The Land Bank of the Philippines Malolos Highway branch is under Senate scrutiny after revelations that contractors linked to the ₱545-billion flood-control scandal withdrew hundreds of millions of pesos in cash within days. (File photo from Land Bank of the Philippines)
MANILA — Senators pressed the Land Bank of the Philippines on Thursday, September 25, over why its Malolos Highway branch allowed a contractor to withdraw about ₱457 million in cash within two days, transactions now at the center of the Senate Blue Ribbon investigation into alleged irregularities in flood-control projects in Bulacan.
During the hearing, Syms Construction Trading owner Sally Santos confirmed she withdrew ₱457 million in cash and said similar large transactions were processed by the same branch. Senators Francis “Kiko” Pangilinan and committee chair Panfilo “Ping” Lacson confronted LandBank Malolos Highway branch head Ma. Lilibeth Lim on how the withdrawals were permitted. Lim said the bank followed procedure after funds were credited through the government’s payment workflow and emphasized that reporting obligations apply to large transactions.
Documents presented at the Senate showed two separate cash withdrawals each totaling ₱457 million, recorded on March 24, 2025, and July 3, 2025, along with other same-day cash withdrawals of ₱180 million, ₱141 million, ₱299 million, and ₱65 million. Senators said the pattern raised red flags, particularly because the funds were proceeds of Department of Public Works and Highways payments for projects now under scrutiny.
LandBank officials explained the government’s standard disbursement process. After the Bureau of the Treasury issues a Notice of Cash Allocation, the agency generates a List of Due and Demandable Accounts Payable–Advice to Debit Account (LDDAP-ADA), which instructs the bank to credit supplier accounts. LandBank legal officer Rafael Yap said the bank complies with reporting requirements under the Anti-Money Laundering Act (AMLA) but stressed that reports filed with the Anti-Money Laundering Council are confidential and cannot be disclosed publicly.
The LDDAP-ADA system, created under Department of Budget and Management and Bureau of the Treasury guidelines, consolidates accounts payable and directs banks to debit government accounts to settle obligations with contractors and suppliers. Once credited, suppliers may opt to withdraw funds in cash or through checks, subject to verification.
Lawmakers also pointed to the AMLA threshold that requires banks to submit covered transaction reports for cash transactions exceeding ₱500,000 in a single banking day, and to report suspicious transactions regardless of amount. Senators questioned why transactions of this magnitude did not trigger additional scrutiny, given the risks of diversion or money laundering.
The withdrawals are part of a wider probe into alleged kickbacks and ghost projects tied to flood-control works in Bulacan dating back several years. Two former DPWH engineers have testified that projects were overpriced or substandard to accommodate illicit payments to public officials. Those named in testimonies, including lawmakers, have strongly denied wrongdoing.
Authorities have begun restricting access to suspected proceeds. On September 16, the Court of Appeals granted the Anti-Money Laundering Council a freeze order on assets linked to individuals and entities under investigation, initially covering 135 bank accounts and 27 insurance policies, with more accounts added later.
As of September 26, 2025, the Senate has asked LandBank to submit complete records of the Malolos Highway branch transactions. The bank maintained that it processed withdrawals in line with government instructions and legal requirements. No charges have been filed against LandBank officials in relation to the withdrawals, while the Blue Ribbon Committee and law enforcement agencies continue to investigate.
The case underscores how large-scale government disbursements are vulnerable to diversion without stronger safeguards. Senators said the probe aims not only to trace accountability in the flood-control controversy but also to tighten financial controls over public infrastructure spending.
