Tuesday, September 23, 2025

Comprehensive Report on Alleged Budget Insertions and Kickbacks in Philippine Infrastructure Projects

 


Systematic Corruption in Flood Control Projects: A Deep Dive into Alcantara’s Testimony

The revelation by former Bulacan district engineer Henry Alcantara at the Senate Blue Ribbon Committee hearing marks a critical moment in the ongoing investigation into large-scale misuse of public funds through budget insertions and kickbacks. The testimony implicates key government figures—including incumbent and former senators, congressmen, and high-ranking officials within the Department of Public Works and Highways (DPWH)—in a complex scheme of fund manipulation tied to flood control infrastructure.

This provides a meticulously detailed breakdown of the events, transactions, and personalities involved, based on sworn statements and investigative records. We aim to present a structured and clear view of the systemic irregularities and the alleged mechanisms behind the multi-billion peso anomalies.

Key Figures Implicated in Budget Insertions and Kickback Allegations

Sen. Ramon “Bong” Revilla Jr.

Alcantara testified that in 2024, then-DPWH Undersecretary Robert Bernardo instructed him to assist with a ₱300 million budget insertion tied to Sen. Bong Revilla, who was preparing for a senatorial bid in 2025. This allocation was reportedly funneled through flood control projects, with an implied expectation of support and facilitation.

Sen. Joel Villanueva

Villanueva was linked to a ₱1.5 billion multipurpose building proposal, of which ₱600 million was eventually approved. According to Alcantara, 25% of the approved amount—₱150 million—was designated for Villanueva via a project proponent. Alcantara personally delivered the amount to an associate of Villanueva in Bulacan, though Villanueva allegedly remained unaware of the source of funds being flood control projects.

Sen. Jinggoy Estrada

Estrada’s alleged involvement was more indirect. Alcantara recalled that during a 2024 budget hearing, Undersecretary Bernardo mentioned ₱355 million remaining in available funds, which he stated was intended for "SJE" (Sen. Jinggoy Estrada). However, Alcantara emphasized there was no direct communication between him and Estrada.

Rep. Zaldy Co (Ako Bicol)

A particularly concerning aspect of the testimony involves Ako Bicol Rep. Zaldy Co. Alcantara testified that from 2022 to 2025, Co was responsible for project insertions in Bulacan's 1st District amounting to over ₱35 billion. The projects were strategically inserted during different stages of the national budget process, with kickbacks reportedly ranging from 10% to 25% depending on the mechanism used (NEP, GAA, or UA).

Alleged Corporate Participation: Ferdstar Builders Contractors

Alcantara further named Ferdstar Builders Contractors as a corporate entity involved in facilitating flood control project funding. An individual known as Alias "MK" from Ferdstar approached Alcantara to acquire a list of projects in Bulacan, which eventually appeared in the national budgets from 2023 onwards.

The projects were allocated funds through:

  • National Expenditure Program (NEP)

  • Bicameral insertions

  • Unprogrammed appropriations (UA)

Alcantara clarified that while he provided the list, he had no insight into how Ferdstar secured the actual release of funds.


The Role of the Commission on Audit (COA)

Alcantara's revelations also extend to the Commission on Audit. He alleged that in 2022, Commissioner Mario G. Lipana requested flood control project lists, which later translated into:

  • ₱500 million from 2023 unprogrammed funds

  • ₱400 million from 2024 NEP

  • ₱500 million from 2025 NEP

While Alcantara did not claim personal knowledge of how these funds were obtained, the implication suggests potential COA complicity in enabling or overlooking the anomalous transactions.


Other Officials Linked to Alleged Kickbacks

Former Caloocan Rep. Mitch Cajayon-Uy

Alcantara claimed that then-Undersecretary Mitch Cajayon-Uy facilitated the download of ₱411 million in 2022 from GAA insertions to Bulacan, with an agreed 10% kickback. This amount was reportedly handed to Cajayon-Uy at a restaurant in Commonwealth Avenue, Quezon City.


Total Financial Impact of the Alleged Corruption

Based on Alcantara’s sworn statement, the cumulative budget allocations influenced by these illicit transactions exceed ₱36 billion over a span of four years. These figures underscore the magnitude of the potential misuse of taxpayer money and reveal a deeply entrenched culture of corruption involving infrastructure funding.


Legal and Legislative Implications

Accountability and Investigation

Alcantara’s testimony, if verified, mandates urgent action from:

  • The Senate Blue Ribbon Committee

  • The Office of the Ombudsman

  • The Department of Justice

  • The Commission on Audit

Immediate legal consequences, including plunder charges and administrative sanctions, are warranted if the implicated officials are found guilty.

Legislative Oversight Failures

The systemic nature of these budget insertions indicates a failure in existing legislative checks and balances. Lawmakers who propose and influence project allocations should be subjected to real-time audits and preemptive reviews by independent oversight bodies.


Call to Institutional Reform

To prevent similar schemes in the future, the following reforms must be considered:

  • Independent Audit Mechanism for Budget Insertions: All insertions should be reviewed by a non-partisan audit council prior to inclusion in the NEP or GAA.

  • Real-Time Transparency Platforms: Implement public tracking systems for all infrastructure projects, including names of proponents, approved budgets, and project timelines.

  • Whistleblower Protection Laws: Encourage disclosures from insiders like Alcantara by ensuring legal immunity and protection from retaliation.

  • Automation of DPWH Fund Allocation: Remove discretionary power from individuals by adopting automated, needs-based algorithms for fund disbursement.



The testimony delivered by Henry Alcantara exposes what appears to be a deeply-rooted, multi-tiered scheme of public fund manipulation within the Philippine infrastructure development landscape. With allegations involving senators, congressmen, DPWH executives, contractors, and even COA officials, the breadth of this case underscores the urgent need for systemic reform, transparent governance, and criminal accountability.

Every peso misappropriated through these schemes represents a road unfixed, a flood unmitigated, and a community left vulnerable. We urge prompt, independent, and thorough investigation to ensure justice, recover lost funds, and restore public trust.


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