The Long Game: Malacañang Vows More "Big Fish" Will Fall in Flood Probe
In the wake of public frustration over the perceived slow pace of justice, Malacañang has issued a firm reminder to the Filipino people: the investigation into the multi-billion-peso flood control scandal is only just beginning. Responding to criticisms that high-profile "big fish" managed to evade the "No Merry Christmas" promise made by President Ferdinand Marcos Jr. in late 2025, Palace officials emphasized that the administration's term is far from over.
"The President's term is not yet over; a lot more will happen and will occur," stated Palace Press Officer Claire Castro during a briefing on January 6, 2026. Her comments underscore a "long-game" strategy aimed at building airtight cases rather than rushing to satisfy a holiday deadline.
Beyond the "Merry Christmas" Deadline
In November 2025, President Marcos vowed that those responsible for "ghost" projects and substandard infrastructure would spend Christmas in jail. While the arrest of contractor Sarah Discaya and several low-to-mid-level DPWH officials marked significant progress, the continued flight of figures like former lawmaker Zaldy Co led to accusations of a "partial" crackdown.
However, the Palace maintains that justice is a process, not a sprint. Officials noted that in just over four months, the government has:
Issued multiple warrants of arrest.
Forced several suspects into hiding.
Initiated the restitution of kickbacks, with some parties already returning illicit funds to the treasury—a feat the administration claims is unprecedented in Philippine anti-corruption history.
Market Watch: The "Corruption Discount" and the Peso
From a Forex Trading perspective, the success of this probe is a critical "fundamental" for the Philippine economy. Global investors often apply a "corruption discount" to emerging markets; when a government demonstrates a genuine ability to claw back stolen funds and enforce accountability, it boosts confidence in the country's fiscal management.
USD/PHP Stability: A transparent and successful anti-corruption drive can lead to a stronger Philippine Peso against the US Dollar. If investors perceive that the P6.79-trillion 2026 National Budget is being spent efficiently rather than leaked through "ghost projects," we may see increased foreign direct investment (FDI).
Forex Trading for Beginners: Events like these teach us that Forex isn't just about charts. Political stability and the rule of law are "macro" factors that directly influence currency demand. A nation that "cleans house" becomes a more attractive destination for capital.
The 2026 Budget: No New Flood Projects
The administration is taking its "clean-up" drive literally. President Marcos recently signed the 2026 National Budget, which notably excludes funding for new locally funded flood control projects. Instead, the DPWH has been directed to focus solely on the maintenance and repair of existing structures.
This "pause" is a strategic move to ensure that not a single peso of the new budget is lost to the same syndicates currently under investigation. At GME Academy, we view this as a necessary period of "economic consolidation"—sacrificing immediate infrastructure expansion to ensure long-term fiscal integrity.
A Term of Accountability
The message from the Palace is clear: the administration will not be distracted by "propaganda" or public impatience. By focusing on "airtight, evidence-based" cases through the Department of Justice and the Ombudsman, the President aims to avoid the mistakes of the past, where high-profile suspects were eventually cleared due to technicalities.
"If the people are waiting for something, the President is also waiting," Castro added. The implication is that more arrests are on the horizon, and the "Merry Christmas" that was denied to some in 2025 may simply be an "unhappy New Year" in 2026.
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