The Bureau of Internal Revenue (BIR) said it is working with the Anti-Money Laundering Council (AMLC) to pursue tax evasion and money-laundering charges against individuals and companies involved in corrupt flood control projects.
BIR Commissioner Romeo Lumagui Jr. and AMLC executive director Matthew David met on Sept. 12, 2025 to discuss the joint investigation. The meeting, which included auditors and investigators from both agencies, focused on using financial data to support tax fraud audits.
“The AMLC has visibility over the bank transactions of these companies and individuals. This data is crucial in completing the tax fraud audit of the BIR because the Senate and House of Representatives investigations show that there is undeclared wealth or income,” Lumagui said in a statement.
He said the collaboration would ensure “all revenue streams and assets of those involved will be accounted for. No stone will be left unturned.”
The AMLC can compel banks to submit reports on companies and individuals suspected of money laundering, said Lumagui.
These reports can then be cross-referenced with tax returns and payments. If a contractor’s wealth in bank records does not align with their tax payments, it could be a basis for a tax evasion case, he said.
Lumagui confirmed that the BIR would conduct a tax fraud audit of “all contractors, public officials and private individuals” linked to the projects.
He said the BIR is also coordinating with other government bodies, including the Department of Public Works and Highways (DPWH), Commission on Audit (COA), Land Registration Authority (LRA) and Land Transportation Office (LTO).
He said the BIR’s investigation began after President Ferdinand Marcos Jr. announced the top 15 flood control contractors in a press conference.
The scope of the inquiry has since been expanded to include other companies and individuals based on findings from congressional hearings and a presidential confirmation of “ghost projects”.
