A corruption scandal over allegedly misappropriated flood-control funds is rocking the Philippines, undermining the economy and shaking investor confidence.
Deadly floods last summer exposed failures in the country’s flood-control infrastructure: Authorities say corrupt officials stole millions of dollars intended for the projects, which were either shoddily built or not built at all. Three senior officials, including a cousin of President Ferdinand Marcos Jr, have resigned, and widespread protests have erupted.
Marcos launched an investigation, vowing to arrest anyone implicated in the case. But he is vulnerable: His father was ousted as president following a graft scandal, and his estranged vice president said Marcos is facing a “crisis of confidence.” The country’s stock index is down 12% this year.