Who are the masterminds of ‘allocable funds?’

The Philippine Center for Investigative Journalism (PCIJ) recently published a report on the newest words added to Philippine lexicon, “allocable funds.” The report’s author, Guinevere Lartoza, defines it accurately as, and I paraphrase: discretionary budget allocations from the DPWH that are assigned to specific congressional districts. These funds are discretionary, politically motivated and directed toward politically determined projects. In other words, they function as a modern form of pork barrel funds since legislators maintain substantial influence over their use.

From 2023 to 2025, “allocable funds” amounted to a staggering P1.2 trillion. Let that sink in… Former speaker Martin Romualdez presided over three national budgets wherein P1.2 trillion worth of pork was imbedded and all three were approved by PBBM. For context, P1.2 trillion is equivalent to about 20 percent of the country’s national budget per year.

The PCIJ further reported that Reps. Sandro Marcos and Martin Romualdez received the highest shares of pork/allocable funds. Marcos was allotted P15.8 billion while Romualdez bagged P14.4 billion over the past three years.

How the President’s relatives secured such large allocations remains unclear since the formula for determining “allocables” is understood only by one DPWH undersecretary, Catalina Cabral. What is clear, however, is that Ilocos Norte’s 1st District – home to fewer than 320,000 people – received nearly double the P7.8-billion allocation given to Rizal’s 1st District, the country’s most densely populated district with 1.2 million residents.

This new form of pork raises multiple red flags.

First, the sheer scale of “allocable funds” – P1.2 trillion in three years – is so enormous that it naturally invites public alarm. No administration that presents itself to be “honest” should have approved discretionary allocations of this scale. What makes the situation even more troubling is that such vast amounts reportedly pass through a formula so opaque that, according to accounts, only one DPWH official fully understands how it works. This level of secrecy raises suspicions. Why the secrecy? Who benefits from keeping the process so opaque?

Second, how these “allocable funds” were distributed raises even sharper concerns. The districts of the President’s son and cousin consistently walk away with the largest allocation, while more populated districts receive a fraction of the amount. It suggests a system that rewards political closeness rather than public need.

Third, this administration allocated P1.2 trillion to “allocable funds” even as it claimed to lack resources for decent health care, adequate social protection and sufficient classrooms. To sustain corrupt politicians’ lust for pork, the Marcos administration permitted the Department of Finance to borrow roughly P1 trillion annually since 2022. Malacañang also tapped the surplus funds of the PDIC and PhilHealth – moves that experts warn may be unconstitutional.

Taken together, these decisions paint a deeply troubling picture – a government so committed to taking their share of pork allocations that it is willing to plunge the country deeper into debt while siphoning resources from institutions meant to safeguard the public’s deposits and health.

Fourth, the contrast between PBBM’s messaging and the budget realities is impossible to ignore. Lofty talk about reform, anti-corruption and “cleaning up government” rings of lies amid budgets he approved swollen with allocable funds. The contrast reeks of hypocrisy.

Fifth, the historical context only deepens our doubts. Some of us have lived long enough to remember the well-documented corruption schemes perpetrated by Marcos Senior, Imelda and their cronies. An entire generation suffered because of it, with millions having to flee overseas just to save themselves from poverty. Marcos’ corruption of the 70’s destroyed the economy and left deep scars which we still grapple with today.

Now that Marcos Junior is president, the cases of ill-gotten wealth have miraculously disappeared or hushed to silence. But that is not the point. The point is – the Marcos-Romualdez families have historically been linked to runaway corruption. The disproportionally large allocations to Sandro Marcos’ and Martin Romualdez’s districts raise questions about whether old patterns of the clans may be repeating in this generation.

Sixth, even insiders of this administration raised red flags. Former ICI Commissioner Babes Singson’s admission that the ICI was being used to “deodorize” Malacañang – prompting his resignation – adds fuel to the growing perception that something is deeply off. When those appointed to uphold integrity begin distancing themselves, the public must start to be suspicious.

My take

The rush to cast Zaldy Co as the sole architect of budget misuse is far too convenient. Undoubtedly, Co profited handsomely from both “allocable funds” and his deep involvement in the budget process warrants close scrutiny. On these counts, his culpability cannot be dismissed.

But the notion that he acted alone is hard to believe. The last three national budgets – the very ones laden with “allocables” – were shepherded through Congress by former speaker Martin Romualdez and ultimately approved by President Marcos himself. And then after the budget approval, the districts of Sandro Marcos and Martin Romualdez received the largest allocations. Both circumstances raise reasonable questions about the extent of the former speaker’s and the President’s involvement in the “allocable fund” scheme. At the very least, circumstances suggest they permitted it.

The administration’s practice of carving-out pork from the national budget – even subjecting the country to deeper levels of debt to do so – and channeling it toward allies and relatives raises questions about the President’s sincerity, priorities and leadership.

It is bad enough that his administration has already squandered and weakened our once strong economy. It is bad enough that this administration has not launched a single game-changing infrastructure project. It is bad enough that the education crisis continues to worsen. But should investigations on “allocable funds” indeed point to the top, then this administration will no doubt become one of the most serious failures in Philippine history.

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Email: [email protected]. Follow him on Twitter @aj_masigan