Ghost projects mean big spending but lower economic growth, says Recto

If not for corruption, the Philippine economy might have been growing by 6 to 6.2 percent, according to Finance Secretary Ralph Recto.

This was disclosed by Recto at a Senate subpanel on finance’s Tuesday hearing on the proposed 2026 funding of the Department of Finance when he was asked by Sen. Sherwin Gatchalian why the government fails to surpass its revenue targets.

According to Recto, there are various factors, but he particularly named corruption among these.

‘Nakikita natin na because of corruption issue na nangyari at nakita natin in the last few years, dahil nga dito sa flood control program – nagtataka ako, sa laki ng ginagastos ng ating pamahalaan ay dapat mas malaki ang growth ng ating ekonomiya,’ said Recto.

(We can see that because of the corruption issues that have happened which we’ve seen in the past few years, especially in the flood control program – I find it puzzling that despite the large amount our government is spending, our economic growth isn’t higher.)

Big spend on tainted projects don’t convert to economic growth

‘So this explains that in spite of having this level of expenditure, dahil napunta ang parte ng capital outlay doon sa ghost projects or substandard projects – halimbawa sa flood control – ay apektado ang growth natin. Ibig sabihin, kung hindi napunta sa corruption ang parte ng budget na yan ay siguro ang ekonomiya natin would have been growing by 6 to 6.2 percent at mas malaki ang koleksyon ng Bureau of Internal Revenue at Bureau of Customs,’ he added.

(This explains that despite this level of expenditure, part of the capital outlay went to ghost projects or substandard projects – for example, in flood control – and that has affected our growth. This means that if that portion of the budget hadn’t been lost to corruption, our economy might have been growing by 6 to 6.2 percent, and the collections of the Bureau of Internal Revenue and the Bureau of Customs would have been higher as well.)

Philippine gross domestic product (GDP) expanded by 5.5 percent in the three months ending June, up marginally from 5.4 percent annual growth in the first quarter.

However, this marked a significant slowdown from the 6.5 percent growth recorded in the second quarter of 2024 and fell short of market expectations. An Inquirer poll of economists projected a 5.6 percent increase for the June quarter.

Before this, Gatchalian – who chairs the Senate panel on finance – said that since 2015, the Philippine government has only surpassed its target by three times: in 2020, 2021, and 2022.

The senator said the government failed to surpass its targets in the subsequent years, but saw a ‘very good trend in the last three years’ in terms of non-tax revenues.

Meanwhile, amid the corruption scandal hounding some government agencies at present, Recto said they observed a ‘slow down’ in paying taxes. He, however, maintained that it remains to be ‘manageable’ at present.

DOH hospitals can withstand strong earthquakes – Herbosa

Hospitals operated and managed by the Department of Health (DOH) could withstand a powerful earthquake based on the conduct of structural assessments and retrofitting of hospitals, Health Secretary Teodoro Herbosa said on Tuesday.

Herbosa made the assurance after a series of powerful earthquakes rocked several parts of the country in recent days.

‘Yes, we did the safe hospital project. We did a structural engineering assessment together with the Association of Structural Engineers of the Philippines,’ Herbosa said in Filipino when asked if the hospitals could survive a magnitude 7.2 earthquake.

Herbosa shared that some hospitals needed to undergo retrofitting after they were found to have problems with their structures.

Herbosa emphasized that this was done to ensure that the hospitals are resilient.

‘A hospital building needs to be more resilient compared to ordinary stores or structures because we need to keep saving lives so it has higher requirements,’ he pointed out.

The Philippine Institute of Volcanology and Seismology earlier warned that the ‘Big One,’ or a magnitude 7.2 earthquake along the West Valley Fault, could kill more than 33,000 people and cause 168,000 buildings to collapse.

The DOH, citing figures from the National Harmonized Contingency Plan, noted that the death toll from the major earthquake might reach over 52,000 across Metro Manila, Central Luzon, and Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon).

It added that this could also result in 679,000 injuries, and over 5.3 million Filipinos displaced from their homes.

According to the National Disaster Risk Reduction and Management Council, the magnitude 7.4 and 6.8 tremors, tagged as the ‘doublet earthquake’ that struck off Manay, Davao Oriental last Friday affected over 845,000 individuals and left eight people dead.

Healthcare workers’ welfare

What are the contingency plans for the healthcare workers who will be at the frontlines in case a strong earthquake occurs?

Herbosa emphasized the importance of making sure that their wellbeing is being taken care of and that their families are safe.

‘Once your family is secure, you can work 100% in the hospital. If you’re here in the hospital and you’re thinking of what happened [to] your family, medyo may problema (there may be a problem),’ Herbosa added.

He also said that they have observed behavior of many healthcare workers that show mental health concerns. He cited restlessness and development of illnesses.

He stressed that rest periods must be mandatory in hospitals, adding that peer support is important in ensuring that they can perform well. /gsg

Kakai Bautista urges ‘bida-bida’ politicians to serve people amid earthquakes

Kakai Bautista called on local government officials to fulfill their duties and serve the Filipino people following the series of earthquakes that recently hit parts of the Philippines.

In a video posted on her Facebook page, Bautista criticized politicians who made grand promises during the elections but have yet to deliver on them.

”Yung mga bida-bida diyan nu’ng eleksyon, it’s your time to shine. Now is the time to serve the people dahil nag-serve na kami sa inyo noong eleksyon,’ she said.

(Those who were show-offs during the elections, it’s your time to shine. Now is the time to serve the people because we already served you during the campaign period.)

The comedian reminded elected officials, especially those in local government units (LGUs), that public service is mandatory.

‘Niluklok na namin kayo sa inyong mga posisyon. Kayong mga nasa LGU, munisipyo, ang mga namumuno sa bawat bayan at bawat lungsod dito sa buong Pilipinas. This is not a request, it’s your job to serve the people. So mamigay na kayo ng mga Go Bags, mga emergency kits dahil ang Pilipinas ay nanginginig,’ she stressed.

(We have put you in your positions, those in LGUs, municipalities, and city halls across the Philippines. This is not a request, it’s your job to serve the people. So distribute Go Bags and emergency kits because the Philippines is shaking.)

Bautista then praised Pasig City Mayor Vico Sotto for proactively distributing Go Bags to residents as part of disaster preparedness measures.

‘Gayahin natin si Mayor Vico na hindi kailangang utusan, nagkukusa,’ she stated. (Let’s follow Mayor Vico who takes initiative.)

Bautista mentioned that other cities like Taguig, Quezon City, and San Juan have reportedly begun similar efforts but stressed that more needs to be done.

‘Dapat lahat ng households, bigyan n’yo. Hindi lang mga estudyante at hindi n’yo ibibigay kung kailan n’yo lang gusto. Saka hindi n’yo ibibigay sa mga gusto n’yo lang bigyan,’ the actress added.

(All households should receive them, not just students, and not only when you feel like giving, or to people you just favor.)

Bautista emphasized that ordinary Filipinos couldn’t have a go bag with them given that the funds intended for them are already ‘stolen’ by public officials.

‘You know better, hindi talaga kaya ng bawat Pilipino na magkaroon ng Go Bag on their own. Kasi nga ‘di ba, minatmat n’yo na ‘yong mga salapi. Paano pa bibili ‘yong mahihirap? So, kilos na. It’s your time to shine,’ she said.

Over 125,000 families were affected by the ‘doublet earthquake’ that recently struck Davao Oriental following the 6.9 earthquake that hit northern Cebu on Sept. 30. /edv

LTO revokes for life license of driver who hit student in viral video

The Land Transportation Office (LTO) imposed a perpetual revocation of the driver’s license of the driver who was seen in a viral video hitting the motorcycle driven by a student in Teresa, Rizal.

This came after the driver failed to adhere to the LTO’s show cause order on Monday. Only the student and his parents appeared at the hearing.

‘The hard part is, the driver of the car that hit the student shouldn’t have done that,’ LTO chief Markus Lacanilao was quoted as saying in Filipino in a statement of the Department of Transportation (DOTr) on Tuesday.

‘He can report it or have it arrested, but he can’t just hit someone because he wants to, he’s hot-headed,’ he added.

Earlier, Acting DOTr Secretary Giovanni Lopez ordered the revocation of the license of the driver after he was spotted in a video intentionally crashing into the student’s motorcycle because ‘it allegedly ran over his vehicle.’

Meanwhile, the father of the student got his license suspended for a month for violating the law regarding the proper operation of a motorcycle, since he reportedly allowed his 15-year-old son to drive a motorcycle even though he did not have a license.

The LTO added that the student drove the motorcycle without a side mirror and was not even wearing a helmet.

Aside from this, the student was disqualified from applying for a driver’s license for one year. /jpv

3 strong tremors hit Davao Oriental anew

Three powerful quakes happening about 20 minutes apart from each other hit off the coast of Manay, Davao Oriental, on Tuesday morning.

The first tremor struck at 10 a.m., some 101 kilometers northeast of Manay, and was measured at magnitude 5.8 with Instrumental Intensity 1 here and in Digos City, Davao del Sur, Malita and St. Maria, Davao Occidental; Nabunturan, Davao de Oro; and Malungon, Sarangani.

According to state seismologists, this was an aftershock of Friday’s quake.

At 10:19 a.m., a 5.2-magnitude earthquake struck 97 kilometers northeast of Manay with Instrumental Intensity 1 in Nabunturan, Davao de Oro.

Another 5.2-magnitude tremor, still another aftershock of Friday’s quake, struck at 10:39 a.m. 25 kilometers northeast of Manay, with Instrumental Intensity 2 in Nabunturan.

All three quakes had a depth of 10 kilometers./coa

SEC warns public vs firm posing as agri goods trader

The Securities and Exchange Commission (SEC) has warned the public against investing in a newly established business allegedly posing as a farm goods service provider while soliciting investments from the public without the proper registration.

It also warned against individuals introducing themselves as representatives of stock brokers.

In an advisory posted last Friday, the SEC said De Guzman Consumer Goods Trading had allegedly been inviting the public to become an investor or copartner in its farming and trading business.

According to the corporate watchdog, De Guzman promised 60- to 200-percent returns if someone invested in the company for 30 to 60 days.

The SEC pointed out that this scheme counted as an investment contract, as money needed to be invested in De Guzman with expectations of profits.

Public offering

However, the company first needs to be registered with the SEC before selling or offering securities to the public.

Based on the SEC’s findings, De Guzman was not registered as a corporation or partnership, and it operated without the needed license to solicit investments from the public, thus violating the Securities Regulation Code.

Under the law, violators may be fined up to P5 million or face 21 years in prison, or both.

Impersonating brokers

At the same time, the SEC also warned against people using the logos and employee and company names of COL Financial Group Inc. and Alpha Securities Corp.

In a separate advisory dated Oct. 9, the SEC said it had received reports about individuals posing as personnel or representatives of COL Financial to convince people who were previously scammed that their stolen money was ‘reinvested’ with the broker.

‘The victims were then required to pay multiple fees, such as so-called ‘tax fees,’ in order to withdraw their supposed investments,’ the SEC said, adding that the scammers were using fake documents to convince the victims.

But their funds were never returned, with the supposed scammers instead keeping their imposed additional payments.

The SEC noted that COL Financial had already denied that the documents had come from them.

Alpha Securities reported a similar incident, with people posing as the company’s representatives and fooling people into shelling out money, believing they were legitimate personnel.

The victims later approached Alpha Securities about their supposed investment, but the broker later found out they were not listed as its clients.

According to the SEC, Alpha Securities had clarified that official transactions, particularly opening accounts that require clients’ personal appearance, were only conducted at its office. All deposits and payments were made exclusively with its official bank accounts, it added.

Ombudsman uncovers paper trail, bank transactions in flood control mess

The Office of the Ombudsman has uncovered a paper trail and bank transactions linking several high-ranking government officials to anomalous flood control projects, according to ombudsman Jesus Crispin Remulla.

Remulla revealed that his office is now preparing to file ‘many’ cases before the Sandiganbayan, which will involve ‘higher officials.’

‘Yesterday, I spoke with the Sandiganbayan. They are preparing for a continuous trial because we are set to file numerous cases that will involve high-ranking officials,’ Remulla said in Filipino in a press briefing on Tuesday.

‘We have already obtained a substantial amount of data, which continues to come in gradually. It clearly shows money being transferred from one account to another, not in cash, but through bank-to-bank transactions, which is why we have solid evidence,’ he added.

Remulla likewise disclosed that his office has also sought the help of the Anti-Money Laundering Council in the preparation and filing of these ‘big cases.’

During the same briefing, Remulla received the findings of the Department of Justice following its investigation into the alleged anomalous flood control projects.

Prosecutor General Richard Anthony Fadullon said they turned over five cases covering reported ghost flood control projects in Bulacan.

These cases involve officials from Bulacan’s district office and contractors who may have committed violations under Article 217 of the Revised Penal Code (malversation), Article 171 (falsification by public officers), Article 183 (perjury), and Section 3(e) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act). /gsg

14 hurt as magnitude 5.8 aftershock jolts northern Cebu

At least 14 people were injured when another strong aftershock measuring magnitude 5.8 jolted northern Cebu at 1 a.m. on Monday while thousands of residents were still recovering from the devastation left by the magnitude 6.9 earthquake that struck the region on Sept. 30.

According to the Cebu Provincial Disaster Risk Reduction and Management Office (PDRRMO), the latest tremor, which state volcanologists have downgraded from the magnitude 6 they initially reported, was among the strongest of over 10,000 aftershocks recorded since the main quake two weeks ago.

As of noon Monday, the injured were eight in Bogo City, four in Daanbantayan, and two in San Remigio – the same northern areas hardest hit by the earlier disaster. All injured victims were promptly assisted by local disaster and health responders.

Cebu PDRRMO focal person Dennis Francis Pastor said all injuries were minor, including cases of chest pain, lacerations, and asthma attacks, all sustained during the chaos caused by the early-morning tremor.

In Bogo City, many residents said they struggled to go back to sleep after the tremor.

‘My muscles were shaking. We can’t sleep anymore after that,’ wrote Lynde Seno of Barangay Dakit in Cebuano in a Facebook post, saying his family continued to stay outside their damaged home for safety.

Bogo City Mayor Mayel Martinez said the City Disaster Risk Reduction and Management Office responded to eight emergency incidents following the pre-dawn shaking that sent many residents rushing out of their homes in fear.

Infra damage

The aftershock also caused damage to infrastructure in one of the affected municipalities.

According to a report from the San Remigio municipal government, a major road near the Hagnaya Integrated School sustained large cracks after Monday’s strong aftershock, prompting local authorities to urge residents to refrain from passing through the area as the road might collapse.

Provincial assessments showed that roads between the cities of Cebu and Bogo, which are about 98 kilometers apart, remained passable, while power and telecommunications services have not been interruptedDue to the aftershock felt in the entire province, Gov. Pamela Baricuatro ordered the suspension of classes in the province to give way to structural inspections of buildings and facilities. Towns and cities in the province also issued separate class suspension orders on Monday, ranging from one to five days.

The Sept. 30 magnitude 6.9 earthquake off Bogo City remains the deadliest in the region in recent history, killing at least 75 people and injuring over 1,200 others, according to official reports. More than 23,000 houses were destroyed or damaged, and several heritage structures – including the Daanbantayan Church – were also badly damaged.

Calamity state

A state of calamity remained in effect in Bogo City and affected northern Cebu municipalities to speed up relief and rehabilitation efforts that continued across northern Cebu, as communities slowly rebuilt from the disasters.

Monday’s aftershock was also felt in Bohol, prompting several local governments, including Tagbilaran City and the towns of Inabanga, Pilar, Getafe and Talibon to suspended classes as a precaution. The Holy Name University in Tagbilaran postponed the opening of its intramural games from Monday to Tuesday.

The Philippine Institute of Volcanology and Seismology (Phivolcs) initially recorded Monday’s quake at magnitude 6.0 but later downgraded it to magnitude 5.8 in its 6 a.m. bulletin.

Phivolcs said the quake’s epicenter was 10 kilometers southwest of Bogo City, at a shallow depth. The tremor was recorded at Intensity 4 in Cebu City. It was also felt in Leyte, Iloilo City, Roxas City, Pontevedra (Capiz), Carlos P. Garcia and Dauis (Bohol), Canlaon City, Himamaylan City (Negros Occidental), and Legazpi City, Albay.

DOE: Full RE foreign ownership added 20 GW to Philippine power supply

The Philippines’ decision to open the renewable energy (RE) space to full foreign ownership has led to the installation of about 20 gigawatts (GW) of new power capacity, a government official said.

Department of Energy (DOE) Undersecretary Rowena Cristina Guevara acknowledged the private sector’s role in helping the country hit its target of 35 percent renewable energy share in the electricity generation mix by 2030.

At present, renewables contribution is at 22 percent.

She said the country moved closer to achieving this goal after the government allowed full foreign ownership in renewable projects in 2022.

‘To date, it has already attracted 75 projects, totaling 20 GW capacity, awarded to fully foreign entities,’ she said at the recent 2nd Philippines Future Energy and Grid Summit 2025.

Enabling environment

‘Hence, we are creating an enabling business environment to make RE more appealing to investors,’ Guevara added.

One of the ways the government is enticing more private support is the green energy auction program (GEAP), as it provides fixed rates to winning power bidders.

‘With GEAP, technologies are mature, and costs are lower,’ she said.

For this year alone, the government has set four auction rounds. The agency saw bids for 7,530.89 megawatts (MW) under the third round, surpassing its 4,650 MW target. About 6,680 MW were awarded.

The GEA-4, meanwhile, launched the country’s first integrated renewable energy and energy storage system. Accepted bids reached over 9,400 MW.

Two more rounds are slated this year, focusing on fixed-bottom offshore wind and biomass/waste-to-energy (WTE) technologies.

Special auction

Last week, the DOE said it would also conduct a ‘special green energy auction’ for WTE projects that will source their waste feedstock within Metro Manila and highly urbanized cities (HUCs), with completion set by the fourth quarter of 2027.

Citing 2024 data from the National Solid Waste Management Commission, the capital region and HUCs generate an estimated 6.12 million metric tons of municipal solid waste, which could fuel 335 MW of baseload power capacity.

Probe underway after grenade blast in Bacolod City

The Police Regional Office Negros Island Region (PRONIR) assured the public that a full and thorough investigation is underway following the grenade explosion that occurred at around 2:30 a.m. on Tuesday, at Bangga Salgado, Purok Villa, Barangay Tangub, Bacolod City.

Initial reports from the Bacolod City Police Office (BCPO) indicated that two unidentified suspects riding in tandem threw hand grenades toward a garage, resulting in damage to parked vehicles.

Two unexploded grenades were also recovered at the scene and safely secured by the Bacolod City Explosives and Canine Unit (CECU) for proper disposal.

Police Brig. Gen Arnold Thomas Ibay, regional director, strongly condemned the incident, calling it ‘a cowardly act that threatens public safety and disturbs the peace of our communities.’

‘We are mobilizing all necessary resources to identify and arrest the perpetrators. PRO-NIR stands firm in its commitment to protect the people of Bacolod and ensure that those responsible are brought to justice,’ he said.

He likewise directed the Bacolod City Police Office to intensify intelligence and police visibility operations, in coordination with barangay officials and other law enforcement agencies, to prevent similar incidents.

PRONIR called on the public to remain calm, alert, and cooperative by immediately reporting any suspicious persons or activities to the nearest police station./coa