Philippine Senators in kickbacks scandal: Escudero, Binay, Revilla named; top auditor, education official called out in flood control scam

Manila: In a bombshell session that gripped the nation, the Philippine Senate Blue Ribbon Committee hearing on September 25, 2025, peeled back layers of corruption in government infrastructure projects, exposing a web of kickbacks siphoning billions of pesos from flood control initiatives.

On Thursday (September 25, 2025), former Department of Public Works and Highways (DPWH) Undersecretary Roberto Bernardo, in an affidavit submitted to the Senate Blue Ribbon Committee, implicated Senator Chiz Escudero, former Senator Nancy Binay, Commission on Audit (COA) Commissioner Mario Lipana, and Department of Education Undersecretary Trygve Olaivar in alleged kickbacks from multibillion-peso flood control projects.

The livestreamed proceedings featured explosive testimony of Bernardo, who resigned as DPWH Undersecretary, and confessed to facilitating illicit payments to high-profile politicians.

He stated in Filipino: “Nakagawa po ako ng pagkakamali at pinahintulutan ko ang aking sarili na maging kasangkapan sa maling gawain. Taos puso at puno ng pagsisisi na ako po ay humihingi ng kapatawaran sa Diyos, sa ating bansa, at mga kababayan. (Translation: "I made a mistake and allowed myself to be an instrument of wrongdoing. I'm heartily sorry and, filled with regret, beg for mercy from God, our country and our people"), Bernardo stated on Thursday.

Also on Thursday, a former soldier come forward with explosive allegations, submitting a sworn statement that he personally took part in the transport of hundreds of millions of pesos in cash delivered to the homes of powerful politicians, including former House Speaker Martin Romualdez and Ako Bicol (AKB) Party-list Rep. Zaldy Co.

In a notarized affidavit dated September 24, 2025, presented before the Senate Blue Ribbon Committee during its inquiry into anomalous flood control projects, ex-Marines Orly Regala Guteza detailed his role in what he described as a large-scale cash delivery operation.

According to Guteza, he was recruited in December 2024 as a security consultant for AKB Party-list, personally hired by Rep. Co.

'Basura' (trash) cash runs

What began as a standard protective role, he said, soon expanded to a clandestine assignment with the codename “basura” — which he later realised was a euphemism for suitcases filled with cash.

Guteza claimed that the operation involved moving multiple suitcases, each containing around ₱48 million, marked with sticky notes indicating the exact amount inside.

In one particularly striking account, Guteza alleged that 46 suitcases were delivered in a single run to Rep. Co’s residence in Valle Verde, Pasig City. The delivery, he said, was facilitated by ACT-CIS Party-list Rep. Eric Yap.

By his estimate, that single operation involved the transfer of more than ₱2.2 billion in cash.

Guteza's affidavit also implicated former House Speaker Martin Romualdez, a key figure in the House of Representatives and a cousing of President Ferdinand Marcos Jr.

Guteza did not specify the frequency or volume of deliveries allegedly linked to Romualdez but claimed his name came up repeatedly in connection with the operation.

The revelation landed like a bombshell at the Blue Ribbon Committee hearing, which had originally been convened to examine irregularities in the Department of Public Works and Highways (DPWH) flood control projects.

Senators immediately called for corroborating evidence, warning against politically-motivated testimonies but also acknowledging the seriousness of the sworn statement.

Sen. Risa Hontiveros urged investigators to “follow the money and secure the paper trail,” while Sen. Alan Peter Cayetano cautioned that affidavits, while powerful, must be backed by verifiable documents, bank records, or eyewitness corroboration.

If substantiated, Guteza’s claims could expose a shadow network of cash movements tied to congressional leaders and party-list representatives, raising fresh concerns about the abuse of the party-list system and the use of flood control allocations as a source of kickbacks.

The Senate has directed the National Bureau of Investigation (NBI) and the Anti-Money Laundering Council (AMLC) to verify the affidavit’s claims and track possible financial flows connected to the alleged “basura” operations.

The AMLC has already frozen more than 700 bank accounts in connection with the flood cscam probe.

For now, Guteza’s testimony adds a dramatic new layer to an already simmering scandal — one that could shake not only the House leadership but also the credibility of the party-list system itself.

The revelations of Bernardo and Guteza, painted a grim picture of systemic plunder, where substandard materials and inflated costs funded lavish payouts, compromising public safety in flood-prone areas.

The hearing, chaired by Sen. Panfilo Lacson, resumed scrutiny of anomalies in Bulacan province's flood control projects, a hotspot for irregularities since 2019.

Bernardo, a central figure in the scandal, took the stand under oath, admitting to wrongdoing in anomalous contracts.

His sworn affidavit, released mid-session, detailed personal deliveries of kickbacks totaling hundreds of millions, linking senators and congressmen to the scheme.

"I facilitated these transactions to ensure project approvals," Bernardo stated, his voice steady but face ashen, as senators grilled him on the mechanics of the graft.

Bernardo also confirmed that Lipana requested to be referred to DPWH officers in Bulacan 1st DEO, though he has no personal knowledge of whether any projects were secured.

The affidavit corroborates earlier allegations linking Ako Bicol Party-list Rep. Zaldy Co and former Senator Ramon "Bong" Revilla Jr. to similar schemes, with Revilla reportedly receiving a 25-percent share.

Bernardo said these transactions were tied to lists of projects prepared by DPWH engineers and later included in the General Appropriations Act.

Bernardo emphasised that his statements are based on personal knowledge and supporting documents and expressed willingness to submit additional evidence as needed.

Senators pounced, citing Commission on Audit probes into officials like COA Commissioner Mario Lipana, whose wife allegedly held contracts.

The session, watched live on Senate feeds and major networks, sparked outrage online.

Critics decried the erosion of trust in President Ferdinand Marcos Jr.'s "Bagong Pilipinas" agenda, with flood deaths in recent typhoons — linked to shoddy infrastructure — fresh in memory.

Lacson vowed deeper probes, including unsealing evidence against Sens. Jinggoy Estrada and Joel Villanueva from earlier hints.

With billions in infrastructure budgets at stake, this scandal could topple careers and reshape governance. For Filipinos battered by floods and forgotten by floods of funds, justice can't come soon enough.

As the gavel fell, the air is filled with calls for accountability, or collective peril in the southeast Asian country.