Good morning. It’s Tuesday, August 26.

It feels like every week, another flood control project gets exposed as rotten, ghost walls, overpriced sheds, and contractors-turned-lawmakers pocketing billions. But amid all this, Alex Eala gave Filipinos a rare breather by pulling off a historic win at the US Open. We’ll celebrate that victory with pride, because we deserve moments of joy. At the same time, we know the fight against corruption is a long game and PesoWeekly will keep shining a light on how much has been stolen right under our noses.

In today’s issue: the Gardiola clan’s billion-peso “cong-tractor” empire, a ghost flood project in Bulacan exposed by PBBM himself, rising NAIA terminal fees, and the SEC’s latest crackdown on shady lending apps.

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Context
Rep. Edwin Gardiola of the Construction Workers Solidarity (CWS) Party-list is not just a lawmaker. He comes from a family of contractors whose fortunes ballooned after his 2022 election. Investigations reveal that firms tied to the Gardiolas have secured at least ₱16 billion in DPWH projects since then, consistently raking in billion-peso contracts year after year. Before politics, the family earned just ₱9.5 billion in seven years — a sharp contrast that raises questions on conflict of interest.

The Baliwag Case
The controversy sharpened when ₱400 million of Gardiola’s pork barrel went to Baliwag, Bulacan, funding flood control projects under then-Mayor (now Vice Mayor) Ferdie Estrella. One of those projects, a ₱55.7-million reinforced concrete river wall in Barangay Piel, was declared “completed” on paper. But when President Marcos inspected the site, he found nothing but empty ground — a ghost project.

Why It Matters
The Gardiola network is a case study of how political clout and contracting power overlap in the Philippines. Family firms like Newington Builders and S-Ang Construction are licensed to handle large-scale infrastructure and now have nationwide reach.

Big Picture
As the Marcos administration vows to crack down on anomalous flood control projects, the Gardiola clan’s rise shows how entrenched the “cong-tractor” system is — where lawmakers double as power brokers in the very industry they should be regulating.

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The Securities and Exchange Commission (SEC) has shut down seven unregistered online lending platforms, including Cash Konek, Pesosuki, Peso101, Peso Cow, and others, for operating without permits and exposing the public to abusive collection tactics, unfair interest rates, and data privacy risks. The cease-and-desist orders, issued on Aug. 15, also cover the firms’ owners and operators. Regulators said the apps violated rules requiring disclosure of online platforms and breached the moratorium on new registrations. The SEC stressed the crackdown is meant to protect borrowers and preserve trust in the country’s lending and financial system.

The Department of Finance plans to raise nearly ₱194 billion by 2026 through the privatization of major state assets, including the Financial Center in Pasay (₱53.5B), the Food Terminal Inc. property in Taguig (₱40.4B), the Mile Long Complex in Makati (₱12.3B), and several Ecology Village sites (₱13.6B). Shares in South Luzon Expressway Corp., Semirara Mining and Power, and other firms are also on the block. Analysts call the plan “ambitious but doable,” stressing that privatization should boost efficiency and fund infrastructure and debt reduction — not just plug fiscal gaps. The 2026 target alone is ₱101 billion.

Cybersecurity experts are warning that the Philippines must tighten regulations on critical infrastructure and artificial intelligence to keep up with increasingly sophisticated cyberattacks. Speaking at a BusinessWorld forum, PwC’s Mark Anthony Almodovar said facilities like dams, power plants, and telecom systems need the “strictest control” to avoid massive public disruption. Lawmakers have filed bills mandating tougher safeguards, while others push for an AI regulatory body, but measures remain pending. Experts noted only 6% of Philippine organizations have “mature” cybersecurity systems, with most still at early stages, and a shortage of local experts worsens the country’s vulnerability.

The Department of Information and Communications Technology (DICT) has inked a deal with tech firm Kintsugi to build a state-of-the-art data center in the Philippines, part of a broader plan to speed up digital transformation. The facility is expected to boost government efficiency, support businesses, and protect national data infrastructure as more industries shift to cloud and online platforms. Beyond the data center, the partnership will explore AI integration, cybersecurity, and scalable cloud services. DICT says the move positions the Philippines as a future-ready digital hub and strengthens its competitiveness in the Southeast Asian tech landscape.

A rare signed trading card featuring NBA legends Michael Jordan and Kobe Bryant just sold for $12.93 million at Heritage Auctions, setting a new record for the most expensive sports card ever. The 2007-08 Upper Deck Exquisite Collection Dual Logoman Autographs card edged out the iconic 1952 Topps Mickey Mantle, which sold for $12.6 million in 2022. It now ranks as the second most expensive sports collectible overall, behind Babe Ruth’s 1932 World Series “called shot” jersey at $24.12 million. Auctioneers called the one-of-a-kind card a “holy grail” for modern basketball collectors. Buyer details remain undisclosed.

Context
For many Filipinos, opening a business isn’t about customers, it’s about city hall. A café in Quezon City can take months just to secure permits. In Singapore, the same shop would open in two days.

The Numbers
MSMEs make up 99.6% of all businesses, employ two-thirds of workers, and contribute 40% of GDP. Yet over half shut down within five years. Many never formalize at all, leaving 38% of jobs in the informal sector, with no loans, benefits, or safety nets.

The Struggle
Even a sari-sari store must clear 21 requirements across four agencies, each with its own fees — ₱500 here, ₱1,000 there, ₱2,000 more for inspections. For small businesses, these “small” costs quickly snowball. Worse, weeks spent chasing papers mean lost sales and wages. Corruption adds fuel: in 2022, Pasig LGU staff demanded ₱600,000 to release a permit already approved.

Big Picture
Starting a business here takes 33 days, compared to 16 in Vietnam and 6 in Thailand. Every delay drains ideas and discourages innovation.

Why It Matters
Bureaucracy doesn’t just frustrate entrepreneurs. It weakens the economy, drives away investors, and leaves consumers with fewer choices and higher prices.

A new report by the Center for Strategic and International Studies (CSIS) reveals that North Korea has been operating a covert missile base near Sinpung-dong, just 17 miles from the Chinese border, that could house intercontinental ballistic missiles capable of striking the U.S. mainland. Built to conceal mobile, solid-fuel weapons that can be launched quickly and with little warning, the base is estimated to be large enough to store up to nine ICBMs, launch vehicles, and thousands of troops. Its location near China is seen as a deliberate move to deter potential U.S. strikes and highlights Kim Jong Un’s drive to expand his nuclear arsenal.

It’s one of shipping’s worst-kept secrets: many vessels don’t sail under the flag of the country where their owners live. Instead, they register under “flags of convenience” in places like Panama, Liberia, or the Marshall Islands. The perks for owners? Cheaper fees, lower taxes, and weaker labor rules.For seafarers, the trade-off can be brutal. Watchdogs like the International Transport Workers’ Federation say most cases of crew abandonment, wage theft, and unsafe conditions happen on FOC ships. With registries often run abroad and inspections rare, accountability gets murky. The result: owners save, workers pay the price.

In an Australian courtroom, survivors and relatives faced Erin Patterson, the woman convicted of killing three family members with a mushroom-laced beef Wellington in 2023. Victim impact statements painted the devastating aftermath: children left without parents, a 100-year-old mother grieving her son, and families torn apart. The most powerful words came from pastor Ian Wilkinson, the sole survivor, who lost his wife Heather and two close friends. Calling himself “half alive” without his partner, Wilkinson still chose forgiveness. Looking Patterson in the eye, he said: “I bear her no ill will… she has become the victim of my kindness.”

China’s property giant Evergrande is officially off the Hong Kong stock market, capping one of the biggest corporate meltdowns in history. Once worth billions, the company borrowed heavily over $300B to fund thousands of real estate projects. When Beijing tightened borrowing rules in 2020, Evergrande couldn’t keep up, defaulted in 2021, and spiraled into bankruptcy. Why should you care? Real estate made up nearly a third of China’s economy. Evergrande’s fall has rattled banks, construction, jobs, and millions of ordinary families who poured savings into apartments. With China’s growth slowing, the shockwaves are felt worldwide.

Lawmakers are raising alarms after Pagcor revealed that 18 to 20 million Filipinos have registered with online gambling apps, with up to 10 million active users. Rep. Jonathan Keith Flores said the industry is preying on low-income earners, who can bet as little as one peso, and urged Pagcor to crack down harder on illegal operators instead of just issuing warnings. He also pressed GCash, Maya, and other e-wallets to tighten compliance with BSP directives. Manila Rep. Rolando Valeriano went further, pushing for a total ban, arguing it would make enforcement simpler and choke off syndicate cash flows.

Flying out of Manila will soon cost more. Starting September 14, 2025, the NAIA terminal fee for international departures will jump from ₱550 to ₱950, while domestic passengers will pay ₱390 instead of ₱200. The Manila International Airport Authority says the increase, approved by the Department of Transportation, will fund airport operations and service upgrades. Exemptions remain for OFWs, infants under two, flight crews, and other special groups. The New NAIA Infra Corp., led by San Miguel Corp. and Incheon International Airport Corp., took over operations last year and has pledged to transform NAIA into a world-class hub.

President Marcos blasted the ₱264 million rock shed project on Kennon Road in Benguet as “useless” after it failed to prevent landslides during Typhoon Emong. The 152-meter structure, meant to shield motorists from rockfalls, collapsed just months after its reported completion in April 2025. Marcos said the government might now need at least ₱500 million to fix it and vowed to charge those involved with economic sabotage. He stressed the project not only wasted taxpayer money but also hurt local livelihoods, with LGUs estimating up to 35% in economic losses from the road closure.

Sen. Sherwin Gatchalian said he will file a bill to ban companies previously owned by politicians from joining government infrastructure contracts, amid growing controversy over anomalous flood control projects. The move comes after Sen. Panfilo Lacson and Baguio Mayor Benjamin Magalong flagged reports that at least 67 lawmakers are allegedly using contractors as fronts to bag projects, some of which turned out to be “ghost” or “ampaw” works. The DPWH reported around 9,000 flood control projects in the past three years alone, raising concerns about corruption and misuse of infrastructure funds.

Filipina tennis star Alex Eala pulled off the biggest win of her career, becoming the first Filipina to win a Grand Slam match. The 20-year-old stunned 14th seed Clara Tauson in a three-set thriller at the US Open, rallying from 1-5 down in the final set to win 6-3, 2-6, 7-6 (13-11). A sea of Filipino fans roared as Eala collapsed in tears before celebrating with her team. “To be Filipino, it’s something I take so much pride in,” she said. Eala now advances to the second round, keeping Philippine hopes alive on tennis’ biggest stage.

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How to Win Friends and Influence People by Dale Carnegie – A classic guide to communication, influence, and leadership.

The 7 Habits of Highly Effective People by Stephen Covey – A principle-based roadmap for personal and professional success.

The E-Myth Revisited by Michael E. Gerber – Shows why small businesses fail and how to build systems that last.