Ombudsman: Assets of flood control kickback suspects remain frozen

Ombudsman Jesus Crispin Remulla on Thursday assured the public that the assets of individuals allegedly involved in the flood control kickback scheme remain frozen.

At the same time, Remulla urged the Anti-Money Laundering Council to focus on its mandate of safeguarding public funds rather than protecting the interests of the banking industry.

The statement comes after the AMLC announced that it had filed three petitions for civil forfeiture before the Manila Regional Trial Court for assets tied to persons and entities linked to the flood control corruption scandal.

These petitions cover properties that were previously subjected to several Court of Appeals-issued freeze orders.

“We monitor all developments, especially those related to the flood control investigation. There were reports saying the freeze orders are about to be lifted," Assistant Ombudsman and spokesperson Mico Clavano told reporters.

Clavano pointed out that a freeze order is only preventive and that all expired freeze orders are now backed by corresponding civil forfeiture cases.

"We have been assured that for all expired freeze orders, there is a corresponding civil forfeiture case,” he said.

Clavano added that the courts had issued asset preservation orders linked to the civil forfeiture petitions, ensuring that the assets in question remain frozen.

“We are facing one of the biggest scandals in history. Even if the freeze orders lapse, as long as there is an asset preservation order linked to the civil forfeiture cases, the respondents cannot touch their money,” he said.

He also said that Ombudsman prosecutors made the most of every day of the freeze orders, conducting thorough investigations to trace unlawful activity in the bank records.

“A freeze order is not a punishment. While it’s good news that the order was issued six months ago, our investigative units used that time to examine the accounts because once the freeze order is lifted, it cannot be extended,” Clavano said.

In a press briefing, Remulla underscored that scrutiny of bank records under the AMLC’s custody is crucial in prosecuting corrupt officials and stressed that the agency must always act in the public interest.

“Nobody is exempted if there is a reason to examine a bank account. We see problems in how some people at the AMLC, including the Executive Director, perform their duties," he told reporters.

'We are reaching out to them so they can provide information needed to prosecute corrupt public officials,” Remulla added.

He said that bank account details are key to identifying hidden funds or tracking money moved in ways that evade legal oversight.

“I want to remind the AMLC to fulfill its mandate. Their role is not to protect the banking industry, but to uphold the law and prevent misuse of public funds,” Remulla said.

The Ombudsman also described the AMLC as an essential anti-corruption office, providing crucial information for investigations.

“If they withhold this information, we face a problem as a country. Some individuals may try to curry favor with the banking industry for post-ALMC employment. That cannot happen,” he warned.

He said the AMLC cannot ignore requests from the Ombudsman.

“They must perform their duties, or we will file cases against them,” Remulla said.—GMA Integrated News