NEWS RELEASE
NOVEMBER 13, 2025
Wednesday (November 13) – Senator Pia S. Cayetano raised the alarm over persistent corruption in government agencies, warning that schemes such as ghost flood control projects not only waste public funds, but also undermine taxpayer confidence, discourage investments, and ultimately slow the country’s economic growth.
Cayetano, who chairs the Senate Committee on Ways and Means, led a public hearing on Tuesday (November 12) to assess the performance of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), the government’s key revenue-generating agencies.
Former BIR Commissioner Romeo Lumagui, Jr. earlier admitted that the agency is short of P897 billion to meet its P3.219-trillion collection target for 2025 amid a slowdown in government spending triggered by recent flood control scandals.
Cayetano said the situation reflects how graft and corruption creates a vicious cycle that not only drains the country’s resources, but also erodes public and investor confidence, leading to weaker revenues, fewer investments, and slower job creation for Filipinos.
“Sadly, we are in a situation where, as we try to help people understand where their taxes should go – on education or health services – they instead hear these stories of graft and corruption. Sino bang hindi malulungkot? Sino pa bang gaganahan to pay their taxes? Sinong investor pa ang gustong maglagay ng pera dito sa atin,” the Senator stressed during the hearing.
“The challenge before us is to ensure that our revenue system remains equitable, efficient, and responsive to the needs of the Filipino people,” she added.
Cayetano further noted that during her consultations for the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which she sponsored, business groups and investors repeatedly cited persistent corruption as a major deterrent to investing in the Philippines.
She emphasized that tackling these issues requires both strong enforcement and legislative support to strengthen government systems, improve transparency, and restore confidence among taxpayers and investors.
The Senator stressed that addressing corruption and loopholes in government agencies also involves investing in the right technology to improve monitoring and close gaps in existing procedures.