Philippines trims monthly debt after local bond repayment

The Philippine government’s debt burden eased in August after it settled its largest local bond of the year. This gives policymakers some breathing room in managing public finances.

Data from the Bureau of the Treasury showed total obligations stood at P17.47 trillion. This was a decrease of 0.5 percent or P95 billion from July’s level.

Still, borrowings have surged 8.8 percent or P1.42 trillion since the start of the year.

The Treasury said it fully repaid P516.34 billion in maturing peso bonds last month, reducing the debt pile. A stronger local currency also helped, reducing the peso value of foreign-denominated obligations.

Broken down, domestic debt edged down 0.2 percent to P12.09 trillion in August.

Local creditors

The government repaid billions owed to local creditors during the month. But it also raised P425 billion through retail Treasury bonds maturing in 2030. These were made available on the e-wallet platform GCash.

The mammoth fundraising activity nudged the share of domestic debt to total obligations to 69.2 percent from 68.9 percent. This indicates a ‘generally more favorable debt position, given that domestic debt is less vulnerable to shifts in foreign exchange movements,’ the Treasury said.

‘In addition, domestic borrowing is largely owed to Filipinos themselves, providing a safe and secure investment vehicle for wealth growth while also ensuring that the money circulates back into the local economy,’ it added.

External debts, meanwhile, edged down by 1.4 percent, or P73.68 billion, to P5.38 trillion.

The government had to continue borrowing money from lenders to plug a projected budget deficit of P1.6 trillion. This is equivalent to 5.5 percent of gross domestic product. The drive was expected to push the debt stock to P17.36 trillion by year’s end.

Exposure

Fiscal planners say they will continue to favor onshore borrowing to limit exposure to foreign exchange risks.

The Marcos administration has also made clear it is seeking an upgrade to an A-level credit rating. This is a distinction it hopes to achieve by keeping debt metrics in check while sustaining economic growth.

‘The Bureau reaffirmed its commitment to prudent debt management and responsible borrowing, ensuring that financing activities remain aligned with the country’s high and inclusive growth agenda, while safeguarding the welfare of future generations of Filipinos,’ the Treasury said. INQ

Bahay, Eagles taking every lesson Baldwin imparts

Jared Bahay is well aware of the many big shoes that he has to fill as far as crack guards ever to have come out of Ateneo under the revered Tab Baldwin go.

From the likes of Tyler Tio, Gian Mamuyac, SJ Belangel and Thirdy Ravena, Baldwin has given his Midas Touch on them that they not only led the Blue Eagles to glorious UAAP paths but have become established professional players here or elsewhere.

All four were in the undefeated Season 82 team that won the championship. And Bahay remembers seeing clips of that squad while he was still in high school.

‘It gives me motivation,’ Bahay told the Inquirer recently. ‘I believe in our saying that ‘in Tab we trust.’ I feel motivated that I’m under him. He can not only make me a great basketball player, but a good person in general.’

Jared has happy home

Fast forward to six years and Bahay has found a home in Katipunan.

‘I love coach Tab. He has a history and reputation of winning,’ Bahay said. ‘I remember watching them go 16-0 and I got so inspired. I worked so hard and told myself I want to be a part of [a] team [like that].

‘Dreams do come true,’ he said. ‘I’m here now and I’m so happy.’

Baldwin, meanwhile, knows that he has another rough talent he can whip into a gem along with Kymani Ladi, a dynamic 6-foot-8 forward who is also a big reason why the Blue Eagles are leading the pack with a 3-0 record.

‘He has a lot of information that he’s willing to share and we’re willing to take them,’ Ladi said. ‘He has a lot of knowledge that we definitely use.

Baldwin has so far won 101 games in his UAAP career, fourth on the all-time list where only La Salle’s Franz Pumaren, late Santo Tomas mentor Aric del Rosario and ex-Ateneo tactician Norman Black have more victories.

He is on track to unseat Black at No. 3 if his streak continues for the rest of the year.

But knowing Baldwin, he doesn’t really give a care on personal accomplishments. He is a team-first guy and rarely takes the credit. And the biggest thing about him is he wants his charges to become better men after being under him. INQ

Banks complicit in kickbacks?

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. was himself taken aback by the magnitude of corruption involving flood control projects, which have further blackened the already tarnished reputation of the Department of Public Works and Highways (DPWH).

‘The sight of piles of cash on a table, that’s kind of shocking,’ Remolona said in a One News interview last week, ‘I didn’t know this was all done in cash, in such amounts. That is shocking.’

What is more alarming, however, is that government financial institutions may have become conduits for the staggering amounts of kickbacks that have found their way into the pockets of a network of public officials and contractors who have allegedly made milking cows out of flood control projects.

Valid concerns have thus been raised that banking and finance regulators have been sleeping on their crucial jobs, enabling these questionable transactions to push through, not just once but several times this year alone, as revealed by Senate President Pro Tempore Panfilo Lacson.

Lacson revealed last week that, based on ledgers acquired from the implicated flood control project contractor SYMS Construction Trading, contractor Sally Santos was able to withdraw P457 million in cash from the Malolos Highway branch of Land Bank of the Philippines over two days, with the money allegedly delivered as kickbacks to the office of former Bulacan district engineer Brice Hernandez.

‘There are many here, including withdrawals of P180 million, P141 million, P299 million, and P65 million-all made in a single day,’ added Lacson.

This begs the question: How was this allowed to happen?

Red flags

As Sen. Francis Pangilinan asked Landbank Malolos Highway branch manager Ma. Lilibeth Lim, ‘Is it normal practice for a bank to release P457 million in cash? Isn’t that a red flag, and shouldn’t it be reported?’ Because as it stands, there are fears that the banking system has been ‘complicit in this type of corruption.’

But apparently, for Landbank, there was no reason to suspect any wrongdoing. The legitimacy of the source as well as the purpose of the funds were ‘fully established and documented,’ and that as a matter of policy, all funds above P500,000 are automatically reported as covered transactions to the Anti-Money Laundering Council (AMLC) for its review and assessment.

That said, in light of the revelations that the money allegedly went to anomalous flood control projects, Landbank said that policies and measures will be updated ‘to ensure we remain robust and responsive to issues and the call of the times.’

Cash withdrawal limit

The BSP has also issued a circular limiting daily over-the-counter cash withdrawals to P500,000 so that transactions above this threshold are carried out through checks, fund transfers, or other digital channels to create an audit trail.

Sanctions will be imposed on banks and financial institutions found complicit in the web of corruption that has ensnared the DPWH.

BSP Deputy Governor Lyn Havier, who heads the BSP unit overseeing banks, added that the central bank was ‘closely scrutinizing’ possible weaknesses in banks’ antimoney laundering systems, particularly in transaction monitoring, customer due diligence, and compliance with reporting obligations and that ‘any deficiencies will be addressed decisively.’

The BSP has also already kicked off an inquiry into the bank accounts of individuals linked to corruption in government-funded flood control projects, at the request of DPWH Secretary Vince Dizon.

This is the first test of the newly enacted Anti-Financial Account Scamming Act, which is meant to crack down on money muling activities or the use of financial accounts to move or hide criminal proceeds.

Questionable accounts

Under this law, bank secrecy and data privacy protections can be set aside to allow regulators to scrutinize questionable accounts and use any findings in criminal prosecutions.

The AMLC also assured the public that it remains ‘committed to upholding the integrity of the financial system and ensuring that all covered entities adhere to their legal obligations in the fight against money laundering.’

The AMLC has so far issued more than 700 freeze orders covering bank accounts, insurance policies, and other assets of individuals linked to the alleged scheme, and it is just getting started.

That the regulatory bodies are just now stepping up their actions seems too little, too late, as billions have already exchanged hands, the extent of which is still yet to be fully uncovered. But they can make up for lost time and work double time on their investigations that should end with people being brought to justice. At the same time, given the extent of the ‘shocking’ corruption, regulators should pursue their mandate with renewed vigor to finally cure the Philippines of this festering disease.

LPA inside PAR may become a tropical depression in 24 hours

The low-pressure area (LPA) inside the Philippine Area of Responsibility (PAR) now has a high chance of developing into a tropical depression within the next 24 hours, said the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) on Wednesday, Oct. 1.

According to Pagasa, the LPA was estimated at 1,080 kilometers east of Southeastern Luzon as of 2 a.m.

While it does not yet have a direct effect on land, Pagasa said that it is likely to develop into a severe tropical depression within the next 24 to 48 hours.

‘And if this develops into a tropical cyclone, we will name it Typhoon Paulo,’ said Pagasa’s Weather Specialist Loriedin de la Cruz in a video weather report.

The LPA entered PAR at 8:00 p.m. on Tuesday, September 30.

Meanwhile, the easterlies will continue to bring cloudy skies with scattered rain and thunderstorms across the country. It will affect the Bicol Region, Eastern and Central Visayas, Caraga, Northern Mindanao, Aurora, and Quezon.

The rest of the country will experience partly cloudy to cloudy skies with isolated rain showers and thunderstorms.

Residents in these areas are advised to remain vigilant for potential flash floods and landslides due to moderate to heavy rainfall.

Light to moderate winds will prevail across Luzon, Visayas, and Mindanao.

NCAA Season 101: San Beda gears up for rivalry game vs Letran

San Beda may have opened the NCAA Season 101 men’s basketball tournament with a big win, but the path ahead is anything but easy.

Following the Red Lions’ 96-85 win over the College of St. Benilde at Araneta Coliseum on Wednesday, coach Yuri Escueta quickly turned their attention to their next game day. On Sunday at San Juan Arena, the oldest collegiate rivalry between Letran and San Beda takes center stage and the matchup always demands the best preparation.

‘Playing Letran always brings out the best of the coaches and the players knowing they’re our rivals,’ he said. ‘This year, they’re so strong. They’re like an all-star team.’

Bryan Sajonia, who scored a team-high 16 points with three steals to match, will have to exert the same effort or even more in their outing against their longtime rival.

For one, the Knights will have the services of former Perpetual Help stars Jun Roque and Mark Omega along with veteran shooter Deo Cuajao and Titing Manalili, who sat out last season due to academic deficiencies.

Red Lions forward Yukien Andrada knows just how physical that upcoming clash would be. After all, he’s been through most of the rivalry since his rookie year in the NCAA.

‘I’m expecting a very very physical ballgame but we’ll just play the game the San Beda way,’ he said after dropping 11 points, four rebounds and three assists.

Roberto Bernardo makes first appearance before ICI in Taguig

Former Department of Public Works and Highways (DPWH) Undersecretary Roberto Bernardo attended Wednesday, October 1, the Independent Commission for Infrastructure (ICI) hearing on alleged flood-control irregularities.

Bernardo arrived at the ICI office about 10 a.m. Wednesday to testify as a resource person but declined to comment to the media.

Last week, in his testimony before the Senate blue ribbon committee, Bernardo alleged that Senator Francis Escudero and former Senators Ramon ‘Bong’ Revilla Jr. and Nancy Binay received kickbacks from allocations for public works projects.

He also named Ako Bicol Rep. Zaldy Co, whose P4.7-billion in air assets were recently ordered frozen by the government.

Co resigned as a member of the House of Representatives on Sept. 30./cb

Marcos reopens PICC, urges Filipinos to support artists

President Ferdinand R. Marcos Jr. on Tuesday called on Filipinos to support and nurture the country’s artists as he officially reopened the Philippine International Convention Center (PICC) after six months of renovation.

‘As we reopen the doors of the PICC, let us also open ourselves to a greater challenge: to create, to imagine, and to contribute,’ Marcos said in his speech.

‘Support our artists-our painters, our musicians, our performers. For in their creativity, we find not only beauty, but the very soul of our nation. And beyond appreciation, let us take part in that creation ourselves,’ he added.

Marcos urged Filipinos to ensure that the PICC would remain ‘a testament to the artistry, ingenuity, and passion of the Filipino people.’

‘Let it inspire us to carry forward our heritage, so that decades from now, our children, our grandchildren will still look at this place with pride, saying: This is who we are. This is what we can achieve,’ he said. The President was accompanied by First Lady Louise Araneta-Marcos and former First Lady Imelda Marcos, as well as other officials, during the reopening.

In encouraging Filipinos to embrace creativity, Marcos said artistic expression can be found in many forms, including ‘a short reflection written in a notebook, a song hummed at the end of a long day, a painting done by a child, or even a simple story shared with the family.’

‘Every act of creation-no matter how small-is an act of courage. It is an act of hope,’ he said.

Marcos also highlighted the role of the PICC as a cultural venue that embodies the resilience of creativity.

‘If the PICC has shown us anything, it is this: That creativity, when nurtured, endures. That artistry, when given space, inspires. And that every Filipino, no matter who or where they are, can bring light, meaning, and beauty to the world,’ the President said.

Masbate residents reeling from Opong face cash shortage, Marcos says

Residents of Masbate are in need of cash to purchase basic commodities and rehabilitate their communities a week after Typhoon Opong (international name: Bualoi) wiped out the province. President Ferdinand Marcos Jr. made the assessment on Wednesday during his visit to Masbate City, where he led the distribution of food packs, medicine, and cash aid, to the affected families. ‘I think we have managed to address most of the problems [in Masbate]. But the biggest issue that still needs our attention is the shortage of cash,’ the President told reporters at Nursery Elementary School, which serves as an evacuation center for Masbate City residents. ‘People cannot withdraw their own money because the banks are closed, since there is no electricity, and no internet,’ he added. The President said he had discussed the problem with Finance Secretary Ralph Recto, and the possible immediate solution was ‘to bring large amounts of cash’ to Masbate.

According to the President, he received reports that Masbate residents would withdraw money in as far as Legazpi City in Albay in mainland Bicol Region, or in nearby provinces in the Visayas. Only two branches of the Land Bank of the Philippines are open in the province, but they are in Masbate City and in Cataingan town, which is more than 70 kilometers away or a two-hour travel from the capital. ‘People are going to different places just to borrow money. But no one can loan them because of the situation,’ he said. ‘It’s a problem that we are going to have to solve very, very quickly,’ Marcos added.

‘It is very inconvenient for the people, but we will work on improving the situation as soon as possible.’ Masbate, which is under a state of calamity, was one of the hard-hit areas in Luzon and the Visayas during the onslaught of Opong, which made successive landfalls in the town of Palanas and Milagros on Sept. 26. The Department of Energy (DOE) earlier said that about P400 million will be needed to restore the electricity services in the province. Most of the towns were still struggling with power outages and limited communication lines. According to the DOE, various electric cooperatives nationwide have been arriving in Masbate to speed up restoration efforts of Masbate Electric Cooperative Inc. (Maselco), the province’s energy distributor.

BPI starts cash-in via Instapay for P15 fee

Starting Wednesday, Oct. 1, Bank of the Philippine Islands (BPI) adopted InstaPay for all its inter-institution cash-in transactions for a P15 fee as part of efforts to enhance interoperability of digital financial services in the country.

The Ayala-backed bank said the standard service fee would also apply to transfers to affiliate e-wallet platform GCash.

‘This transition ensures compliance with regulatory standards while continuing to offer customers flexible and affordable ways to manage their finances,’ BPI said in a statement. Standard fee

BPI earlier implemented the same fee for ShopeePay and SeaBank. This will likewise apply to other applications as they comply with a Bangko Sentral ng Pilipinas directive.

Currently, fund transfers made to GCash via the BPI app carry a P10 fee, although select customer segments and merchant payments enjoy free transfers.

Meanwhile, clients with BPI #MySaveUp accounts in GCash also benefit from zero fees for funds transferred from the BPI app to GSave.

What billions look like: Visualizing the staggering scale of flood control corruption

How big is one billion pesos? Most Filipinos will never see that much in their lifetimes – yet in the flood control scandal, ?1 billion in cash-filled suitcases was allegedly delivered to a single official. And it gets worse: investigators have frozen ?180 billion linked to key players in the scheme.

Among the most explosive testimonies came from former engineers of the Department of Public Works and Highways (DPWH), who said ?1 billion in hard cash – not bank transfers – was delivered straight to Ako Bicol Rep. Elizaldy Co’s penthouse suite at the Shangri-La at the Fort in Taguig.

Then the scale got even bigger. An online report citing Anti-Money Laundering Council (AMLC) data found that ?180 billion had flowed through 427 bank accounts linked to four contractor firms owned by flood-control ‘king and queen’ Curlee and Sarah Discaya – amounts that far surpass the suitcase deliveries linked to Co.

These figures aren’t just numbers on paper or footnotes in Senate hearings. They represent staggering volumes of taxpayer money – allegedly pocketed through ghost projects, bid-rigging, and systemic corruption – that could have funded public services, filled classrooms, and supported millions of Filipino families.

So just how much money is that?

One billion in hard cash: What does it look like? Baguio City Mayor Benjamin Magalong, a former special adviser to the Independent Commission for Infrastructure, demonstrated the dimensions of ?1 billion in stacked ?1,000 bills. It forms a block 5 feet long, 5 feet wide, and 4 feet high – almost the size of a small SUV.

But stacked vertically, the numbers become even more staggering. If one assumes a thickness of 0.10 to 0.12 mm per ?1,000 bill (an estimate consistent with many banknotes globally), then:

?1,000 bills stacked to reach ?1 billion (an estimated 1,000,000 bills) would measure approximately 100 to 120 meters in height.

That would be taller than the Statue of Liberty (around 93 meters including base), roughly equivalent to a 30-to-40-story building, and many times the height of the Rizal Monument (at 12.7 meters).

If ?1 billion were packed into suitcases as whistleblowers described, it would require 20 suitcases (each worth ?50 million). Multiply that by 35 billion – the alleged budget insertions attributed to Co over four years – and you’d be looking at 700 suitcases forming a trail longer than half a football field.

How does it compare to Filipino families’ needs?

According to IBON Foundation, a family of five in Metro Manila needs about ?1,220 a day, or roughly ?26,545 a month, to meet basic needs and live decently. By contrast, the newly approved minimum wage in the NCR stands at ?695 a day – a figure that still falls short of the actual cost of living, especially in the capital region.

In this context, ?1 billion is no longer just a large number – it becomes an almost unimaginable fortune.

If one household were to spend exactly ?1,220 a day, ?1 billion would last them over 2,200 years. Even at a significantly higher daily expense – say, ?50,000 a day – it would still take more than 54 years before that sum runs out. Now consider the perspective of a minimum wage earner bringing home ?695 a day. Assuming they work 261 days a year (standard for those not paid on weekends), it would take over 5,500 years to earn ?1 billion – and that’s only if every single peso was saved, with zero spending on food, rent, transport, or basic needs.

Even under a more generous estimate of 313 working days a year, it would still take around 4,600 years to reach ?1 billion.

In other words, the amount of public money allegedly lost in just one transaction could have sustained generations of Filipino families, or represented the entire working lifetime of thousands of minimum wage earners.

The Discaya contractors’ frozen accounts

But the AMLC findings dwarf the numbers above. According to multiple reports, roughly ?180 billion flowed through 427 accounts of four Discaya-linked contractors – St. Gerrard, St. Timothy, Alpha and Omega, and St. Matthew – between 2016 and 2025.

What does ?180 billion look like? It’s an almost unimaginable sum – 180 times ?1 billion. If stacked in ?1,000 bills, and assuming each note is approximately 0.10 to 0.12 millimeters thick, the pile would reach 18 to 21.6 kilometers high – more than twice the height of Mount Everest, towering far above the cruising altitude of commercial airplanes.

At IBON Foundation’s NCR family living wage of ?1,220 per day (?26,545 per month), ?180 billion could support over 678,000 families for an entire year.

And if you tried to spend it?

At a rate of ?1 million per day, it would take nearly 500 years (493 years) to run out. Even spending ?50,000 per day, it would last close to 10,000 years – 9,863 years, to be exact.

How long to earn these billions?

The so-called flood-control ‘king and queen,’ Curlee and Sarah Discaya, allegedly amassed ?180 billion through their four contractor firms in just nine years, and a government official was reportedly delivered ?1 billion in a single day – in cash. In contrast, most ordinary Filipinos would need multiple lifetimes to even approach such a figure.

A worker earning ?300/day would need 10,653 to 12,780 years to earn just ?1 billion, and an unfathomable 1.9 to 2.3 million years to reach ?180 billion.

On the NCR minimum wage of ?695/day, it would still take about 4,599 to 5,509 years to make ?1 billion, or around 827,874 to 991,683 years for ?180 billion.

Even someone earning ?1,000/day, far above minimum wage, would require 3,194 to 3,831 years to earn ?1 billion, and 574,943 to 689,580 years to hit ?180 billion.

This also translates to at least 5,500 minimum wage earners (earning ?695 per day and working every weekday) an entire year just to collectively earn ?1 billion – assuming they spend nothing on food, rent, or transport. To reach ?108 billion in the same period, it would take 595,000 workers under the same wage and working conditions. Yet whistleblower testimonies and bank records suggest these billions were being funneled in a matter of days, weeks, or a few deliveries – not decades. What regular workers would never achieve in a dozen lifetimes was, allegedly, carted away in suitcases and routed through hundreds of bank accounts in under a decade.

What billions could have done for farmers

Citing flood control allocations in the 2023 to 2025 General Appropriations Acts (GAAs) and a Senate study showing only 40 percent fund utilization, IBON Foundation warned that up to ?197 billion may be lost annually to corruption in flood control projects – money that could have gone to support Filipino farmers instead.

According to IBON’s analysis, that amount could have empowered the National Food Authority (NFA) to purchase up to 6.27 million metric tons of palay, equivalent to one-third (33 percent) of the country’s current annual palay production of 19 million metric tons – enough to exert significant influence on domestic market prices.

The group also pointed out that ?197 billion could have funded the construction of much-needed drying facilities to help farmers earn ?24 per kilo for clean, dry palay, including:

84,022 small-scale dryers (two per barangay at ?250,000 each)

42,011 large-scale dryers (one per barangay at ?550,000 each)

P700 billion lost to corruption

Amid the staggering billions now under scrutiny in the flood control corruption scandal, an earlier warning from a top anti-graft official has resurfaced. Back in 2019, then Deputy Ombudsman Cyril Ramos estimated that the Philippines loses around ?700 billion every year to corruption.

That amount, Ramos said, could have built 1.4 million housing units for the poor, funded medical assistance for 7 million Filipinos, or secured a rice buffer stock that would last more than a year. ‘With that amount,’ he added at the time, ‘no Filipino would get hungry.’ In 2024, the Philippines spent a total of ?1.56 trillion on health, according to the Philippine Statistics Authority (PSA). That means ?700 billion, the amount said to be lost to corruption each year, accounts for nearly 45 percent of the country’s total health expenditure.

For far-flung and underserved communities where access to health services remains limited, that sum could transform the public health landscape – building rural health units, hiring medical personnel, and subsidizing care for millions.

To put it another way: Based on PSA data showing that the average Filipino spent ?12,751 on health care in 2024, a ?700-billion fund could have fully covered an entire year’s worth of medical needs for nearly 55 million Filipinos – almost half the country’s population.

The true cost of corruption

There is no image big enough to capture what corruption has stolen.

In the wake of the flood control scandal – with figures like ?1 billion stuffed into suitcases and ?180 billion frozen across hundreds of accounts – the numbers have become too massive to comprehend.

But as Inquirer editor Tony Bergonia once pointed out during a previous wave of corruption scandals, ‘To count from one to one billion, it’s estimated you would need 30 to 100 years.’

That’s longer than most people will live – and far longer than the prison time often served, if any, by those who plunder the public coffers.

But the true weight of these stolen billions isn’t just measured in stacks of money. It’s measured in lives.

‘Corruption is paid by the poor,’ Pope Francis once warned – and Bergonia echoed that truth: ‘The capacity of the poor to bear the burden of corruption is not as infinitesimal as the amounts of public money being misused or outright stolen by officials.’

‘In time, people bled dry of their wherewithal to make ends meet will be drawn to do either of two things – just die in place or rise to their feet, clinging to a knife.’

Here in the Philippines, it’s no longer just about missing funds. It’s the absence of rural health centers. The substandard school buildings. The flooded barangays. The children who dropped out because floodwaters reached the chalkboard, but help never came.

When even ?1 billion looks like a tower of money you could live inside – what does that say about the men and women accused of siphoning off tens or hundreds of billions more?

One word: Unimaginable.

Because corruption at this scale is no longer about money. It is about stolen futures.