By Katherine K. Chan and Erika Mae P. Sinaking
THE Court of Appeals (CA) has frozen another batch of bank accounts linked to the Philippines’ flood control scandal, raising the total value of restrained assets to P4.4 billion, the Anti-Money Laundering Council (AMLC) said on Wednesday.
The latest freeze order covers 12 more bank accounts connected to persons of interest, including an entity whose license was allegedly used for “ghost” infrastructure projects, the council said in a statement. It did not identify the account holders.
“Every freeze order matters,” AMLC Executive Director Matthew M. David said. “Each freeze order secured strengthens the evidentiary trail, ensuring that illicit funds cannot be concealed or dissipated.”
In the past month, the appellate court issued five separate freeze orders covering 1,632 bank accounts, 54 insurance policies, 163 vehicles, 40 properties and 12 e-wallets tied to the scheme. Each order takes effect immediately for 20 days and may be extended by up to six months.
Mr. David earlier said the AMLC typically files a petition for civil forfeiture before the six-month period lapses to ensure that frozen assets are eventually turned over to the government.
“It will not necessarily be returned [to the owners] because before the six-month period, the AMLC will file a petition for civil forfeiture with the regional trial court,” he told DZBB radio.
The AMLC is also working with foreign financial intelligence units to trace potential offshore holdings of people and companies implicated in the fund diversions.
“We are coordinating with our foreign counterparts to determine if the respondents have financial transactions abroad,” he said, adding that the agency has requested information on any overseas properties or assets.
The AMLC said more assets could be frozen as investigations deepen.
“The AMLC assures the public that it will continue to work closely with relevant stakeholders and government agencies to pursue all leads and ensure that funds intended for public welfare are not diverted for unlawful gain,” it said.
Meanwhile, the Bureau of Internal Revenue (BIR) filed tax evasion complaints worth P7.18 billion against two contractors implicated in the flood control scandal.
The cases lodged before the Department of Justice cover unpaid income, excise and documentary stamp taxes of Cezarah Rowena C. Discaya and her husband Pacifico F. Discaya from 2018 to 2021, the agency said in a statement. Also impleaded was a corporate officer of St. Gerrard Construction Gen. Contractor & Development Corp.
Internal Revenue Commissioner Romeo D. Lumagui, Jr. said the complaints stem from the couple’s failure to file income tax returns and pay excise taxes on nine luxury vehicles, as well as their nonpayment of documentary stamp taxes on the transfer of shares in four construction companies.
“Although we have already discovered P7.1 billion in tax deficiencies, today’s filings are merely the tip of the iceberg,” Mr. Lumagui said in the statement. He added that further audits of the Discaya-owned companies — St. Gerrard, St. Timothy, St. Matthew and Alpha & Omega — could uncover more liabilities.
The BIR said the spouses’ failure to pay taxes on share transfers nullified their supposed divestment from the firms. The agency cited Land Transportation Office data showing they did not pay excise taxes for vehicles under their names.
Mr. Lumagui said contractors working on government-funded projects must meet their tax obligations, warning that more cases could follow once audits are finished.
Meanwhile, Mr. Discaya, who is under provisional acceptance to the Witness Protection Program (WPP), was seen at the DoJ for the continuation of his evaluation. Former Public Works engineers Brice Ericson D. Hernandez and Jaypee D. Mendoza were also present for their assessments.
Mr. Lumagui, however, clarified that the Discayas’ status under the WPP would not relieve them of their tax liabilities.
“Even if they become state witnesses… they must still pay it regardless of their status in the criminal cases they are facing,” he told reporters.
The BIR said it had conducted lifestyle checks, with similar audits and background reviews on other contractors and people linked to public works projects.
President Ferdinand R. Marcos, Jr. earlier said corruption cases tied to infrastructure spending must be backed by solid evidence, warning that weak filings could lead to failed prosecutions.
“We have to follow the law, otherwise whatever we do is not legitimate,” he said in a podcast released by the Presidential Communications Office on Sunday. “We know many of these people are not innocent. But if you’re going to bring them to court, you must have a very strong case.”
He said incomplete evidence could result in dismissals, which he described as “much, much, much worse.”
The Department of Public Works and Highways is under mounting scrutiny over multibillion-peso anomalies in flood control projects, where state funds were allegedly siphoned off by contractors and officials.
