Philippines opens casino probe over flood-control fund links
The Philippine Anti-Money Laundering Council (AMLC) has disclosed plans to investigate several casinos over alleged links to suspected money-laundering activities tied to irregularities in flood control projects.
The move follows statements from Senator Panfilo Lacson, who claimed that several former officials of the Department of Public Works and Highways (DPWH) lost over PHP950 million ($16.6 million) in casinos. He said the figure was based on official records from the Philippine Amusement and Gaming Corporation (PAGCOR).
According to Lacson, the reported losses came from at least 13 casinos operating in Metro Manila, Cebu, and Pampanga. He suggested these transactions could be part of a scheme to launder illicitly obtained public funds, describing the activity as “staggering” and a potential red flag for corruption.
Punishment for law breaches
AMLC executive director Matthew David confirmed the probe during an interview on GMA Network’s 24 Oras programme. He said the council could impose penalties on casinos found breaching anti-money laundering (AML) rules, with sanctions depending on the severity and nature of any violations uncovered.
Casinos in the Philippines have been classified as “covered persons” under the country’s AML framework since 2017. They are required to report any transaction worth PHP5 million or more, verify the identities of all players, and maintain records of customer activity for at least five years. The AMLC’s investigation will examine whether the casinos complied with these obligations, including whether any staff failed to flag suspicious transactions.
The case has drawn national attention as it combines concerns over corruption, public fund misuse, and financial crime. Lacson alleged that many of the questioned DPWH flood-control projects in Bulacan province were either never started or left incomplete despite receiving full budget allocations.
These include multi-phase river dredging works, dike construction, and pumping station projects. He warned that misused funds had delayed critical flood-mitigation works, leaving communities vulnerable to repeated flooding.
Former officials in spotlight
Lacson also cited documents suggesting suspicious funding patterns, including rapid fund disbursements from the Department of Budget and Management to DPWH regional offices, often timed shortly before spikes in casino betting activity. Casino reports allegedly showed the same group of individuals frequently entering and exiting premises with minimal playing time yet unusually large cash conversions. Some reportedly used multiple government IDs and aliases on casino membership forms, complicating efforts to trace them.
Questions of unexplained wealth have also been raised by lifestyle checks that have revealed certain former government officials named in the documents allegedly purchased farm estates and luxury cars despite receiving modest official salaries. A number of contractors were allegedly linked to businesses owned by current local politicians’ relatives through corporate registry searches, raising the possibility of collusion or conflict of interest.
Lacson had criticised casinos for permitting large cash conversions without notifying the AMLC, in apparent violation of the law. Following his comments, a formal inquiry has been initiated.
