Former House Speaker Ferdinand Martin Romualdez, a cousin and powerful ally of President Ferdinand Marcos Jr., has been thrust into a national corruption scandal that has placed him at the center of an unprecedented probe by the Independent Commission for Infrastructure (ICI). The so-called “flood control scandal” involves the alleged disappearance of billions of pesos meant for vital infrastructure, threatening to redefine accountability in Philippine politics.

The ICI, a body established in 2024 for its independence and aggressive stance on graft, is investigating massive budget discrepancies in flood control and drainage projects. The investigation has uncovered a sophisticated scheme involving kickbacks, ghost contractors, and manipulated budgets across several regions, all of which were overseen by the House of Representatives during Romualdez’s tenure as Speaker.

 

Key Developments in the Probe:

 

Romualdez’s Appearance: On October 14, 2025, Romualdez appeared before ICI investigators in Taguig, transforming rumors into a national spectacle. He issued a brief statement denying the allegations:

“I am here to cooperate fully. I have nothing to hide, and I believe the truth will vindicate me.” His appearance—a move analysts considered politically shrewd—was in response to a subpoena directing him to clarify his “familiarity and personal knowledge as Speaker of the House relative to the National Budget insertions.” Following the closed-door session, the ICI confirmed that Romualdez denied all allegations of receiving kickbacks and has offered to return for further questioning.

The Scale of Corruption: Early ICI findings suggest budget diversions could be worth over billion and are focusing on over 421 suspected “ghost” projects nationwide. The magnitude of the fraud has made the scandal a litmus test for the country’s governance institutions.

Zaldy Co’s Central Role: The money trail repeatedly points to Zaldy Co, former Ako Bicol Party-list representative and a close ally of Romualdez. Co, who previously chaired the powerful House Appropriations Committee, has been implicated by witnesses for allegedly orchestrating questionable projects and handling massive cash kickbacks—including one alleged billion delivery. Co, who was also subpoenaed for the October 14 hearing, remains overseas despite pressure to return, with the ICI now moving to have him cited in contempt, which could lead to an arrest warrant.

Political Fallout: The pressure from the growing scandal is widely seen as the main reason for Romualdez’s resignation as Speaker in September, allowing Faustino “Bojie” Dy III to take over. Romualdez’s supporters claim the allegations are a “coordinated political attack” ahead of the 2025 midterm elections, while his detractors view his resignation as a tacit admission of guilt.

 

The Broader Implications

 

The scandal has polarized the nation. Romualdez is now engaged in a “carefully calibrated redemption campaign,” but the ICI’s non-political composition—led by retired Justice Aurelio Villanueva—and its support from the public and international community make this investigation uniquely challenging.

As the ICI pursues transaction records and the potential testimony of key figures like Zaldy Co, the scandal has ignited calls for systemic change, including real-time auditing and blockchain-based tracking of government funds. The outcome of this probe is expected to shape not only Romualdez’s political fate but also the entire political establishment’s credibility in the Philippines.