P115-B ‘Shadow’ Budget Sparks Corruption Fears in Flood Projects

P115-B ‘Shadow’ Budget Sparks Corruption Fears in Flood Projects

By Bing Jabadan & Wilma N. Yamzon – TheNationWeek.Com | October 6, 2025

MANILA, Philippines – A staggering P115 billion allocated for flood control projects “outside” the official Flood Management Program (FMP) in the 2025 General Appropriations Act has been uncovered.

The “shadow” budget has ballooned from P81.552 billion in 2022, dwarfing the FMP’s own allocation by nearly 50 percent, according to a study by the University of the Philippines-National College of Public Administration and Governance (UP-NCPAG).

“The majority of this P115-billion budget is earmarked for general structures like walls, revetments, and drainage systems,” the UP-NCPAG policy note revealed, suggesting a lack of transparency and a potential for fund misuse.

The study highlighted a critical disconnect: despite massive infrastructure spending, the Philippines’ vulnerability to disasters is “increasing.”

Albay, for example, invested P16.2 billion in flood mitigation since 2018, yet suffered P7.3 billion in infrastructure damage between 2017 and 2023.

Similar patterns plague other regions, raising questions about the efficacy and integrity of these projects.

Systemic Problem

The UP-NCPAG study points to a systemic problem:

• Lack of Transparency: Flood control funds are embedded within broader Department of Public Works and Highways (DPWH) allocations, making it difficult to track and monitor their use.
• Ineffective Projects: Despite significant investment, infrastructure damage from floods continues to rise.
• Corruption Risks: The decentralized nature of project implementation, with numerous district engineering offices (DEOs) involved, creates opportunities for corruption.

ICI to Probe Projects

DPWH Secretary Vince Dizon has vowed to recommend an investigation by the Independent Commission for Infrastructure (ICI) and conduct an internal review of all infrastructure projects.

The ICI, recently formed to fight corruption, is now under pressure to scrutinize not only the official FMP but also “shadow” projects.

UP-NCPAG Recommendations

The UP-NCPAG is urging the ICI to broaden its investigation to include disaster-related structures like roads, bridges, and evacuation centers, and analyze patterns across DEOs to identify potential corruption hotspots.

It also calls for systemic reforms such as transferring disaster risk reduction responsibilities from the DPWH to a dedicated agency and strengthening accountability.

A robust budget accountability mechanism will leverage technology to track projects from planning to completion, according to the UP-NCPAG.