DOLE studying impact of flood control scandal on jobs

The Department of Labor and Employment (DOLE) said Wednesday it will look into the possible number of workers whose jobs may be affected as a result of the findings of the probe on anomalous flood control projects.

During the deliberations on the proposed P44.38-billion budget of DOLE and its attached agencies for fiscal year 2026, Labor Secretary Bienvenido Laguesma said the DOLE’s regional directors are coordinating with their counterparts in the Department of Public Works and Highways (DPWH) to identify workers who may be affected by the issue. 

However, he emphasized that the DOLE could not list the “ghost workers” of nonexistent flood control projects.

“Sa ngayon, Mr. Chairman, what we are doing through the Bureau of Local Employment, in coordination with their regional offices, is to keep track ‘yung mga report ng termination, separation, kung ano ang mga cause. Karamihan ng nakita namin since January to August, mga completion of project ang nilalagay na rason, ‘yung iba naman ay termination for just causes,” Laguesma said.

(Right now, Mr. Chairman, what we are doing through the Bureau of Local Employment, in coordination with their regional offices, is to keep track of the reports of termination and separation, and what are the causes for such. Most of what we saw from January to August cited the completion of projects as the reason, while others cited termination for just causes.) 

“We’ll pursue po and probably provide additional input para makita namin kung ano talaga ang magiging impact niya sa employment,” he added

(We’ll pursue this and probably provide additional input so we can see the real impacts of this on employment.) 

Senator Sherwin Gatchalian, chairman of the Senate committee on finance, raised the concern following the reductions in the proposed 2026 budget of the DPWH and the government’s blacklisting of some contractors linked to the flood control controversy. 

“Construction is a big employment generator. Ang kanyang multiplier effect is, if I’m not mistaken, times ten. Meaning if you have a budget of P1, it creates ten employment opportunities kasi may mga construction worker ka, nagde-deliver ng semento, nagkakabit ng bakal,” the senator said. 

(Construction is a big employment generator. Its multiplier effect is, if I'm not mistaken, times ten. Meaning if you have a budget of P1, it creates ten employment opportunities because you have construction workers, those delivering cement, and those installing steel.) 

On Monday, Gatchalian noted that the DPWH may suffer another P348 billion reduction in its budget for 2026.

This was after he disclosed findings that there were “red flags” in over 6,000 projects worth more than P271 billion.

These “red flags” include projects that have no station number, duplicate projects, projects with multiple phases, or have reappeared from the 2025 General Appropriations Act (GAA) to the 2026 National Expenditure Program (NEP).

The DPWH initially proposed an P881.31 billion budget under the 2026 NEP but this was reduced to P625.78 billion after the removal of locally funded flood control projects amid the revelations of substandard or ghost projects. — JMA, GMA Integrated News