SEC backs asset freeze vs. persons in flood control mess

The Securities and Exchange Commission (SEC) on Thursday welcomed the issuance of a freeze order on the assets of individuals and companies allegedly involved in anomalous flood control projects. 

“The issuance of the freeze order is a step toward the right direction in the government’s efforts to address the widespread corruption that hounds flood control projects, and to exact accountability from everyone involved,” SEC chairperson Francis Lim said in a statement.

On Wednesday, the Anti-Money Laundering Council (AMLC) announced that the Court of Appeals, on September 16, issued a freeze order on 135 bank accounts and 27 insurance policies linked to persons and entities who are subject of an investigation for their alleged involvement in anomalous flood control projects. 

The CA issued the freeze order upon the application of the AMLC —a three-member council composed of the governor of the Bangko Sentral ng Pilipinas (BSP), chairperson of the SEC, and the commissioner of the Insurance Commission (IC).

Last week, AMLC Executive Directive Matthew David said the anti-dirty money body is examining financial transactions of contractors linked to the ongoing probe into the anomalous flood control projects, in coordination with the Office of the Ombudsman, the Bureau of Internal Revenue (BIR), and the National Bureau of Investigation (NBI).

Lim said that preliminary findings by the AMLC “found a potential money laundering scheme involving public funds intended for flood control initiatives, the country’s financial intelligence unit announced earlier.”

“The SEC remains unwavering in its commitment to advancing good corporate governance across sectors to promote accountability in the management of the public’s funds and to prevent the use of the corporate vehicle for money laundering and other illicit activities,” the SEC chair said.

The BSP is also conducting a similar probe, the first under the Anti-Financial Scamming Act (AFASA), which orders banks to hold funds for at least 30 days.

To recall, President Ferdinand “Bongbong” Marcos Jr. last month bared that 20% of the total P545-billion budget for flood control projects went to only 15 contractors, which he described as a “disturbing assessment.”

The President has also vowed to ensure that those involved in anomalous projects would be held accountable, triggering controversy in both chambers of Congress to launch their own probes into the issue.

The government has also formed the Independent Commission for Infrastructure, which will conduct its own investigation into the irregularities in infrastructure projects and ensure accountability in the use of public funds.

The commission is chaired by former Supreme Court Justice Andres Bernal Reyes Jr., and counts as members former Public Works and Highways Secretary Rogelio “Babes” Singson, and SGV and Co. country managing partner Rossana Fajardo. Baguio City Mayor Benjamin Magalong serves as special adviser and investigator. —LDF, GMA Integrated News