https://www.philstar.com/headlines/2025/09/17/2473400/amlc-freezes-bank-accounts-dpwh-officials-discayas

MANILA, Philippines — Authorities have frozen 135 bank accounts and 27 insurance policies linked to Department of Public Works and Highways (DPWH) officials and contractors implicated in alleged anomalies in flood control projects.

In a landmark move to recover public funds, the Court of Appeals granted yesterday a petition for a freeze order filed by the Anti-Money Laundering Council (AMLC), covering assets of individuals and corporations now under investigation by the Senate Blue Ribbon committee.

“This is a critical step toward filing appropriate civil and criminal cases, including money laundering and civil forfeiture,” AMLC executive director Matthew David said.

Preliminary AMLC findings point to a possible money laundering scheme involving public funds intended for flood control initiatives, raising the scale of suspected corruption to what DPWH Secretary Vivencio Dizon called “hundreds of billions.”

The approval came just days after the DPWH lodged its first petition before the Office of the Ombudsman on Sept. 12 against 26 people, composed of 20 DPWH personnel and six contractors. Dizon said the agency immediately sought the assistance of the AMLC to prevent illicit funds from being moved.

“The banks of the personalities named in the first petition have already been informed to freeze their accounts. This is a huge step to ensure accountability and to make sure that people get their money back,” Dizon told reporters.

The freeze order covers 26 respondents named in the DPWH’s ombudsman complaint. These include former OIC-assistant regional director Henry Alcantara, former OIC-district engineer Brice Ericson Hernandez as well as former OIC-assistant district engineer Jaypee Mendoza.

Also implicated are John Michael Ramos, chief of the Construction Section; Ernesto Galang of the Planning and Design Section; Lorenzo Pagtalunan, OIC-chief of the Maintenance Section; Norberto Santos of the Quality Assurance and Hydrology Section and Jaime Hernandez of the Maintenance Section.

Other DPWH personnel facing asset freezes are Floralyn Simbulan of the Administrative Section; Juanito Mendoza of the Finance Section; Roberto Roque of the Budget Unit; Benedict Matawaran of the Procurement Unit; Christina Mae Pineda and project engineers Paul Jayson Duya, Merg Jaron Laus, Lemuel Ephraim Roque, Arjay Domasig, John Carlo Rivera, John Benex Francisco and Jolo Mari Tayao.

Also covered by the freeze order are private contractors, among them Ma. Roma Angeline Rimando, Cezarah Rowena Discaya and Pacifico Discaya II of St. Timothy Construction Corporation; Mark Allan Arevalo, general manager of Wawao Builders; Sally Santos, owner-manager of SYMS Construction Trading and Robert Imperio, owner-manager of IM Construction Corporation.

David said the AMLC is also monitoring suspicious withdrawals linked to the case. “We have received reports of massive withdrawals from various bank accounts belonging to contractors and even their family members,” he said.

“Through our process in the AMLC, we require banks to submit suspicious transaction reports, which allow us to identify the actual transactors. Whether it’s the contractor or a relative making the withdrawals, we will be able to trace them and eventually move to go after those assets as well.”

Anti-scam law

Separately, the Bangko Sentral ng Pilipinas (BSP) said it has begun its own investigation into the accounts under the newly enacted Anti-Financial Account Scamming Act (AFASA), which took effect in June.

“This is the first time we are applying AFASA,” said Roberto Figueroa, BSP’s general counsel. “The law allows us to inquire into financial accounts linked to possible money-muling activities without having to secure a court order.”

Figueroa said material information gathered under AFASA can be used in future graft, money laundering or forfeiture cases, noting that the law was designed to close loopholes in traditional bank secrecy rules.

Material information that the BSP will secure from the bank accounts can be used for prosecution or investigation of AFASA-related offenses. Penalties include imprisonment of six to eight years and/or a fine of P100,000 to P500,000.

A conviction also carries civil liabilities, which may include restitution for damage done or unwarranted benefit. All properties and/or any other non-liquid assets used for the commission of the prohibited acts shall also be subject to civil forfeiture, in accordance with Supreme Court rules.

DPWH’s Dizon and AMLC’s David both signaled that yesterday’s action is only the first wave in a broader crackdown on anomalous flood-control projects that have gained national prominence.

“This is just the beginning. We expect more asset freeze requests in the coming weeks and months,” Dizon said.

“Dismissal is not enough. We will not stop at filing cases and throwing them behind bars. The order of the President is that we need to get back the people’s money,” he added.

For his part, David said the AMLC would continue coordinating with the Solicitor General, DPWH, BSP and other agencies to ensure accountability.

“The Council remains committed to protecting the integrity of our financial system and ensuring that public funds are safeguarded from corruption,” David said.

Procurement ban lifted

Meanwhile, Dizon has ordered the lifting of the suspension on procurement activities for all locally-funded infrastructure projects yesterday, and has laid down interim guidelines on the conduct of the bidding processes meant to eradicate ghost infrastructure projects.

Among the interim guidelines he laid down for strict compliance in procurement processes are: the livestreaming of bidding activities, the proper geotagging of proposed project sites, the proper survey mapping of right-of-way boundaries of projects and their concerned acquisition costs, a reiteration on the prohibition on splitting of contracts, the proper evaluation and computation of the net financial contracting capacity of prospective bidders and the requirement for a sworn statement on family relationships and beneficial ownership of prospective bidders.

“All concerned offices and implementing units are hereby directed to ensure strict compliance with the foregoing safeguards, as well as all applicable laws, rules and regulations,” Dizon said.

“Noncompliance shall be deemed sufficient cause for the deferment or cancellation of the bidding process and shall subject the responsible officials and personnel to appropriate administrative and/or criminal actions, in accordance with existing laws, rules and regulations,” he added.

Kaisa decries corruption

In a related development, Kaisa Para Sa Kaunlaran, a civic group of Tsinoys, denounced what it called the “brazen corruption” in the DPWH, saying the scandal has stolen billions from the nation’s future.

In a statement, the group said it shares the public’s exasperation over systemic corruption, citing a long line of controversies from the NBN-ZTE deal and the fertilizer fund scam to the pork barrel scheme that led to plunder charges against senators.

“Governance has been turned into mere theater while the real business happens in shadowy backrooms,” the group said, adding that public funds have been treated as “personal ATMs” through questionable contracts and investments.

Kaisa also likened the Philippine political system to a “termite-stricken mansion” where resources are squandered while social services remain underfunded.

The group expressed hope that anti-corruption movements abroad could inspire Filipinos to demand greater accountability at home.

“Regardless of ethnicity, religion, creed or philosophy, we are all Filipinos, and we shall not let them rob our children of a bright future,” Kaisa said.