Philippines: Lord Allan Velasco and wife Wen Velasco sought in flood kickbacks probe — what you need to know

Manila: Former Philippine House Speaker Lord Allan Velasco and his wife, Wen Velasco are at the centre of an investigation by the National Bureau of Investigation (NBI) following explosive whistle-blower allegations.

Former aide Rodulfo Gracioso Jr., in a sworn statement, accused the couple of operating a corruption scheme that collected millions in kickbacks from government contracts.

More significantly, Gracioso alleged that the couple utilised safehouses in Pasig to store cash and facilitate illicit deliveries to key politicians including the Dutertes.

Philippine Bureau of Immigration (BI) records confirm Lord Allan Velasco flew to Japan in August 2026 and Wen Velasco departed for Hong Kong in September. Both currently remain abroad.

Their legal counsels declined to give the couple's current destination.

Here's what you need to know:

Who Are Lord Allan and Wen Velasco?

Lord Allan Jay Velasco served as the Speaker of the House from October 2020 to June 2022 during the 18th Congress under former President Rodrigo Duterte.

Before leading the House, Velasco represented the lone district of Marinduque.

His wife, Rowena "Wen" Amara Enriquez-Velasco, is a prominent socialite, is the head of the Pilipinong May Puso Foundation.

She has links to 888 Wealth Star Corp. (which names her as president and chair), which owns the Torrijos, Marinduque property called SARA Resort & Cabanas, according to investigators.

Another property, Amara Resort & Villas, operated by Amara Equity Ventures Inc., names the Velasco couple as principal incorporators, the NBI told local media.

Together, the couple occupied a central place within political and social circles, moving between legislative duties, foundations, and high-profile associations.

What drew scrutiny?

Scrutiny surrounding the Velascos mounted following revelations from former security aide Rodulfo Gracioso Jr., an ex-cop, alongside findings from investigations conducted by the National Bureau of Investigation (NBI).

Key areas of concern include:

Alleged kickback schemes (25% "SOP"): The whistleblower alleged that during his tenure as Speaker, Velasco demanded up to a 25% "Standard Operating Procedure" (SOP) upfront cut from Department of Public Works and Highways (DPWH) government contracts nationwide. “SOP” is sometimes alleged to be used as a euphemism for kickbacks, or "tongpats" in connection with Philippine infrastructure projects funded by taxpayers, where public officials and construction firms may be accused of colluding to facilitate such payments.

Sources, timeline: Gracioso claimed in his signed affidavit that he delivered suitcases containing millions of pesos in cash to Vice President Sara Duterte, former President Rodrigo Duterte, and Representative Paolo Duterte, as per Rappler.

He alleged these cash deliveries — totaling upwards of ₱2 billion for Sara Duterte — took place between 2018 and 2021. He claimed the money came from former House Speaker Lord Allan Velasco, Zaldy Co, Miro Quimbo, and DPWH contractors, and was delivered on Velasco's instructions.

"Cash houses" in Valle Verde: Investigators linked the couple to multiple high-end residential properties in Valle Verde, Pasig City. Testimony indicated these properties served as safehouses used to stash and count large sums of cash derived from public works cuts.

High-value deliveries to political allies: Testimony claimed that suitcases containing tens of millions of pesos in cash — accompanied by luxury items including Hermès bags, Patek Philippe watches, and luxury vehicles— were routed through the couple's network.

Foundation operations: Questions arose over the role of the Pilipinong May Puso Foundation, headed by Wen Velasco, regarding whether foundation accounts or charities were utilised to layer or store off-budget funds.

What accusations are they facing?

The couple faces grave legal and regulatory accusations:

• Graft and corruption (RA 3019): Allegations of misusing public office and congressional influence to secure illicit kickbacks from government projects.

• Plunder (Anti-Plunder Act, RA 7080): Charges connected to the systematic accumulation of ill-gotten wealth exceeding legal thresholds through public infrastructure allocations.

• Money laundering (Anti-Money Laundering Act [AMLA] RA 9160): Formal complaints concerning the acquisition of unregistered luxury real estate properties, vehicles, and undisclosed assets.

• Cash deliveries to Dutertes: Dismissed police officer Rodulfo Gracioso Jr. alleged that Velasco ordered him to deliver suitcases containing billions of pesos in cash to Vice President Sara Duterte and members of her family, as per reports from the Philippine Star and the Inquirer.

• Amounts delivered: Gracioso claimed he served as a bagman for Velasco, delivering a total of over ₱2 billion ($32 million) to Vice President Sara Duterte, ₱1 billion to former President Rodrigo Duterte, and ₱100 million to Davao City 1st District Representative Paolo Duterte.

• Source of Funds: He alleged that Velasco sourced the cash from 25% project kickbacks and used properties— including six or seven "cash houses" in Valle Verde 2, Pasig — to store and handle the money.

• Delivery logistics: Gracioso claimed he picked up the Vice President from a hangar in Pasay City in a white van and transported her to hotels for transactions, or dropped off money at designated locations between 2018 and 2022.

• Response, denials: Vice President Duterte strongly denied the allegations during a press briefing Tuesday, calling Gracioso's statements and affidavit false and pointing out numerous inaccuracies regarding her security details and home layout. She claimed Gracioso was being used by the camp of President Ferdinand Marcos Jr in a smear campaign and offered money to witnesses.

• Lord Allan Velasco's reaction: On Monday (Oct. 5), Velasco and his wife Wen, skipped their scheduled appearance before the NBI headquarters in Pasay Ciity, sending lawyers instead to obtain the affidavit accusing the couple of involvement in alleged multibillion-peso cash deliveries to top political figures. Velasco's three-man legal team, led by lawyer Rowell Ilagan, appeared before NBI on Tuesday and firmly denied his client's involvement in money deliveries or kickbacks.

• NBI Investigation: The NBI stated they validated that two of the seven residential properties mentioned by Gracioso in Pasig are owned by the Velasco spouses, though investigations into the broader cash-delivery claims remain ongoing.

• Gracioso's motives questioned: The Velascos' counsel rejected all allegations, calling Gracioso's testimony fabricated and politically motivated. Lawyer Ilagan said his client will respond to the allegations “at the proper forum and at the proper time.”

• Investigators have yet to establish Gracioso's claims: Department of the Interior and Local Government (DILG) Secretary Jonvic Remulla has said authorities would first verify the allegations and examine Gracioso's background before accepting his claims as fact, while the NBI continues its investigation

Where are the Velascos now?

According to official briefings from the National Bureau of Investigation (NBI) and immigration records, Lord Allan Velasco and Wen Velasco left the Philippines as scrutiny intensified and civil society groups filed criminal complaints.

The NBI has confirmed that four properties in Metro Manila have been formally linked to the couple, while law enforcement authorities coordinate with international law enforcement agencies to monitor their whereabouts.

Why the Philippines' budget process seriously needs transparency

The allegations surrounding the Velascos highlight long-standing structural vulnerabilities in the Philippine national budget process:

Unprogrammed funds, discretionary allocations: Discretionary allocations within the annual General Appropriations Act (GAA) allow lawmakers to influence public works funding toward favoured districts or contractors without sufficient oversight.

Bicameral Conference Committee ("Third House"): The final budget reconciliations take place behind closed doors during Bicameral Conference Committee sessions, where items can be inserted or reallocated without public hearings or floor debates.

Lack of real-time infrastructure audits: Once public works budgets are approved, cash flows between regional DPWH offices and contractors often lack public tracking systems, despite the existence of real-time online tracking systems, enabling upfront cut-taking schemes before ground is broken.

Opaque beneficiary ownership: The ability of political figures to hold properties or channel funds through unlisted relatives, private foundations, or shell entities exposes severe gaps in campaign finance and asset reporting enforcement.

What happens next to the Velasco couple?

The NBI is likely to intensify its fact-finding probe. Investigators have already linked the Velascos to two Pasig properties and are examining two Marinduque resorts, while the couple remains abroad.

Their lawyer says they will answer the allegations "at the proper time".

The next steps could include subpoenas, financial-record checks and, if prosecutors find sufficient evidence, criminal complaints.

For now, no criminal liability has been established, and the couple has denied the allegations through their lawyers.