Philippine Senators Accused of Taking Millions from Government Contractors

Two of the Philippines’ most prominent senators are facing mounting scrutiny after an investigative report alleged they accepted millions of pesos in campaign donations from government contractors—an arrangement that is prohibited under Philippine election law.

The Philippine Center for Investigative Journalism (PCIJ), a non-profit newsroom known for its watchdog reporting, revealed that Senate Majority Leader Joel Villanueva received approximately ₱20 million (about $340,000) in campaign donations during the country’s 2022 elections from New San Jose Builders Inc. (NSJBI), one of the country’s major construction firms. The company was awarded more than ₱2 billion ($34 million) in government contracts in 2021 for the construction of a 19-story building for the National Housing Authority (NHA), the agency responsible for housing projects nationwide.

The allegations raise concerns about potential conflicts of interest in a country where infrastructure spending is a major source of political power and patronage. While campaign donations from businesses are common, Philippine election law explicitly bans government contractors from making such contributions to prevent undue influence on public projects.

The report also revisits Senate President Francis “Chiz” Escudero’s campaign finances from the 2013 elections, when he allegedly received ₱10 million from NSJBI and another ₱10 million from Tokwing Construction, another major government contractor.

Other senators were also implicated. According to PCIJ, former senators Bam Aquino, Nancy Binay, and JV Ejercito received varying amounts from contractors with ties to the Department of Public Works and Highways (DPWH), the government agency that oversees the country’s road, bridge, and flood control projects.

The disclosures highlight a recurring problem in Philippine politics—contractors who rely on government infrastructure projects are simultaneously helping bankroll the campaigns of the very politicians who have influence over budget appropriations and agency oversight. Watchdog groups warn this creates a cycle where taxpayer-funded projects indirectly sustain political dynasties and entrenched power.

In response to the revelations, the Commission on Elections (Comelec)—the Philippine equivalent of the U.S. Federal Election Commission—announced it had opened an investigation into campaign donations linked to at least 15 contractors.

Comelec Chairman George Erwin Garcia confirmed that the inquiry focuses on donations made during the 2022 elections but may expand. “As of now, 15 contractors are under investigation, but the number may still increase. Candidates who accepted donations from contractors during the election period may also be held accountable,” Garcia said in a statement.

Election law in the Philippines prohibits campaign donations from government suppliers and contractors to avoid corruption and favoritism in the awarding of contracts. Violations can result in penalties for both the donors and the candidates. However, enforcement has historically been weak, and loopholes in disclosure rules often allow questionable donations to go unchallenged.

For reform advocates, the latest revelations underscore the urgent need for stronger transparency and campaign finance enforcement. They argue that contractor-linked donations compromise public trust and risk turning infrastructure projects—funded by Filipino taxpayers—into bargaining chips in the country’s highly transactional political system.

With Senate President Escudero and Senate Majority Leader Villanueva both implicated, the controversy places two of the chamber’s top leaders in the hot seat, raising questions not only about their credibility but also about whether the Philippines can meaningfully reform its political finance system ahead of future elections.