Philippines Roundup: UN Security Council bid, $4.59B flood control budget, rise of inflation

‘Red flags’ in DPWH 2026 budget

Lawmakers raised concerns over alleged anomalies in the Department of Public Works and Highways (DPWH) proposed 2026 budget, focusing on duplicate flood control projects. During Senate hearings on the National Expenditure Program, Senator Erwin Tulfo cited suspiciously identical allocations, such as projects in Antique and Iloilo, each pegged at ₱149,750,000 (approximately $2.5 million) “to the last peso.” Tulfo pressed Budget Secretary Amenah Pangandaman, who clarified that while the Department of Budget and Management sets overall levels, it is the DPWH that vets individual projects. “The DPWH is responsible, given that they have the expertise and the people to check,” Pangandaman said.

Nine Discaya firms stripped of contractor licenses

The Philippine Contractors Accreditation Board (PCAB) has revoked the licenses of nine construction firms owned or controlled by Cezarah “Sarah” Discaya, whose companies cornered more than ₱30 billion (approximately US$510 million) in flood control contracts over three years. In a Senate Blue Ribbon Committee hearing, Discaya admitted ownership of the companies involved in the bidding process. The PCAB resolution, approved September 1, stripped St. Gerrard Construction and eight other firms of their licenses. The nine firms are; St. Gerrard Construction General Contractor and Development Corp.; Alpha and Omega General Contractor and Development Corp.; St. Timothy Construction Corp.; Amethyst Horizon Builders and General Contractor and Development Corp.; St. Matthew General Contractor and Development Corp.; Great Pacific Builders and General Contractor Inc.; YPR General Contractor and Construction Supply Inc.; Way Maker OPC; Elite General Contractor and Development Corp. Discaya’s lawyer assured senators that she and her husband will “not run away” amid ongoing investigations.

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Senators weigh scrapping $4.59B flood control budget

Following repeated allegations of ghost projects, senators are considering axing the DPWH’s ₱270 billion (approximately US$4.59 billion) allocation for flood mitigation projects in 2026. Senator Sherwin Gatchalian said over a dozen senators at the budget hearing shared the view that funds may be better redirected unless the DPWH addresses irregularities. “For now, there are numerous red flags. So the credibility of the projects cannot be assured. If we don’t do that and there are still ghost projects, the ghost projects will just happen again in 2026,” Gatchalian warned.

Inflation edges up to 1.5% in August

The Philippine Statistics Authority (PSA) reported that headline inflation rose to 1.5 percent in August, up from 0.9 percent in July, driven largely by food costs. PSA chief Dennis Mapa said vegetable inflation hit 26.5 percent in Metro Manila due to recent typhoons, with nationwide vegetable, tuber, and banana prices up 10 percent. “The impact of the typhoons in the past few months has been attributed particularly to vegetables,” Mapa explained. Despite the uptick, inflation for the poorest households still reflected deflation, thanks to falling rice prices.

Philippines optimistic in UN Security Council race

The Philippines is campaigning for a non-permanent seat at the United Nations Security Council (UNSC) in 2026, competing against Kyrgyzstan for the Asia-Pacific slot. At his confirmation hearing, Ambassador Enrique Manalo said Manila’s prospects are strong, “We have been campaigning really quite dexterously, especially in the past couple of years.” President Ferdinand Marcos Jr. and Philippine missions abroad are actively lobbying for support ahead of the mid-2026 UN General Assembly vote. A UNSC seat would allow the Philippines to vote on resolutions shaping global peace and security.