Bonoan: Ex-DBM chief was aware of ‘leadership fund,’ Marcos was not

MANILA, Philippines — Former Budget and Management chief Amenah Pangandaman was supposedly aware of the so-called “leadership fund” within the Department of Public Works and Highways (DPWH) budget for 2025, while President Ferdinand Marcos Jr. was not.

A witness gave this testimony to the Sandiganbayan Fifth Division on Tuesday.

Ex-DPWH chief Manuel Bonoan made the revelation as he testified against Sen. Jinggoy Estrada during the latter’s bail hearing stemming from alleged kickbacks in the 2025 budget worth P573 million, according to special prosecutors. 

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Bonoan was Estrada’s co-accused in this case, but the Fifth Division allowed special prosecutors to discharge him, as part of the Office of the Ombudsman’s move to make him its witness. 

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During his cross-examination, Estrada’s lawyer Lawrence Arroyo asked Bonoan if the former DBM chief was aware of the leadership fund, and Bonoan responded: “I believe she was aware of it.”

“If I recall, the DBM chief is part of the core economic team and we discussed this with the economic team for the purpose of averting the continuous cutting down of the budget of the department,” Bonoan said.

Asked by Arroyo if Bonoan informed Marcos of this arrangement, the witness said: “I don’t.”

READ: Bonoan: ‘All senators’ got share of ‘leadership fund’

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‘Estrada has P1-B leadership fund’

Bonoan told the court that he also discussed this atter with former Senate President Juan Miguel Zubiri, who, he said, welcomed the initiative.

Previously, Zubiri already addressed Bonoan’s statements, saying he never “requested, held or handled any list of project requests from senators.” 

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Previously, Bonoan told the Sandiganbayan Third Division that each senator in 2025 was entitled to a “minimum” of P500 million allocation for their priority projects.

Senators – who were chairpersons of major committees, and those with ranking positions – could have at least P1 billion of this fund, Bonoan further told the Third Division.

Initially, the former DPWH secretary told the Fifth Division that Estrada already had a P500 million leadership fund allocation, but the witness said the senator requested another P500 million.

He said Estrada’s request was relayed to him by state witness and former DPWH Undersecretary Roberto Bernardo.

Bonoan said he has “observed” the closeness of Bernardo and Estrada.

Furthermore, the witness noted that the senator’s father, former Manila mayor Joseph Ejercito Estrada, had requested if Bernardo could be the officer-in-charge of the city engineering office.

“After the inclusion of the P500 million, again Undersecretary Bernardo came to me and asked for an additional P500 million, because Estrada is already Senate President Pro Tempore,” Bonoan said.

When asked if Estrada himself requested this additional fund, Bonoan said: “That is my understanding from Undersecretary Bernardo.”

Bernardo, meanwhile, will testify in Estrada’s bail hearing on Wednesday, Oct 28.

Bonoan’s brainchild 

According to the former DPWH head, the leadership fund was his brainchild, and that it first came into existence in the 2025 budget to address the budget cuts made by the Congress in the DPWH’s priority projects.

These projects included flood control projects, national roads and basic rural infrastructure. 

Bonoan also said this leadership fund has no formal written guideline and was only “verbally instructed.”

“Since this leadership fund is an ad hoc item internal to DPWH, there was no formal written guideline,” he said.

However, the witness noted that the leadership fund is “consistent in the core guidelines we adopt in consideration with other infra projects.”

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Meanwhile, when asked if he is aware of Bernardo’s previous allegations that he received commitments in exchange from projects, Bonoan said: “I invoke my right against self incrimination.” /apl