Biz groups say independent body can help restore investor confidence in Philippines

The Philippines’ largest business groups on Sunday expressed confidence the newly created Independent Commission on Infrastructure (ICI) could help restore investor confidence in the country’s public works program.

The Philippine Chamber of Commerce and Industry (PCCI) said the commission, tasked with probing anomalies in projects such as flood-control systems, is well positioned to drive systemic reforms that will improve governance and efficiency in big-ticket projects.

“The ICI, as currently composed and empowered, is a strong signal of the President’s political will to address infrastructure anomalies, especially in flood control,” the group said in a statement.

The ICI will be composed of former Public Works and Highways Secretary Rogelio L. Singson and former Chair of the Procurement Policy Board-Technical Support Office, Rossana A. Fajardo. Ms. Fajardo is now the country managing partner at SGV and Co.

Baguio City Mayor Benjamin B. Magalong will also be an adviser.

Mr. Marcos is expected to name the chairman this week.

“This strategically balanced team combines operational, institutional, and investigative strengths that can translate findings into actionable reforms,” the PCCI said.

This comes as the government intensifies efforts to crack down on corruption that led to incomplete and nonexistent flood mitigation projects worth billions of pesos.

“With its strong legal foundation and credible composition, the ICI can become a cornerstone institution for safeguarding public funds and ensuring that infrastructure projects deliver real value to the Filipino people,” the group said.

The PCCI said sustained funding, independence from political influence, and seamless interagency cooperation will determine whether the ICI can close procurement loopholes and reduce corruption risks that have historically delayed infrastructure pipelines.

The Federation of Philippine Industries (FPI) also welcomed the commission’s creation, saying it aligns with its long-standing push for a clean, rules-based market anchored on strict Philippine National Standards compliance.

“The ICI’s work will clean up a decade of flood control anomalies, restore trust in public works, and cut the corruption premium that drives up costs,” FPI Chairperson Elizabeth H. Lee said in a statement on Sunday.

“That means cheaper financing, stronger investor confidence, and a manufacturing sector that wins on standards, integrity, and quality — now and for years to come.”

By dismantling entrenched networks inflating costs and distorting competition, Ms. Lee said the ICI could allow compliant firms to access more affordable financing for capital-intensive upgrades, while attracting higher-quality bidders more likely to source inputs from local manufacturers.

The ICI has the power to issue subpoenas, request financial records and recommend preventive suspensions.

It may also endorse evidence for prosecution and collaborate with technical experts in support of its investigations.

BIR support

Meanwhile, the Bureau of Internal Revenue (BIR) has offered its services to the newly formed ICI.

“The entire BIR is ready to help the ICI if necessary, and the BIR will use all its powers granted by law to go after those who seek to use public funds for personal gain or greed,” BIR Commissioner Romeo “Jun” D. Lumagui, Jr. said in a statement.

“As a government agency that collects taxes to fund projects for the Filipino people, we aim for every Filipino to live well through the proper use of taxes,” Mr. Lumagui said.

The BIR earlier said the tax fraud investigation in the first batch of individuals linked to flood control anomalies, such as Cezarah Rowena “Sarah” Discaya and Pacifico “Curlee” F. Discaya II are almost concluded.

The BIR on Sept. 2 served contractors with Letters of Authority, which authorizes a tax audit on those who may have underpaid or evaded taxes.

The BIR warned that it will not issue an updated tax clearance, a document that guarantees that every contractor has no outstanding tax liabilities and has duly filed and paid all applicable taxes.

Unable to present this clearance will result in the suspension of contract settlements and the imposition of a tax lien over the contract amount in favor of the government.

Finance Secretary Ralph G. Recto earlier said corruption related to flood control projects may have cost the Philippines between PHP 42.3 billion and PHP 118.5 billion in average economic losses since 2023. — Chloe Mari A. Hufana and Aubrey Rose A. Inosante