Filipino High-Ranking Politician Under Scrutiny Over Alleged Misappropriation

Senate President Francis Escudero has been removed from his position following public outcry over his suspected involvement in the misallocation of funds intended for flood mitigation efforts. The controversy centers on allegations that Escudero aided in awarding contracts to certain contractors, some of whom were accused of substandard work or, in some cases, not completing the projects at all.

High-ranking Filipino Official Cited in Corruption Scandal

The funds in question were allocated to strengthen flood safeguards in areas frequently affected by inundations. Investigations have revealed that some of the contractors involved may have engaged in improper practices, including the use of subpar materials and, in certain instances, the non-execution of the projects.

Additionally, there are allegations that money from these public tenders was laundered through casinos in Manila, Cebu, and Clark. Escudero is reportedly linked to one of the contractors, Centerways Construction and Development, which made substantial donations to his political campaign. The Commission on Elections (COMELEC) has issued a show-cause order to Lawrence Lubiano, president of Centerways, to explain the donation.

The officials and contractors involved in this scandal have been referred to as the “BGC Boys” by Senate President Pro Tempore Panfilo Lacson. Lacson has alleged that these individuals conspired to siphon off funds intended for flood control projects.

The Philippine Amusement and Gaming Corporation (PAGCOR), the country’s gambling regulator, has characterized the manner in which these activities were carried out as “not so covert money-laundering.”

Officials and Everyone Involved to Face Probe, Potential Penalties

In response to the allegations, Lacson stated, “My office has submitted their names and aliases to the Anti-Money Laundering Council since casinos are covered persons under the amended anti-money laundering act,” indicating that those responsible are being targeted.

The Philippines Anti-Money Laundering Council has confirmed that it is investigating the allegations to determine how and why the funds were allocated and whether the projects were completed in accordance with the law.

Matthew David, executive director of the Anti-Money Laundering Council, assured that there are corresponding penalties under the rules on administrative cases against covered persons, depending on the possible violation.