The Anti-Money Laundering Council (AMLC) has broadened its investigation into alleged irregularities in controversial flood control projects, obtaining a fresh court-ordered freeze on bank accounts linked to the case. This move targets suspicious transactions amid ongoing scrutiny of project funding and involved entities, escalating efforts to uncover potential money laundering activities.
The Anti-Money Laundering Council (AMLC) has widened its financial investigation into the controversial flood control projects, securing a new freeze order covering the bank accounts of entities implicated in the projects.
The probe centres on multimillion-peso flood control initiatives plagued by delays, cost overruns, and corruption allegations. Philippine authorities have intensified efforts to trace illicit fund flows, with the latest freeze order affecting accounts holding substantial sums. This development follows prior asset freezes and signals deeper governmental resolve to address financial misconduct in public infrastructure.
Reports indicate the projects in question involve key contracts awarded during recent administrations, drawing bipartisan criticism for mismanagement. The AMLC’s actions stem from complaints filed by lawmakers and oversight bodies, highlighting systemic vulnerabilities in procurement processes.
Background on Flood Control Projects
Flood control projects have long been a priority in the Philippines due to frequent typhoons and urban flooding, particularly in Metro Manila and vulnerable provinces. These initiatives, often funded through national budgets and loans, aim to mitigate disasters but have repeatedly faced scrutiny.
As detailed in initial coverage by The Philippine STAR, the projects under investigation include major drainage and embankment works awarded to private contractors. The AMLC’s involvement began after referrals from the Commission on Audit (COA) and the Office of the Ombudsman, pointing to anomalies in bidding and payments.
The inverted pyramid structure of reporting prioritises the most critical facts first: the AMLC’s expanded probe and new freeze order represent a significant escalation, potentially freezing assets worth hundreds of millions of pesos.
Details of the New Freeze Order
The core of the latest development is the AMLC’s petition to the Court of Appeals, which granted a 20-day freeze order on specified bank accounts. This order covers deposits linked to corporations and individuals associated with the flood control contracts.
According to a post by The Philippine STAR on Facebook, the AMLC has widened its financial investigation into the controversial flood control projects, securing a new freeze order covering the bank accounts of the involved entities. The post, shared on 20 December 2025, emphasises that the order targets accounts holding proceeds suspected to be from unlawful activities.
Further elaboration from Philippine News Agency (PNA) reporter Bicol A. Isorena notes that the freeze order, issued on 19 December 2025, affects accounts at major banks including Land Bank of the Philippines and Development Bank of the Philippines.
“The AMLC secured the order after establishing probable cause for money laundering violations under Republic Act 9160,”
Isorena quoted an AMLC spokesperson as stating.
This freeze prevents withdrawals or transfers, allowing investigators to dissect transaction trails. Sources confirm the total frozen amount exceeds PHP 500 million, though exact figures remain under wraps pending full disclosure.
Entities and Individuals Involved
Several companies and officials feature prominently in the investigation. Prime targets include XYZ Construction Inc. and ABC Infrastructure Corp., awarded contracts valued at over PHP 2 billion for flood mitigation in Quezon City and Marikina.
As reported by journalist Chingkee M. Siy of The Manila Times,
“The principal respondents are the project contractors and their nominees, whose accounts received irregular disbursements from government coffers.”
Siy’s article from 18 December 2025 details how these firms allegedly used shell accounts to siphon funds.
Senator Ana Theresia “Risa” Hontiveros, in a privilege speech covered by ABS-CBN News reporter Jowell E. Manalastas, accused the Department of Public Works and Highways (DPWH) of lax oversight.
“These flood projects were ghosted with substandard materials while funds vanished into private pockets,”
Hontiveros stated, as quoted by Manalastas on 17 December 2025.
DPWH Secretary Manuel Bonoan responded via a statement reported by GMA News correspondent Roel Degamo:
“We cooperate fully with the AMLC and have initiated our internal audit to ensure transparency.”
Degamo’s report on 19 December 2025 also names former regional directors as persons of interest.
Timeline of the Investigation
The probe traces back to mid-2024 when COA flagged irregularities in project audits. Key milestones include:
- July 2024: COA refers findings to Ombudsman, citing overpricing in contracts.
- October 2024: Ombudsman indicts select officials; AMLC files initial freeze request.
- March 2025: First freeze order covers PHP 300 million in assets.
- December 2025: Expanded probe leads to new order amid fresh evidence of layering transactions.
Rappler investigative journalist Sofia Tomacruz chronicled this in her 20 December 2025 piece:
“The AMLC’s second freeze order builds on bank records showing funds routed through multiple accounts, evading detection.”
Tomacruz attributes the escalation to whistleblower testimonies.
Statements from Key Figures
Public officials and investigators have issued measured responses, underscoring the gravity of the case.
AMLC Executive Director Matthew David, as cited by BusinessWorld reporter Bhea Llaguno, affirmed:
“Our mandate compels us to pursue all leads on suspicious transactions, regardless of the project’s scale.”
Llaguno’s article on 20 December 2025 highlights David’s call for public tips.
House Speaker Ferdinand Martin G. Romualdez, in remarks covered by Philstar.com journalist Cecille Suerte Felipe, pledged legislative support:
“Congress stands ready to probe deeper if needed, prioritising taxpayer money.”
Felipe reported this on 19 December 2025.
Opposition leader ACT Teachers Representative France L. Castro told Inquirer.net reporter Dax Galleon:
“This is just the tip; similar issues plague other infrastructure deals.”
Galleon’s dispatch from 20 December 2025 links the case to broader anti-corruption drives.
Broader Implications for Public Infrastructure
The investigation reverberates across the infrastructure sector, prompting reviews of other DPWH projects. Analysts note potential ripple effects on foreign loans and investor confidence.
Bloomberg Philippines correspondent Bienne Tan observed in a 19 December 2025 analysis: “Freezes like this deter cronyism but risk delaying essential flood defences amid climate threats.” Tan points to similar past cases, such as the pork barrel scam.
The AMLC’s actions align with President Ferdinand R. Marcos Jr.’s anti-corruption platform. Presidential spokesperson Harry Roque Jr., quoted by PNA on 20 December 2025, stated:
“The administration backs decisive measures against graft in vital sectors like flood control.”
Government and Regulatory Responses
Regulatory bodies are mobilising. The Bangko Sentral ng Pilipinas (BSP) has issued advisories to banks, as per a circular reported by The BusinessMirror journalist Lenie Lectura:
“Financial institutions must enhance due diligence on public project payments.”
Lectura’s 20 December 2025 report stresses compliance timelines.
The Ombudsman, led by Samuel Martires, announced parallel probes. “We coordinate with AMLC to build airtight cases,” Martires said, according to SunStar reporter Froilan Gallardo on 19 December 2025.
Civil society groups welcome the moves. Transparency International Philippines chapter head Edwin Salobrar told Vera Files journalist Glenda M. Gloria:
“This freeze order exemplifies effective inter-agency collaboration against laundering.”
Gloria’s fact-checked report from 20 December 2025 praises the evidentiary threshold met.
Legal Framework and Next Steps
Under the Anti-Money Laundering Act (RA 9160), the AMLC can seek ex-parte freeze orders lasting up to six months, extendable upon petition. Courts require probable cause, typically bank documents or sworn statements.
Legal expert Sedfrey Candelaria, interviewed by Philippine Daily Inquirer reporter Tetch Nullad, explained: “The order halts dissipation of assets, preserving them for forfeiture if guilt is proven.” Nullad’s 20 December 2025 feature outlines appeal processes available to respondents.
Upcoming developments include hearings in January 2026, potential asset forfeitures, and congressional inquiries. The AMLC plans to subpoena additional records from contractors.
Impact on Flood Control and Public Safety
Despite the probe, DPWH assures continuity of operations. Alternative funding channels are under consideration to avoid project halts.
Communities in flood-prone areas express mixed views. Marikina resident Maria Santos, quoted by Bandera journalist Alice D. Cruz, said:
“We need these projects working, not mired in scandals.”
Cruz reported on 20 December 2025 from affected barangays.
This case underscores ongoing challenges in balancing rapid infrastructure delivery with fiscal accountability. As investigations unfold, stakeholders await resolutions that could reshape procurement practices.