Proposed 2026 Budget: Flood Control Projects Face P71.7 Billion Cut; No AKAP While Confidential Funds Cut By 11%

Days after President Marcos publicly raised his suspicion of corruption in public works projects, the Department of Budget and Management (DBM) announced on Wednesday, Aug. 13, a P71.7-billion cut in allocation for flood control infrastructure for next year in the proposed National Expenditure Program (NEP).

At a press briefing, Budget Secretary Amenah Pangandaman reported a P274.9-billion allocation in the NEP for flood-related projects for 2026, lower than this year’s P346.6 billion.

Amid criticisms of the current budget, next year’s NEP has no appropriation for the controversial Ayuda para sa Kapos ang Kita Program. AKAP is regarded as a form of pork barrel.

Confidential funds have also been slashed by 11 percent under the NEP.

The bulk of the P274.9 billion allocation or P272.3 billion is for the nationwide flood control projects of the Department of Public Works and Highways (DPWH), while the remaining P2.5 billion goes to the Metropolitan Manila Development Authority or MMDA.

In his budget message, Marcos said the allocation contained in the NEP will “address the urgent need to invest in long-term solutions for flood regulation and control.”

The announcement by the DBM came days after the Chief Executive revealed that 15 contractors bagged a fifth of the P545 billion worth of contracts for flood control since 2022.

Public Works Secretary Manuel Bonoan on Tuesday, Aug. 12, said a special team of inspectors is conducting an assessment of the projects.

But in a telephone interview with ANC on Wednesday, Bonoan said the DPWH cannot prevent companies owned by politicians from participating in infrastructure contracts.

“I think our hands are tied with regard to this kind of situation unless there would be an enabling law that would prohibit actually this kind of situations and that could be incorporated in the bidding process,” Bonoan said.

He said any company licensed by the Philippine Contractors Accreditation Board can participate in DPWH’s bidding process as long as it submits the required documents.

Just as the DPWH began its probe on irregularities in flood control projects, Senior Deputy Speaker and Quezon 2nd district Rep. David Suarez said he would prefer an independent body to handle any investigation involving some congressmen.

Suarez also challenged Baguio City Mayor Benjamin Magalong to identify the congressmen allegedly working in cahoots with contractors in pocketing 30 percent to 40 percent of funds for flood control and other infrastructure projects in their respective districts.

“I think Mayor Benjie Magalong should come out with the list because it is unfair to come out with statement that there are these many congressmen, like this, like that, but you have to show who these congressmen are,” he said.

“You can’t just be out there destroying the name of the institution without actual, factual basis. So, the challenge really for the good mayor is to name who these individuals are,” he added.

Suarez said that he also has a list of his own which he intends to reveal at the right time.

Third party probe

Suarez also said Congress cannot afford to be accused of partiality if it investigates its own members.

“Absolutely, I think we need a third party to look into it because, once Congress does the investigation, they will say we are investigating ourselves. So, really, there has to be a third party that would investigate,” Suarez said on the sidelines of the ceremony for the turnover of the P6.973-trillion NEP for 2026.

“There is nothing really much to say. The important thing is that there is an ongoing investigation by the Office of the President. Let us see where the problems are. And let us see what the result will be. We are ready to help, the Congress, the House of Representatives in finding the truth behind all these problems that the President has seen,” Suarez said.

“And we are hopeful that when we do approve the budget for the 2026, the reforms that the Speaker wants to set in motion will be seen and manifested in 2026,” he said.

The Quezon lawmaker said Senate President Francis Escudero, who was reported to have received campaign funds from a contractor – according to a Rappler report – when he ran for senator and Ako Bicol party-list Rep. Zaldy Co, whose construction company allegedly engaged in infrastructure projects, should be the ones to explain their side of the story.

Escudero denied having helped his campaign contributor, Lawrence Lubiano of Centerways Construction and Development Inc., secure government projects. He claimed some House members were involved in a demolition job against him. He did not name names.

“I think that is for the Senate president to answer, that is really for him to explain,” Suarez said.

“I am not in any position and I am not privy to the transactions of his corporation with government, so I’m not in a position to answer,” he said when asked to comment on Co’s possible involvement in anomalous projects.

In a separate interview, presidential son House Majority Leader Rep. Sandro Marcos agreed with Suarez that it is more “wise and prudent” for the House to wait for the result of the Executive department’s investigation on the matter before making its next move.

“The President has already released certain names and figures in his press con the other day. I think what would be happening in the next few weeks, although I believe that the House should assist, in being able to identify, where the anomalies are,” he said.

“I think it would be primarily the prerogative of the Executive to be able to identify where these anomalies thrive. The fact, so to speak, the accused are within the legislature,” he added. “Again, this is all about accountability and transparency.” – With Jose Rodel Clapano, Rainier Allan Ronda, Alexis Romero