By Darryl John Esguerra | Philippine News Agency
President Ferdinand R. Marcos Jr. has no personal knowledge of the so-called “leadership fund” in the Department of Public Works and Highways (DPWH), an allocation supposedly set up to accommodate senators’ priority or pet infrastructure projects directly into the national budget, Malacañang said Thursday.
Palace Press Officer and Undersecretary Claire Castro said the President would not have tolerated such an arrangement had he known about it.
“Kung alam ng Pangulo, hindi mangyayari iyan, ‘di ba?,” Castro said in a Palace briefing, noting that such arrangements, if they occurred, could have been made without the knowledge of higher officials.
“Mga ganito kasing usapan, minsan lihim,” she said.
The alleged fund surfaced in September 2025 when former DPWH Secretary Manuel Bonoan mentioned it during a Senate Blue Ribbon Committee hearing on the flood-control scandal chaired by Sen. Panfilo Lacson.
Bonoan said the proposals were vetted by the DPWH planning service to ensure that the projects were consistent with government development programs.
In his testimony before the Sandiganbayan on Wednesday, Bonoan claimed that the fund is allocated by the DPWH for senators recommending a list of projects, with each senator having P500-million allocation while those who have committee chairmanships receive P1 billion each. Several senators have denied the allegation.
Castro also relayed the current DPWH leadership’s position that there is no “leadership fund” under the proposed 2027 budget, with projects instead based on the needs identified by local and regional governments.
“All projects proposed in a 2027 DPWH budget are based on needs of the local and regional government. And if needed, secured clearance from RDC (Regional Development Council) to ensure that this benefits the people,” she quoted the DPWH as saying.
She said only projects with complete documentary requirements, including plans and programs, are submitted to ensure compliance with Department of Budget and Management (DBM) guidelines.
The Executive department turned over earlier this week the P7.2 trillion 2027 National Expenditure Program.
Malacañang also said lawmakers’ proposed projects are not inherently improper if they genuinely benefit constituents and are free from kickbacks or other anomalies.
“Sa totoo lang po ay hindi naman talaga masama kung mayroon project ang ibang mga officials, kung ito ay talagang mapapakinabangan ng ating mga kababayan, walang kickbacks, walang anumang anomalya,” Usec. Castro said.
She added that President Marcos Jr., DPWH, and DBM are exercising greater caution to prevent abuses seen in previous years.
The alleged “leadership fund” surfaced amid congressional and government investigations into irregularities in flood-control projects.
Sen. Lacson had earlier warned that project insertions do not automatically constitute misuse of public funds but could create opportunities for abuse.
