Document gaps hamper AMLC flood control probe

MANILA, Philippines — Delays and gaps in the submission of contracts, bank records and other key documents are hampering efforts to trace funds linked to alleged irregularities in flood control projects, according to the Anti-Money Laundering Council (AMLC).

In an interview with The STAR, AMLC executive director Ronel Buenaventura said timely and complete access to documentary evidence is crucial to financial investigations involving public infrastructure funds.

The records needed by investigators include contracts, disbursement vouchers, billing statements, bank statements of account and transaction documents.

“Delays and gaps in the submission of these documents substantially hinder financial analysis and investigation as well as fund tracing of the proceeds of the unlawful activity,” Buenaventura said.

The AMLC said the controversy has also underscored the need for closer coordination among government agencies handling financial investigations, procurement, auditing and prosecution.

“The current flood control scandal presents heightened money laundering risks due to the voluminous funds involved, the participation of multiple entities and the potential use of complex corporate structures to obscure the movement or beneficial ownership of assets,” Buenaventura said.

These vulnerabilities point to the need to strengthen beneficial ownership transparency, improve procurement oversight and enhance information sharing among government agencies, he said.

The council also called for the wider use of data analytics to identify unusual financial patterns associated with irregular public spending.

As of May 30, the AMLC has obtained 20 freeze orders in connection with the flood control controversy.

The agency has also filed 19 petitions for civil forfeiture before regional trial courts covering preserved assets identified as proceeds of, or otherwise linked to, unlawful activities involving the projects.

The AMLC earlier disclosed that P27.8 billion worth of assets belonging to 862 individuals and 648 entities had been frozen in connection with the issue.

“The AMLC continues to expand its investigation and remains prepared to take appropriate action against additional individuals, as warranted by emerging evidence, including the filing of money laundering cases,” Buenaventura said.

The council declined to disclose the identities of respondents and specific details about the assets involved, citing confidentiality requirements under the Anti-Money Laundering Act.

It also said public discussion must observe the sub judice rule to avoid prejudicing the resolution of cases already pending before the courts.