P1 billion in over 20 suitcases? Ex-Finance chief Purisima wants P500, P1,000 bills demonetized

Former Finance Secretary Cesar Purisima is suggesting that P500 and P1,000 bills be demonetized as a means to stop corruption in light of the ongoing investigations into the allegedly anomalous flood control projects worth billions of pesos.

In a Facebook post, Purisima cited the “chilling” revelation of former Bulacan 1st district engineer Brice Hernandez that he delivered through six or seven vans an estimated P1 billion worth of money placed in over 20 suitcases to a staffer of Ako Bicol party-list Rep. Zaldy Co. 

“They described billion-peso cash deliveries where they said each large suitcase of P1,000 bills could only contain about P50 million. They mentioned that a P1 billion cash delivery to a Congressman at the Shangrila BGC parking lot required around 20 suitcases, multiple vehicles, and massive coordination,” Purisima said.

“Now imagine if the largest bill in circulation were only P200,” he said.

Purisima said if the alleged kickbacks were delivered in smaller denominations of P200 bills, “that same P1 billion would have needed 100 suitcases, a convoy of vehicles, and a warehouse just to store the cash.”

“The sheer impracticality would make this kind of corruption much harder to hide,” he said.

However, the former Cabinet official said that making the bills in circulation smaller in denominations is not foolproof since “corruption will always look for ways to adapt.”

Still, Purisima said it would raise the cost, the risk, and the logistical difficulty of hiding and moving dirty money. 

“It will also force billions currently stashed in vaults, basements, under beds and closets back into the banking system where accountability can reach it,” Purisima said.

The former Finance chief said other countries have done so.

He said India in 2016 withdrew its ?500 and ?1000 notes to target black money and counterfeit cash, while the European Union in the same year phased out the €500 note to reduce money laundering and terror financing.

Purisima said Nigeria in 2022 redesigned and demonetized high-value notes to push cash hoards into banks while Singapore in 2014 stopped printing its $10,000 note for anti-money laundering reasons.

Canada in 2000 withdrew the $1000 bill to fight organized crime, he added.

Purisima said that other countries’ examples have shown that withdrawing large bills is a recognized global tool to shrink the shadow economy and strengthen transparency.

He said that while his suggestion was “not a silver bullet,” it could make corruption more expensive, riskier, and harder to hide, raising logistical barriers.

“Demonetizing the P1,000 and P500 bills is about making corruption harder and transparency stronger,” Purisima said. –NB, GMA Integrated News