A covert arrangement between lawmakers and the Department of Public Works and Highways (DPWH) has surfaced, exposing a system that allowed legislators to insert pet projects into national budgets and potentially fueling ghost and substandard flood control works.
The mechanism, dubbed the “leadership fund,” allowed members of Congress to either insert specific projects into the DPWH budget or select pre-approved infrastructure endeavors provided by district engineers.
Former DPWH Secretary Manuel Bonoan acknowledged the setup as an unwritten deal designed to minimize budget disruptions during high-stakes bicameral conference committee deliberations.
Bonoan noted that in 2024, approximately ₱24 billion was allocated to senators as a compromise after the agency endured heavy budget cuts the previous year.
Senator Panfilo Lacson highlighted the scale of the insertions, stating that nearly all senators in the prior Congress secured individual budget additions totaling at least ₱100 billion in the 2025 General Appropriations Act (GAA).
The lawmaker pointed to dramatic increases in DPWH funding over recent years as evidence of persistent manipulation.
The agency’s budget swelled from an initial proposal of ₱717.31 billion to ₱893.12 billion in 2023, which included ₱182.99 million for flood control.
By 2024, the total budget climbed further to ₱996.8 billion, with ₱244.58 billion earmarked for flood mitigation projects.
Insiders allegedly negotiated these deals through the late DPWH Undersecretary Maria Catalina Cabral, who reportedly worked directly with lawmakers and their staff to assign pet projects and “allocables” in exchange for financial commissions.
Lacson noted that these revelations mirror findings from the Senate Blue Ribbon Committee’s investigation into flawed flood control projects.
While acknowledging that setting aside discretionary funds does not guarantee misuse, he warned that such practices inevitably open the floodgates to corruption and systemic abuse.
Looking ahead, Lacson expressed confidence that the 2026 national budget is free from the leadership fund scheme.
His office has already shifted focus to scrutinizing the 2027 infrastructure proposals for key agencies, including the DPWH, the Department of Agriculture, and the Department of Transportation.
