THE Department of Public Works and Highways in Central Visayas (DPWH 7) has said that its audit found no ghost projects in its flood control projects in Cebu, even as controversy swirls nationwide over how billions in contracts were awarded to few contractors.
DPWH 7 Director Danilo Villa told reporters on Wednesday, Aug. 20, 2025, that an internal validation team reviewed almost 600 flood control projects from 2022 to 2025, covering drainage systems, seawalls, culverts and river protection works in Cebu and parts of Negros Oriental. Negros Oriental was still under the DPWH 7’s jurisdiction before the creation of the Negros Island Region in 2024. “All projects implemented by Region 7 were found in their respective areas,” Villa said in Tagalog. “Based on the report, it appears we have not been affected by what they call ‘ghosts’ or ‘hallucinations.’”
The audit was ordered after President Ferdinand Marcos Jr. flagged irregularities in the nationwide flood control program. Earlier, Malacañang reported a “mismatch” between where projects were built and where flood risks were highest.
Why Cebu is under scrutiny
Despite DPWH 7’s assurance, Cebu has drawn national attention because of the sheer number of projects it received. Between July 2022 and May 2025, Cebu ranked second nationwide with 414 flood-control projects, behind only Bulacan.
That figure raised questions because Cebu is not among the country’s 10 most flood-prone provinces under the National Adaptation Plan of the Philippines 2023–2050. Lawmakers also questioned why one contractor, QM Builders, secured a large share of contracts.
The QM Builders question
QM Builders, a construction firm based in Dumanjug, Cebu, was awarded 93 contracts worth P7.38 billion, even though it reported only P1.25 million in paid-up capital and years of zero profits. On Tuesday, Aug. 19, the Senate Blue Ribbon Committee opened an investigation into the flood control program.
Differing views
The DPWH 7 has defended QM Builders, saying the contractor had passed open bidding and delivered projects. Locally, some officials, such as Dumanjug Mayor Efren Guntrano “Gungun” Gica, vouched for the company, pointing to its role in jobs and the local economy. But national concern remains. Reports show that P100 billion in contracts nationwide went to just 15 contractors, QM Builders among them. Senators say this concentration raises red flags about transparency and fairness.
What happens next?
For now, DPWH 7 maintains that Cebu has no ghost projects and that its flood-control works exist on the ground. But the broader questions — why Cebu got so many projects, whether bidding was fair, and if communities are truly safer from floods — remain under investigation.
The outcome of the Senate probe could determine whether reforms in government contracting will follow and whether a few contractors will continue to dominate multi-billion-peso infrastructure projects. / CDF