Public Works Secretary Vince Dizon confirmed in an interview with broadcaster Ted Failon that the Department of Public Works and Highways (DPWH) is investigating the insurance coverage of thousands of flood control projects declared as “completed” but were later found to be either substandard or non-existent.
During the radio interview, Failon pressed Dizon on the issue of retention bonds or insurance required for every DPWH project. Dizon explained that aside from the standard warranty, retention money or insurance is indeed a mandatory safeguard. However, when Failon asked if a “ghost project” also implied a “ghost insurance,” Dizon admitted that this possibility is part of their probe.
One example cited by the DPWH chief was a Davao project reported as completed in 2022 but only recently constructed. He said several other projects require a thorough review, including their corresponding insurance coverage.
The discussion gained more traction after a news report highlighted the connection of Senator Rodante Marcoleta’s wife, Edna, who serves as an independent director in an insurance company linked to the contractors under investigation. This raised questions about a possible conflict of interest, especially since Marcoleta had earlier defended the Discaya couple—the contractors facing scrutiny—in a Senate Blue Ribbon hearing.
Marcoleta, however, rejected the insinuations. In a separate radio interview, he clarified that his wife has no ownership stake, management involvement, or familial ties with the company’s shareholders. He stressed that her role as an independent director is limited to providing governance advice and protecting minority shareholders, as required by the Insurance Code of the Philippines.
“An independent director should not have ownership, management responsibility, or close family ties with shareholders. The role is purely advisory on good governance,” Marcoleta explained. He further noted that insurance companies serve a wide range of industries and sectors, and his wife’s position should not be construed as involvement in questionable dealings.
GHOST INSURANCE?
— News5 (@News5PH) September 29, 2025
Kinumpirma ni Public Works Sec. Vince Dizon na iniimbestigahan na nila ang insurance coverage ng libo-libong flood control projects na idineklarang tapos na ngunit “ghost” o substandard pala ang pagkakagawa. pic.twitter.com/1t3DgKVDvt
Despite Marcoleta’s denial, the controversy has intensified calls for greater scrutiny of both flood control projects and the insurance companies tied to them. The DPWH investigation is expected to uncover whether “ghost projects” were not only funded but also fraudulently insured, raising alarms over systemic loopholes in government infrastructure safeguards.