Marcos Vows Arrests in Multibillion-Peso Flood Scam Before Christmas: What Investors and Forex Traders Should Know
President Ferdinand R. Marcos Jr. has sent a clear warning to officials and contractors implicated in the multibillion-peso flood control fund scam: arrests are expected before Christmas 2025. The move comes nearly four months after Marcos first exposed the scheme during his State of the Nation Address (SONA). “Before Christmas… they’ll be jailed — there’s no Merry Christmas for them,” the President said in a Palace briefing, emphasizing a no-nonsense approach to corruption in government infrastructure projects.
For Forex traders, these developments could influence the Philippine Peso (USD/PHP, EUR/PHP) and broader market sentiment, underscoring the importance of monitoring political and economic news in trading strategies
First Wave of Charges and Blacklisting
The Office of the Ombudsman has already filed multiple graft and malversation cases against officials of the Department of Public Works and Highways (DPWH) and private contractors over ghost projects, overpricing, and bid rigging.
The first criminal complaints, lodged on September 8, 2025, targeted officials including Henry Alcantara, Brice Hernandez, Jaypee Mendoza, and other project engineers from the Bulacan 1st District Engineering Office (DEO). Private respondents included Cezarah Rowena Discaya of St. Timothy Construction, Ma. Roma Angeline Rimando, and executives from Wawao Builders, SYMS Construction Trading, and IM Construction Corp.
Nine companies linked to Discaya—such as St. Gerrard Construction and Alpha & Omega—were blacklisted and had their PhilGEPS registrations canceled by the Department of Budget and Management (DBM).
Multi-Agency Crackdown in Action
The Independent Commission for Infrastructure (ICI) has referred 37 additional cases to the Ombudsman, implicating lawmakers, former DPWH executives, and major contractors.
By October 3, the Philippine Competition Commission (PCC) filed 12 bid-rigging and collusion cases, with penalties potentially totaling PHP3–5 billion. Public auctions for asset recovery are scheduled for November 20.
The Professional Regulation Commission (PRC) also received referrals to sanction 16 engineers and technical professionals involved in falsified project designs. Meanwhile, the Bureau of Internal Revenue (BIR) filed PHP8.86 billion in tax evasion cases against 89 contractors and nine DPWH and COA officials.
Beyond Symbolic Prosecutions
Marcos stressed that the administration is not interested in symbolic cases. “You don’t file cases for optics,” he said, underlining that investigations are now focused on building airtight cases that ensure real accountability.
The multi-agency effort, which combines oversight from ICI, PCC, PRC, BIR, and the Ombudsman, reflects the government’s push for transparency and stronger governance in infrastructure programs.
Implications for Forex and the Economy
Large-scale infrastructure corruption can affect investor confidence and the Philippine economy. Forex traders, especially those monitoring USD/PHP or cross-currency pairs like EUR/PHP, should note that transparency initiatives signal stability and may support a stronger Peso in the medium term.
For Forex trading beginners, understanding how political reforms and anti-corruption drives influence currency movements is crucial. Platforms like GME Academy / Global Markets Eruditio provide resources to analyze the effects of governance, fiscal policy, and infrastructure spending on currency pairs.
Looking Ahead
With the first arrests anticipated before Christmas and investigations ongoing, the government is sending a strong message: corruption in public works will not be tolerated. The integration of AI and digital monitoring tools will further enhance transparency, allowing officials to track anomalies in real-time and ensure proper implementation of flood control projects.
The multibillion-peso flood control scam crackdown is a landmark moment for governance, transparency, and the Philippine economy. Forex traders, investors, and concerned citizens should closely monitor these developments, as they have direct implications for the Philippine Peso (USD/PHP) and broader market sentiment.
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