Zaldy Co inserted ₱500M intelligence fund in PNP budget - Remulla

Metro Manila, Philippines - Interior Secretary Jonvic Remulla revealed that disgraced former party-list Rep. Zaldy Co had inserted half a billion pesos into the Philippine National Police intelligence fund this year, but the amount was later returned due to concerns over a potential tradeoff.

“We returned it because it was an insertion in the budget and the insertion came from the person who requested 3,000 containers of fish,” Remulla said in a Senate budget hearing on Thursday, Oct. 16.

The Department of Agriculture earlier said Co had requested import allocations for 3,000 containers of fish to be granted to three companies.

Co is at the center of the flood control corruption scandal, facing accusations of raking billions in budget insertions and receiving kickbacks - allegations he has denied.

Senate finance committee chairman Win Gatchalian asked Remulla if there was any justification for the insertion in the PNP budget, which falls under the Department of the Interior and Local Government (DILG).

“It beats me. We did not ask for it so I returned it,” Remulla said.

Gatchalian said the panel only wants to make sure the PNP has enough intelligence funds.

“Hindi ito magiging insertion na may kapalit. Ang kapalit nito is peace and order,” he said.

Remulla responded that this was exactly the concern.

“That was what we were afraid of because it was an insertion; there might have been a tradeoff with it. That's why we refused the insertion,” Remulla said.

The DILG chief also noted that the PNP found no immediate need for the additional ₱500 million. After returning the funds to the Office of the President, the police force still had over ₱800 million in its intelligence fund.

Meanwhile, PNP chief PGen Jose Melencio Nartatez Jr. said the organization was merely making ends meet with its budget.

“If we’re going to have a per capita, ay P150 per month per person ang ating per capita…. Iyan po ang pinagkakasya ng PNP,” he said.

For 2026, the PNP requested ₱2.1 billion in intelligence funds, but only ₱806 million was included in the National Expenditure Program.

Overall, the PNP is seeking a ₱210-billion budget for 2026 - representing the bulk of the DILG’s total proposed budget of ₱287.48 billion. The Senate committee approved the department’s budget, deeming it submitted to the plenary, where further amendments may still be made.