Magalang, Pampanga Officials Face Graft Complaint Over 'Ghost' Housing Project That Left 1,700 Beneficiaries With Nothing

August 18, 2026
3 min read

Anti-corruption group VACC filed an Ombudsman complaint against Magalang Vice Mayor Eller Pecson and former mayor Romulo Pecson, alleging around ₱10 million paid by low-income beneficiaries since 2019 produced not a single housing unit.

The Volunteers Against Crime and Corruption (VACC) has filed a complaint before the Office of the Ombudsman against Magalang, Pampanga Vice Mayor Eller Pecson and former mayor Romulo "Romy" Pecson over an alleged "ghost" socialized housing project that collected payments from roughly 1,700 low-income beneficiaries starting in 2019 without a single unit being built, according to the Philippine Daily Inquirer and Mabuhay News.

The complaint, filed Aug. 17, names both officials on charges of graft, grave misconduct, serious dishonesty, abuse of authority, and conduct prejudicial to the best interest of the service, according to the reports. It centers on a low-cost housing project in Barangay Sto. Niño intended for underprivileged families, for which complainants said they had been making payments toward down payments since before the pandemic.

₱10 million collected, "not even one hollow block"

According to VACC's complaint as described in the Inquirer's report, approximately ₱10 million was collectively paid by residents beginning in 2019, yet the project site shows no sign of construction. "Not even one hollow block was constructed at the site," the complaint alleges, per the Inquirer. The Social Housing Finance Corporation has separately been asked to look into the matter on behalf of the roughly 1,700 affected beneficiaries, according to a DZRH News report.

Neither Vice Mayor Eller Pecson nor former mayor Romulo Pecson has issued a public response to the specific graft complaint as of this writing. It remains unclear from available reporting what relationship, if any, exists between the two officials beyond both having served as Magalang's chief executive; Pulpulitiko was unable to independently verify a family connection and is not asserting one.

What's not yet known

The Ombudsman has not yet acted on the complaint, and no formal charges have been filed as of this writing. It is not yet established from public reporting which specific years or administration the alleged project falls under, how the collected funds were used, or whether any funds remain recoverable. Pulpulitiko will follow up as the Ombudsman's review proceeds and as the accused officials respond.

Context: A recurring pattern of "ghost" projects

The Magalang complaint adds to a string of "ghost project" allegations against local and national officials that have surfaced amid the broader flood-control corruption scandal roiling Philippine infrastructure spending this year. Pulpulitiko has previously reported on the Ombudsman's ₱60-billion investigation into Cebu flood control allocations and on multiple Sandiganbayan cases involving alleged non-existent or substandard DPWH projects. While the Magalang case involves housing rather than infrastructure and predates the current national scandal, it reflects the same underlying pattern flagged by anti-corruption groups: public funds collected or allocated for a stated purpose with no corresponding physical output.

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