LOCAL business leaders have expressed grave concern that recent revelations of corruption in the flood control projects initiated by the Department of Public Works and Highways (DPWH) could undermine investor confidence and harm the economy. Their warning is part of the call for action from a coalition of 30 of the nation’s biggest business and civic organizations, which on Sept. 4, 2025, demanded an end to what they call “shameful, unabated and excessive corruption” in public works projects.
The joint statement did not mince words, targeting a wide swath of the bureaucracy. The coalition accused officials in Congress, the DPWH, various local government units and even the Commission on Audit of betraying public trust and allowing systemic graft to flourish.
What just happened
In response to mounting public outcry, President Ferdinand Marcos Jr. has created the Independent Commission for Infrastructure (ICI). Established through Executive Order 94 on Thursday, Sept. 11, the new body is granted full investigative powers.
The ICI will operate separately from existing agencies, mandated to probe allegations, recommend cases for prosecution and map out systemic corruption practices. Members of the commission are expected to be announced soon.
A threat to economic stability
Business leaders argue that corruption is a direct and immediate threat to the national economy. Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry, laid out the cascading effects of graft. “Beyond damaging the international image of the Philippines, corruption severely undermines our economic stability,” he said. “It erodes investor confidence, complicates the ease of doing business and weakens the overall competitiveness of the country.”
Echoing this, Talisay Chamber of Commerce and Industry president Carl Cabusas warned that the problem distorts how the country is viewed on the world stage. “These issues can make it more difficult for us to project stability and good governance abroad, which are important factors in attracting investors,” he said.
Their concerns were amplified by external events, such as South Korea’s decision to suspend loan grants to the Philippines. Cabusas called the move a “concern that speaks loudly to the global community — and it is not favorable to our image.” The suspension is seen by many as a direct reflection of international apprehension about governance and stability in the Philippines.
These local warnings are validated by international findings. The Organisation for Economic Co-operation and Development (OECD) estimates that 10 percent to 30 percent of public construction budgets are lost to mismanagement and corruption, while the International Monetary Fund (IMF) has reported that corruption discourages investment, reduces economic growth and leads to less government revenue.
What’s at stake for Cebu
The core issue is the erosion of trust, both at home and abroad, which carries significant economic consequences. For Cebu’s business community, corruption is not an abstract policy issue but a direct threat to the local economy, particularly its vital tourism sector.
Ynoc warned that as a tourism-dependent nation, “the Philippines risks losing foreign visitor arrivals, since corruption diminishes trust and tarnishes the country’s appeal.” A reputation tainted by corruption could discourage international visitors, directly hitting Cebu’s hotels, resorts and the thousands of small businesses that rely on a steady stream of foreign tourists.
Beyond tourism, the business groups emphasized that widespread corruption robs taxpayers and deprives millions of citizens of critical resources. For Cebu, where infrastructure is central to development, these losses translate into fewer classrooms, weaker flood protection, underfunded health facilities and slower overall growth.
Lawyers have framed the issue as a deeper social and moral crisis. A new group, the Cebu Lawyers for Good Governance (CLGG), announced its formation to address what it calls a “blatant, pervasive and deepening crisis of corruption.”
In a manifesto, the group states that corruption “steals from flood control funds, cripples public health systems, denies education to our youth, undermines the basic services for the general welfare of the citizens and mocks and erodes the public trust.” The document was signed by Gabriel Ingles, Alex Monteclar, Corazon Valencia Evangelista, Alan Trinidad, Eden Silva and Frederick Gementiza.
What we don’t know yet
While the President has responded by forming the ICI, several key questions remain.
The most glaring unknown is the composition of the new commission. The credibility and effectiveness of the ICI will depend heavily on the independence of its members, who have not yet been announced. It is also unclear how the commission will use its “full investigative powers” in practice and whether its recommendations will lead to actual prosecutions and convictions.
Finally, the core demands of the business community still have to be answered. It is not yet known whether the ICI’s investigations will ultimately lead to the recovery of stolen funds or the blacklisting of corrupt contractors. The question of whether anyone will be held legally accountable remains unresolved.
What’s next
The ball is now in the government’s court. The business community has made its position clear, pressing for concrete actions beyond rhetoric. The path forward, according to Cabusas, requires a united front to rebuild trust. “This is also a call for us to work harder together,” he said. “Both government and the private sector must continue to strengthen systems of transparency, accountability and integrity.”
How, and if, government agencies respond will determine the next chapter. If corruption is checked, it could unlock investments, boost competitiveness and safeguard Cebu’s economic brand. If not, the risks outlined by Ynoc and Cabusas may prove correct: lost investors, fewer tourists and an economy weighed down by mistrust. / KOC