August 29, 2025 | Manila
Senator Sherwin Gatchalian revealed on Friday that the Senate has found “questionable items” in the proposed 2026 national budget, particularly in the Department of Public Works and Highways (DPWH) allocation.
Gatchalian, who chairs the Senate Committee on Finance, said they are closely reviewing the DPWH annex, going through each infrastructure project, including thousands of roadworks and flood control initiatives.
“We saw some figures that raised red flags. That’s why we are carefully examining the projects one by one to ensure no ghost projects slip through in 2026,” the senator said in an interview with ANC.
To strengthen oversight, Gatchalian formed an independent team tasked with assessing the 4,000 flood control projects listed in the National Expenditure Program. He emphasized that without proper evaluation, corruption could persist in the next fiscal year.
The Senate is also set to launch its budget transparency portal on Monday, coinciding with the start of budget deliberations. The portal will contain livestreams, journals, reports, and annexes related to budget discussions, including details of DPWH projects.
Push for More Detailed Budget Submissions
Gatchalian urged that future budget proposals include more specific details such as engineering designs, feasibility studies, and even geographic coordinates of projects—not just their barangay or provincial locations.
“At the end of the day, funds should translate into effective projects that people can feel. Without sufficient details, a project remains just a number,” he said.
He also suggested reforms in DPWH’s accreditation of contractors, noting that the current system focuses mainly on licenses and financial capacity but often fails to scrutinize actual capitalization and capability.
“Some contractors claim to be AAA or even AAAA, but their capital cannot back multi-billion peso projects. This is a red flag,” Gatchalian warned, adding that subcontracting practices also undermine the integrity of contractor ratings.
The Department of Trade and Industry, which oversees the Philippine Contractors Accreditation Board (PCAB), is now probing allegations that some accreditations may have been sold to government project contractors.
Possible Reallocation to Education
Gatchalian also floated the possibility of realigning up to ₱270 billion from DPWH to the Department of Education (DepEd) if the infrastructure agency fails to improve its processes.
“My view is that if DPWH cannot assure the public that projects, particularly flood control, are corruption-free, then we should instead put that money into education—building classrooms, hiring teachers, and providing much-needed support to our schools,” he said.
The senator noted that the education sector still requires an additional ₱55 billion to reach the international benchmark of 4 percent of GDP, as recommended by UNESCO.
“We do not want to repeat the cycle of corruption in 2026. Reforms must happen, or else funds should be redirected where they will have a greater impact,” Gatchalian stressed.
