Senators flag Landbank over P500M cash withdrawals for flood project

Senators on Thursday grilled the Land Bank of the Philippines (Landbank) for allowing a contractor to withdraw nearly half a billion pesos in cash within just two days, raising concerns over possible lapses in banking safeguards and fund monitoring for a government flood control project.

During a Senate hearing, lawmakers questioned why the bank did not raise any red flags when Syms Construction, through its representative Sally Santos, withdrew massive sums — including P180 million, P141 million, P299 million, and P65 million — all in cash and all within single days.

“What we want to find out is paano nangyayari na daang milyon, kalahating bilyong piso, parang pikit-mata ang ating banking system?” asked Sen. Francis “Kiko” Pangilinan, noting that such transactions would normally be subject to closer scrutiny.

The withdrawals were part of payments made for a Department of Public Works and Highways (DPWH) flood control project in Bulacan. But senators questioned why the transactions were made in cash rather than through checks or manager’s checks, which would have created a clear paper trail.

“Bakit hindi cheque o manager’s cheque? Bakit walang patakaran ang banko na ‘teka muna’? Kasi pag may cheque, may paper trail. Kaya cash — kaya P500 million cash sa loob ng dalawang araw. At most likely alam ninyong government funds ang binayad sa kliyente ninyo,” Pangilinan said.

Ma. Lilibeth Lim, assistant vice president and branch head of Landbank Malolos Highway Branch, defended the bank’s actions, saying the withdrawals followed standard procedures and were processed only after proper authorization from government agencies.

Lim explained that Santos was an accredited contractor recognized by DPWH and included in the agency’s list of creditors.

Funds for the project were released following a Notice of Cash Allocation from the Department of Budget and Management (DBM) and were processed through the Bureau of Treasury’s 24-hour clearing period.

“Upon receipt of the advice of cheques issued and cancelled from DPWH, and after the 24-hour period, they issue the list of due and demandable accounts payable — the ADA,” Lim said.

“Once we receive that, the Landbank system credits the amount to Ms. Santos’ account. The amount she withdrew was not necessarily a one-time credit; it came from different LDAP numbers.”

Lim also said the bank initially encouraged Santos to keep the funds in the account, but the contractor eventually requested to withdraw them.

However, lawmakers were unconvinced, saying that the absence of additional safeguards — especially given the size of the transactions and their direct link to public funds was deeply concerning.

Senator Panfilo Lacson noted that all related ledgers showed the same pattern: massive cash withdrawals delivered directly to the office of a DPWH engineer.

“May withdrawal ng P180M, P141M, P299M, P65M — puro isang araw ito,” Lacson pointed out on Thursday's Senate inquiry of the blue ribbon committee, which he heads.

The Senate is investigating the alleged irregularities in the flood control project and possible misuse of government funds. Lawmakers said the banking transactions will be a key part of tracing where the money went — and whether safeguards were deliberately bypassed.—LDF, GMA Integrated News