The Land Bank of the Philippines has dismissed allegations of questionable activity after reports surfaced on massive cash withdrawals by contractors of the Department of Public Works and Highways (DPWH) tied to flood control projects.
In a statement, the state-run lender said that “all transactions were carried out strictly within the bounds of Philippine banking laws and regulations, under full compliance with government mandates and oversight requirements.”
According to LandBank, the funds released to DPWH contractors came directly from the Department of Budget and Management (DBM) in accordance with the General Appropriations Act passed by Congress, and then disbursed through the DPWH. “These funds are legitimate government allocations, not private or unverified sources,” the bank added, stressing that it has no authority to block duly appropriated government disbursements.
The bank noted that DBM Circular 2018-14 and Bureau of the Treasury Circular 3-2018 require government contractors to maintain accounts with banks like LandBank to receive project payments. It also assured that it strictly follows Know Your Client (KYC) protocols, risk management procedures, and documentation requirements.
LandBank further emphasized compliance with the Anti-Money Laundering Act, pointing out that all transactions above ₱500,000 are automatically reported to the Anti-Money Laundering Council (AMLC). “Any transaction deemed ‘suspicious’ at the time of execution is immediately flagged to AMLC via a suspicious transaction report,” the bank said.
It clarified that the legitimacy of the funds, the lawful purpose of the payments, and the KYC requirements of the contractors had been properly established, leaving no legal grounds to withhold the releases.
While distancing itself from any alleged misuse of public funds, LandBank maintained that its role is to execute transactions in line with regulations and not to perform investigative functions. The bank assured the public of its commitment to “the highest standards of integrity, regulatory compliance and public trust,” while expressing readiness to cooperate with ongoing inquiries.
The controversy is linked to the Senate Blue Ribbon Committee’s probe into reports of unusually large cash withdrawals tied to flood control projects and possible irregularities in the use of public funds.
