EXPLAINER

Anger against plunder: Will the Philippines follow Indonesia and Nepal?

Nexus between lawmakers, engineers, auditors and contractors trigger public anger

Last updated:
6 MIN READ
Peaceful protests have been organised by young Filipinos urging the government to hold officials to account for anomalies in infrastructure.
Peaceful protests have been organised by young Filipinos urging the government to hold officials to account for anomalies in infrastructure.
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Manila: Young Filipinos have started fuming at the alleged nexus of corruption in the country.

They're putting pressure on politicians on what appears to be "Mission Impossible".

Their main gripe: push back against the web of graft that runs deep in the Asian country, which partly explains bad roads, bridges and flood control.

The protests have been mostly peaceful.

On Friday, they cried out "DPWH corrupt, corrupt, corrupt!"

DPWH stands for the Department of Public Works and Highways (also in charge of multi-billion pesos worth of flood-control projects).

The Philippine national budget, at ₱6.326 trillion in 2025 ($109 billion) starts as the so-called National Expenditure Program (NEP), debated and approved by the Senate and House of Representatives (HOR), where alleged midnight "insertions" are made by a "small" committee led by the ruling or coalition party.

In this case, the head of the small committee is a congressman named Zaldy Co, currently in the US for a reported medical treatment.

The result: hundreds of millions in "pork barrel" funds, and a tangled graft network linking lawmakers, contractors, district engineers, and auditors.

More protests are lined up.

Fraud, ghost projects

The livestreamed probes have exposed shocking levels of fraud, money laundering, and ghost projects.

The parallel probes, however, have resulted in a "boomerang effect".

It confirms an already open secret in the Asian country: the trail of kickbacks in infrastructure projects are rooted deep within the same chambers investigating the dark dealings.

A crumbling flood control infrastructure: Investigations reveal that lawmakers can pocket as much as 30% to 40% of project costs as kickbacks, while district engineers they handpick play key roles in the scheme.

One senator warned that up to 60% of infrastructure budgets get lost to these “commissions.” The collusion is so organised that critics liken it to a crime syndicate hidden within government.

Will the Philippines follow in the footsteps of Nepal or Indonesia as their youth take to the streets against corruption?

Nepal recently saw its government toppled and its parliament dissolved after massive, student-led protests rocked the nation’s capital, fuelled by anger over alleged mismanagement and theft of public funds.

Indonesia, meanwhile, is still reeling from the social convulsion sparked by widespread perceptions of lawmaker graft that shook the Southeast Asian nation.

PENALTY FOR PLUNDER
Under Philippine law, plunder is the crime committed by a public officer who, alone or with others, amasses ill-gotten wealth worth at least ₱50 million. These criminal acts include misuse of public funds, receiving kickbacks, and illegal disposition of government assets. The penalty for plunder is reclusion perpetua (life imprisonment) with perpetual absolute disqualification from holding public office, and all ill-gotten wealth is forfeited to the State. 

Corruption-driven economy

The Philippines has two legislative chambers: the 313-member "lower house" (House of Representatives and sectoral "Party-Lists") and the 24-member Senate, or "upper house".

Both chambers, authorised by law to summon witnesses or have them arrested, are investigating the scandal.

Contractors' testimonies have revealed damning details of theft of billions of dollars worth of public funds siphoned off through non-existent infrastructure projects.

The probe itself, while effective to a certain extent, is problematic.

A wealthy and well-connected business couple, Pacifico and Sarah Discaya (who also has a British citizenship), owners of 9 construction companies, recently gave explosive testimonies during a Senate hearing, implicating some lawmakers.

Philippine national budget over the last 10 years

YearEnacted Budget (in trillions pesos (₱) US$ valueKey Notes
20153.00252.71Focused on economic recovery post-typhoon Yolanda; emphasis on social protection and infrastructure.
20163.26857.38Increased funding for education and health amid global economic uncertainties.
20173.56762.63Boost in public works and defense spending.
20183.76766.15Record high at the time; prioritized universal healthcare and infrastructure.
20193.96269.57Pre-pandemic peak; allocations for "Build Build Build" program.
20204.48178.68Pandemic response budget; surge in health and social welfare funding.
20214.50679.12Continued COVID-19 support; focus on economic stimulus.
20225.02488.22Highest pre-2023; emphasis on recovery and infrastructure.
20235.768101.28Post-pandemic expansion; 11.6% increase from prior year.
20246.120107.46Signed amid controversies; infrastructure at 5-6% of GDP. (6.12T proposed/enacted ceiling; final GAA adjustments led to ₱5.768T base with “insertions”)
20256.326111.08Signed December 30, 2024; 9.7% increase; priorities include education (P1.053T) and public works (P1.034T).

(Estimated US$ value computed at ₱56.9:$1, BSP average rate on Sept. 12, 2025)

Culture of kickbacks

They accused at least 17 members of the House of Representatives of demanding kickbacks equal to up to 30% of the cost of flood-control projects in exchange for awarding lucrative contracts to their construction firm.

Though they withheld some specifics, the couple stated they have records to support their claims and expressed worries about their safety, and have sought protection as state witnesses.

Wawao Builders, another construction company, exposed how district engineers signed off at least 60 ghost flood-control projects worth hundreds of millions of pesos.

The impact is widespread, as evidenced by constant flooding.

In the 313-member House, things have gotten so tangled that even state engineers sacked for their role in the scam have started pointing fingers at certain lawmakers.

It hit such a bizarre twist that House Speaker Martin Romualdez felt the need to appoint a spokesperson just to speak for himself.

This highlights how messy the web of allegations has become, with lawmakers caught in the crossfire of accusations and whistleblowers.

The sacked engineers, initially just part of the fallout, are now also telling tales rattling the halls of Congress.

One engineer has already been jailed, after being cited by the Senate for contempt.

As the scandal unfolds, it’s clear that in this game, nobody’s hands are clean — that even the Speaker needs a mouthpiece to keep up with the chaos brewing under the dome.

On Friday, protests were also organised in front of the House.

Zero-accomplishment contracts

Finance Secretary Ralph Recto warned that ghost flood control projects from 2023-2025 may have cost the Philippine economy between ₱42.3 billion and 118.5 billion ($2.06 billion) — money that could have benefitted tens of thousands of jobs.

Senator Ping Lacson has detailed other abuses: non-existent flood control projects in Bulacan, Oriental Mindoro, and elsewhere; repeated funding despite completed projects; substandard construction; cost cuts; and collusion among lawmakers, auditors, district engineers, and contractors.

In Las Piñas City, 16 projects worth hundreds of millions of pesos have been flagged as "ghost" or unfinished by local officials calling on the Commission on Audit (COA) to act.

Examples: a multi-purpose building in Talon 1 with no work done, and a road extension contract with “zero %” accomplishment.

So far, the exposes have led to the sacking of the Secretary of Public Works, a change in the Senate leadership and threats of an internal shakeup within the House of Representatives.

There's just one problem: A member of House now blames the Commission on Audit (COA) for the ghost projects.

"Walang ghost projects kung hindi papayag ang COA (There will be no ghost projects if COA does not allow it)", said Rep. Terry Ridon, Chair of the House Committee on Public Accounts, told local media.

Plunder cases had been filed against 20 government officials and 5 contractors with the Ombudsman. COA officials could also face impeachment.

Now, newly-appointed DPWH Secretary Vince Dizon has declared that confirmed ghost or substandard contractors will be subject to lifetime blacklisting, as per the Philippine Information Agency.

Roman Catholic bishops, meanwhile, have called for criminal prosecutions and asset recovery, urging young Filipinos to "uncover injustice" through social media activism.

Philippines at a crossroads

Young Filipinos are fired up for change. The outrage has simmered among millennials and Gen Z — who feel their future is being stolen.

While generally peaceful, some protesters hurled mud, rotten fruit, and balloons filled with dirty water at homes, government offices linked to the scandal, defacing buildings.

DPWH officials were mandated not to wear their uniform to shield them from random acts of public anger.

As frustration boils over beyond digital, it has fuelled plans among young Filipinos to hit Manila’s streets with protest rallies set on September 13 and 21.

Social media buzzes with calls to action as flood survivors and environmental groups to demand transparency and accountability.

A future stolen

The stakes couldn’t be higher. Anger among young Filipinos are boiling over, reminiscent of the previous events.

On September 12, thousands of black-clad students of the state-funded University of the Philippines (UP)-Diliman, the country's premiere higher learning institution, gathered around the campus in an indignation rally.

Hundreds of students at the elite UP-Manila, who train future doctors and medical workers, also gathered to support the protest.

A crowd of protesters also gathered at the gates of the House of Representatives.

They called for the jailing of corrupt lawmakers.

"Bukod sa inis at galit, narito kami para marinig ang aming boses, marinig ng dapat makarinig ng aming panawagan". ("We're not just frustrated and angry, we want to be heard by those who need to hear our call," a female student in Diliman told local media.

The protests, so far, have been limited in scale and effect.

What happens next

While the mass actions are disorganised and sometimes driven from opposing sides, they've been spontaneous.

This protest season may well be the Philippines’ make-or-break moment on corruption, democracy, and the future of power itself.

Will the Philippines’ rising tide of young voices reshape governance?

It shows a trend: a rising awareness and willingness among young Filipinos to get past being digital warriors.

They seek to push back against corruption’s corrosive effects.

Will the leaders dash the hopes of its young people, or will the country join the ranks of its regional neighbours in social convulsion?

Will the military intervene?

History shows that when people come together, the impossible can happen.

The next few days — and weeks — will be a high-stakes drama worth watching closely.

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