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FIVE THINGS TO KNOW

10:45 PM7-minute read

ABOUT THE OCTOBER WATER-RATE INCREASES

Metro Manila households served by Maynilad and Manila Water will see slightly higher water charges beginning October 1. The announced increases are small for many residential customers, but the figures vary by concessionaire and consumption level. That makes it easy to misunderstand a notice expressed only in centavos per cubic meter.

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7:21 AM6-minute read

ABOUT THE NOTE HANDED TO GIBO TEODORO IN SEOUL

Defense Secretary Gilberto “Gibo” Teodoro Jr. was answering questions at the Seoul Defense Dialogue on September 8 when a man handed him a note. He read it aloud, challenged its rejection of the 2016 South China Sea ruling and objected to being interrupted that way.

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9:55 AM8-minute read

ABOUT EL NIÑO AND PREPARING FOR LESS RAIN

It can be raining outside while PAGASA warns about El Niño. That can sound confusing when the immediate problem is a wet road or a flooded field. The two warnings describe different periods: the weather happening now and the rainfall conditions that may develop over the coming months.

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5:30 AM8-minute read

ABOUT THE NEW ARREST WARRANTS AGAINST ZALDY CO, MARTIN ROMUALDEZ AND TWO OTHERS

The Sandiganbayan has ordered the arrest of Zaldy Co, Martin Romualdez and two other accused in the plunder case filed on September 7. By Monday evening, authorities had served Romualdez's warrant and carried out booking procedures at Cardinal Santos Medical Center in San Juan. His arrest is a confirmed development; it does not establish that his three co-accused are also in custody.

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3:15 PM8-minute read

ABOUT THE PLUNDER CASE AGAINST MARTIN ROMUALDEZ

The Office of the Ombudsman filed a plunder case against former House Speaker Martin Romualdez at the Sandiganbayan on September 7 over his alleged involvement in flood-control kickbacks. The accusations have now reached the court that will handle the criminal case. Romualdez denies wrongdoing and remains presumed innocent.

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1:18 PM7-minute read

ABOUT THE NEW SWS POVERTY NUMBERS

Self-rated poverty and food poverty declined in June, but the figures also show how many Filipino families remain under pressure and why lower household budgets do not necessarily mean life became cheaper.

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2:02 PM11-minute read

ABOUT THE CHILDREN'S SOCIAL MEDIA SAFETY ACT

House Bill No. 9965 would bar children below 13 from having social media accounts, require parental consent for users aged 13 to 17, regulate platform algorithms, and impose fines reaching P50 million. It is still being deliberated in the House.

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12:02 PM7-minute read

ABOUT THE SEALED BIR BOX

Marcos authorized the BIR to comply with the Senate subpoena. That did not open the records to the public or prove the unexplained-wealth allegation.

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MCT READER PULSE · MCT-PULSE-2026-010

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MCT DAILY BRIEF

AUGUST 10, 2026

Good morning.

The impeachment trial will not resume today because of the heavy rains, but the delay itself is not the biggest political development this morning.

The more consequential stories are about accountability: whether the prosecution can connect irregular confidential-fund records directly to Sara Duterte, whether the flood-control scandal now points to substandard public works, whether the “Maleta Boys” can still be relied on as witnesses, and whether the government can revive infrastructure spending without repeating the same abuses now under investigation.

Here are the five developments worth following today.

1

SARA DUTERTE’S IMPEACHMENT TRIAL MOVES TO TUESDAY

The Senate cancelled both today’s plenary session and the impeachment proceedings after shifting to a work-from-home arrangement because of the heavy rains.

The trial is expected to resume Tuesday, August 11.

This is an operational delay, not a political or legal one.

When proceedings resume, the prosecution is expected to continue presenting evidence related to Article I and the ₱612.5 million in confidential funds used by the Office of the Vice President and the Department of Education.

The prosecution has already presented evidence tracing the release of the funds and showing that seven checks totaling ₱612.5 million were encashed. COA testimony has since focused on how the money was liquidated, what supporting documents were submitted, and which transactions auditors questioned.

That does not automatically prove that Duterte stole public money or personally benefited from it.

This is where the case becomes harder.

Showing questionable documents is one thing. Showing that Duterte herself was responsible for violations serious enough to justify removal from office is another.

The defense can argue that an audit observation, missing attachment or irregular receipt is not the same as proof of theft or misuse. But confidential funds are still public funds. Secrecy around operations does not remove them from government auditing rules.

WHAT TO WATCH

Watch whether the next prosecution witnesses can establish who approved the questioned transactions, who was accountable for the liquidation, and what Duterte personally knew, authorized or directed.

2

THE FLOOD-CONTROL SCANDAL IS EXPANDING BEYOND GHOST PROJECTS

The Senate Blue Ribbon Committee is preparing to investigate substandard public works following the collapse of a retaining wall along EDSA-Ayala.

Committee chairman Erwin Tulfo says the inquiry will cover roads, bridges and other government structures that may not have been built according to specifications.

Much of the flood-control scandal has focused on alleged ghost projects, kickbacks and overpriced contracts. The new Senate inquiry raises another question: whether projects that actually exist were nevertheless built below standard.

Public Works Secretary Vince Dizon said the collapsed retaining wall contained lightweight board material where reinforced concrete should have been used.

That raises a chain of accountability that goes beyond the contractor.

Who prepared the specifications?

Who inspected the project?

Who signed the completion documents?

Who approved payment?

Tulfo has suggested that corruption may explain some substandard projects. That remains an allegation until investigators establish what actually happened.

A failed structure can result from bad engineering, poor construction, inadequate maintenance or corruption. Investigators have to determine which one applies in each case.

If they eventually establish that required materials were substituted and a noncompliant project was nevertheless certified and paid for, responsibility would not necessarily stop with the contractor.

The Senate has a legitimate role here that is different from the Ombudsman’s. The Ombudsman can determine whether officials should face criminal or administrative cases. The Senate can examine the system that allowed questionable projects to pass inspection and receive public money.

WHAT TO WATCH

Watch which projects the Blue Ribbon Committee chooses to investigate first, whether DPWH releases the original specifications and inspection records, and whether investigators find isolated failures or a wider pattern.

3

THE “MALETA BOYS” HAVE BECOME AN EVIDENCE PROBLEM

Four members of the group known as the “Maleta Boys” have recanted earlier allegations involving former Speaker Martin Romualdez and other political figures.

Ten of the men who had been detained while their bail requirements were being completed were later released after posting bail.

Their release does not dismiss the perjury cases against them. Their detention was also not a finding of guilt.

The more serious development is the fight over why some of the witnesses changed their stories.

Ombudsman Jesus Crispin Remulla said he believes Romualdez’s camp was behind the recantations.

Romualdez denied it.

Remulla’s accusation is not an Ombudsman ruling, a finding of probable cause or a court judgment. Romualdez’s denial does not settle the issue either.

The recantations create a serious credibility problem because investigators now have conflicting sworn accounts from the same witnesses.

That makes independent evidence more important than ever.

If money really moved through a corruption scheme, investigators should be able to look for bank records, withdrawal records, contracts, procurement documents, project certifications, communications and other evidence that does not disappear when a witness changes his story.

The flood-control investigation should not rise or fall with the Maleta Boys.

WHAT TO WATCH

Watch whether investigators produce evidence independent of the witnesses, whether more members recant, and whether Remulla’s allegation of political interference can be supported by documents, communications or financial records.

4

THE ECONOMY GREW ONLY 2.3 PERCENT

The Philippine economy grew by only 2.3 percent year-on-year in the second quarter of 2026.

That is down from 2.8 percent in the first quarter and is the weakest year-on-year quarterly growth since 2021.

First-half growth is now only 2.6 percent.

The figures underneath the headline number are even more troubling.

Construction investment fell 14.8 percent.

Gross capital formation, which includes investment, fell 9.2 percent.

Household consumption grew by only 2.8 percent.

General-government construction fell 32.4 percent.

Economic Planning Secretary Arsenio Balisacan says the flood-control scandal contributed to the slowdown because infrastructure spending became more cautious and investor confidence weakened.

That is the government’s assessment. The GDP figures cannot tell us exactly how much of the slowdown was caused by corruption.

But the connection is worth following.

Corruption can damage the economy more than once.

Money can be wasted on ghost or overpriced projects. Substandard infrastructure can deliver less value than taxpayers paid for. Then, when the scandal breaks, legitimate projects may also slow down while contracts and spending are reviewed.

The government now has to clean up questionable infrastructure spending without freezing legitimate projects for too long.

Inflation also averaged around 5 percent during the first seven months of the year.

That leaves the Bangko Sentral facing a harder trade-off: inflation remains above target while economic growth is weakening.

Its next policy meeting is scheduled for August 27.

WHAT TO WATCH

Watch whether government construction recovers in the third quarter, whether private investment starts growing again, and whether the administration can restart legitimate infrastructure spending without weakening anti-corruption safeguards.

5

THE GOVERNMENT IS ABOUT TO ASK CONGRESS TO APPROVE A ₱7.2-TRILLION BUDGET

The Department of Budget and Management plans to submit the proposed ₱7.2-trillion 2027 national budget to Congress before August 14.

That means the next major budget fight begins within days.

This year, the argument cannot simply be about how much government plans to spend.

The administration needs infrastructure spending to recover because construction and investment have weakened badly. At the same time, DPWH and public works spending are under intense scrutiny because of the flood-control scandal.

That creates a difficult policy problem.

If project screening becomes too loose, questionable projects can return.

If government becomes so cautious that legitimate projects are delayed or cancelled, economic growth suffers.

Once the National Expenditure Program becomes public, the headline ₱7.2-trillion figure will be less important than what is actually inside it.

I would pay close attention to DPWH allocations, flood-control projects, unprogrammed appropriations, locally identified infrastructure, large lump-sum items and projects added during congressional deliberations.

House leaders have promised greater transparency in the budget process.

The documents will tell us whether that promise survives once lawmakers begin amending the proposal.

WHAT TO WATCH

Watch the DPWH budget first. Then compare the administration’s original proposal with what eventually emerges from the House and Senate. The most revealing changes may be the projects and allocations added during congressional deliberations.

BOTTOM LINE

The stories this morning are more connected than they first appear. Sara Duterte’s impeachment trial is increasingly about whether documentary irregularities can be connected to personal responsibility. The flood-control scandal is increasingly about whether corruption can be proven without depending on witnesses whose stories keep changing. The Senate is now asking whether public works that physically exist were nevertheless built below standard. And the economy is beginning to show the cost of weak investment and disrupted infrastructure spending, while the government itself says the flood-control scandal contributed to both. Now the administration is preparing a ₱7.2-trillion budget. That puts another enormous amount of public money on the table. After everything we have learned about flood-control projects, the question should no longer be simply how much government plans to spend. We should also be asking who requested each major project, who approved it, who built it, who inspected it, and whether taxpayers actually received what they paid for. – Gino, Morning Coffee Thoughts.

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