FORMER Finance secretary Cesar Purisima argues that demonetizing P1,000 and P500 bills would create significant logistical challenges for corrupt officials seeking to conceal and transport illicit funds.
While acknowledging that it is not a singular solution, Purisima believes that removing the value of these banknotes would enhance transparency by raising logistical barriers for those engaged in corrupt practices.
Purisima illustrates his point by highlighting the increased difficulty in handling large sums of money if the largest denomination in circulation were significantly smaller.
“Imagine if the largest bills in circulation were only P200. That same P1 billion would have needed 100 suitcases, a convoy of vehicles, and a warehouse just to store the cash. The sheer impracticality would make this kind of corruption much harder to hide,” he explained. This logistical burden would make it more difficult for corrupt officials to move and store large amounts of illicit cash discreetly.
Purisima’s comments come in the wake of ongoing investigations into anomalous flood control projects, where state officials, contractors, and engineers have been implicated in ghost and substandard infrastructure projects, as well as anomalous budget insertions.
Recent testimony before the Senate Blue Ribbon committee revealed instances of vast sums of cash being delivered to individuals, underscoring the need for measures to deter such activities. The Bangko Sentral ng Pilipinas has already taken steps to tighten regulations on large cash dealings by limiting daily withdrawals and similar payouts to P500,000, unless backed by enhanced due diligence measures.
