What if flood control scam wasn't exposed? DEPDev chief weighs economic, social costs

January 29, 2026 | 5:49pm

MANILA, Philippines — What if the flood control scam was not exposed?

The flood control scam of 2025 pointed to billions of pesos being funneled through bogus infrastructure projects by politicians and officials.

President Ferdinand Marcos Jr.’s crackdown on flood control corruption has had far-reaching political and economic consequences. Apart from the investigation implicating administration allies and fueling political divide, the country’s economy had taken a tumble, with both consumers and business leaders losing confidence in the country.

So, was it worth it? The country’s chief economist believed so.

In an ambush interview shortly after delivering news of a slowed economy, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said that the retraction was expected following the highly publicized probes.

Balisacan was asked, hypothetically, what would have happened if the corruption had remained hidden. The country’s economy would have retained a gross domestic product (GDP) of 6% and above—well within the government’s target.

“But the question is, will you be able to achieve your long-term vision of an inclusive society, resilient growth? Because what you find in a growth context like that is sooner or later the economy will burst,” Balisacan said.

The kind of economic growth that the Philippines was having prior to the surfacing of the flood control scam and government corruption may not have successfully reduced poverty.

If the money that should have gone to improving education, infrastructure and livelihoods went to the pockets of the corrupt, then there will be fewer opportunities for everyone.

“The corrupt could have put that money in Switzerland, right? Or in luxury goods that have very little multiplier effects. They'll buy more expensive cars, more expensive mansions. Will this promote widespread inclusive development? No. But the economy will grow, right? But you miss the inclusivity,” Balisacan said.

“We are so concerned not about just the level of growth but the quality of that growth. And corruption must not improve the quality of growth,” he added.