Manila: President Ferdinand R. Marcos Jr. has no personal knowledge of the so-called 'leadership fund' within the Department of Public Works and Highways (DPWH), which was allegedly set up to incorporate senators' priority infrastructure projects directly into the national budget, Malaca±ang clarified on Thursday.
According to Philippines News Agency, Palace Press Officer Claire Castro stated that the President would not have allowed such an arrangement if he had been aware of it. 'Kung alam ng Pangulo, hindi mangyayari iyan, 'di ba? (If the President knew, that wouldn't happen, right?),' Castro remarked during a Palace briefing, suggesting that such deals, if they existed, may have been orchestrated without the knowledge of senior officials. 'Mga ganito kasing usapan, minsan lihim (Conversations like this are sometimes kept secret),' she added.
The alleged fund came to light 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 explained that the proposals were reviewed by the DPWH planning service to ensure alignment 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 project lists, with each senator receiving PHP500-million allocations and those with committee chairmanships getting P1 billion each. Several senators have denied these accusations.
Castro also shared the current DPWH leadership's stance that no 'leadership fund' exists under the proposed 2027 budget, with projects instead based on needs identified by local and regional governments. 'All project 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 noted that 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 branch recently submitted the PHP7.2 trillion 2027 National Expenditure Program.
The Palace emphasized that lawmakers' proposed projects are not inherently improper if they genuinely benefit constituents and remain 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 (To be honest, there is really nothing wrong with officials having projects, provided that our fellow citizens truly benefit from them and there are no kickbacks or any irregularities involved),' Castro stated.
She further mentioned that Marcos, along with the DPWH and DBM, is exercising increased vigilance to prevent abuses observed in previous years. The alleged 'leadership fund' emerged amid ongoing congressional and government investigations into irregularities in flood-control projects. Lacson had previously cautioned that project insertions do not automatically equate to misuse of public funds but could create opportunities for exploitation.
