P180B likely lost to ‘ghost’ projects since 2016, senator says

LOSSES due to “ghost” or non-existent flood control projects were estimated at P180 billion since 2016, Senator Panfilo “Ping” M. Lacson, who heads the Senate committee probing anomalous projects, claimed on Wednesday.

“We are looking at 30,000 flood control projects since 2016. If we extrapolate based on earlier findings that more than 600 out of 10,000 projects were ghost, we estimated that 6% or higher of 30,000 projects could mean P180 billion or higher went to ghost projects,” he said in a statement.

He added that the estimates were based on the 10,000 flood control projects inspected so far, which found that about 600 of them were nonexistent.

“Imagine, we likely lost P180 billion to ghost projects, and we have not yet started counting our losses to substandard projects,” Mr. Lacson added.

He said that the estimates had rendered the number of projects tackled by the Senate Blue Ribbon Committee as “minuscule.”

“The Blue Ribbon Committee remains ready to help relevant agencies like the Independent Commission for Infrastructure, Department of Justice and Office of the Ombudsman in pursuing charges against those involved, if it gets new information,” Mr. Lacson said. 

The committee has been investigating kickbacks involving multibillion-peso flood control projects, following reports that lawmakers and public officials benefited from infrastructure funds allocated since 2022.

The senator added that the Senate and the House of Representatives have agreed to simplify the bicameral conference committee (bicam) that would only tackle the disagreeing provisions of the budget bill.

“This will be simpler and more transparent and that is our intention. In the bicam, we will ensure transparency, all the way to the bill being enrolled,” Mr. Lacson said.

Malacañang announced earlier that the bicameral conference committee meetings will be livestreamed, following public calls for more transparency and accountability in the budget process. 

DPWH ‘GHOST’ PROJECTS
Meanwhile, the Commission on Audit (CoA) flagged the Department of Public Works and Highways (DPWH) after some regional offices declared nearly P2 billion worth of infrastructure projects as accomplished nationwide despite the works not being completed in 2024.

State auditors gave a qualified opinion on the DPWH’s financial report due to “aggregate uncorrected misstatements” involving the agency’s billions of pesos worth of infrastructure, including P1.95 billion of projects marked as completed despite unfinished work.

“Some DPWH offices reported 100% project accomplishments in the Report on Publicized Government Programs, Projects and Activities,” CoA said in its 2024 audit report.

“However, ocular inspection and validation of the actual physical status revealed that these projects were not completed within the contract time due to defects, deficiencies requiring repairs and unfinished pay or work items,” it added.

Public Works Secretary Vivencio B. Dizon did not immediately reply to a Viber message seeking comment.

The DPWH has come under tighter scrutiny following allegations that flood control projects were tied to a multibillion‑peso kickback scheme involving politicians, officials and government contractors.

The projects, which auditors flagged as inaccurately tagged as finished, were found nationwide, with engineering offices in the Cordillera Administrative Region (CAR), Mimaropa, Western Visayas, and Northern Mindanao among those cited.

CoA also flagged that DPWH paid the “final progress billings” of 48 projects totaling P2.18 billion despite unfinished work or defects.

In CAR, the full amount of P1.3 billion was paid for 29 projects that were “not yet fully completed due to unfinished works.”

“On the other hand, it was noted in Region 3 that final payments on seven projects and the release of retention money for two projects were already made,” state auditors said, referring to 19 projects totaling P876.29 billion that faced completion delays. “The payment could be deemed ‘irregular.’”

CoA urged the DPWH to refrain from releasing project completion payments for projects not yet completed or “satisfactorily implemented.”

“Require contractors to immediately rectify or complete noted deficiencies and deliver all contractual requirements; otherwise forfeit their performance securities and consider them for blacklisting, if warranted,” state auditors said. — Adrian H. Halili and Kenneth Christiane L. Basilio