Marcos vows jail time for suspects in Philippines graft scandal

MANILA (Reuters) -People allegedly involved in a Philippine corruption scandal linked to government infrastructure projects, including in flood-control facilities that failed during a heavy typhoon season, will be jailed by the end of the year, President Ferdinand Marcos Jr vowed on Thursday.

The scandal has outraged a graft-weary public, who have taken to the streets in protest. It has also hammered confidence, and was seen as a key reason behind economic growth hitting a four-year low in the September quarter.

“They won’t have a Merry Christmas,” Marcos said in a televised press conference as dozens of names of public works officials and construction executives facing allegations at the anti-graft body appeared on a giant screen.

MORE PROTESTS PLANNED

Earlier this year, Marcos created a commission to investigate the alleged corruption, with a focus on billions of pesos worth of flood-control facilities that were found to be substandard, poorly documented, or even non-existent.

The controversy has flared again following massive flooding from powerful typhoons in recent weeks that submerged communities across the Philippines.  Civil society groups and church leaders are planning more anti-corruption protests this month. 

Marcos said government spending will pick up into the end of the year after being slowed by stricter validation procedures as a result of the alleged corruption.

“Public spending will be increased to make sure that by the end of the year, that the levels… are according to our original plan,” he said.

Public spending grew 5.8% year-on-year in the third quarter, while infrastructure outlays plunged 26.2%, the steepest drop in nearly 14 years, contributing to a weaker-than-expected 4% annual growth in the third quarter.

Marcos said 6.3 billion pesos ($108 million) of assets tied to individuals and companies alleged to be involved in the scandal have been frozen, and authorities will seek to have them forfeited to the government. 

Marcos, the son of a former president and strongman who was accused of corruption of during his rule, framed his crackdown as part of a broader push for accountability and transparency. 

($1 = 58.1290 Philippine pesos)

(Reporting by Mikhail Flores; Editing by John Mair)

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