VICE President Sara Duterte reiterated her message about how corruption affects businesses, not only in Davao City but also in the whole country.
In her keynote message at the opening of the 27th Davao Agri-Trade Expo (Date) and the 8th Davao Investment Conference (Davao Icon) at SMX Convention Center, Lanang, Davao City, on September 18, 2025, Vice President Duterte denounced corruption as the Philippines’ greatest barrier to reaching its full economic potential.
“Corruption increases the cost of doing business, and investors complain about this. It creates a climate of uncertainty,” Duterte said, drawing loud applause from delegates and industry leaders in attendance.
Her message came at a time when the country is reeling from revelations of alleged irregularities in multi-billion-peso flood control projects. The scandal has implicated lawmakers, contractors, and government officials, raising questions about whether public funds meant for disaster mitigation have been systematically diverted for private gain.
The vice president reminded the public that she had long been raising alarms about the misuse of the national budget, and that she expressed frustration that her warnings had been disregarded until calamities brought the issue to the surface.
“The budget — no one was listening to me. Our countrymen had to be submerged in floods before someone named BBM reacted,” she said, referring to President Ferdinand Marcos Jr. “Even then, his reactions didn’t match what he should have done.”
Duterte painted a grim picture of political dysfunction, adding, “Really, truly, our economy is not in the very best weather. Our political stability is down to negative 2, negative 3, maybe even negative 10.”
She added that the government officials continue to focus more on politics and positioning for the next elections rather than vision, direction, and planning.
She lamented the absence of large-scale government projects, saying that the ones being undertaken are often misplaced, substandard, or simply disappear.
Duterte’s comments carried added weight as she had previously accused Ako Bicol Rep. Zaldy Co and former House Speaker Martin Romualdez of pocketing portions of the national budget. Both names have since been dragged into the ongoing flood project scandal, which is now under investigation by Congress, the Commission on Audit (COA), and the Senate Blue Ribbon Committee.
An audit ordered by Malacañang revealed that from July 2022 to May 2025, around P545.6 billion had been allotted to flood control projects nationwide. Of this, P100 billion or nearly one-fifth of the total, was cornered by just 15 contractors. Some contracts lacked basic specifications or carried identical costs across different locations, raising suspicions of bid-rigging and so-called “ghost projects.”
In Bulacan, the COA initiated a fraud audit targeting the Department of Public Works and Highways (DPWH) flood control projects. Several of the contracts under review reportedly lacked documentation or were never completed, despite the release of funds had been completed.
Romualdez, who resigned as House Speaker on September 17 amid pressure over the scandal, has yet to directly respond to Duterte’s accusations. Allies insist his exit was meant to “preserve institutional stability,” though critics, including Senator Francis Escudero, argue it was an attempt to distance him from the controversy.
Zaldy Co, meanwhile, has been mostly absent from plenary sessions in recent weeks, with reports suggesting he may be seeking medical treatment abroad. His name surfaced in connection with contractors that won lucrative flood control contracts.
Opposition lawmakers have floated the possibility of extradition if he fails to return and face investigations.
President Marcos Jr., under mounting pressure, has promised that “no one will be spared” in the probe. Thousands of contracts are now under review, and Malacañang recently launched the Sumbong sa Pangulo portal to give citizens access to details of flood control projects, including their cost, contractors, and completion status.
Controversial flood-control projects
The controversy has real consequences on the ground. In Pampanga, the Arayat Riverbank Project collapsed last year after typhoons, with residents blaming poor design and substandard materials.
Similar complaints have been raised in other provinces where flood projects either failed to withstand heavy rains or never materialized despite budget allocations.
Such failures have intensified public frustration as billions continue to be poured into projects that should protect, but instead expose, communities during natural disasters.
Currently, Duterte stressed that the president must take full responsibility for the unfolding controversy, urging him to exercise greater caution in handling his administration.
She said the wave of resignations from key officials should not be treated as mere political maneuvers but as part of a broader pattern of evading accountability.
According to her, the public deserves clear answers on how corruption was allowed to flourish under the current leadership, and simply stepping down from office does not absolve anyone from their involvement.