Philippines in Trillions-Peso Kickback Scandal: Are Only the Small Fry Being Fried?

President Ferdinand “Bong Bong” Marcos Jr. 

Philippines in Trillions-Peso Kickback Scandal: Are Only the Small Fry Being Fried?

By Bing Jabadan and Wilma N. Yamzon – TheNationWeek.Com | November 27, 2025

MANILA, Philippines – A corruption scandal of epic proportions is engulfing the Marcos Jr. administration, threatening its stability and shattering public trust.

Allegations of massive kickback schemes involving trillions of pesos have emerged, with a fugitive congressman at the center of the storm, pointing fingers at the highest levels of power.

Former Ako Bicol party-list Rep. Elizaldy “Zaldy” Co, wanted for alleged irregularities in flood control projects, has unleashed a barrage of accusations against President Ferdinand “Bong Bong” Marcos Jr. and his cousin, former Speaker Martin Romualdez, from an undisclosed overseas location.

In explosive video testimonies, Co claims the pair orchestrated the insertion of a staggering ₱100 billion worth of projects into the 2025 national budget, allegedly skimming a breathtaking ₱56 billion in kickbacks for themselves.

President Marcos Jr. has vehemently denied the accusations, dismissing Co as a criminal attempting to blackmail the government.

He claims Co’s lawyer offered to halt the video releases in exchange for the government dropping its efforts to cancel Co’s passport.

“I did not negotiate with criminals,” Marcos declared, vowing that Co would face justice regardless of his allegations.

Co’s lawyer, Ruy Rondain, has refuted the blackmail claims, insisting he has no control over the release of the incriminating videos.

The unfolding scandal has ignited a firestorm of controversy, raising profound questions about transparency, accountability, and the integrity of governance within the Marcos administration.

Will “Big Fish” Be Caught in the Net?

As the investigation intensifies, the focus is shifting toward identifying the alleged masterminds behind the colossal flood control project scandal.

Interior and Local Government Secretary Jonvic Remulla has publicly pledged to pursue the “big fish” involved, promising a swift and decisive crackdown on corruption.

“In the normal process of law, we should expect the (private contractor couple) Discayas, the senators, and the congressmen; they will all be jailed within the next five weeks,” Remulla stated, setting an ambitious timeline for prosecution.

President Marcos Jr. has already authorized arrest warrants for 16 individuals, including Co, further underscoring the gravity of the situation. Co, along with several officials of the Department of Public Works and Highways Mimaropa (DPWH 4B) and Sunwest Corp., a construction firm with alleged ties to Co, faces accusations of corruption and malversation.

However, Co’s counter-accusations against Marcos and Romualdez have injected a potent dose of uncertainty into the investigation, casting a long shadow of doubt over the entire process.

Is justice being selectively applied, with a school of fish being charged while a bask of kleptocrats goes scot-free?

While Remulla has remained cautious about directly implicating Romualdez, acknowledging that “there’s nothing yet to that effect,” the gravity of the situation is undeniable.

Plunder, Graft, and Direct Bribery Recommended Against Romualdez and Co

The DPWH and the Independent Commission for Infrastructure (ICI) have reportedly recommended plunder, graft, and direct bribery cases against both Romualdez and Co concerning flood control projects worth billions of pesos.

Adding a layer of complexity, Remulla noted that his brother, Ombudsman Jesus Crispin Remulla, has yet to comment on the case.

This familial connection raises legitimate concerns about potential conflicts of interest and the impartiality of the investigation.

Discaya’s Dubious Empire: A House of Cards Built on Public Funds?

Central to the scandal is contractor Cezarah “Sarah” Discaya, whose companies have secured billions in flood control contracts. A Senate Blue Ribbon Committee hearing on September 1, 2024, placed Discaya under intense scrutiny, revealing a web of inconsistencies and raising serious questions about her business practices.

Former Commission on Audit Commissioner Heidi Mendoza challenged Discaya’s claim of having “23 years in business,” revealing that Discaya’s companies were established merely 11 years ago in 2014.

This timeline casts serious doubt on Discaya’s assertion of extensive experience.

Her claims of generating billions in profits are equally questionable.

Although her firms secured contracts worth ₱31–32 billion for flood control projects from 2022 to 2025, the figure represents contract values, not actual earnings.

Financial analysts explain that to achieve a ₱1 billion profit at a modest 5% margin, a contractor would need to generate ₱20 billion in revenue.

At a tighter margin of 1.5%, that figure skyrockets to ₱66.7 billion.

Yet, Discaya’s companies have not made any public financial records available to substantiate her claims.

The scrutiny of Discaya’s business practices further deepened with her troubling track record.

St. Gerrard was blacklisted by the Department of Public Works and Highways in 2015 and 2020 for regulatory non-compliance.

On the other hand, St. Timothy has faced direct allegations from President Ferdinand Marcos Jr. himself regarding “ghost projects.”

Additionally, investigations by the Bureaus of Customs and Internal Revenue into Discaya’s lavish lifestyle and a fleet of luxury vehicles have raised significant concerns.

Public protests outside her Pasig office reflect a growing discontent over the alleged misappropriation of taxpayers’ money.

DPWH Vows Asset Seizure, Senators Deny Involvement

Amid the swirling allegations, the DPWH has launched a campaign to freeze assets and pursue criminal charges against contractors and DPWH personnel involved in the anomalous flood control projects.

“Jail time is not enough,” DPWH Secretary Vince Dizon said. “We must ensure the return of the people’s money. We’re talking about billions of pesos in projects that were either unfinished, substandard, or outright ‘ghost’ projects. We will leave no stone unturned in recovering these funds,” he declared.

The DPWH has filed graft charges against 20 government engineers and employees in Bulacan and four private contractors, including Discaya.

The scandal took a dramatic turn when Brice Hernandez, a former DPWH assistant district engineer, testified before a House infrastructure committee that Senators Jinggoy Estrada and Joel Villanueva received kickbacks linked to flood control projects in Bulacan.

Estrada and Villanueva have vehemently denied the allegations.

A Nation Awaits Accountability: Selective Justice or True Reform?

The unfolding scandal raises critical questions about systemic corruption within infrastructure projects and the potential for high-level involvement.

The public demands accountability, transparency, and the full recovery of stolen funds.