More economic fallout

The Department of Finance has already roughly estimated that the economic losses from corruption related to flood control projects from 2023 to this year have cost the Philippines up to P118.5 billion.

- MARIANNE GO

However, Finance Secretary Ralph Recto still remains optimistic that the country will be able to meet its growth target range of 5.5 to 6.5 percent for this year despite the global economic turmoil and confusion about the US government's new higher tariff structure, continuing geopolitical unrest and adverse weather conditions.

I guess the Finance Chief is trying to put a positive spin on the problem without acknowledging and preparing Filipinos for the further economic fallout from the unintended consequences of the ongoing probe into the corruption and budget manipulation flood projects of the Department of Public Works and Highways.

“Let them eat cake!” is a quote attributed to the queen of France Marie Antoinette, who eventually lost her head to the guillotine.

Several discussions I’ve heard over the past two weeks by bankers, economists and the business community paint a bleak picture as the Marcos administration tries to calm political unrest due to the public outcry over the corruption exposed for flood control projects alone.

The discussions seem to agree on one thing — that the corruption also propped up the Philippine economy as the corruption proceeds were spent on consumption — acquiring expensive real estate, luxury brand goods, vehicles, jewelry, luxurious foreign and domestic vacations, construction of grandiose homes and buildings, all proudly displayed and documented on social media.

We all know that corruption occurs in other government agencies, as exposed in previous years, such as the Bureau of Customs’ unexplained import clearances for agricultural imports, vehicles, even the entry of illegal drugs and the use of the Department of Health’s fund in the Pharmally scam.