Palace to study demonetizing P1,000 and P500 bills amid corruption allegations

Malacañang announced that the government will study the proposal to demonetize P1,000 and P500 bills as a measure against graft and corruption.

This proposal was initiated by former Finance Secretary Cesar Purisima, who suggested it following revelations of corruption in flood control projects where high-denomination bills were allegedly used to siphon public funds.

Purisima cited the "chilling" revelation of former Bulacan 1st district engineer Brice Hernandez that he delivered P1 billion placed in 20 suitcases that were transported through six or seven vans to former Ako Bicol partylist Rep. Zaldy Co.

Palace Press Officer Undersecretary Atty. Claire Castro stated that the proposal will be studied to balance its pros and cons, acknowledging that it might have negative effects.

The Bangko Sentral ng Pilipinas (BSP) has previously expressed reservations about the proposal, warning that it could cause more harm than good.

BSP Governor Eli Remolona pointed out that demonetizing high-value bills could negatively impact ordinary citizens not involved in illegal activities.

Purisima admitted that having only smaller bills is not foolproof, as corruption will always find ways to adapt.