Philippines Flood Fund Scandal: Top Ministers Step Down

Published: 19 November 2025 Wednesday . The English Chronicle Desk. The English Chronicle Online

Two senior ministers in the Philippines have resigned amid an escalating corruption scandal involving billions of dollars allegedly siphoned off from government funds earmarked for anti-flooding infrastructure. The resignations come as the country grapples with mounting public anger over what has been dubbed one of the most audacious cases of mismanaged public funds in recent memory.

Executive Secretary Lucas Bersamin and Department of Budget and Management Secretary Amenah Pangandaman stepped down from their posts on Tuesday, according to presidential palace press officer Claire Castro. She confirmed that both officials chose to resign “after their departments were mentioned in allegations related to the flood control anomaly” and “in recognition of the responsibility to allow the administration to address the matter appropriately,” The Philippines Inquirer reported.

The resignations mark the highest-profile fallout so far in the scandal, which first came to light earlier this year when President Ferdinand Marcos Jr publicly revealed that billions of dollars intended for anti-flooding infrastructure had been misappropriated. According to Marcos, funds meant to bolster the country’s flood control systems had been siphoned off by private contractors, who either built substandard infrastructure or, in some cases, none at all.

Political analysts warn that the scandal poses a serious challenge for the Marcos administration, which has so far maintained a relatively stable grip on power. Aries Arugay, a senior fellow at Singapore’s ISEAS-Yusof Ishak Institute, noted that while the president has avoided direct implication, the resignations suggest a strategy to shield the highest office from immediate fallout.

“At the moment, the palace is trying to take the president out of this, and this is why you have the ‘resignations’ of the executive secretary, the budget secretary. They’re the ones accepting command responsibility over this,” Arugay told Al Jazeera.

The scandal first erupted in July and has since expanded to implicate multiple officials, contractors, and intermediaries in a complex network of financial mismanagement. Investigators are now examining whether the alleged corruption extended beyond flood-control projects to other areas of public infrastructure.

Adding to the controversy, politician Zaldy Co, currently outside the Philippines, alleged earlier this week that Marcos had directed him to add $1.7 billion to the budget for “dubious public works” while he headed an appropriations committee. While these claims have not been independently verified, they underscore the broader perception that misappropriation may have reached the highest levels of government.

Co is among the first batch of officials to face formal charges following a months-long investigation into the scandal. Legal experts suggest that the case could expand rapidly, potentially dragging more senior figures into the investigation.

Observers point out that while Marcos Jr currently enjoys a comfortable majority in the legislature, largely because many lawmakers still prefer his leadership over that of Vice President Sara Duterte, the political dynamics could shift dramatically if further incriminating evidence emerges. “All bets are off if more evidence comes out,” Arugay said.

Public outrage has grown steadily, particularly in communities affected by flooding, where inadequate infrastructure has left residents vulnerable to seasonal disasters. Many citizens have taken to social media to demand accountability and transparency, criticizing what they see as systemic corruption that diverts essential resources away from public safety.

The resignations of Bersamin and Pangandaman also carry symbolic weight. Executive Secretaries in the Philippines serve as the president’s closest administrative aides, coordinating policy across departments and ensuring the effective execution of government priorities. Meanwhile, the Budget Secretary oversees the allocation and management of government resources. Their departures signal both recognition of responsibility and a potential shift in the administration’s efforts to contain political damage.

Despite the high-profile resignations, analysts warn that the crisis is far from over. Legal proceedings, forensic audits, and political maneuvering are likely to dominate the coming months, with possible implications for national elections and the public’s trust in governance.

Marcos has yet to be directly implicated in wrongdoing, but the administration faces the challenge of restoring credibility while managing both internal and external pressures. Political observers note that the president’s handling of the scandal could define his legacy, particularly in light of past criticisms regarding governance and corruption in the Philippines.

The anti-flooding projects at the center of the scandal were intended to protect vulnerable urban and rural communities from recurring seasonal floods, a growing threat as climate change intensifies weather patterns in Southeast Asia. Instead, the alleged mismanagement has left many areas exposed and residents frustrated, creating a potent combination of humanitarian and political risk.

Experts suggest that the unfolding scandal highlights longstanding issues in public financial management and government oversight in the Philippines. While some reforms have been attempted in recent years, gaps in transparency, accountability, and procurement processes continue to leave room for exploitation.

The resignations of Bersamin and Pangandaman may also have international ramifications. The Philippines has historically relied on foreign investment and development aid for large infrastructure projects, including flood mitigation systems. Perceptions of corruption and governance failures could influence investor confidence and bilateral relations, particularly with countries that have active financial or developmental partnerships with the Philippines.

As investigations continue, the government faces pressure from civil society, the media, and international watchdogs to ensure that justice is served and that stolen funds are recovered or accounted for. Legal scholars warn that prosecuting high-profile officials may require extensive forensic work and collaboration with multiple agencies, both domestically and internationally.

Meanwhile, ordinary citizens continue to grapple with the tangible consequences of the scandal. In flood-prone areas, families have been forced to confront recurring hazards with inadequate protective infrastructure, highlighting the human cost of alleged corruption. Local leaders have called for urgent reforms and stricter oversight of government-funded projects to prevent future crises.

The political fallout could also reshape cabinet dynamics and party alliances in the Philippines. Observers anticipate that the resignations may embolden opposition figures, who could leverage the scandal to press for reforms or to challenge Marcos’ legislative agenda. At the same time, supporters of the president are likely to emphasize the swift action of the resigning ministers as a demonstration of accountability within the administration.

In the coming weeks, attention will likely focus on several critical questions: How far does the alleged corruption extend within the government? Will further resignations or indictments follow? And can the Marcos administration restore public trust in its capacity to manage resources effectively, particularly in projects vital to citizen safety?

For now, the Philippines finds itself at a crossroads. The scandal exposes vulnerabilities in governance and public financial management, while also offering an opportunity for reform and strengthened accountability. How the administration responds in the months ahead could shape both the political landscape and the country’s ability to address recurring natural disasters effectively.

As the investigation unfolds, the eyes of the nation—and indeed the international community—remain firmly fixed on Manila, awaiting clarity, accountability, and decisive action in a scandal that has already shaken public confidence to its core.