Manila: Senator Alan Peter Cayetano questioned the Department of Public Works and Highways' (DPWH) Engineering and Administrative Overhead (EAO) fund, saying it ballooned from an average of PHP20 billion a year to PHP94 billion in 2025 without ensuring project quality, resulting in wasted public funds.

According to Philippines News Agency, Cayetano said the amount could already cover the PHP55 billion shortfall needed to reach the 4 percent of gross domestic product (GDP) target for education spending. "Ni-research na sa DPWH pala, they have EAO na up to 3.5 percent for any project above PHP1 million, at napupunta ito sa either central office, regional director, o sa district engineer (Research showed that in the DPWH, they have 3.5 percent EAO for any project above PHP1 million, and this goes either to the central office, regional directors, or district engineers)," he said during the organizational meeting of the Senate Committee on Higher, Technical and Vocational Education on Wednesday.

The EAO is a percentage deducted from DPWH projects worth more than PHP1 million to cover costs for testing, quality control, project management, and pre-construction activities. Cayetano, however, said despite these supposed purposes, the fund has failed to guarantee the integrity of projects and has even been linked to the so-called ghost projects. "Kung pang-testing at quality control pero wala naman palang quality at ghost project pa, sayang itong pondong ito (If it's [PHP1 million] for testing and quality control, but there's no quality and it is a ghost project, this fund is a waste)," he said.