Tattered economy

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Our economy has been tattered by the flood control scandal. That, in turn, is now threatening our political stability. BBM and the Ombudsman must deliver the promised jailing of “big fish” politicians before Christmas or the anger might boil over to mar our holiday season.

Former congressman Joey Salceda observed that the corruption scandal “has triggered a rapid collapse of trust in public institutions” at a scale, he says, that is staggering.

At the base of this institutional unraveling is public frustration on the state of our economy. Wages remain stagnant, food prices stubbornly high, and the perception that the government is disconnected from household realities has crystalized into political anger, the former congressman observed.

Salceda warns that “When governance credibility and economic confidence collapse simultaneously, the result is a system that is both unstable and stagnant, volatile in its politics yet paralyzed in its capacity to act.”

Complicating BBM’s political problems is the detachment of some of his cabinet members to reality.

It was simply callous of the DTI Secretary to claim that P500 was sufficient for a family’s Noche Buena dinner. It is tone-deaf and exposes an elitist perspective, rubbing salt on the wounds caused by social inequality.

The issue was not merely the arithmetic, Salceda pointed out.

“Official messaging had become detached from the lived experience of ordinary Filipinos. For many families, the statement confirmed a larger fear; that economic policy signals are no longer grounded in actual market conditions. This is why the political moment feels stalled.”

Worse, mali na nga, pinipilit pa! The DTI Secretary, a lady, has obviously not been to the market lately.

This is par for the course in official government figures that need updating to reflect reality.

For instance, the official figure from the Philippine Statistics Authority (PSA) for a family of five to live on was P13,873 per month as of 2023. That’s less than P500 a day to cover basic necessities.

Salceda said our economy “is not in a freefall, but it is losing altitude at a worrying moment…The slowdown has compounded political turmoil.”

BBM’s trust rating is 33 percent in a September 2025 Pulse Asia survey. A big plurality of Filipino adults (44 percent) has a negative assessment of BBM’s work in the past quarter.

“When nine in 10 Filipinos believe there is collusion among politicians, contractors and officials to defraud infrastructure funds, the crisis is no longer merely fiscal. It is existential for the political system,” Salceda commented on the Pulse Asia survey results.

Our country’s economy was the only one where manufacturing activity dropped according to the S&P Global Purchasing Managers Index. Our neighbors also experienced storm disruptions but their factories enjoyed robust demand both from their domestic and export markets.

The morale of Filipinos is now very low. Consider this view of an OFW that is going around in social media:

“I did not leave because I wanted adventure. Many left because jobs vanished into someone’s pocket. Projects died before they began. Money meant for the public was kept private. I learned early that opportunity is reserved for a small group of powerful people we will never be a part of.

“So, I packed my bags and tried my luck in another country. But corruption has a long shadow. The damage follows me.

“When other nations see our scandals, they judge us by them… Ask any OFW who has stayed long enough abroad. We all know the look. That polite smile employers give when they see the Philippine passport on the table. Not hate. Not distrust. Just… hesitation. A quiet calculating pause that tells you your home country has already spoken for you before you open your mouth…

“And while OFWs struggle with that, they send money home to cover the holes corruption left behind – tuition that should have been free, medicines that should have been funded, stability that should have come from a functioning government, not from an OFW’s salary.”

The Christmas gift Filipinos would love to have now is the ability to again be proud as Filipinos. The sentiment was expressed in a t-shirt I saw on Facebook with this message: I am a proud Filipino but embarrassed by my government.

What do we do next?

Salceda thinks we must first strengthen integrity in public spending.

That’s dreaming. Like asking a BIR examiner to be honest?

“The flood control scandal revealed systemic gaps in procurement and oversight. More than 400 ‘ghost projects’ were implemented; others were built with substandard materials (three-meter sheet piles instead of the 12-meter steel specified in design).

“Audit findings for 2023 showed that of 905 flood mitigation structures planned, only 450 were completed. Addressing these failures requires standardized contract design, stronger auditing frameworks and coordinated implementation across agencies.

“Second, rebuilding economic credibility by grounding decisions in real market conditions. The Noche Buena controversy underscored the need for policy signals based on price behavior, distribution chains, and wage realities rather than ministerial optimism.

“Third, creating a shared economic direction that both administration and still-cooperative opposition can work within. The absence of an articulated alternative program is part of the current stagnation…

“Political stability emerges from economic credibility. Coherence in economic governance reduces uncertainty, tempers political conflict, and rebuilds public trust.”

BBM needs a serious credibility boost. He must make sure the 2026 budget is pork-free. If pork is found hidden in new places, forget credibility.

Even now, the People’s Budget Coalition and some senators, point to large sums of unprogrammed appropriations (around P243-P256 billion) as the “new pork”. These standby funds are described as highly discretionary, lacking clear line items, and usable for almost any purpose at the executive’s discretion.

BBM should start forfeiting properties whose value are obviously more than what politicians, contractors and bureaucrats involved in corruption legally earned. If he is still seen doing nothing much, his regime is in peril.

Boo Chanco’s email address is [email protected]. Follow him on X @boochanco