Former Finance Secretary Cesar Purisima is urging the government to remove the P500 and P1,000 bills from circulation, saying smaller denominations would make it far more difficult for officials to conceal massive sums of illicit money.
Purisima made the call on Wednesday following explosive testimony before the Senate that some P1 billion in cash had allegedly been delivered to a lawmaker’s hotel suite. The witness described the money as packed in more than 20 suitcases and transported by several vans, supposedly intended for Ako Bicol Rep. Elizaldy Co, who is facing graft allegations over flood control projects.
On Facebook, Purisima stressed that capping the largest banknote at P200 would significantly raise the cost and complexity of moving such amounts. “Now imagine if the largest bill in circulation were only P200. That same P1 billion would have needed 100 suitcases, a convoy of vehicles, and a warehouse just to store the cash,” he wrote. “The sheer impracticality would make this kind of corruption much harder to hide.”
The Bangko Sentral ng Pilipinas (BSP) has also begun tightening controls on cash flow. Recently, it ordered banks to cap over-the-counter withdrawals at P500,000 daily to minimize money laundering risks tied to large transactions.
The move comes as the central bank investigates accounts linked to individuals accused of anomalies in public works projects. Authorities suspect some of the funds were funneled through money mules and disguised in financial transactions as part of the high-profile corruption scandal.
