MANILA — The Asian Development Bank (ADB) has strengthened oversight of its infrastructure projects in the Philippines following the multibillion-peso flood control corruption controversy, although it said it found no evidence of wrongdoing involving contracts it finances.

In a report, it said that in its Anticorruption and Integrity Report 2025 published on June 23, the Manila-based lender said it enhanced contract monitoring and contractor screening to address what it described as “grave corruption concerns” surrounding Philippine flood control projects.

According to the report, the ADB’s Office of Anticorruption and Integrity (OAI) conducted proactive integrity reviews in 2025 to identify risks in ongoing sovereign projects with high-risk profiles and recommend measures to prevent improper contract awards, cost overruns, implementation delays and reputational risks.

The report said one of the reviews uncovered seven potential instances of bid misrepresentation involving two contracts under a Philippine-based project, exposing control gaps that prompted recommendations to strengthen sanctions screening across sovereign operations.

Following allegations of bid misrepresentation and possible collusion linked to Philippine flood control projects, the OAI also reviewed six ADB-financed projects involving firms included in the government’s “Sumbong sa Pangulo” flood control monitoring list.

The ADB said it found no misconduct involving those contracts financed by the bank.

Despite this, the OAI recommended that project teams strengthen due diligence by closely monitoring contract implementation to detect and address possible irregularities, conducting sanctions screening, and consulting the office before awarding new contracts or approving contract variations involving contractors included in the “Sumbong sa Pangulo” platform.

The office also advised project teams to monitor government investigations and media reports that could affect project integrity or the ADB’s reputation.

The report further identified the Department of Public Works and Highways (DPWH) as one of the implementing agencies subject to enhanced integrity risk review because of its elevated integrity risk profile.

For projects implemented by agencies assessed as having elevated integrity risks, the OAI urged ADB project teams to conduct sanctions screening and other integrity due diligence checks, remain vigilant for red flags involving procurement, contract and asset management, and financial management processes, and promptly report potential integrity violations.

The office also recommended disclosing elevated integrity risks and corresponding mitigation measures in project documents.