Corruption Is Weakening Investor Trust and the Peso

[Yamifoud]

Recent scandals in flood control and farm-to-market road projects, many found to be ghost or overpriced are shaking investor confidence.
Billions wasted, projects unfinished, yet officials still deny accountability.

Foreign investors see this as a red flag. If funds for infrastructure can vanish so easily, how can creditors trust long-term deals?

No surprise the stock market lost over ₱1.7 trillion, and the peso keeps sliding past ₱58 per dollar.
The message is clear: corruption isn’t just a moral issue, it’s killing the economy.


https://apnews.com/article/philippines-flood-control-corruption-inquiry-6ec985cb21d1c14ba617a57b9f223974
https://www.reuters.com/world/asia-pacific/philippine-groups-demand-independent-investigation-excessive-corruption-2025-09-04/
https://www.theguardian.com/world/2025/sep/21/protests-philippines-corruption-state-flood

[ahmedabubakarabbo]

Recent scandals in Nigerias infrastructure sector from inflated road contracts to ghost flood control projects show a worrying pattern of corruption draining public funds Billions of naira are given every year for development yet many projects remain abandoned poorly done or never started. This ongoing lack of accountability is damaging investor confidence When money meant for basic infrastructure disappears into private pockets it sends a clear message to foreign investors that Nigeria is still a high risk place to invest. The results are easy to see foreign investment keeps falling the naira keeps losing value and public trust in government spending is at its lowest point Corruption is not only a moral problem it is an economic disaster that is robbing the country of progress jobs and its good name in global markets.

[Fortify]

Markets like Nigeria and the Philippines have always been extremely high risk, so command extra returns for investors who dare to enter the market. This means that I can cost twice, five or even ten times as much to complete a task - because who knows it there is volatility in government, the currency might collapse or something like riots might wipe out all the capital. This is nothing new and it would take decades of less turbulent society and a self sufficient economy before it gets much cheaper. Corruption is just one piece of the puzzle.

[bettercrypto]

When other countries know that the president of a nation is corrupt and dishonest, they won't trust investing in the country under that president in the Philippines, nor will they lend money. They'll just think that the money they loan to the country will be wasted.

Because it will simply be stolen and then publicly presented in the territory as if it's for a good government program for its citizens. What's even sadder is that the corrupt president also controls the Chiefs of the PNP (Philippine National Police) and the AFP (Armed Forces of the Philippines), where the AFP fund has a scandal of around 15 Billion for the military. It seems the AFP Chief and the PNP Chief were also paid billions. Instead of fulfilling their sworn promise to protect the Filipino people, they are now protecting the very thief of the nation's treasury.
This situation makes the police and the military extremely shameful and disgraceful.

[Natalim]

The worst hasn’t come yet, so if you’re planning to invest or already have, it’s better to pull that out and put it into bitcoin instead. the Philippines is being run by corrupt officials, even the president is corrupt, so you can’t really expect the problems to be solved when they’re the main cause of it.

For now, the only thing we can hope for is that the government won’t be granted more loans, because the money will just end up in corrupt projects that will later be exposed as ghost or substandard. 

[Russlenat]

Markets like Nigeria and the Philippines have always been extremely high risk, so command extra returns for investors who dare to enter the market. This means that I can cost twice, five or even ten times as much to complete a task - because who knows it there is volatility in government, the currency might collapse or something like riots might wipe out all the capital. This is nothing new and it would take decades of less turbulent society and a self sufficient economy before it gets much cheaper. Corruption is just one piece of the puzzle.

I don’t know much about Nigeria, but the Philippines wasn’t like this before -  at least not this bad, back when corruption wasn’t being exposed as much.
 
Things only got worse when it all came to light, because now investors are losing confidence. the authorities can’t even punish the real masterminds behind the mess.

if you follow the investigations, it’s pretty obvious there’s some kind of cover-up going on. only the so-called “sacrificial lambs” are getting jailed, while the bigger names like  senators, congressmen, and other high officials  are still free, some not even facing any charges yet.

[Salahmu]

When other countries know that the president of a nation is corrupt and dishonest, they won't trust investing in the country under that president in the Philippines, nor will they lend money. They'll just think that the money they loan to the country will be wasted.

Some countries do not think about the dishonest of the president before granting there loan because if they no something that will be very beneficial to there country they might only demand they use it on the agreement so that if there come a time when the borrower cannot pay they will removed themselves from becoming the owner of it so actually some countries do not care about how corrupt the other country is because they use loan to do business, you can ask for corrupt countries with loan you will see a lot of them. Is only on the investors basis corrupt country will have disadvantage because if the people of the country is having difficult time to survive how would the investor become successful on his business in that country.

[Darker45]

Please be mindful of the fact that the news regarding the stock market wipeout isn't true.^[1]

But the brazen large-scale corruption is. And, yeah, it's killing the economy. The confidence that's so important for a market to thrive, for investors to be attracted, for aids, grants, loans, and the like to be offered or approved, and so on is gone.

Unfortunately, the politicians couldn't care less. It doesn't matter to them. They're easily making billions whether the market or the economy is doing well or broken.

Sometimes, I wish the fake news were true and would grow even worse for people to finally realize they have to be angry and literally drag the politicians to face accountability.

[1] https://www.philstar.com/business/2025/10/10/2478723/market-wipeout-value-fake-news-go

[Yamifoud]

Please be mindful of the fact that the news regarding the stock market wipeout isn't true.^[1]

Wasn’t he the one who announced it first, then later took back his words?

Could it be that there’s some kind of cover-up going on since he’s under the executive department? Or is there any way to verify if there really was a wipeout or not, aside from what the SEC chairperson says?

[YOSHIE]

Corruption Is Weakening Investor Trust and the Peso

It is a real certainty that the economy will be destroyed, the people will be miserable, the government will be in shambles, corruption will be the most dangerous disease and a deadly infectious disease within the parliament and government.
Never mind investors, people will no longer trust corrupt people, the destruction of the country and economy is caused by their actions, a real example of what is happening now is Nepal and Indonesia. fortunately the corruptor's house was burned down, the corruptor in question should have been burned alive.

That's how bad the act of corruption is, we can see the Chinese economy with luxurious development, this is because investors trust the government there, if someone is corrupt, the death penalty is the best action for the corrupt, in order to gain investors' trust.

[Maslate]

Please be mindful of the fact that the news regarding the stock market wipeout isn't true.^[1]

Wasn’t he the one who announced it first, then later took back his words?

Could it be that there’s some kind of cover-up going on since he’s under the executive department? Or is there any way to verify if there really was a wipeout or not, aside from what the SEC chairperson says?

Your doubt is valid.

just look at this article, Ex-BSP official calls out Malacañang: PSE market cap down P5T since 2024, recovery a long shot

The Philippine Stock Exchange (PSE) has lost up to ₱5 trillion in market capitalization since December 2024, according to Cora Guidote, former head of the Bangko Sentral ng Pilipinas (BSP) Investor Relations Office.

Guidote said ₱3.6 trillion was lost between February and October 2025 alone, citing data she compiled using AI and sourced from the PSE, CEIC.com, and TradingHours.com. She used a ₱57-to-the-dollar exchange rate, as some figures were in U.S. dollars.

According to the figures, PSE market capitalization stood at ₱19.9 trillion in December 2024, ₱18.5 trillion in February 2025, and ₱14.9 trillion as of October 9.

Guidote, IMO, is pretty reliable. She’s known in the market and has built a solid reputation through the years .. I don’t see any reason for her to lie or exaggerate things just for attention.

It’s more believable that the government is packed with corrupt officials who are just trying to hide what’s really going on with the economy. and they know the public would be furious if the truth got out, so they keep spinning the story to save their reputation.

[Harchive]

There is one thing I know about politics, even if there is a single good guy among them it won't matter much because whatever he does won't make any difference, I just wish that every person that want to serve their country must first be screened before taking any position, voting is a complete nonsense this days.

Politicians should be screened or face some kind of examination before they get appointed, less educated people have taken over the sit of ruling in my country, the are corrupt as hell, ordinary fixing a road they will use bad products and before a year or two runs out the road will be full or potholes, these bastards milk money out of everything.

I hope the Philippines will come out of this mess one day because it was never like this, it means that some bad numbers of people have fund their way into leadership roles, they must stand for themselves and win.

[Darker45]

Please be mindful of the fact that the news regarding the stock market wipeout isn't true.^[1]

Wasn’t he the one who announced it first, then later took back his words?

Could it be that there’s some kind of cover-up going on since he’s under the executive department? Or is there any way to verify if there really was a wipeout or not, aside from what the SEC chairperson says?

He didn't make the first announcement. He cited an unverified report. He took it back shortly thereafter, even issued a public apology.

I'm sure he was told to go soft in his criticisms against the government considering that he too is a government worker.

The way to objectively verify it is to check the data of PSE. However, I'm not an expert and I can't properly digest the figures indicated in the PSE monthly reports, but it seems the domestic market cap as of the last trading day in 2024 and the current domestic market cap remain within the ₱14 trillion range. There's a difference but it's less than a trillion--from ₱14.57 trillion to ₱14.29 trillion.

If we compare this with the total market cap, the one which includes dual-listed foreign firms, 2024 closed at ₱20.01 trillion while the current figure is at ₱19.120 trillion. There's a considerable difference but still less than ₱1 trillion.

Based on the figures published on PSE reports, it appears there isn't a ₱1.7 trillion wipeout in just a matter of 3 weeks.

[Botnake]

Based on the figures published on PSE reports, it appears there isn't a ₱1.7 trillion wipeout in just a matter of 3 weeks.

Here's the correct report.
Not P5 trillion, but P273 billion: PSE clarifies market capitalization loss

MANILA — The Philippine Stock Exchange (PSE) on Monday said domestic market capitalization was down by only P273.26 billion or 1.88 percent from December 2024 to October, after a former Bangko Sentral ng Pilipinas official claimed that the state bourse "lost up to P5 trillion" in that period.

Still, that’s a huge loss and it happened in such a short time. Imagine if this mess keeps going, it’s only gonna get worse. Better to step out early than end up regretting it, still hoping the economy would bounce back. I don’t even see this as a “buying opportunity” anymore, ‘cause if the market already dumped this hard, chances are it’s gonna fall even further.

[Darker45]

Based on the figures published on PSE reports, it appears there isn't a ₱1.7 trillion wipeout in just a matter of 3 weeks.

Here's the correct report.
Not P5 trillion, but P273 billion: PSE clarifies market capitalization loss

Here's the clarification from PSE itself. Hopefully, it clarifies doubts and confusions. It seems what happened was that the overall market cap by the time the market closed in 2024 was compared with the latest domestic market cap. They're not exactly the same thing.

But proving that the news was misleading doesn't mean the market is doing well. It performs poorly. Whether it's primarily due to the flood control mess or not isn't the issue. The point is that the government should build trust and confidence for investors and the business sector in general to thrive. Seriously fighting corruption, by sending corrupt politicians and officials to jail, for example, is a great boost.

[ancafe]

Foreign investors see this as a red flag. If funds for infrastructure can vanish so easily, how can creditors trust long-term deals?

No surprise the stock market lost over ₱1.7 trillion, and the peso keeps sliding past ₱58 per dollar.
The message is clear: corruption isn’t just a moral issue, it’s killing the economy.

Poor morality and leadership are generally more likely to lead to corruption, and perhaps most countries fight against such policies, but ultimately fail. The question is why is corruption so difficult to eradicate, and why does it happen? If infrastructure funds can simply disappear, who can guarantee that funds from other sectors will not be corrupted? The impact could be far more severe, with the public facing problems from their actions, and some funds earmarked for essential needs such as building infrastructure access will not be fully realized.

They are killing many hopes, not only morally and economically, but also many big dreams that have failed to materialize because they are bad leaders. A country cannot expect to progress if its leaders are corrupt, and there will never be a chance for such a country to provide progress for its people.

[Gozie51]

Foreign investors see this as a red flag. If funds for infrastructure can vanish so easily, how can creditors trust long-term deals?

This is why corruption is dangerous for a country. If a country is known to be corrupt, it looks unattractive for investors while it is investors that help to grow the economy. Every investor wants profit after business and if this is not guaranteed by the government through its apparatus of leadership guaranteeing security of lifes and properties then investors would hardly put their money for business. But a country running under social justice and institutions that are fortified to ensure accountability, that will discourage high level corruption because of the penalty and punishment if caught. Corruption is what is killing the economy of third world countries because money meant for capital projects end up unaccounted and no institutions to fight such injustice on the unused tax payers money that have gone into private pocket.

[Claudksg]

Corruption is a disease that spreads like a virus amongst leaders,the government and the economy as large.the government are the people controlling the economy.so any investor just have to be careful in all you do way your risk do some calculations,and get good information on the country you want to invest in so you don't be a victim of a failed business investor.

[stadus]

Corruption is a disease that spreads like a virus amongst leaders,the government and the economy as large.the government are the people controlling the economy.so any investor just have to be careful in all you do way your risk do some calculations,and get good information on the country you want to invest in so you don't be a victim of a failed business investor.

And this is what’s happening in the Philippines, the trust has already been damaged, and it won’t be restored that easily. People no longer trust the officials; there’s always doubt in their minds. I wouldn’t even be surprised if another people power movement happens someday.

It feels like it’s long overdue, since everything they do seems to follow whatever their bosses say. It’s like an organized syndicate, only this time it’s powerful because the ones running it are the ones in power, and honestly, the president might even be at the top of it.

[ZeroVinsonN]

Recent scandals in Nigerias infrastructure sector from inflated road contracts to ghost flood control projects show a worrying pattern of corruption draining public funds Billions of naira are given every year for development yet many projects remain abandoned poorly done or never started. This ongoing lack of accountability is damaging investor confidence When money meant for basic infrastructure disappears into private pockets it sends a clear message to foreign investors that Nigeria is still a high risk place to invest. The results are easy to see foreign investment keeps falling the naira keeps losing value and public trust in government spending is at its lowest point Corruption is not only a moral problem it is an economic disaster that is robbing the country of progress jobs and its good name in global markets.

If you were a foreign investor what are the chances that you would invest in Nigeria, it's probably very low and I can't really blame you if it is because with what's happening in the country and with how it's being run, no one trusts the leaders and they are right now to trust them with corruption levels being over the roof and the citizens even being unable to hold their their so called leaders and representative in government accountable.
The truth is that foreign investors see what's happening in the country and they don't want to be a part of it, they don't want their investments to go down the drains and to ensure that that doesn't happen they avoid country like this, you'd probably do the same in their stead.