Landbank denies wrongdoing in DPWH fund release

Land Bank of the Philippines (Landbank) has asserted that its transactions concerning Department of Public Works and Highways (DPWH) flood control projects are legitimate and fully compliant with banking laws and regulations.

The bank clarified that funds deposited into contractor accounts originated from the Department of Budget and Management (DBM) and were disbursed by the DPWH in accordance with the General Appropriations Act.

Landbank emphasized that it is legally bound to process duly appropriated government disbursements and cannot block or question them.

This statement comes after Senator Francis "Kiko" Pangilinan questioned LandBank Malolos Highway Branch for allowing the release of P457 million in cash in just two days to Syms Construction, a DPWH contractor.

LandBank acknowledged that cash withdrawals exceeding P500,000 are automatically reported to the Anti-Money Laundering Council (AMLC) through a covered transaction report.

However, it noted that transactions deemed suspicious at the time of execution are immediately flagged to AMLC via a suspicious transaction report.

The bank stressed that it strictly followed know-your-client (KYC) protocols when it allowed contractors to open accounts.