PNoy can stop the Marcoses’ return to power.

Frankly Speaking
By Frank Wenceslao

PCGG Chairman Andy Bautista

When Presidential Commission on Good Government (PCGG) chairman Andy Bautista was reported he’d conduct preliminary investigation of Imee Marcos’ reported bank account in the British Virgin Islands (BVI), a haven of hot money of foreign leaders who looted national treasuries, a Pamusa supporter in Manila sent me newspaper clippings with a note to expect PCGG’s abolition soon. Bautista has shown lack of enthusiasm to recover Marcos’ and cronies’ ill-gotten wealth maybe because PCGG’s abolition has long been proposed by Executive Secretary Paquito Ochoa three years ago.

Jojo Ochoa

I remember Ochoa proposing the abolition almost immediately after President Aquino’s inauguration in June 2010. Ochoa was seconded by Justice Secretary Leila de Lima that the media interpreted De Lima’s peace offering to stop a widening gap she had with Ochoa. De Lima announced PCGG appointments choice but was thumbed down by Ochoa even though PCGG was attached to the DOJ by former President Arroyo. De Lima must’ve thought she’d the prerogatives to fill PCGG’s vacant positions but Ochoa won’t have anything with it.

Pamusa has received feedbacks that PCGG seemingly has become moribund like a death convict awaiting execution. I received emails opposing its abolition though as senseless and without strategic thinking because without the commission, no institutionalized legal framework can stop the Marcoses’ return to power. The emails suggest the abolition is purely Ochoa’s brainstorm influenced by his law partner Louise Araneta Marcos, Bongbong’s wife.

In retrospect the PCGG could’ve been effective had some “big fishes” not got the choice “cuts” like a cattle slaughtered in cowboy country. Be that as it may, it doesn’t make sense to abolish PCGG when more effective mechanisms and tools are available now to recover illicit assets from the proceeds of corruption and financial crimes. After all, this is PCGG’s primary task if past chairmen, commissioners and personnel didn’t consider the commission and sequestered assets one big milking cow.

If President Aquino wanted to stop the Marcoses’ return to power, his first concern is to stop PCGG’s abolition; and find out if he, Ochoa, Bautista and current commissioners are on the same page. In any event, the President should order the use of new mechanisms and tools that lately have become available to improve the commission’s speed of recovery not only of Marcos’ and cronies’ ill-gotten wealth but also the illicit assets amassed during the post-Marcos administrations especially during Arroyo’s presidency.

Sen. Bongbong Marcos

The Marcoses’ return is undoubtedly an urgent issue the President should address because the math and logic are indisputable. Imee or Bongbong could make a run for President in 2016 more so if PCGG were abolished and the administration can’t stop the entry of a few hundreds of million dollars more from unrecovered Marcos’ wealth to be added to those already in the country. The strategy or prosecutorial discretion to recover illicit assets should be changed fast because with Imee would give way to her brother and bumper stickers “Bongbong 2016” will proliferate after the May elections.

Ilocos Norte Gov. Imee Marcos

Given that Ochoa is now with the Marcoses, Pamusa’s supporters and volunteers are asking the President to consider a Cabinet revamp after the May elections and draw a “red line” to where to stop Bongbong getting more campaign funds such as the kickbacks from the trade & industry ministry’s projects and the “Binondo” central bank’s resources Ongpin has custody of, which he in turn invested in various business ventures fronted by Ashmore Group of London. Bongbong is also relying on Kokoy Romualdez’s net worth of $200 million; Marcos’ equities in crony corporations mostly in Lucio Tan’s companies who might become nervous Bongbong could be President and play it safe by admitting the Tan’s Group of Companies owe it to Marcos its incredible growth; and the cash that can be withdrawn from PBCom which everyone of any consequence in business knew was owned by Marcos with 60% equity while the Nubla, Chung and Luy families got 40% after putting up the money to acquire the bank from its Taiwanese owners.

For full disclosure, I heard the above during unguarded moments when I was consultant to Ruben Ancheta criticizing Marcos’ Chinese-Filipino cronies taking advantage of his “utang na loob” – his greatest weakness. Col. Edgardo Abesamis, EVP of Razon’s International Container Terminals Services, Inc. (ICTSI) would bear out I had that job since he’s my boss at the Philippine Overseas Construction Board where I drew my pay. Ancheta was POCB chairman who wanted me to report to Malacañang.

Meanwhile, a panel of FilAm lawyers has discovered what they wish to call IED (improvised explosive devise) against current and former government officials, their immediate family members and close associates or the private businessmen and individuals that colluded with them. The IED has three primary ingredients, namely: the little known RA 1379, RA 3019 – the Anti-Graft and Corrupt Practices Act – and the U.S. Foreign Corrupt Practices Act (FCPA). Mixed together the laws become a lethal IED like that exploded in the Boston marathon and could put down many Philippine government officials past and present and business community’s “big” fishes and perhaps reduce graft and corruption in the Philippines down to manageable level like Asia’s “Dragon Economies” before the end of President Aquino’s term.

The IED is detonated when RA 1379 is violated by Ongpin and his inability to show to the satisfaction of the court he has lawfully acquired the funds he invested in several corporate properties. Hence, these properties ipso jure are forfeited in favor of the State as of the moment the funds were obtained to acquire the properties. Ongpin doubles up violation of RA 3019, firstly, for unlawfully acquiring the properties declared forfeited to the State and, secondly, in illegally obtaining DBP loans with which to buy Philex shares from which he realized enormous profits to the DBP’s detriment, hence causing undue harm to the government. The properties by law don’t belong anymore to the respondent and, if part of the money illegally earned was spent for any purpose the respondent becomes also liable of violating other criminal laws such as theft, fraud, etc.

Since forensic audit has become a favorite tool to prove unlawful acquisition of public funds, foreign aid and other properties, Ongpin should be advised by his lawyers to negotiate settlement with Philippine authorities. If he refuses after he’s used part of the funds he unlawfully acquired in the US such as buying real estate, US stocks, doing commercial transactions, etc. he’s deemed in violation also of the US Foreign Corrupt Practices Act (FCPA).

At the same time, Pamusa and legal counsel will be combing state registrars of properties and seek FBI’s assistance to access the US Treasury Department’s Financial Crimes Enforcement Network’s (FinCEN) databases to dig up evidence if Ongpin violated the FCPA. FinCEN has computerized financial records compiled from 21,000 depository institutions and 200,000 non-bank financial institutions. Banks, casinos, brokerage firms and money transmitters all must file reports with FinCEN cash transactions of $10,000 and more. FinCen is the repository for “Suspicious Activity Reports” (SAR) which must be filed by financial institutions under the computerized financial records compiled from 21,000 depository institutions and 200,000 non-bank financial institutions. Banks, casinos, brokerage firms and money transmitters all must file reports with FinCEN cash transactions of $10,000 and more. And FinCen is the repository for “Suspicious Activity Reports” (SAR) which must be filed by financial institutions under the US Bank Secrecy Act. Sen. Lito Lapid’s wife, Marissa, was fined almost $160,000 for “restructuring” her bank account for her deposits not to exceed $10,000 each alongside her conviction for dollar smuggling in Las Vegas.

It’s conceivable therefore that what happens to Ongpin can happen for the misappropriation of billions of pesos of public funds and foreign aid for the Mt. Pinatubo Rehabilitation Project to former President Arroyo while still a senator and Mikey Arroyo, when Pampanga vice governor and congressman, Sen. Lito Lapid, when Pampanga governor and his son, Mark, who succeeded him, Gov. Lilia Pineda and husband, jueteng king Bong Pineda, and several unnamed contractors awarded no-bid contracts and allegedly paid kickbacks of 50% of contract price to a cabal composed of said former and current officials. This will be further explained in my next column.

(fcwenceslao1034@gmail.com.)