AMLC Probes Casino Transactions Tied to Ex-DPWH Engineers’ Alleged Flood Control Scam

The Philippine Anti-Money Laundering Council (AMLC) has launched an investigation into casinos after revelations that former Department of Public Works and Highways (DPWH) engineers allegedly laundered billions of pesos through gaming establishments while carrying out fraudulent flood control projects in Bulacan Province.

Senate President Pro Tempore Panfilo Lacson disclosed that the group, referred to as the “Bulacan Group of Contractors,” carried out suspicious transactions amounting to over PHP1 billion ($18.3 million) in 13 casinos across Metro Manila, Cebu, and Pampanga between 2023 and 2025. According to Lacson, the officials reportedly lost nearly PHP950 million ($17.4 million) during their casino activities.

“This is not mere luck. It bears the hallmarks of a money laundering scheme,” Lacson said, citing validated documents from the Philippine Amusement and Gaming Corporation (PAGCOR). The senator further revealed that five principal figures used aliases in their casino visits, allegedly converting cash into chips, engaging in play, and later cashing out in order to declare the funds as legitimate gambling winnings.

AMLC Executive Director Matthew David confirmed that the council would pursue the case, explaining that launderers typically “buy chips and then engage in minimal play, sometimes no play at all” before cashing out to make funds appear as legitimate winnings. He noted that the agency’s probe would extend to the relatives and associates of the accused officials, saying money laundering often involves the participation of family members.

The controversy traces back to questionable flood control projects in Bulacan, where residents remain submerged despite billions being allocated to infrastructure programs. One such project, valued at PHP92.58 million ($1.7 million), declared 46 percent completion merely two days after receiving its notice to proceed. Contractors billed nearly half the project cost even though actual progress was described as minimal.

In a related development, the Land Transportation Office (LTO) has opened a separate investigation into fake driver’s licenses allegedly used by members of the Bulacan Group of Contractors to gain entry into casinos. LTO Chief Assistant Secretary Vigor Mendoza II announced that the dismissed DPWH-Bulacan engineers are under investigation for employing fraudulent identification documents.

The LTO imposed 90-day preventive suspensions against the group for alleged willful misrepresentation and falsification of documents. Mendoza emphasized that the inquiry seeks to identify the supplier of the counterfeit IDs and determine whether authentic licenses should be permanently revoked.

Despite ongoing probes, officials reportedly continued to frequent casinos, with one being spotted in a gaming establishment as recently as September 1st, 2025, while Senate hearings were still in progress. The AMLC has already submitted the names of the officials for asset freezing and is preparing to seek Court of Appeals freeze orders on their accumulated wealth.

By fLEXI tEAM