Bicol Saro Party-list Rep. Terry Ridon has challenged Securities and Exchange Commission (SEC) Chairperson Francis Lim's hot take that the flood control projects corruption scandal triggered the significant decline in the Philippine Stock Exchange index (PSEi).

In a statement Thursday afternoon, Oct. 9, Ridon said that the timelines simply do not match up to support Lim's claim.

"While it is true that over the last three months the [PSEi] declined from a high of 6,525.04 (July 14) to a low of 5,953.46 (Sept. 30)—an 8.75-percent drop—an objective review of PSEi movements over various timelines shows that weak fundamentals, not the flood control scandal, remain the principal reason for market underperformance," Ridon said.

"On a six-month view (April 10–Oct. 9), the PSEi had already reached 6,077.82 as early as April 11, 2025. Although a short recovery followed, the broader decline began after July 14, or two weeks before President Ferdinand Marcos Jr. exposed the flood control corruption scandal in his State of the Nation Address (SONA)," he explained.

"In other words, the market’s weakening predated the scandal," pointed out Ridon, overall chairman of the House Infrastructure Committee (infra comm).

These statements were all in response to Lim's remarks during a forum of the Financial Executives Institute of the Philippines (FINEX),

“The flood control project scandal has shaken public confidence, wiping out an extraordinary ₱1.7 trillion in market value of our publicly listed companies in just three weeks, despite rising corporate earnings,” Lim said.

“Investors aren’t fleeing because of weak fundamentals; they’re fleeing because of weak integrity. It’s a stark reminder that corruption is a weapon of mass wealth destruction,” he added.

To this, Ridon said: "[This] does not accurately reflect current and historical conditions of the Philippine capital market:"

"On a one-year horizon (Oct. 9, 2024–Oct. 9, 2025), Chairperson Lim’s statement appears even less accurate," the outspoken congressman said.

"From a high of 7,456.31 (Oct. 15, 2024), the index plunged to 5,822.85 (April 7, 2025)—a 21.9-percent decline. This occurred three months before the flood control controversy and was lower than the market’s present levels," Ridon noted.

The lawyer-solon went on to give his conclusions in relation to Lim's linking of the flood control projects mess to the stock market's performance.

"These figures demonstrate that the ongoing corruption scandal is a convenient but inaccurate explanation for the market’s weakness and for the broader slowdown in the economy," Ridon said.

"While good governance is an indispensable pillar of investor confidence, the responsibility for improving market performance rests primarily with our economic managers and private-sector leaders in addressing fundamental growth constraints," he further said.