Philippines corruption: 5 things you need to know

A seething fury courses through the heart of the Philippines. The nation teetering on the edge of a volcanic eruption of outrage against rampant corruption.

The 2024 Corruption Perceptions Index lays bare the grim truth: the Philippines languishes at 114th out of 180 nations, its dismal score of 33 out of 100 a stark betrayal of trust, far below the global and Asia-Pacific benchmarks.

Though a faint flicker of progress glimmers compared to years past, the insidious rot of public sector plunder festers, strangling job creation and suffocating the economy in its iron grip.

Here are 5 things to know about Philippine corruption:

Transparency International, a Senate probe and various watchdogs have exposed how tens of billions of dollars (hundreds of billions of pesos) tagged for government projects, including climate-adaptation flood controls, have been lost to organised theft, allegedly involving senators, congressmen and government officials (engineers) with estimates reaching as high as ₱1.089 trillion (about $19 billion) since 2023 alone. 

Here’s one way to estimate its knock-on effect: If that $19 billion was invested on January 3, 2023 (first trading day of the year on Wall Street) in Tesla stocks (at a closing price of $108.10, it would have grown in value more than four-fold by September 30, 2025 (TSLA closed at $444.72).

So the $19 billion would have grown to $78.18 billion, by just investing in one of the US tech stocks, Tesla.

It gets crazier.

If that money was invested in Nvidia, $19 billion worth of the chipmaker's stock on January 3, 2023, would be worth a staggering $239.18 billion as of October 15, 2025.

This is only an approximation, as market returns vary by the minute, while dividends, trading fees, etc. are not included. 

Still, it's lost opportunity. A huge one.

It shows every peso or dollar that disappears in the ether of plunder deprives citizens in lost present and future value, which could in theory grow in perpetuity (i.e. via a sovereign wealth fund, like Maharlika), serving present and future generations of citizens.

The Department of Public Works and Highways (DPWH) currently remains the focal agency for much of this misuse, and the subject of growing public anger.

But other agencies are also involved in graft and corruption, as per the Philippine Institute for Development Studies (PIDS).

The top 5 government agencies in the Philippines known for corruption, based on cases filed and studies, are:

Local Government Units (LGUs): One of highest number of corruption cases are filed against local officials, with 2,799 cases reported in 2016.

Philippine National Police (PNP): The police force is widely regarded as one of the most corrupt institutions in the country, with 1,022 cases filed in 2016. Corruption includes bribery, extortion, and involvement in illegal activities. 

Department of Education (DepEd): Ranked third with 222 cases, the agency is often implicated in fund diversion and anomalies related to procurement and projects. 

Armed Forces of the Philippines (AFP): The AFP has been involved in high-profile corruption scandals such as the “pabaon” system where tens of millions were misappropriated. There were 201 cases filed in 2016. ​

Bureau of Customs (BoC): Frequently labelled the most corrupt agency, as it continues to struggle with bribery and smuggling issues, severely impacting trade and investment. Reports in 2025 still highlight its deep corruption, according to the Philippine Star.

It’s also present in other agencies, but efforts to curb corruption through legal and institutional reforms continue.

It's been said that Filipinos are paupers sitting on a pot of gold.

This is true.

The Philippines itself is highly mineralised, blessed with gold, oil, gas, and critical minerals including rare earths, copper and nickel.

But the culture of corruption is woven into the country's laws (i.e. opaque budgetting, lawmakers involved in infra kickbacks). It's like a festering wound. Scandals and plunder cases against high-ranking officials underscore the depth of a crisis of confidence.

Long term, it hurts investments and job creation, and the country's overall stability. 

This casts a long shadow over public trust, investor confidence and the nation's economic future.

These scandals extend beyond isolated incidents. It illustrates a systemic problem that directly undermines development.

For many Filipinos, the only hope is to go away, and find opportunities elsewhere (i.e. there are 10+ million non-resident Filipinos, including 2.5 million overseas workers).

Corruption is intricately woven into the local culture.

Examples of cultural baggage include the centuries-old "sabong" (cockfighting) tradition, my-dog-can-poop-anywhere licence every pet owner is entitled to, star-worship, the "padrino" (patronage) system and "utang na loob" (debt of gratitude).

Combine these old habits with "it's-ok-to-steal-let-smart-lawyers-deal-with-it" attitude, plunder dies hardest of all.

Recent high-profile cases show how deep corruption runs in the Philippines. Studies say up to 20% of government spending could be lost to illegal funds. 

The justice system is part of this culture: it's hooked on legal technicalities and fraternal ties; rather than the pursuit of truth, establishment of guilt or basic morality. 

When the best defence lawyers money can buy could articulate “reasonable doubt” or adopt "demurrer to evidence" strategies, strong cases are easily watered down. 

Example 1: Actor-turned-Senator Jinggoy Estrada was previously involved in the 2013 Priority Development Assistance Fund (PDAF) scandal, also known as the ₱10-billion “pork barrel scam”. In January 2024, he was convicted, initially of one count of direct bribery and two counts of indirect bribery, fined ₱3 million, and faced potential prison time.

However, he was acquitted of plunder charges based on technicality – “reasonable doubt”.

Example 2: The same thing with actor-turned-senator Bong Revilla Jr. This, despite the fact that co-accused Janet Lim Napoles and Revilla Jr's aide Richard Cambe were convicted for plunder.

Revilla Jr's acquittal was bolstered by “demurrer to evidence”, a defence strategy (after the prosecution or plaintiff has presented all their evidence), that capitalises on bad lawyering on the prosecution's part.

When a court grants the demurrer (or objection), it means the evidence shown is not enough to support a conviction or judgment, so the case is dismissed.

This happens without the defendant's need to present any evidence. In criminal cases, this dismissal amounts to an acquittal.

Earlier, the Sandiganbayan (graft court) ordered Revilla Jr to return ₱124.5 million to the government as “civil liability”. His acquittal on criminal plunder released him from that obligation, his lawyers argued.

Case closed. People's money gone. Lawyers get paid well.

This is how the country's best lawyers game the justice system enough to kill any hope of real justice based on truth. And that's to say nothing about the smartest engineers at DPWH.

Notably, the ongoing flood-control corruption scandal involving billions of pesos meant for critical infrastructure has led to widespread public outrage, mass protests, and significant political upheaval.

More such protests are expected.

The Senate and House leadership faced shake-ups amid links to corrupt flood-control contracts, with oversight commissions uncovering millions of pesos in unfinished, overpriced.

Philippine courts have frozen bank accounts tied to these anomalies, and ongoing hearings continue to expose layers of graft implicating lawmakers, officials, and contractors.

Ironically, the only ones who were ever jailed are the protesters themselves.

This while investigations reveal a disproportionate number of projects were concentrated among a few contractors, some linked to influential lawmakers, including an influential congressman who has done a runner.

Turned out that 421 "flood control" projects were "ghosts", or total scams.

Changing attitudes at all levels — from government officials to the citizenry — is the way forward. But it needs both top-down and bottom-up buy in from both leaders and the people.

Curbing corruption here is not about rewriting laws alone.

It's about embracing a change of heart that prioritises the common good over personal or political gain. 

Only through a widespread shift in values and steadfast commitment to integrity, and away from a fratenity-driven justice system, can the nation hope to break the cycle of plunder, and build a just and prosperous future for all Filipinos.