More than 300 days after President Ferdinand Marcos Jr. vowed to expose those behind ghost and substandard flood control projects, several of the scandal’s biggest names have yet to face formal charges.
Marcos issued the warning during his State of the Nation Address (SoNA) on 28 July 2025, after devastating floods brought by the southwest monsoon and cyclones “Crising,” “Dante” and “Emong” exposed substandard and nonexistent flood control projects in several provinces.
“Mahiya naman kayo sa inyong kapwa Pilipino (Have some shame before your fellow Filipinos),” the President bellowed during his speech.
Later, he inspected the flood-hit areas where he found projects that had collapsed or existed only on paper.
His speech sparked one of the biggest corruption scandals, triggering investigations by the Senate, House of Representatives, Department of Justice, Office of the Ombudsman, Anti-Money Laundering Council (AMLC) and the Department of Public Works and Highways (dpwh).
The controversy centered on allegations that billions in flood control funds from 2022 to 2025 were lost to rigged biddings, budget insertions, kickback schemes, ghost projects, and substandard infrastructure involving lawmakers, contractors, DPWH officials and politically connected businessmen.
Early revelations
Among the first major revelations came from Senator Panfilo Lacson, who disclosed in August 2025 that at least 67 lawmakers allegedly acted as contractors for projects implemented in their districts.
Days later, Marcos named 15 contractors who had cornered some P100 billion worth of flood control projects since 2022, many in places not considered among the country’s most flood prone.
Rep. Leandro Leviste then accused Rep. Edwin Gardiola of being the “top DPWH contractor in Congress,” brokering or benefiting from DPWH project allocations. Gardiola denied the allegations.
Investigators later uncovered multiple ghost and defective projects in Bulacan, Oriental Mindoro, Pampanga, Baguio and Metro Manila.
Discaya firms
The scandal widened further after contractor couple Curlee and Sarah Discaya admitted owning nine construction firms that at times bid against each other for government projects.
Government agencies raided the Discaya compound in Pasig City and froze the assets of their firms, including multimillion-peso luxury vehicles and artwork.
Meanwhile, the Philippine Contractors Accreditation Board revoked the licenses of several Discaya-linked companies and the Bureau of Internal Revenue charged the couple and one of their aides with owing P7.18 billion in taxes.
Lawmakers implicated
Whistleblowers and former DPWH engineers implicated several lawmakers and senior government officials in kickback schemes tied to flood control project funds inserted in the national budget.
Former DPWH Bulacan district engineer Henry Alcantara and former assistant district engineer Brice Hernandez accused several politicians — including senators Jinggoy Estrada, Joel Villanueva, and Chiz Escudero, former Senator Bong Revilla, former House Speaker Martin Romualdez, and former Ako Bicol Rep. Zaldy Co — of allegedly receiving commissions from infrastructure insertions and flood control projects. They denied all the allegations.
Fallout
The controversy escalated politically in September 2025 after Romualdez resigned as House Speaker amid the mounting allegations, while Escudero was later ousted following the controversy over a P30-million campaign donation from contractor Lawrence Lubiano.
DPWH Secretary Manuel Bonoan resigned and was replaced by Vince Dizon, who slashed P255 billion worth of flood control projects from the proposed 2026 national budget and suspended several DPWH district engineers and officials linked to bidding anomalies.
At the height of the controversy, thousands of protesters marched to the EDSA Shrine demanding accountability over the ghost projects and widespread flooding that submerged communities across the country.
Freeze orders and probe
The AMLC later secured multiple freeze orders covering more than 1,600 bank accounts, as well as dozens of properties, luxury vehicles, insurance policies, aircraft assets and e-wallet accounts allegedly linked to personalities involved in the scandal.
The administration formed the Independent Commission for Infrastructure (ICI), led by former Supreme Court Justice Andres Reyes, to probe anomalous projects nationwide.
But despite months of ICI hearings, Senate and House probes, Ombudsman investigations, raids, suspensions, and whistleblower testimonies, many of the controversy’s biggest allegations remain unresolved nearly a year later.
The ICI conducted its probe behind closed doors and has submitted its findings to the Office of the President and the Ombudsman, although the report has not been made public.
The Ombudsman said charges are being readied against former Speaker Romualdez and former Senate President Escudero, while plunder complaints are set to be filed against Estrada and Villanueva.
Former Senator Revilla and several others are under detention while their case is being heard in the Sandiganbayan.
Co’s claims
Still, numerous lawmakers, contractors, and former public works officials repeatedly mentioned during the hearings have yet to face formal charges. Attention has since shifted to Co, who remains at the center of the controversy.
Co, who left the country before the controversy erupted, released a video accusing Marcos and Romualdez of being behind the corruption scheme. He said he was instructed to stay abroad, only to later realize that he would be made the scapegoat.
In one of his videos, Co alleged that presidential son Rep. Sandro Marcos inserted P50 billion in allocations in the national budget during bicameral committee deliberations. Malacañang has repeatedly denied any wrongdoing.
Reports said Co was detained in Prague after attempting to cross into Germany illegally, but Philippine authorities have yet to ascertain his whereabouts and take custody of him.
Blue Ribbon report
The Senate Blue Ribbon Committee, chaired then by Senator Lacson, completed its partial report without inviting some key personalities, including 18 former Marines who said they helped transfer suitcases containing billions of pesos to several individuals.
After another Senate leadership shake-up and the appointment of Senator Pia Cayetano as the new Blue Ribbon chairperson, the investigation is expected to resume.
With about two months before Marcos delivers his next SoNA, the administration faces mounting pressure to show whether its anti-graft campaign will lead to broader prosecutions — or remain trapped in a cycle of disclosures, denials and delays.
