SEN. Sherwin Gatchalian warned Tuesday, August 19, 2025, that the Senate could strip the Department of Public Works and Highways (DPWH) of its proposed P274-billion flood-control budget and redirect the money to schools if projects continue to be “ineffective and hollow.”
The warning was issued during the Senate Blue Ribbon Committee’s investigation into alleged irregularities in flood-control projects nationwide, including those in Cebu.
Gatchalian, who chairs the Senate committee on finance, told DPWH Secretary Manuel Bonoan that the government cannot afford wasteful infrastructure when schools face critical shortages.
Cebu in the spotlight
Although Gatchalian did not mention Cebu in his statements, the province is among those in the country where the DPWH implemented flood-control projects.
A Presidential Communications Office report released on Aug. 11 revealed Cebu had 414 completed and ongoing flood-control projects between July 2022 and May 2025. That number is the second highest nationwide, behind Bulacan with 668 projects during the same period.
The problem: Cebu is not among the country’s top 10 flood-prone provinces, yet it continues to experience destructive flooding during heavy rains. This discrepancy raised questions about whether billions of pesos were being channeled into unnecessary or mismanaged projects.
Nationwide problem
The DPWH has launched nearly 9,855 flood-control projects worth more than P545 billion since July 2022. But many senators are asking: Where did all the money go, and why are communities still under water every typhoon season?
Sen. Rodante Marcoleta, chairperson of the Blue Ribbon Committee, said the issue is systemic.
“The root of the issue before us boils down to rampant corruption entangled within the core of our government — tila sakit na kanser na siyang unti-unting sumisira sa ating bansa (it seems like a cancer that is slowly destroying our country),” he said.
Senate President Pro Tempore Jinggoy Estrada, meanwhile, pressed Bonoan on reports of “ghost projects” in Bulacan, while other senators flagged suspicious bidding practices. Bonoan said the DPWH is also investigating the matter.
Undercapitalized firms, oversized contracts
One of the most glaring issues raised in the hearing is how firms with little financial capacity managed to win multibillion-peso contracts:
QM Builders, a Cebu-based company with only P1.25 million in paid-up capital, secured 93 projects worth P7.38 billion.
Centerways Construction (Sorsogon City), which began with P1.25 million in capital and later raised it to P45 million, landed 83 projects worth P5.1 billion.
MG Samidan Construction Corp. (Mountain Province), with just P250,000 in capital, obtained 58 projects worth P5 billion.
Wawao Builders (Quezon City) bagged 58 projects valued at P4.2 billion.
These figures alarmed lawmakers, who argued that such firms should not have qualified to manage projects on such a scale. The concern is that contracts may have been padded, subcontracted, or left unfinished, leaving taxpayers with little to show for the billions spent.
Under scrutiny
The Senate inquiry called in DPWH officials and contractors, though attendance was mixed.
[]Appeared: DPWH Secretary Manuel Bonoan and representatives from major firms such as QM Builders, Sunwest Inc. and Legacy Construction.
Absent but sent replies: Several other contractors.
Issued subpoenas: Firms like Alpha and Omega Gen. Contractor, St. Timothy Construction Corp., and Wawao Builders, who failed to appear.
The Blue Ribbon Committee said it will continue summoning firms to determine whether collusion or favoritism played a role in the awarding of contracts.
Why now
The investigation was triggered by President Ferdinand Marcos Jr.’s fourth State of the Nation Address on July 28. Marcos cited the failure of flood-control infrastructure during recent massive floods caused by the southwest monsoon (habagat) and a series of typhoons.
He ordered an in-depth review of all flood-control spending, noting that public trust was at stake if billions in taxpayer funds were being wasted.
What happens next
The hearings are expected to continue in the coming weeks, with senators signaling they may not approve DPWH’s proposed 2026 flood-control allocation unless reforms are made.
For Gatchalian, the message is clear: DPWH must prove that its projects work — or risk losing its funding altogether. / TPM, CDF