MANILA, Philippines — The Office of the Ombudsman has escalated its investigation into the multi-billion peso flood control corruption scandal, moving against two of the country’s most powerful political figures. Ombudsman Jesus Crispin Remulla confirmed on Saturday, April 25, 2026, that a court-authorized freeze order has been placed on the assets of former Speaker Martin Romualdez, while a Precautionary Hold Departure Order (PHDO) has been sought against former Senate President Francis “Chiz” Escudero.
The developments follow months of testimony regarding alleged “kickbacks” and illegal budget insertions in the General Appropriations Act (GAA).
The Court of Appeals (CA) granted the Anti-Money Laundering Council (AMLC) request to freeze 25 bank accounts and 10 insurance policies belonging to the Leyte representative.
- Scope of Freeze: Beyond the former Speaker’s personal accounts, the order includes 27 bank accounts and 10 insurance policies of an alleged business associate, as well as real estate properties and corporate bank accounts linked to the investigation.
- Legal Action: Ombudsman Remulla stated that his office is preparing at least six criminal cases related to these findings.
- Romualdez’s Defense: The former Speaker has denied all allegations, calling the probe “biased” and claiming Remulla has prejudged him. He recently pinned the blame for budget changes on Escudero and Rep. Elizaldy “Zaldy” Co.
The Ombudsman is now attempting to prevent Escudero from leaving the country while he is under investigation for alleged plunder, graft, and bribery.
- The PHDO: The request for a travel ban was filed with the Sandiganbayan. A raffle among the court’s seven divisions is currently determining which will hear the petition.
- Corruption Allegations: The probe centers on testimony from former Public Works Undersecretary Roberto Bernardo, who alleged that Escudero and others received a 20-percent cut on flood control projects.
- The “Bagman”: The travel ban request also covers businessman Maynard Ngu, described as the senator’s alleged “bagman” and a major campaign contributor.
- Escudero’s Response: Escudero has strongly denied the claims, describing them as a “well-orchestrated plan to attack the Senate.”
The investigation stems from a Senate Blue Ribbon panel hearing in late 2025:
- September 2025: Roberto Bernardo implicates high-ranking senators in a kickback scheme.
- April 21, 2026: Ombudsman files for a PHDO against Romualdez.
- April 23, 2026: AMLC secures a freeze order on Romualdez’s accounts.
- April 25, 2026: Ombudsman officially seeks a PHDO against Escudero.
The probe has created significant friction between the executive and legislative branches. Despite both being alumni of the UP College of Law and fraternity brothers of Upsilon Sigma Phi, Remulla and Romualdez have engaged in a public war of words. Remulla dismissed Romualdez’s request for him to inhibit from the case, stating that the Ombudsman’s duty is to “look into the abuses of power” and side with the victims of corruption.
The Sandiganbayan is expected to rule on Escudero’s travel restriction in the coming days.