Money laundering raps filed vs Isnajis for P3-million ransom

MANILA, Philippines - Former mayor Alvarez Isnaji of Indanan, Sulu and his son Haider are not yet off the hook, despite their acquittal in court for the kidnapping of ABS-CBN reporter Ces Oreña-Drilon and her crew in June 2008.

New charges of money laundering were filed against the Isnajis at the Department of Justice (DOJ) yesterday for allegedly pocketing P3 million out of the P20-million ransom paid by the families of the kidnap victims to secure their release.

The Anti-Money Laundering Council (AMLC) filed the complaint after its investigation showed that the Isnajis made a series of significant bank transactions, deposits, and withdrawals after acting as negotiators for the release of Drilon and her cameramen Jimmyfred Encarnacion and Angelo Valderrama.

“There is reasonable ground to believe that respondent Mayor Alvarez and Haider Isnaji, knowing fully well that they were dealing with proceeds of the unlawful activity of kidnapping for ransom, transacted the same through the banks, thereby making them appear as having originated from legitimate sources. Such acts constitute money laundering,” alleged the AMLC through deputy director Richard David Funk II and Monico Villar Jr., bank officer V.

The council said that on June 13, 2008, or a day after the initial P5-million ransom was paid by Drilon’s brother Frank, Isnaji made a deposit of P900,000 to Savings Account no. 5145076295 with the Philippine National Bank (PNB)-Climaco Branch in Zamboanga City, and subsequently withdrew the same through the automated teller machine (ATM) from June 6 to Nov. 6, 2008.

Also from Jan. 23, 2009 until May 28, 2009, three deposits worth P520,100 were made to his account, which Isnaji withdrew in tranches until only an amount of P3,836.96 was left in the account.

On the other hand, AMLC said Haider’s account with PNP-Climaco Branch was opened on April 20, 2007 with an initial deposit of P10,000.

The AMLAC has found, however, that Haider deposited P20,000 in this account on June 13, 2008, also a day after the initial P5-million ransom was paid.

Also from July 2, 2008 until Feb. 13, 2009, Haider made 26 deposits in the total amount of P570,500 to his account.

He subsequently made several withdrawals from his account between Feb. 11 to July 1, 2009 through the ATM until the balance of his account was P5,112 only.

AMLC noted that in an earlier investigation conducted by the Philippine National Police, it was learned that of the initial P5-million ransom, which was delivered to the house of Isnaji’s son, Khan Isnaji, only P2 million was given by the Isnajis to the kidnappers.

The council said the remaining P3 million could be the source of the deposits made by the Isnajis in their respective bank accounts totaling to P2.01 million.

“Consequently, the withdrawal of the proceeds of the ransom money, although done in a series of withdrawals through the ATM machines by the respondents, knowing that the same were proceeds of, or were related to an unlawful activity, constitute money laundering defined under Section 4 (a) of the Anti-Money Laundering Act, as amended,” it stressed.

“Money laundering is committed by any person who, knowing that a monetary instrument represents the proceeds of an unlawful activity, transacts the same,” it added.

“Clearly, Mayor Isnaji pocketed part of the ransom money that was paid by the family of the victim,” the AMLC said.

The transactions made by the Isnajis, according to the AMLC, were not commensurate to the financial capacity of the respondents.

If found guilty, the Isnajis could be sentenced from seven to 14 years in jail aside from paying a fine of not less than P3 million but not more than twice the value of the amount or property involved in the offense.

Isnaji and his son Haider were charged with kidnap-for-ransom before the Regional Trial Court (RTC) of Pasig City after the Department of Justice (DOJ) held that there were strong indications that the Isnajis were in cahoots with the kidnappers.

But in a decision issued on April 12, 2010, the Pasig RTC acquitted the Isnajis after the prosecution failed to prove their guilt beyond reasonable doubt.

However, the AMLC insisted that despite their acquittal in the kidnap-for-ransom case, the Isnajis can still be held accountable for money laundering based on the testimony of police Superintendent Winnie Quidato executed on Feb. 20, 2009 on the kidnap-for-ransom case.

In his affidavit, Quidato revealed that he was present when Drilon’s brother delivered the initial ransom payment of P5 million to Sulu vice governor Lady Ann Sahidula who, in turn, gave the money to Isnaji, which paved the way for the release of Valderrama.

Quidato also disclosed that Isnaji admitted to him that he delivered only P2 million of the initial ransom payment of P5 million to the Abu Sayyaf.

Drilon and her team went to Jolo, Sulu supposedly to interview Radulan Sahiron, who was tagged as the new leader of the Abu Sayyaf.

Muslim professor Octavio Dinampo arranged the supposed interview and on June 7, 2008, the ABS-CBN team proceeded to the area to meet Sahiron.

They, however, failed to conduct the interview as they were kidnapped by another group of Abu Sayyaf who held them captive for 10 days and released them only after payment of P20-million ransom, which was negotiated by the bandits through the Isnajis.