Manila: State-owned LandBank of the Philippines (LandBank) denied allegations that its handling of government contractor accounts, particularly those related to the Department of Public Works and Highways’ (DPWH) flood control projects, involved any irregular or unlawful activity. In a statement Monday, LandBank said all transactions in question were strictly carried out within the bounds of Philippine banking laws and regulations, under full compliance with government mandates and oversight requirements.
According to Philippines News Agency, LandBank clarified that the funds deposited in the account of DPWH contractors originated from the Department of Budget and Management (DBM). These funds were released pursuant to the General Appropriations Act (GAA) as passed by Congress and disbursed by the DPWH. LandBank emphasized that these funds are legitimate government allocations and not from private or unverified sources. The bank stated that it, or any other financial institution, does not have the legal authority to block or question duly appropriated government disbursements.
LandBank also highlighted its adherence to the “Know Your Client” (KYC) protocols, risk management procedures, and documentation requirements for account opening. It added that, as mandated by the Anti-Money Laundering Act, all cash withdrawals exceeding PHP500,000 are automatically reported to the Anti-Money Laundering Council (AMLC) through a Covered Transaction Report (CTR), and any transaction deemed suspicious at the time of execution is promptly flagged to AMLC via a Suspicious Transaction Report (STR).
The bank assured that the legitimacy of the source of funds-government releases through DPWH-the lawful purpose of the payments, and the KYC account opening documentation of the contractors have all been properly established and recorded. Therefore, there was no legal basis to withhold the release of funds. LandBank affirmed its commitment to executing banking transactions in accordance with law and regulatory standards and clarified that it does not assume investigatory functions outside its legal mandate.
However, the bank noted its readiness to cooperate with authorities and investigating bodies if needed.