AMLC freezes assets of persons, firms linked to flood control projects mess

The Anti-Money Laundering Council (AMLC) on Tuesday announced freeze orders on the assets of individuals and corporations that have links to alleged anomalous flood control projects.

In a briefing in Manila City, AMLC Executive Director Atty. Matthew David said the freeze order—covering 135 bank accounts and 27 insurance policies of individuals and corporations—was granted by the Court of Appeals (CA) on Tuesday, September 16, following a request from the Department of Public Works and Highways (DPWH) on September 12.

David did not elaborate on the estimated value of the bank accounts. He said banks have been given 24 hours to submit reports regarding such accounts. He also declined to give out specifics, citing the confidentiality clause of the freeze order.

The list of individuals and corporations covered by the freeze order was not immediately available, but the DPWH request to the AMLC carried the names of 26 individuals, whom Public Works Secretary Vivencio “Vince” Dizon said were the same names that are facing graft complaints with the Office of the Ombudsman.

Among them are former DPWH OIC-Assistant Regional Director Henry Alcantara, former DPWH Officer-in Charge (OIC) District Engineer Brice Ericson Hernandez, former OIC-Assistant District Engineer Jaypee Mendoza, Construction Section chief John Michael Ramos, and Ernesto Galang of the Planning and Design Section.

Other respondents were DPWH officials Lorenzo Pagtalunan, Norberto Santos, Jaime Hernandez, Floralyn Simbulan, Juanito Mendoza, Roberto Roque, Benedict Matawaran, Christina Mae Pineda, Paul Jayson Duya, Merg Jason Laus, Lemuel Ephraim Roque, Arjay Domasig, John Carlo Rivera, John Benex Francisco, and Jolo Mari Tayao.

Also included in the list were several contractors, such as St. Timothy Construction Corp.'s Ma. Roma Angeline Rimando, Cezarah "Sarah" Rowena Discaya, Pacifico "Curlee" Discaya II; Wawao Builders' Mark Allan Arevalo; SYMS Construction Trading's Sally Santos, and IM Construction Corp.'s Robert Imperio.

Some of the personalities are part of the so-called "Bulacan Group of Contractors" or "BGC Boys" named by Senate Pro Tempore Panfilo "Ping" Lacson—four of whom were erstwhile DPWH officials—who cashed in the funds from 2023 to 2025.

Other cases later on

Under its mandate, the AMLC is mandated to investigate money laundering and other violations of the Anti-Money Laundering Act of 2001, in order to protect the integrity and confidentiality of bank accounts, and to ensure that the Philippines will not be used as a money laundering site for proceeds of unlawful activity.

"Right now, the purpose of the freeze order is only to prove that these accounts or insurance policies and other properties are related to the unlawful activity, particularly, in this case, corruption or violation of the Anti-Graft and Corrupt Practices Act, or malversation, among other corruption offenses," David said.

"We have yet to file later on cases for civil forfeiture against these assets, among other assets that we will discover, and also a separate money laundering case involving all those who are involved as identified by Secretary Vince… in the money laundering scheme and corruption cases," he added.

First batch

Regarding the possible withdrawal of funds prior to the freeze order, David said authorities can still look into previous transactions, and possibly retrieve such funds.

"Hindi pa tapos ang laban. Initial steps pa lang ito, yet napakalaking bagay po nito dahil makakampante po ang ating mga kababayan na sisimulan na ho natin ang proseso na maibalik ang pera na ninakaw nitong mga taong ito," Dizon said.

(The fight is not yet over. These are just initial steps, yet a big deal because our countrymen can be assured that we are beginning the process of recovering the money stolen by these people.)

Dizon added that this is just the first batch, as more individuals and companies may be subject to other freeze orders in the coming weeks or months.

Last week, David said the AMLC 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).

Just last Thursday, David said the AMLC will investigate casinos, after Senate Pro Tempore Panfilo "Ping" Lacson said former engineers of the DPWH linked to anomalous flood control projects have cashed in billions from gaming houses.

BSP probe

The Bangko Sentral ng Pilipinas (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.

"The BSP is using AFASA for the first time to join and assist other agencies in investigating and prosecuting the persons alleged to be involved in these crimes," BSP General Counsel Roberto Figueroa said.

"We are also keen to leverage this authority to uphold the integrity of our financial system against criminal actors," he added.

Material information secured by the BSP from bank accounts can be used for prosecution or investigation of AFASA-related offenses, with penalties for money muling including imprisonment of six to eight years and/or a fine of P100,000 to P500,000.

Convictions may also carry civil liabilities such as restitution for damage done or unwarranted benefit, with all properties and/or any other non-liquid assets used for prohibited acts subject to civil forfeiture.

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 on 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. — VDV, GMA Integrated News