The administration of Philippine President Ferdinand “Bongbong” Marcos Jr. has been plunged deeper into crisis as two of his highest-ranking cabinet members resigned on Tuesday following revelations of massive corruption involving “ghost projects” and billions of dollars in missing anti-flooding funds.

The scandal, which has intensified public outrage and triggered some of the largest protests in recent years, now threatens to reach the presidential palace itself as new allegations surface.

Two Key Marcos Officials Step Down Amid Widening Investigation

Executive Secretary Lucas Bersamin and Budget Secretary Amenah Pangandaman resigned after their departments were implicated in the ongoing probe into misused public infrastructure funds. Their resignations were confirmed by presidential press officer Claire Castro, who said the officials stepped down to allow the government to “address the matter appropriately.”

The Department of Budget and Management and the Office of the Executive Secretary have been cited multiple times in congressional inquiries into the alleged diversion of funds intended for nationwide flood-prevention and drainage projects.

According to reports, investigators uncovered widespread fraud, including:

• Ghost infrastructure projects
• Siphoned-off flood-control budgets
• Substandard construction
• Billions of dollars in lost taxpayer money

Scandal Reaches Closer to Marcos Jr.

Political analyst Aries Arugay, of Singapore’s ISEAS–Yusof Ishak Institute, noted that Bersamin and Pangandaman are the highest-ranking officials to fall since the scandal erupted in July.

While President Marcos has so far remained insulated from direct accusations, Arugay warned that “all bets are off” if more evidence surfaces.

“At the moment, the palace is trying to take the president out of this,” Arugay told Al Jazeera. “But if the trail leads closer to him, the political landscape could shift very quickly.”

Marcos Jr. maintains a legislative majority, largely because many lawmakers prefer his leadership over that of Vice President Sara Duterte, but that support could crumble if the crisis escalates.

Explosive New Allegations Emerge

The scandal grew more intense this week when politician Zaldy Co, currently abroad, claimed that President Marcos personally directed him to insert an additional $1.7 billion into the national budget for questionable infrastructure projects during his tenure as appropriations committee chair.

These claims, reported by The South China Morning Post, have not been independently verified but have added fuel to public anger.

Co is among the first officials to be formally charged following months of investigation, according to The Philippines Inquirer.

Ghost Flood-Control Projects: Billions Lost

The corruption scheme was first exposed when Marcos Jr. himself admitted before Congress that huge amounts of taxpayer money allocated for flood control systems, drainage improvements, and storm-resilient infrastructure had been stolen or squandered by private contractors.

Investigators later found:

• Projects completed on paper but never built
• Substandard or dangerous structures
• Bribes and kickbacks linked to private firms
• Massive budget padding in regional construction plans

The scandal is particularly damaging because the Philippines faces frequent typhoons and catastrophic floods that displace thousands of families each year.

Public Outrage Sparks Mass Protests Nationwide

The revelations have triggered widespread protests, with citizens demanding accountability from Marcos Jr.’s administration.

On Sunday, more than 500,000 protesters filled the streets of Manila, making it one of the largest demonstrations since Marcos took office.

Halloween-themed rallies earlier in October depicted the president and vice president as “monsters,” symbolizing public frustration with corruption and mismanagement.

A Government in Crisis

As investigations continue, pressure is mounting on the Marcos administration to deliver transparency, criminal accountability, and sweeping reforms. Analysts say the scandal could reshape the Philippines’ political landscape, especially if prosecutors uncover evidence linking the stolen money to higher government offices.

For now, the resignations signal that the crisis has reached the highest levels of government — and may yet go further.