Securities and Exchange Commission (SEC) Chairman Francis Lim has revealed that the Philippine stock market lost a staggering ₱1.7 trillion in market value in just three weeks, following the eruption of the flood control project corruption scandal.
Speaking during the 57th Annual Conference of the Financial Executives Institute of the Philippines (FINEX), Lim said the controversy surrounding alleged anomalies in infrastructure projects has deeply shaken investor confidence despite strong corporate performance.
“The flood control project scandal has shaken public confidence, wiping out an extraordinary ₱1.7 trillion in market value of our publicly listed companies in just three weeks, despite rising corporate earnings,” Lim stated.
He emphasized that the market downturn was not due to poor business performance but to eroding trust in government integrity.
“Investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity. It’s a stark reminder that corruption is a weapon of mass wealth destruction,” Lim added.
The SEC chief underscored that this crisis transcends financial losses—it is fundamentally a trust issue, one that the Commission is now determined to address.
“This is not just a market issue. It’s a trust issue. Rebuilding that trust is one of the SEC’s most urgent missions… When trust breaks down, capital dries up, and everyone—government, business, and the public—pays the price,” Lim said.
The statement comes after newly appointed Ombudsman Jesus Crispin “Boying” Remulla requested the issuance of an immigration lookout bulletin order against several former and incumbent lawmakers and government contractors implicated in the alleged flood control project anomalies.