PCGG shares Marcos wealth recovery experience in UN convention

The Philippines has given the international community some pointers in recovering ill-gotten wealth of rogue governments.

The Presidential Commission on Good Government (PCGG) and the Ombudsman recently shared with the delegates to an anti-corruption conference the Philippines’ experience in recovering part of the ill-gotten wealth of the Marcoses deposited in foreign banks,

Ombudsman Merceditas Gutierrez led the Philippine delegation to United Nations Convention Against Corruption (UNCAC) conference from Dec.10 to Dec.14 in Jordan.

The Philippine delegation highlighted PCGG’s recovery of Marcos’ Swiss deposits,

PCGG commissioner Nicasio Conti, a member of the delegation, cited the complex and difficult process in tracing dubious bank accounts abroad and stressed other countries stand to benefit from the Philippine experience.

The Philippines, through PCGG, began its search in 1986 for the Marcos billions by seeking help from the Federal Office for Police Matters in Switzerland in 1986 which is allowed under the International Mutual Assistance on Criminal Matters Act (IMAC).

The favorable ruling by the Swiss Federal Supreme Court in 1997 on PCGG’s petition in 1995 for Anticipatory Restitution under the IMAC law sustained the Philippine government’s position that it could get its hands on the Marcos deposits even before the finality of the decision against the Marcoses.

In 1998, the Swiss deposits were transferred to escrow accounts in the Philippine National Bank until the Supreme Court in 2004 ordered that the money - amounting to more than P35 billion - be surrendered to the Bureau of Treasury.

Conti said with the UNCAC now in force, the Philippines may look forward to getting more legal assistance and cooperation with other states in identifying foreign banks involved and in gathering evidence and useful documents.

A report presented by the PCGG to conference delegates showed that from March 1986 to June 2006, the PCGG has recovered close to P62 billion in cash, part of which represented proceeds from the sale of recovered assets.

The report stated that for every P1 million budget, the PCGG was able to recover P52 million worth of cash and other assets.

"When there is no safe haven anymore for anybody who steals public money by means of any scheme and when the level of global rejection of illegally  acquired wealth is part of the day-to-day awareness of those both in the circles of officials power as well as those beyond, then the eradication of corruption is not too remote," Gutierrez said in a speech at the conference.

The Philippines was one of the first signatories to the UNCAC on Dec. 9, 2003. President Arroyo signed the Instrument of Ratification of UNCAC on Feb. 25, 2005 and sent it to the Senate for concurrence.

The Senate voted to concur with the Instrument of Ratification on Nov. 6, 2006. This made the Philippines the second country in Southeast Asia after Indonesia and the fifth in Asia to ratify UNCAC. The Instrument of Ratification took effect on Dec. 8, 2006.