LANDBANK says contractor accounts followed all legal procedures

State-run Land Bank of the Philippines has categorically denied any wrongdoing in its handling of accounts linked to contractors for the Department of Public Works and Highways’ flood control projects.

In a statement, LANDBANK said all transactions were “above board” and conducted in full compliance with Philippine banking laws, regulations, and government mandates.

The Bank emphasized that the funds deposited into the accounts of DPWH contractors came from the Department of Budget and Management, were allocated under the General Appropriations Act passed by Congress, and were disbursed by the DPWH.

“These funds are legitimate government allocations, not private or unverified sources,” the Bank said.

It added that financial institutions like LANDBANK have no legal authority to block or interfere with duly appropriated government disbursements.

To comply with DBM Circular No. 2018-14 and Bureau of the Treasury Circular No. 3-2018, all suppliers, contractors, and payees are required to open deposit accounts with accredited banks such as LANDBANK.

The Bank said it fully adhered to Know Your Client protocols, risk management procedures, and documentary requirements during the account-opening process for these government contractors.

Under the Anti-Money Laundering Act, all cash withdrawals exceeding PHP 500,000 are automatically reported to the Anti-Money Laundering Council via a Covered Transaction Report.

Additionally, any transaction deemed suspicious is flagged through a Suspicious Transaction Report submitted to the AMLC at the time of execution.

“In this case, the legitimacy of the source of funds—government releases through DPWH—the lawful purpose of the payments, and the contractors’ account documentation have all been properly established and recorded,” LANDBANK stated.

It added that there was “no basis under the law to withhold the release of funds.”

The Bank clarified that its role is to faithfully execute lawful transactions and not to perform investigatory functions beyond its legal mandate.

LANDBANK reaffirmed its commitment to integrity, regulatory compliance, and public trust, stating that it stands ready to cooperate with authorized investigative bodies to help establish the truth.

It also emphasized that the issue does not affect its broader mission of supporting farmers, fishers, and the agricultural sector in its continuing role in national development.