Philippines: Explosive testimony of Duterte's alleged ex-aide Ramil Madriaga points to misuse of millions of 'intel' funds, money laundering, POGO, drug links
Manila: An explosive testimony of anti-corruption whistleblower and self-proclaimed Duterte "bagman" Ramil Madriaga was heard on Tuesday exposing alleged misuse of hundreds of millions of pesos of "intelligence" funds by the Dutertes via dummy bank accounts, campaign funds from people linked overpriced Covid protective equipment and links to illegal drugs trade.
After weeks of anticipation, Madriaga, a former senior aide of Sara Duterte, appeared before the House of Representatives of the Philippines Committee on Justice on Tuesday (April 14, 2026) as impeachment hearings against the Vice President continued at the Batasang Pambansa Complex.
'I worked for PRRD'
Madriaga said his testimony comes with documentary evidence, or "exhibits", referring to hundreds of millions in bank transactions which he alleged were done at the behest of former Philippine President Rodrigo Roa Duterte (PRRD).
Madriaga was summoned by Congress on Tuesday (April 14) through a motion by Rep. Terry Ridon.
More damningly, Madriaga pointed out excesses by former President Rodrigo Roa Duterte (PRRD), the former leader's links to POGO, drugs trade, the multi-billion Pharmally scam and misuse of public funds.
The Bureau of Jail Management and Penology allowed him to testify without handcuffs. He then took his oath before lawmakers.
The hearing was chaired Justice Committee lawyer Gerville Luistro, even as authorities secured Madriaga inside the complex before he was escorted into the People’s Center hearing room.
Madriaga's links to the Dutertes are well known and run deep.
Madriaga is known as the alleged "bagman" of Vice President Sara Duterte.
On Tuesday, Madriaga made a startling revelation about hs role in the multi-billion "Pharmally scam", which took place under PRRD's watch.
'Biggest scam'
In 2021, the Manila daily Inquirer reported that billions-of-pesos of government supply contracts snagged by "woefully undercapitalised" Pharmally Pharmaceutical Corp. pointed to “the makings of a scam”.
In 2024, Former senator Richard Gordon called the Pharmally scandal the “biggest scam,” and pinning the blame on former President Duterte, whose six-year term ended in 2022.
SMALL CAPITAL, HUGE CONTRACTS: Pharmally Pharmaceutical Corp. bagged a total of approximately ₱10.85 billion to ₱12 billion in government contracts between March 2020 and July 2021, as per the Philippine Centre for Investigative Journalism (PCIJ). The company, newly registered in 2019 with only ₱625,000 in paid-up capital, secured these contracts from the Procurement Service-Department of Budget and Management (PS-DBM), the Department of Health (DOH), and the Department of Transportation-Philippine National Railways (DOTr-PNR).
Key points in Madriaga's April 14, 2026 testimony:
“Despite only earning One Hundred Thousand Pesos (PhP100,000.00) to One Hundred Fifty Thousand Pesos (PhP150,000.00) from my services to PRRD, millions of pesos went through bank accounts opened for me by close associates of PRRD (President Rodrigo Roa Duterte).”
“I admit that during PRRD’s term as President, I served as a dummy for the transfer of large amounts of money. These transfers were made through bank accounts…”
“However, I have never personally opened these accounts or appeared before the said banks to process any application in relation thereto. These were opened by people close to PRRD who informed me that money will be transferred to these accounts for ‘intelligence operations’ and for laundering. I was later instructed to sign entire checkbooks where the amounts and payees are left blank. I agreed to do this because, at the time, I had complete trust in PRRD and his close associates.”
Links to Pharmally scam
Madriaga also offered alleged links between Duterte and the Pharmally scam, involving the overpricing of personal protected equipment (PPE) during Covid.
Madriga stated that he was the link to Maestrado Lim (also known as Tony Yang or Yang Jian Xin), the elder brother of Michael Yang, a former economic adviser to PRRD.
Maestrado Lim was identified during 2024 congressional hearings as a key figure in a web of illegal Philippine Offshore Gaming Operators (POGOs) and criminal activities, as per the Manila-based Inquirer.
Furthermore, Madriaga explained Maestrado Lim's role in Pharmally/Duterte dircle:
Financier/link to Yang network: While primarily linked to the POGO aspect, Maestrado/Tony Yang is connected to the wider network surrounding Pharmally Pharmaceutical Corp., which was spearheaded by his brother, Michael Yang.
Funding operations: Allegations from investigations indicate that when initial funding for certain political activities ran out, Tony Yang was used as a source of funds, alongside Lin Wei Xiong (another associate linked to Pharmally).
Alias use: He admitted to using the alias "Antonio Maestrado Lim" on official Philippine documents, faking his identity for business purposes.
The Pharmally scam in the Philippines
The "Pharmally Scandal" refers to the anomalous award of over ₱8 billion in COVID-19 pandemic contracts to Pharmally Pharmaceutical Corp, a small, undercapitaliSed company with no track record, during the Duterte administration.
Madriaga testified:
"I distinctly remember Maestrado Lim because he previously mentioned, during one of our meetings in Davao City, that he hated Filipinos in general, and Filipino businessmen in particular, stating that “peste yung mga Filipino, yung mga businessman, walang kwenta.
Aside from Lin Wei Xiong and Maestrado Lim, I also remembered that Michael Yang, a very close friend of PRRD who was frequently in Malacañang, also provided financial support to ISIP.
Madriaga the 'missing link': Complainants
Complainants in the impeachment case against Vice President Sara Duterte describe Madriaga as the “missing portion” in allegations involving the misuse of confidential funds (CF).
Although only two of the four impeachment complaints filed in February 2026 remain under the committee’s jurisdiction, all surviving complaints now hinge heavily on Madriaga’s sworn claims.
According to the complainants, his affidavit directly supports accusations that confidential funds were diverted for purposes unrelated to intelligence or security operations, and instead used for personal or unauthorized disbursements.
Allegations detailed in his affidavit (as cited by complainants)
Madriaga’s affidavit, quoted by the complainants, includes specific delivery claims:
A duffel bag of cash allegedly delivered to a contact for a mayor in Laguna in Cabuyao near an industrial park
Another duffel bag allegedly delivered to a comedy bar in Timog frequented by law alumni
He claimed to have seen OVP spokesperson Reynold Munsayac at the Timog location, who allegedly directed him to leave the money upstairs
He said another bag of money remained in his car, which he later drove to the Ombudsman parking compound
Duterte camp’s response
Vice President Duterte has denied the allegations and has filed perjury complaints against Madriaga. She has also accused him of being linked to a kidnap-for-ransom group that allegedly plotted against her.
Why this matters to the impeachment case
Madriaga’s testimony is considered critical because it attempts to:
Describe how funds were allegedly moved (through dummy accounts)
Provide first-hand claims of cash deliveries
Link alleged fund movement practices during the previous administration to the current confidential fund controversy
Offer specific locations, people, and methods, which lawmakers say can now be independently verified through bank records, CCTV, and testimony of others
This shifts the hearings from general allegations about confidential fund misuse to operational details that can be fact-checked.
Spending of Marawi rehab trust funds disallowed
The Commission on Audit (COA) has denied a petition by former Duterte-era Human Settlements and Urban Development secretary Eduardo del Rosario, holding him liable for the use of Marawi rehabilitation funds to finance a 2018 trip of internally displaced persons (IDPs) to Saudi Arabia.
In an 11-page ruling made public on April 13, the COA en banc upheld a notice of disallowance covering ₱5 million transferred to the National Commission on Muslim Filipinos (NCMF).
State auditors found the money was used to pay for the June 15–22, 2018 Hajj pilgrimage of 25 IDPs to Mecca.
Del Rosario, who then headed the Housing and Urban Development Coordinating Council (HUDCC) and Task Force Bangon Marawi (TFBM), was found liable along with former TFBM secretary general Falconi Millar and then NCMF officer-in-charge Tahir Lidasan Jr.
He argued the spending was justified by the “peculiar socio-historical and demographic context” of Marawi, saying post-siege recovery required a “multi-faceted and culturally/faith-sensitive approach” and a “holistic recovery of the people.”
Auditors rejected this reasoning.
COA noted that TFBM had been given ₱500 million in operational funds strictly for purposes defined under the trust fund.
A 2018 memorandum of agreement between Malacañang and HUDCC specified that the budget for Marawi rehabilitation was intended “solely for the operations of the TF Bangon Marawi.”
The commission also dismissed Del Rosario’s claim of "good faith", pointing out he was a signatory to the same 2018 memorandum that detailed the task force’s allowable operational expenses.
“This Commission is of the view that the subject fund transfer cannot be considered as an allied expense under the TFBM’s operational expenses,” the COA en banc said.
“Hence, based on the above discussions, this Commission finds Mr. Del Rosario liable for the disallowed transaction.”
