The Land Bank of the Philippines (Landbank) on Monday rejected claims of irregularity in transactions related to Department of Public Works and Highways (DPWH) flood control projects, stressing that all dealings were “above board” and compliant with banking rules.
In a statement, Landbank explained that funds deposited into contractors’ accounts came from the Department of Budget and Management (DBM), released under the General Appropriations Act, and disbursed by the DPWH.
“The Bank affirms that all transactions in question were carried out strictly within the bounds of Philippine banking laws and regulations, under full compliance with government mandates and oversight requirements,” it said.
“These funds are legitimate government allocations, not private or unverified sources. Landbank, or any other financial institution, has no legal authority to block or question duly appropriated government disbursements,” it added.
The clarification came after senators raised concerns last week when a contractor allegedly withdrew nearly half a billion pesos in cash within just two days, sparking questions over banking safeguards and monitoring of public funds.
