The Missing Pieces: Lawyer Reveals Six Boxes of “Cabral Files” Are Unaccounted For
The investigation into the multi-billion-peso flood control scandal has hit a significant roadblock. As of January 5, 2026, the legal counsel for the late Department of Public Works and Highways (DPWH) Undersecretary Maria Catalina “Cathy” Cabral revealed that six boxes of documents—potentially containing the "smoking gun" for illegal budget insertions—have not been turned over to her family or her legal team.
At Global Markets Eruditio (GME Academy), we closely monitor these developments, as high-level corruption probes in the Philippines often impact investor sentiment and the long-term stability of the Philippine Peso (PHP).
Where Are the Boxes?
According to Atty. Mae Divinagracia, Cabral’s lead counsel, the former undersecretary, had previously shown her six boxes of documents she had moved out of her DPWH office. These files allegedly pertain to the preparation of the DPWH annual budget proposals from 2023 to 2025.
Despite the legal team’s request for Cabral to sift through and surrender the relevant files, the boxes were never delivered.
"We don’t have them in our possession. The family doesn’t know where they are... the last time they looked for it in their house, it’s not there," Divinagracia stated in a recent interview.
The "Cabral Files" Mystery:
The Leviste Copy: Batangas Rep. Leandro Leviste claims to have a digital copy of these files, which he allegedly obtained from Cabral in September 2024.
The Ombudsman’s Stance: Assistant Ombudsman Mico Clavano recently noted that Leviste only provided "limited portions" of the files, raising doubts about the completeness and authenticity of copies held by third parties.
The Physical Gap: The missing six boxes represent the original, physical trail that could authenticate the digital versions currently circulating.
The Impact on the Flood Control Probe
Cabral was considered a "central figure" in the unraveling kickback scheme. Her sudden death on December 18, 2025—following a fall into a ravine along Kennon Road—has already made the investigation a "he-said, she-said" scenario.
Without the physical documents to serve as the "primary evidence," the Office of the Ombudsman must now rely on digital forensics. The DPWH has already turned over Cabral’s office CPU, SSDs, and remote cloud storage devices for examination. However, as any Forex trading for beginners student knows, market transparency relies on "hard data"—and the disappearance of physical boxes creates a cloud of uncertainty.
Market Perspective: Why This Matters to Traders
Corruption scandals of this magnitude are not just local news; they are economic indicators.
Fiscal Credibility: The "Cabral Files" reportedly list "allocables"—billions in discretionary funds inserted into the budget by lawmakers. If these are proven to be "ghost projects," it indicates a massive leakage of public funds, which can dent the country's credit rating.
PHP Volatility: Political instability and "missing evidence" in high-profile cases often lead to a "wait-and-see" approach from foreign investors, potentially weakening the Peso against the US Dollar (USD).
Governance Reform: The signing of the 2026 National Budget (with its ₱92.5B veto) was a step toward discipline, but the "missing" Cabral files suggest that the battle against systemic "pork" is far from over.
GME Academy: Trading the News
At Global Markets Eruditio, we teach our students to look past the headlines. A "missing document" story is a signal of potential volatility. When institutional transparency is questioned, currency pairs like USD/PHP react to the perceived risk.
Stay ahead of the market shifts.
The Cabral case is a masterclass in how political risk translates to financial charts.
Join our FREE Forex Workshop to learn how to incorporate "Political Risk Assessment" into your trading strategy and protect your capital during times of national uncertainty.
