The Court of Appeals (CA) has frozen the assets of former Public Works Secretary Manuel Bonoan and his daughter, Fatima “Gay” Bonoan de la Cruz, after state financial investigators uncovered what they described as a pattern of transactions inconsistent with legitimate investment activity and potentially linked to irregularities in government flood control projects.

The freeze order, issued upon petition by the Anti-Money Laundering Council (AMLC), covered multiple bank accounts, insurance policies, and a vehicle all registered under Bonoan, along with six bank accounts belonging to De la Cruz.

The appellate court ruled there was probable cause to believe the assets may be tied to unlawful activities based on documented financial movements.

At the center of the findings was a series of fund transfers and placements that investigators said lacked economic logic — moving large amounts of money rapidly through the banking system without clear investment objectives.

AMLC records show that both Bonoan and his daughter engaged in transactions that involved sizable cash movements and trust fund placements executed and reversed within short periods — activities that regulators typically associate with an effort to disguise the origin of funds.

In one instance in 2025, Bonoan’s accounts reflected a convergence of high-value transactions, including the deposit of a manager’s check sourced from a relative and a cluster of trust-related activities conducted on the same day involving both peso and dollar-denominated amounts.

Investigators noted that the transactions appeared disconnected from any identifiable investment strategy. Separate records flagged similar patterns in De la Cruz’s accounts.

Large deposits

Millions of pesos were placed into financial instruments and withdrawn almost immediately, raising questions about the purpose for the transactions.

Regulators said the absence of corresponding funding trails suggested the money may have been introduced into the financial system in a manner designed to obscure its source.

Beyond these movements, De la Cruz’s banking history showed years of heavy cash activity, with cumulative transactions reaching into the hundreds of millions of pesos across deposits, transfers, and withdrawals. In one recorded instance, she moved more than P200 million in a single day.

Financial inflows into her accounts also originated from multiple individuals and entities, including transfers from her father and proceeds from insurance and investment instruments, some denominated in US dollars.

Authorities noted that certain transfers occurred during periods when scrutiny of flood control spending was intensifying.

The AMLC findings are being examined alongside testimony presented before the Senate by former Public Works Undersecretary Roberto Bernardo, who alleged that infrastructure funds were systematically directed toward selected projects in exchange for kickbacks.

State witnesses

Bernardo claimed that billions of pesos worth of projects annually were subjected to a fixed percentage arrangement with contractors, with proceeds allegedly funneled through intermediaries before distribution.

As this developed, Alcantara and contractor Sally Santos of SYMS Construction Trading were removed as respondents in the Bulacan graft and malversation case after being admitted as state witnesses.

Department of Justice spokesperson Polo Martinez said their exclusion was due to their acceptance into the government’s Witness Protection Program.

Alcantara and Santos were designated as state witnesses in January, alongside Bernardo and former DPWH regional director Gerard Opulencia.