Who did what? Gracioso details VP Sara, others’ roles in alleged cash delivery scheme

MANILA, Philippines — Dismissed Police Corporal Rodulfo Gracioso Jr. has detailed a highly organized, multi-million-peso cash delivery scheme involving prominent political figures.

Gracioso, a former police officer who served as the close-in security for former House Speaker Lord Allan Velasco from 2017 to 2024, has outlined the specific roles played by Vice President Sara Duterte, Velasco and several individuals in moving massive sums of cash across the country.

The testimony of Gracioso is being investigated by the National Bureau of Investigation (NBI) despite his dismissal from service, according to NBI Director Melvin Matibag.

Both Duterte and Velasco denied the allegations Gracioso made against them.

According to the Bureau of Immigration, Velasco is currently outside the country.

RELATED: Lord Allan Velasco out of Philippines, BI confirms

Sara Duterte’s alleged role

According to Gracioso, Sara Duterte — then the mayor of Davao City — was the primary recipient of the cash deliveries, which were described as her "budget" for allegedly traveling and campaigning.

Gracioso detailed over 10 instances between 2018 and 2020 where he personally delivered suitcases containing between P10 million and P20 million in cash to Duterte upon her arrival by private plane in Pasay, subsequently escorting her to luxury hotels like the Diamond Hotel and Edsa Shangri-La.

The cash deliveries escalated significantly during the 2019 midterm elections and Velasco's speakership, with Duterte allegedly receiving multiple shipments of P50 million to P100 million at a time.

These transactions took place at various locations, including her residence in Davao, the Quezon City Circle and even during a family trip to the Subic Safari. The affidavit reads:

9. Pagdating sa Diamond Hotel inabot ko kay Ma'am Sara ang regalo. Kinuha niya ang paper bag habang inutusan niya ako na ibigay ang maliit na maleta kay Jefry Tupaz ("Jepoy"). Sabi rin niya na sabihin ko kay Ma'am Wen at Boss Allan na "salamat."

10. Ang laman ng inabot kong paper bag ay Royce chocolates na paborito daw ni Ma'am Sara at ang maliit na maleta naman ay naglalaman ng 20M cash.

11. Nasundan pa ito ng humigit sampung beses mula 2018 hanggang 2020. Tuwing dumarating sa Manila si Ma'am Sara sakay ng private plane, susunduin ko siya sa hangar sa Pasay. Pinaabutan siya ni Boss Allan ng pasalubong na Royce Chocolate at maleta na naglalaman ng nasa sampu hanggang dalawampung milyong piso (P10-20 Million) na "budget" niya sa pagiikot. Personal ko itong inaabot kay Ma'am Sara o minsan kapag kasama niya ang katiwala na si Jepoy ay dito niya ito pinaaabot. Inihahatid ko sila sa Diamond Hotel, o kaya naman sa Shangri-la, Edsa.

To maintain distance from the physical cash, Gracioso said that Duterte utilized trusted aides to take custody of the money.

Her primary custodian was Jefry "Jepoy" Tupaz, whom Duterte repeatedly instructed Gracioso to hand the cash-filled suitcases, vehicle keys and cash-laden vans to.

Other aides also stepped in to receive funds; a security detail named “Sir Giroy” accepted two suitcases containing P100 million in Duterte's Davao home, while a staff member named Bryan took delivery of two cash-filled vans at the Diamond Hotel basement.

Furthermore, Duterte introduced Gracioso to Ramil Madriaga, who directly received P20 million in cash for an election caravan and later picked up another P20 million from Velasco's home for a motorcycle riding course in Davao. Gracioso wrote in his affidavit:

23. Kinabukasan, bumalik kami sa bahay ni Ma'am Sara. Doon, ipinakilala sa akin ni Ma'am Sara si Ramil Madriaga ("Sir Ramil") at sinabing sa kanya ko ibigay ang pera pambili ng mga motorsiklong gagamitin sa election caravan ng HNP. Iniabot ko nga ang maleta ng pera na naglalaman ng higit kumulang 20M kay Sir Ramil sa utos ni Ma'am Sara.

24. Noong nabili na ni Sir Ramil ang mga big bike para kay Ma'am Sara, sumama ako kay Ma'am Sara para sa election caravan ng HNP sa Mindanao. Nagikot kami sa ilang mga simbahan at iba pang lugar sa Mindanao para mangampanya para sa mga kandidato ng HNP sa pagka-senador. Pagdating naming sa Cagayan de Oro, doon na ako sumakay ng eroplano pabalik ng Manila.

Velasco’s alleged cash network

According to Gracioso, Velasco served as the coordinator and primary source of the cash delivered to the Vice President.

Gracioso revealed that Velasco accumulated these massive sums from a 25% "all-in" kickback or "SOP" on government projects across the Philippines, which was paid in advance.

Velasco and his wife, Rowena Amara Velasco, initially used their residence at No. 142 Sampaguita St., Valle Verde 2 in Pasig City to count, pack and store the cash.

As the volume of incoming money grew too large to fit in their home, Velasco purchased at least six additional properties in Valle Verde to serve as dedicated "cash houses" or money vaults.

Velasco also personally accompanied some of the cash shipments, even filling his own backpack with money from the suitcases during transit at a private hangar, according to Gracioso. His affidavit states:

16. Sabi ni Ma'am Sara na ibigay kay Jepoy ang dalawang (2) malaking maleta at mga kakanin. Inabot ko yung dalawang malaking maleta na naglalaman ng 50m cash bawat isa at yung mga kakanin kay Jepoy bago sila sumakay ng eroplano.

17. Pagkatapos ng Morion Festival, bumalik kami ni Boss Allan Velasco sa bahay niya sa No. 142 Sampaguita St. Valle Verde 2 para kumuha ng pera at sumunod kami ni Boss Allan sa Davao via isang private Hangar sa Pasay. May dala kaming dalawang (2) malalaking maleta na nasa 100M. Ang pera na ito ay dagdag panggastos ng Hugpong ng Pagbabago (HNP) sa 2019 midterm election. Si Boss Allan, mineet ko na siya sa private Hangar Pasay. Doon pinabuksan niya sa akin yung isang maleta at nagbawas siya ng pera, pinuno niya lang yung backpack niya ng pera galing sa binawas sa isang maleta.

18. Pagdating namin ng Davao, diretso kami sa bahay ni Ma'am Sara. Pag dating sa bahay ni Ma'am Sara Duterte, nag usap si Boss Allan at si Ma'am Sara sa loob ng bahay. Lumabas sila sa bahay at sinabihan ako ni Boss Allan na ibaba na sa sasakyan ang dalawang (2) malaking maleta na naglalaman ng cash. Binitbit ko papunta sa kanila yung dalawang maleta at sinalubong ako nung tao ni Ma'am Sara na si Sir Giroy na security ni Ma'am Sara doon. Kay Sir Giroy ko inabot yung dalawang (2) malaking maleta. Inabot ko naman kay Ma'am Sara ang paper bag na regalo ni Ma'am Wen sa kanya. Doon lang kami sa may receiving area kumain at uminom habang hinihintay si Boss Allan.

Velasco, through his lawyer, denied Gracioso’s claims, saying that his account is “designed and fabricated.”

“The ‘one-size-fits-all’ narrative by this individual seems to be designed and fabricated to attack as many targets as it can while being inconsistent with verifiable events, that is, the Covid-19 pandemic, Atty. Velasco’s period of service as speaker, other details, and even basic common sense,” Velasco’s lawyer, Rowell Ilagan, said.

Paolo Duterte’s alleged involvement

The brother of the Vice President, Rep. Paolo Duterte (Davao City 1st District), also allegedly received money from Gracioso.

In his affidavit, he said that he delivered suitcases of cash to a bar in Davao and other places in Metro Manila. His affidavit states:

44. Nagkaron na din ng pagkakataon na sabay akong nag-deliver ng maleta ng pera sa Davao para kay Ma'am Sara at para kay Cong. Paolo Duterte.

45. Sa utos pa din ni Boss Allan, nag deliver din ako ng maleta ng pera para kay Congressman Paolo Duterte sa isang bar sa Davao at sa iba't-iba pang lugar sa Metro Manila.

As of writing, Philstar.com has sought comment from Duterte’s camp on Gracioso’s allegations. But his camp has yet to reply.

Quimbo, Discayas and Cabral named

Former Rep. Miro Quimbo, according to Gracioso, acted as a key collector of money, which was sourced from the contractor couple Curlee and Sarah Discaya.

According to Gracioso, there were multiple instances where he was ordered by Velasco to pick up cash from Quimbo.

These pickups frequently occurred at a Starbucks in Katipunan — sometimes with the late Public Works and Highways Undersecretary Maria Catalina Cabral in attendance.

Gracioso would then transport the cash back to Velasco's Valle Verde 2 residence, where it was opened and counted by Velasco's personal assistants, Charmaine and Joan. According to his affidavit:

27. Noong naging Speaker na si Boss Allan noong October 2020 ay lalong dumalas at dumami ang mga delivery ng pera sa bahay ni Boss Allan at Ma'am Wen sa Valle Verde 2 galing sa iba't ibang personalidad tulad nila Cong. Zaldy Co, Sir Miro Quimbo, Atty. Honey Sipin.”

28. Kay Sir Miro Quimbo ko rin narinig noong nasa Starbucks Katipunan, malapit sa Miriam College, na galing ang pera kila Curlee Discaya at Sarah Discaya at iba pang DPWH contractor. May isa ring pagkakataon na nakita ko si Eng. Henry Alcantara na papasok sa bahay ni Zaldy Co sa Valle Verde 6 noong pumipick up kami ng pera sa kanya."

29. Sa isang pagkakataon rin, nakita ko si Usec. Maria Catalina Cabral kasama si Sir Miro Quimbo sa Starbucks Petron Katipunan nung utusan ako ni Boss Allan na magpick up ng pera galing kay Sir Miro, na dinala ko naman sa No. 142 Sampaguita St. Valle Verde 2. Binuksan ko ito sa Valle Verde 2 para bilangin at binibigay kay Charmaine at Joan na mga personal assistants o "PA" ni Boss Allan.

As of writing, Philstar.com has sought comment from Quimbo’s camp on Gracioso’s allegations. But his camp has yet to respond.

Zaldy Co’s alleged cash deliveries

According to Gracioso, fugitive former lawmaker Zaldy Co’s security team frequently delivered cash, which was packed into suitcases and boxes, including balikbayan, Fortune and “Lucky Me” boxes, to the residence of Velasco in Valle Verde.

These deliveries, according to Gracioso, became significantly more frequent and larger in volume after Velasco assumed the speakership in October 2020.

Gracioso personally picked up money from Co at his residence located in Valle Verde 6. During one of these specific cash pickups at Co’s house, Gracioso also witnessed former Bulacan District Engineer Henry Alcantara entering Co’s home.

The connection between their operations was further cemented when Velasco allegedly purchased one of his six "cash houses," which were designated money storage vaults in Valle Verde 6, situated on the exact same street where Zaldy Co’s house was located. Gracioso further stated in his affidavit:

34. Dahil sa dami ng pera na dinedeliver kay Boss Allan ay hindi na kasya ang mga ito sa bahay lamang sa No. 142 Sampaguita Street, Valle Verde 2. Kalaunan, bumili na si Boss Allan ng ilan pang mga bahay sa Valle Verde at sa iba pang mga lugar. Hindi bababa sa anim (6) na bahay ang binili ni Boss Allan sa Valle Verde upang gawing "cash houses" o imbakan ng pera. Isa sa mga cash house na binili ni Boss Allan ay nasa Valle Verde 6, sa parehong kalye kung saan may bahay rin si Zaldy Co. Ilan beses narin akong tumanggap ng pera galing sa kanya na iniimbak namin sa iba't ibang cash houses ni Boss Allan.

Gracioso also received money from Co on multiple occasions to be stored across Velasco's various cash houses.

Additionally, in 2021, Zaldy Co’s security detail arrived at a private hangar in Pasay in a Cadillac and a van to deliver approximately 10 large suitcases of cash.

Co's security loaded these suitcases directly onto a red-and-white private plane, which Gracioso then accompanied to Davao for delivery.