Ex-DPWH Exec Alleges Lawmakers’ Multi-Billion Fund Scheme: What This Means for the Economy and Your Wallet
Former Department of Public Works and Highways (DPWH) Undersecretary Roberto Bernardo has blown the whistle on alleged irregularities involving billions in infrastructure funds. According to his affidavit, several lawmakers—including five senators—were allegedly linked to “commitments,” project allocations, and cash deliveries connected to flood-control and public works projects from 2005 to 2025.
While these allegations might seem like distant politics, they have real economic consequences, including impacts on the Philippine peso (PHP), public spending, and the broader investment climate—critical for anyone interested in Forex trading or financial awareness.
Corruption Isn’t Just Politics—It Hits the Peso
Bernardo’s claims suggest massive sums diverted or mismanaged in infrastructure projects. Why should Forex traders care?
Government Fund Mismanagement Affects Currency Strength: When billions are siphoned off instead of being properly invested in infrastructure, it reduces economic productivity. Slower growth or inefficiencies can weaken the Philippine peso (PHP) against major currencies like USD, EUR, or JPY, creating volatility in Forex markets.
Investor Confidence Drops: Corruption scandals can make foreign investors hesitant to invest in the Philippines. Reduced foreign inflows can pressure the peso, creating swings in pairs like USD/PHP—both a risk and opportunity for Forex traders.
Inflation Risks: Misallocated funds may force governments to borrow more or print money to fill gaps in public projects, potentially fueling inflation. Inflation affects purchasing power, consumer spending, and indirectly, the value of the peso in Forex trading.
Alleged Mechanisms: How Billions Were Moved
Bernardo outlined alleged schemes in which lawmakers and intermediaries received percentage commitments from project funds:
Ramon Revilla Jr. allegedly requested lists of projects worth PHP1.45 billion in 2024, with 25% allegedly collected in cash.
Grace Poe reportedly coordinated a PHP500 million project with a 20% commitment collected through a contractor.
Nancy Binay allegedly received project requests amounting to billions of pesos across several years.
Francis Escudero and Jinggoy Estrada were also linked to large sums in project allocations, including multi-million peso deliveries.
If these claims are true, the mismanagement of public funds could erode confidence in government efficiency and fiscal responsibility—a factor that can shake the peso and ripple across domestic and regional Forex markets.
Real-World Lessons for Forex Traders and Citizens
Corruption is not just about politics—it has direct financial consequences:
Currency Volatility: Political scandals and corruption erode confidence in the currency. Traders in USD/PHP may see spikes or sudden drops during investigations.
Economic Drag: When billions are siphoned from public works, infrastructure quality suffers, slowing economic growth and reducing export competitiveness.
Opportunity Awareness: For Forex traders, understanding domestic political risks is as important as following technical charts. Unexpected news—like corruption exposés—can trigger immediate market reactions.
Simple Analogy
Think of the economy as a ship navigating the ocean:
Corruption = holes in the hull, slowly sinking the ship
Proper project allocation = steady sailing toward growth
Forex traders = sailors adjusting their sails to weather storms caused by political scandals
Wake-Up Call: Why Citizens Should Care
This scandal highlights a crucial truth: corruption doesn’t stay on Capitol Hill—it ends up in your wallet. Poorly executed infrastructure, wasted funds, and inflation directly affect:
The price of everyday goods
Public services like roads and flood control
The strength of the peso in international trade
For ordinary citizens, being aware of these issues helps pressure leaders for accountability and protect personal finances, including savings and investments.
Knowledge Is Power
Scandals like this are a reminder that global events, politics, and corruption affect currencies. Understanding these dynamics is key for Forex traders, investors, and everyday citizens.
Join GME Academy’s FREE Forex workshop to learn how to read economic signals, spot risks from political and corruption news, and trade wisely in volatile markets. Don’t just watch the news—understand how it affects your money and the peso.
