Dizon seeks AMLC help to recover billions lost to flood control corruption
MANILA, Philippines — Public Works Secretary Vince Dizon said he will meet with the Anti-Money Laundering Council (AMLC) to discuss the possible freezing and forfeiture of assets tied to the alleged kickback scheme in flood control projects.
In a press conference on Friday, September 12, Dizon said the Department of Public Works and Highways (DPWH) believes public funds lost to substandard and abandoned projects must be recovered and returned to the people.
"I will meet with the Anti-Money Laundering Council sa Lunes para maidiscuss na natin ang possible freezing and later on forfeiture of assets ng mga involved dito sa grabeng pagnanakaw ng pondo ng bayan," he said.
(I will meet with the Anti-Money Laundering Council on Monday to discuss the possible freezing, and later forfeiture, of assets of those involved in this massive theft of public funds.)
The AMLC is responsible for protecting the confidentiality of bank accounts while ensuring that funds are not used in money laundering schemes. It has the authority to freeze assets or initiate forfeiture proceedings to help courts trace illicit money and recover proceeds of crime.
Dizon stressed that it is not enough to file cases or send those involved to prison; the stolen funds must also be recovered.
"Bilyon-bilyon ang pinaguusapan natin dito na mga proyekto. Kailangan ibalik ang perang iyon," he said. (We are talking about billions worth of projects here. That money needs to be returned.)
The DPWH filed its first batch of cases on Thursday, September 11, against officials allegedly linked to corruption in flood control projects, charging 20 personnel from the Bulacan First District engineering office with graft and falsification. This follows the agency’s discovery of several contracts certified as complete despite the projects being defective.
Those charged include former district engineer Henry Alcantara, whom colleague engineers Brice Hernandez and Jaypee Mendoza accused in a House hearing of funneling kickbacks to Sen. Joel Villanueva and Sen. Jinggoy Estrada from flood control projects.
Hernandez and Mendoza, who admitted to collecting, storing and preparing cash bundles for delivery to proponents, will be officially dismissed on Friday once Dizon signs their termination, he said.
RELATED: DPWH engineer claims Estrada, Villanueva accepted 30% cut in flood control contracts
Dizon said the agency will file a second set of cases next week. This time, the officials who will be subjected to a preliminary investigation before the Ombudsman are officials involved in the Oriental Mindoro projects.
Apart from blacklisting the nine Discaya-linked construction firms, the DPWH has also blacklisted Wawao Builders and Syms Construction. These were among the contractors whose flood control projects were discovered by the president to be substandard or nonexistent.
The newly appointed secretary stressed that even as the DPWH hunts down irregularities within its ranks, its work on developing flood control plans and projects won't stop.
"Ang trabaho ng DPWH ay hindi maghabol kaya lang wala tayong choice. Kailangan natin panagutin ang mga taong to. Pero kailangan natin ang trabaho ng DPWH eh gumawa ng mga proyekto para sa ma kababayan natin. Hindi pwede huminto 'yun," he said.
(The work of the DPWH is not really to go after people, but we have no choice. We need to hold them accountable. Still, the main job of the DPWH is to build projects for our fellow citizens. That work cannot stop.)
Dizon said the agency is already drafting plans to address flooding in Metro Manila in coordination with the private sector, which will be announced in the coming weeks.
President Ferdinand "Bongbong" Marcos Jr. signed Executive Order 94 on Thursday to create the Independent Commission for Infrastructure, which would be mandated to investigate the anomalies and corruption alleged in flood control and other infrastructure projects.
The government has spent P545 billion on flood control from 2022 to 2025, one-fifth of which went to only 15 contractors.
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