has exposed “passing through fees” or toll-like payments in flood control projects allegedly involving House members and erring Department of Public Works and Highways (DPWH) personnel.

He said the scheme compounds the overpricing and substandard construction of government infrastructure.

The revelation followed his earlier claim that 67 House members in 2022 served as contractors for their own government-funded projects.

According to Lacson, the scheme occurs when a contractor must pay five to six percent of a project’s cost for work in a district where the lawmaker or their relatives are contractors.

“For example, if a contractor builds a project in the district of a lawmaker who is a contractor or who has relatives who are contractors, he/she must pay a five-percent ‘passing through’ fee, like a toll. That was already deducted from the cost of the project. This is known in the Department of Public Works and Highways,” Lacson said in a radio interview Sunday.

He said the fees are usually five percent of the project cost, but can reach up to six percent.

“Based on the information we got from contractors, the project is compromised. How will the contractor be compensated if he/she does not use substandard materials or take shortcuts? The government is thus shortchanged,” he said.

Lacson noted that only about 40 percent of the budget goes to actual construction, with the rest going to corrupt officials.

He cited examples: a flood control project specified for 150 meters completed at only 50; sheet piles required to be driven six meters into the ground inserted only three; and foundations weakened by omitting gravel in the concrete mix.

“The dike will be easily damaged because the contractor scrimps on materials,” he said, adding the bigger issue is lives lost when such projects fail. “People die during floods brought by cyclones. That is the worst part.”

As of Saturday, the National Disaster Risk Reduction and Management Council reported 37 deaths from the combined effects of the southwest monsoon and tropical cyclones “Crising,” “Dante” and “Emong,” affecting over 9.5 million residents.

Lacson said he wants to review the DPWH’s list of flood control projects submitted to Malacañang and see if erring congressmen will be charged.

He also said some lawmakers called him to clarify that their contracts are mostly with private firms. “I chuckled and said I don’t have a list, and I didn’t know they or their relatives were contractors until they told me,” he said.

Lacson urged private sector support, citing San Miguel Corp. president Ramon Ang’s offer to clean rivers and waterways at no cost to the government.

“Imagine if the country’s richest families pooled their CSR resources together and did what the government spends hundreds of billions on but fails to deliver,” he said.

If Ang’s offer proceeds, Lacson vowed to cut the 2026 DPWH and MMDA flood management budgets for Metro Manila.