Ninoy Aquino International Airport Terminal 3. Jonathan Cellona, ABS-CBN News

MANILA - Billions of pesos in taxpayers' money could be used to pay for the legal defeats of President Rodrigo Duterte's predecessors, the Department of Finance said Monday.

These include P5 billion in withholding taxes on 10-year anti-poverty bonds that were ordered returned by the Supreme Court and $326.93 million (P16.26 billion) in compensation for the German builders of the Ninoy Aquino International Airport Terminal 3, the department said in a statement.

The government is "liquid at this point" but settling the claims diverts resources from the President's infrastructure and anti-poverty programs, it said.

“Every time I sign a check for some mistake that has been made in the past, my hands almost bleed,” Finance Secretary Carlos Dominguez said.

Dominguez said he has ordered a review of the past administration's tax issuances to avoid legal challenges similar to the Poverty Alleviation and Eradication Certificates (PEACe) bonds.

The government of former President Gloria Arroyo offered the bonds tax free in 2001 but the Bureau of Internal Revenue, under former President Benigno Aquino, charged taxes when the bonds matured in 2011.

Former President Joseph Estrada struck a deal with Philippine International Air Terminals Co. (PIATCO) and its German partner, Fraport AG, to build NAIA-3, but his successor, Arroyo, later rescinded the contract due to alleged irregularities.

The finance department also cited pending regulatory disputes with the Maynilad Water Services Inc. and the Manila North Tollways Corp. (MNTC), which are undergoing international arbitration.