Manila: The Bangko Sentral ng Pilipinas (BSP) has commenced an investigation into significant cash flows within the financial system, potentially linked to questionable flood control projects. BSP Governor Eli M. Remolona Jr. addressed the matter during an interview on One News' Money Talks, emphasizing the agency's commitment to resolving the issue.
According to Philippines News Agency, Remolona expressed surprise at the scale of the scandal, noting, "This flood control scandal was as much of a shock to us as it was to you. But we're working hard to fix things." He highlighted the BSP's thorough inquiries into identifying substantial cash movements and other unusual financial transactions within the system.
Remolona indicated that the majority of these transactions have been traced to government-owned financial institutions. He explained, "I think more from the government financial institutions. And that makes sense because it's government money so it will go through government financial institutions. So that's what we've seen so far."
The governor also remarked on the unexpected extent of the transactions, stating, "The amounts involved. We had no idea. I think you and I, we knew there was corruption all along, right? But not on this scale. And the site of the piles of cash on a table. That's kind of shocking. I didn't know this was all done in cash and in such amounts. So that is shocking."
In a bid to mitigate risks associated with large cash transactions, the BSP had previously issued a circular limiting such transactions to PHP500,000 per banking day. Circular No. 1218 series of 2025, issued on September 18, mandates that transactions exceeding this amount, or its equivalent in foreign currency, must be conducted through traceable channels like checks, online fund transfers, direct credit to deposit accounts, or digital payments.
Remolona reiterated the BSP's intent to hinder illicit financial activities, commenting, "We want to make it more difficult for the contractors, for the guys involved in this flood control mess to be able to take money out of the banks."
