Speaking before members of the Financial Executives Institute of the Philippines last week, Phinma Corp. chair Ramon del Rosario Jr. also called for greater scrutiny and action from finance professionals against these malpractices.
Deviating from his prepared speech, del Rosario criticized Congress’ handling of the 2025 budget, highlighting the diversion of crucial funds away from high-priority national projects such as health, education, and infrastructure development.
Instead, he said, large sums were funneled into public works initiatives in various legislative districts, particularly flood control projects, which he argued are difficult to monitor and assess for efficiency.
“In this black hole called the Bicameral [Conference] Committee, what happened was our esteemed legislators transferred huge amounts of funds from what are ordinarily identified as high-priority projects of our national government, underfunded them, and diverted funds from these projects towards a bunch of what they call public works projects that are scattered all over their districts,” he said.
The Phinma chair said many of these projects are “poorly studied, poorly identified,” and disproportionately allocated to flood control, which he suggested could be prone to corruption due to challenges in oversight.
Meanwhile, essential government programs — including those requiring foreign financial assistance — were left underfunded.
Del Rosario — who served as Finance Secretary during the administration of President Fidel Ramos — said that, as a result, the Department of Finance has been forced to scramble for alternative funding sources, tapping institutions like the Philippine Deposit Insurance Corp. (PDIC) and Development Bank of the Philippines (DBP) to cover shortfalls.
Call to action for finance execs
Beyond raising alarms, del Rosario urged FINEX members to take a more active role in fiscal governance. He argued that finance professionals, with their expertise in budget analysis and resource allocation, have a responsibility to advocate for responsible spending and fiscal discipline.
“Our role is not merely to crunch numbers, but to safeguard the dignity of every Filipino by ensuring that our nation’s resources are used wisely and equitably,” he said.
Del Rosario encouraged business leaders to scrutinize public budgets, offer independent assessments, and collaborate with advocacy groups to push for reforms. He warned that the current trajectory of fiscal policy could undermine the country’s long-term development and deepen social inequality.
From education to housing
While his remarks on the budget issue dominated the latter half of his speech, del Rosario also reiterated Phinma’s broader commitment to social impact-driven business models. He cited the success of Phinma Education, which serves underserved students across the Philippines and Indonesia, as proof that companies can drive both financial sustainability and social progress.
Building on that model, he announced plans to expand Phinma’s focus into socialized housing, seeking to address the country’s worsening housing crisis. He expressed hope that by demonstrating the viability of affordable housing as a business, more private sector players would be encouraged to enter the space.
“We face major challenges, but I am hopeful that if we are able to show that socialized housing can be an attractive business, others will join us,” he said.
Call for ethical leadership
Del Rosario concluded by urging financial executives to uphold ethical leadership in both corporate and public finance. He stressed that ensuring fiscal responsibility is not just an economic imperative but a moral one, directly affecting millions of Filipinos’ access to essential services.
“Together, we have the power to shape a future that is not only prosperous, but also just and inclusive,” he said.
With the new FINEX leadership under president EJ Qua Hiansen, del Rosario expressed optimism that the financial sector could take a stronger stand against budgetary mismanagement and help steer the country toward more equitable growth.
