MANILA – The Land Bank of the Philippines (LANDBANK) denied any irregularities in its handling of government contractor accounts linked to the Department of Public Works and Highways’ (DPWH) flood control projects, stressing that all transactions complied with laws and mandated procedures.

“LANDBANK strongly refutes any insinuations that its handling of government contractor accounts, particularly those related to the Department of Public Works and Highways’ (DPWH) flood control projects, involved any irregular or unlawful activity,” the Bank said in a statement.

It clarified that the funds deposited in contractors’ accounts came from the Department of Budget and Management (DBM), released under the General Appropriations Act (GAA) as passed by Congress, and disbursed by the DPWH.

“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.

LANDBANK said contractors were required to maintain deposit accounts with banks like LANDBANK in line with DBM Circular No. 2018-14 and Bureau of the Treasury Circular No. 3-2018. The Bank said it strictly followed “Know Your Client” protocols, risk management procedures, and documentation requirements in opening these accounts.

Under the Anti-Money Laundering Act (AMLA), the Bank noted that all cash withdrawals above ₱500,000 were automatically reported to the Anti-Money Laundering Council (AMLC), while suspicious transactions were flagged through a Suspicious Transaction Report.

“The legitimacy of the source of funds—government releases through DPWH, the lawful purpose of the payments, and the KYC account opening documentation of the contractors—have all been properly established and recorded. There was, therefore, no basis under the law to withhold the release of funds,” LANDBANK said.

The state-run bank underscored that its role was to execute transactions in line with regulations, not to perform investigatory functions.

LANDBANK also vowed full cooperation with authorities and reiterated its commitment to integrity, compliance, and public trust.

“It stands ready to fully cooperate with the proper authorities and investigating bodies to help establish the truth and serve the ends of justice,” the Bank said.

At the same time, LANDBANK assured the public that its core mandate of empowering the agriculture sector and supporting farmers and fishers remains unchanged.