Philippines corruption shockwave: Ex-lawmaker Zaldy Co admits to $1.69-billion 'budget insertion', pins down Marcos Jr, cousin Romualdez — what happens next?

Manila: The depths of systematic corruption and the massive theft of Filipino taxpayers’ money have grown even darker with fresh revelations from former lawmaker Elizaldy “Zaldy” Co.

Co, who is in an undisclosed overseas location, released chilling revelations in a video statement posted on X and other social media on November 14.

The former AKO Bicol Party-List nominee admitted to inserting an eye-watering ₱100 billion ($1.69 billion) in the 2025 national budget, claiming that this controversial directive was explicitly ordered by none other than President Ferdinand “Bongbong” (BBM) Marcos Jr. and former House Speaker Martin Romualdez.​

Co, who did not mince words. He asserted that the entire state machinery is being wielded to silence him.

Marcos Jr and Romualdez are cousins.

In a video sent to reporters on F, Co claimed the Marcos administration is using “all the country’s resources” to silence him, warning he could be "killed" if he reveals more details.

"Ginagamit ng administrasyon ang buong resources ng bansa para tumahimik ako (The administration is using the country entire resources to silence me — that he will shoot me if I will talk and gagamitin ako bilang panakip butas sa kanilang kampanya laban sa korapsyon (and then use me as a fall guy in their campaign against corruption)," Co said.

'I will not be silent'

The former representative has been overseas since July 19 for medical checkups.

He planned to return after Marcos' State of the Nation Address on July 28 but was told by Romualdez to delay his return, reportedly being assured that he would be “looked after as the president instructed.”

Co now alleges that “being looked after” was a euphemism for being set up as a scapegoat.

"Ginawa nila akong poster boy ng kanilang sariling kasinungalingan. Ngayon hindi na ako mananahimik. Ilalabas ko ang lahat ng katotohanan, may resibo, may ebidensya at may pangalan (They turned me into a poster boy for their own lies. Now, I will not be silent. I will reveal the whole truth, there's a receipt, evidence and name)," Co added.

Co, however, did not mention the now-controversial government infrastructure projects won by Sunwest, a conglomerate based in Albay province which he co-founded.

President Ferdinand Marcos Jr earlier said that based on his "disturbing assessment", the bulk of flood control projects went to a few contractors, including Sunwest, which as has bagged ₱38 billion worth of government projects from 2016 to 2024, as per official data.

As of December 2024, the president vetoed ₱194-billion ($3.38 billion) worth of line items in the 2025 budget.

Some ₱26.065 billion worth of proposed 2025 projects shut down were under the Department of Public Works and Highways (DPWH), the presidential palace announced then.

Timeline of insertions

In the video, Co recounted that the insertion was ordered in late 2024 by Budget Secretary Ameenah Pangandaman during the bicameral conference process.

Pangandaman told him the president requested P100 billion worth of projects be inserted, a directive Co was instructed to verify with Usec. Adrian Bersamin of the Presidential Legislative Liaison Office, who confirmed the order was given by President Marcos.

According to Co, after reporting Marcos’ instruction to Romualdez, he was told, "What the president wants, gets."

A follow-up meeting occurred in Malacañang involving Pangandaman, Bersamin, Romualdez, and Department of Justice Undersecretary Jojo Cadiz.

Co said a list of projects amounting to ₱100 billion was handed over in a “brown leather bag,” which reminded him of a previous trip when President Marcos carried a similar bag — a symbolic detail pointing to the president’s involvement.

Initially, Co requested restricting the insertion to ₱50 billion ($846.8 million) for the Department of Public Works and Highways (DPWH) to avoid overshadowing the education budget, but the remaining ₱50 billion was placed under the Office of the President’s "unprogrammed funds", granting direct control over releasing the money.

List of infrastructure projects

Co’s office also provided a list of infrastructure projects worth about ₱81.08 billion, alongside other programmes including the preparation for the 2026 ASEAN Summit valued at roughly ₱18.76 billion.

He claims the entire ₱100 billion insertion was insisted upon because it was “promised by Speaker Martin” and "could not be altered".

Co expressed skepticism about President Marcos’ repeated denials of involvement, noting that budget departments generally seek the president’s approval. The video released is reportedly part one of a two-part series, with the second yet to be made public.

Allegations against Zaldy Co

Zaldy Co is no saint.

While Co acknowledges facilitating the budget insertions, he also faces separate allegations for receiving kickbacks linked to flood control projects currently under Senate and Independent Commission for Infrastructure investigations.

Many projects under scrutiny reportedly involve substandard materials or exist only on paper.

Complaints against Co have been filed with the Office of the Ombudsman, and formal charges are expected shortly. ​

This revelation casts a deeper shadow on the ongoing anti-corruption campaign, as insiders allege that some of the highest-ranking officials, including those closest to the president, may be implicated in large-scale budget manipulations and questionable infrastructure deals.

What happens next?

In the Philippines, the saga of corruption and the theft of taxpayers’ money has a dark chapter etched in recent history.

In 2013, the Supreme Court declared the highly controversial congressional "pork barrel" system — specifically the Priority Development Assistance Funds (PDAF), which were inserted in the national budget or General Appropriations Act (GAA) — unconstitutional for violating the principle of separation of powers.​

This landmark decision followed a whistleblower exposé that revealed the systematic pocketing of PDAF funds by dubious foundations and bogus non-government organisations (NGOs), implicating senators and congressmen alike.

'Pork barrel' fund diversion

The scam, famously linked to businesswoman Janet Lim-Napoles, involved the diversion of billions of pesos into fake projects and ghost NGOs.​

The Commission on Audit (COA) confirmed these brazen corrupt practices, particularly involving pork barrel allocations intended for local development programs.

Public outrage surged as social and mass media amplified the scandal, culminating in the “Million People March” protests in Manila’s Rizal Park and other parts of the country.

From fake NGOs to fake projects

Citizens demanded accountability and systemic reform, marking one of the biggest popular challenges against entrenched political corruption.​

In response, the Aquino administration under Benigno Aquino III ("PNoy") pledged to abolish PDAF.

Subsequently, charges of plunder and graft were filed against top political figures, including senators Juan Ponce Enrile, Jinggoy Estrada, and Bong Revilla, who were accused of receiving kickbacks via fake NGOs.

The Ombudsman found probable cause to indict these officials, many of whom were later arrested and tried.​

The Supreme Court’s decision also invalidated related forms of congressional insertions beyond the PDAF, signalling a decisive shift in public finance management and anti-corruption efforts.

Transparency challenges

Despite these strides, ongoing challenges remain in enforcing transparency and rooting out corruption in government spending.

The 2013 PDAF scandal remains a cautionary tale of political patronage and systemic abuse of legislative budget powers — an unresolved test of governance and accountability in the Philippines. ​

ICI probe

The Independent Commission for Infrastructure (ICI), meanwhile, is currently “carefully reviewing” the statement made by Zaldy Co.

This was confirmed by ICI Executive Director Brian Keith Hosaka in a message to reporters in response to inquiries about Co’s allegations that Marcos Jr ordered the insertion of at least P100 billion in projects into the 2025 General Appropriations Act.

Co’s revelations have intensified the spotlight on the current administration, as the ICI continues its parallel investigations alongside the Senate into alleged anomalies in flood control projects.

The commission is assessing the veracity of Co’s claims, which add to the mounting pressure on top government officials amid widespread public outrage over substandard and questionable infrastructure spending.