Ombudsman: Lifestyle checks on 26 'congtractors' cover 'unexplained cash'

Ombudsman Jesus Crispin Remulla said Saturday that they are looking into the possibility that the 26 House members who are allegedly government contractors have "unexplained cash."

"Yung unexplained cash, disbursements, titingnan namin. The best laundering mechanism na ginagamit ng mga gumagawa na ‘yan, bibili sila ng MC (manager’s check) sa bangko,” Remulla said in his radio program.

(We'll also look into their unexplained cash and disbursements. The best laundering mechanism that they use is to buy a manager's check from the bank.)

“Hindi covered deposit 'yan. Noong aming tinitingnan, sobrang strikto ng BSP. Parang, bakit ganito? Sinasabi nila, ‘Hindi mo puwedeng tanungin ‘yan, kasi covered transaction, secrecy of bank deposits.’ That's the ultimate laundering mechanism,” he added.

(That's not a covered deposit. When we looked into it, the BSP was very strict. They told us, 'You could not ask about that; it's a covered transaction. It's under the secrecy of bank deposits.' That's the ultimate laundering mechanism.)

“Bibili ka ng MC using cash. Parang cash pa rin ‘yun eh,” Remulla continued.

(You'll buy MC using cash. It's still like cash.)

According to the UCPB Savings Bank, a manager's check "is a check drawn by the bank upon itself and signed by its authorized signatory/ies. A manager's check is a direct liability of the bank."

GMA News Online has asked for comment from the Bangko Sentral ng Pilipinas on the matter. 

Earlier this week, Remulla ordered lifestyle checks on 26 “congtractors," whose Statements of Assets, Liabilities, and Net Worth (SALNs) were already obtained by the Ombudsman.

“The first 26, we have already assigned them to the investigative teams to do lifestyle checks as well as further investigation. These are what we call 'congtractors',” Assistant Ombudsman Mico Clavano said at a press conference on Thursday.

“The SALNs that we were able to obtain are a result of intelligence that we've received that certain congressmen are also contractors, and by law, [they] are prohibited from owning contracting firms that deal directly with the government,” he added. —Jamil Santos/VBL, GMA News