Rights group KARAPATAN urged the Commission on Human Rights (CHR) to conduct an independent investigation into the reported loss of up to ₱7 million in funds belonging to persons deprived of liberty (PDLs) at the Correctional Institution for Women (CIW) in Mandaluyong City, as well as the implementation of the cashless system by the Bureau of Corrections and the Bureau of Jail Management and Penology (BJMP), saying that the cashless system is a burden to the already difficult conditions of PDLs and is highly vulnerable to corruption by jail officials.
KARAPATAN’s call for an investigation was prompted by a petition letter signed by PDLs at the CIW detailing the issues concerning the PDL Trust Fund, the cashless system, the disappearance and withholding of their money, and the sanctions imposed on PDLs found carrying cash beyond the prescribed limit.
The petition, dated August 11, 2026, was signed by more than a thousand PDLs at the CIW and called for the return of their funds, the abolition of the Trust Fund and cashless system, and accountability for those responsible for the missing funds, among others.
“Bagamat nagkaroon na ng pahayag ang Bureau of Corrections tungkol sa pagsibak sa dalawang opisyal ng CIW sa pwesto, wala pa ring kongkretong kasagutan kung paano maibabalik ang pera at magulo pa rin ang sistema ng pagri-release ng mga paabot na pera galing sa dalaw at LBC. Halos dalawang linggo na mula nang maisiwalat ang naturang isyu,” the PDLs said in a recent statement.
“The money entrusted to the Trust Fund belongs to the PDLs and their families. It is urgent to determine what happened to these funds, where they went, and who should be held accountable. More importantly, the PDLs should not be made to pay for these losses,” Palabay said.
According to the CIW PDLs’ petition, money sent by their families through LBC Cash Padala or personally delivered to the facility is automatically placed in the Trust Fund. PDLs said they are allowed to withdraw only ₱1,000 per transaction, with a maximum withdrawal of ₱2,000 per week, on Mondays, Wednesdays, and Fridays. The PDLs also said that visitors bringing money into the facility are allowed to give only up to ₱1,000 directly, while excess amounts are supposedly retained in the Trust Fund.
“The PDLs have no choice but to put their money in the Trust Fund for ‘safekeeping,’ as a policy of the BuCor. Where is the safe now in their safekeeping? Or is it already safe in their pockets?” asked Palabay.
The group reiterated the urgency of this concern in light of a recent audit at the CIW that reportedly found that up to ₱7 million in funds remitted by families for PDLs could not be accounted for.
Instead of immediately requiring accountability, the previous CIW superintendent, Daisy Castillote, proposed that the missing funds be replaced using income from PDL telephone calls. Under the proposal, a five-minute call will increase from ₱3 to ₱5, and PDLs will have no share of telephone revenues, which they use to help cover the needs of their dormitories, until the allegedly missing funds are replaced.
Palabay hit the proposal, saying PDLs should not be made to shoulder the consequences of funds allegedly lost while under the custody and administration of prison authorities.
“Why pass the burden to the PDLs when it was the CIW management who supposedly ‘lost’ the money?” Palabay said.
Adding to the concerns is the fact that the store inside the CIW is being managed by Janet Napoles, who is serving a prison sentence in connection with her conviction for corruption-related offenses. PDLs have reported that basic goods sold at the facility are priced significantly higher than those available outside the prison. Among the reported prices are an eggplant at ₱80 per piece and an uncooked hotdog at ₱23, compared with around ₱9 to ₱10 outside the facility. A Gasulito is also reportedly sold for ₱7,500 inside the CIW, despite being available for around ₱1,080 on Shopee.
“It is outrageous that PDLs who are already restricted from accessing their own money are forced to buy basic necessities from a store managed by someone convicted in a corruption case. The authorities must explain why such an arrangement is allowed to continue, particularly when PDLs are reporting exorbitant prices for basic goods,” Palabay added.
The BuCor launched the “cashless policy” in February 2024 and pilot-tested it at the New Bilibid Prison (NBP) Minimum Security Compound in Muntinlupa City and the Correctional Institution for Women (CIW) in Mandaluyong City to “finally address and eradicate the perennial problems of corruption, prohibited drug transactions, and other forms of illegal activities with the use of cash money inside prison camps.”
KARAPATAN said the situation at CIW should also be examined in the broader context of complaints against the cashless system in other detention facilities. PDLs in different facilities have since raised objections to the system. In September 2024, a reported protest against the cashless system at the San Mateo Jail in Rizal resulted in dozens of PDLs and BJMP personnel being injured. The implementation of the system at the Navotas City Jail was reportedly suspended following protests by detainees. PDLs at the Negros Occidental District Jail also raised alleged irregularities in the cashless system during a protest in August 2025.
The group further added that the complaints demonstrate the need for the CHR to examine not only the reported loss of funds at CIW but also the broader impact of the cashless policy on the rights and welfare of PDLs.
“The cashless system has become another avenue for corruption and exploitation. We support the call of the PDLs for a review and eventual abolition of the Trust Fund at CIW and cashless system in prisons, consistent with the PDLs’ demand that the system be dismantled,” said Palabay.