MANILA, Philippines - The United States yesterday turned over to the Philippine government a check for $132,000 representing proceeds from the sale of real estate owned by former military comptroller Jacinto Ligot and his wife Erlinda in Buena Park, California.
US Ambassador Harry Thomas Jr. handed the check to Justice Secretary Leila de Lima in fulfillment of the request made by the Philippine government in 2009 under the Mutual Legal Assistance Treaty (MLAT) between the two countries.
It was the first time a foreign government returned to the Philippines proceeds of ill-gotten wealth abroad through the MLAT.
“This is to show the benefit of the MLAT we have with the Philippines, the confidence that the US government places in the Aquino administration, in particular, Secretary De Lima, and that the funds will be returned to the treasury for the benefit of the Filipino people,” Thomas said.
Thomas said he is hopeful the case is just the first of many where the US government would be able to cooperate with the Philippine government through the MLAT.
Thomas also lauded the Philippine government “for fulfilling the pledge to end corruption.”
Even as the US turned over the proceeds of the sale of properties owned by the Ligots abroad, the Sandiganbayan yesterday issued a freeze order on other properties owned by the couple here.
The Sandiganbayan’s fourth division issued a writ of attachment on the properties of the Ligots worth P135.2 million, covering their alleged ill-gotten wealth based on a forfeiture case filed by the Ombudsman in 2005.
De Lima signed the receipt of delivery of the check from the US envoy and announced the amount would be turned over to the national treasury.
“We are grateful for the assistance of the United States in this matter, and we, in the DOJ, are very pleased and honored by the trust and confidence they have manifested in turning over this amount to us. It is such a proud moment for us to be able to return to the national coffers a part of what has been plundered from it,” De Lima said.
De Lima said the request of the Philippine government was made in 2009 by then Secretary Agnes Devanadera in connection with the forfeiture case filed against the Ligots by former Ombudsman Simeon Marcelo in 2005.
De Lima said the return of the proceeds was a verification of the fact that the Ligots have assets in the US as had been revealed in the Senate inquiry.
“This is just partial,” De Lima said. “There is ongoing request for others (assets).”
De Lima though declined to reveal how they were able to get the proceeds, citing the confidentiality rule of the MLAT.
The subject property located at 7102 Stanton Ave. in Buena Park, California was purchased by Mrs. Ligot on June 8, 2004 for $599,500.
The property was not declared by Ligot in his statement of assets, liabilities and net worth.
After undergoing appropriate administrative proceedings in the US, the property was ordered forfeited and sold for $132,000 in December 2005.
This prompted the Ombudsman, through Marcelo, to request from the US the proceeds of the sale of the property through the DOJ.
The Sandiganbayan, on the other hand, ordered the attachment of all “real and personal properties of the respondents (Ligots) located in the Philippines” with an accumulated value at P135,280,822.11.
Among the properties of the Ligots listed for attachment are four vehicles, four condominium units, farmlands, buildings and residential lots.
The assets include condominium units located at Burgundy Plaza along Katipunan Road in Quezon City, and at Essensa East Forbes Tower, Taguig City registered under the name of Erlinda; another in Paseo Parkview Tower 2 registered under the name of their son Paulo; and another at Building MC-14 at the Pamayanang Diego Silang of the Bases Conversion Development Authority (BCDA) registered under the name of the former military comptroller.
Since Erlinda and their three children are also defendants in the civil case, the government is also seeking to recover the money acquired for the purchase of several properties in the US, including the Buena Park property.
Government lawyers also wanted to retrieve some P13 million in cash that was withdrawn from the couple’s accounts with the Armed Forces and Police Savings and Loans Association Inc. (AFPSLAI).
The Sandiganbayan said there is sufficient basis to issue a freeze order against the assets of the Ligot couple.
Also included as respondents are Ligot’s brother-in-law Edgardo Yambao and sister Dr. Miguela Ligot-Paragas.
‘A reflection of commitment’
Malacañang hailed the US government for turning over the proceeds of ill-gotten wealth to the Philippine government.
“We consider this development, the first of its kind in the history of our Mutual Legal Assistance Treaty, a reflection of the US’ commitment to help President Aquino act decisively against corruption and aid our government in punishing those who have stolen from the coffers of our people,” Executive Secretary Paquito Ochoa Jr. said in a statement.
“This vote of confidence in our government is a significant step toward the resolution of the case filed against Ligot and his wife Erlinda,” he said.
Lawmakers led by Sen. Teofisto Guingona III hailed the US turnover of proceeds, saying it would help Congress in crafting new laws and in the ongoing amendments to the Anti-Money Laundering Act in a bid to strengthen laws against dirty money.
Guingona said the US move also emphasized the Philippine government’s commitment before the Financial Task Force, where the country is a signatory, in the strict implementation of anti-money laundering laws.
Sen. Juan Miguel Zubiri called on the US government to include the reported properties owned by the couple in forfeiture proceedings.
Congressmen also welcomed the turnover of the proceeds of the sale, saying it would make the campaign against corruption and efforts to recover ill-gotten wealth easier.
“We are thankful for that (turnover of Ligots’ assets) and it shows the benefits to be had from having such multilateral agreements, and the government should seek to conclude more of the same with other countries and jurisdictions, so that the pursuit of illegally acquired wealth will not reach dead ends,” Aurora Rep. Juan Edgardo Angara said.
Deputy Speaker Rep. Lorenzo Tañada III (Quezon) said, “It is better that the Philippine government hold the money since the Ligots refuse to divulge where the money came from.”
“If the Ligots can legally prove they are the owners of the amount, then it may be returned to them. But if the Ligots fail, then the government will not anymore have a difficult time in recovering the amount,” Tañada said.
Quezon City Rep. Winston Castelo said the turnover “only confirms the extent of corruption in the military as exposed by Heidi Mendoza,” referring to the former state auditor, now commissioner of the Commission on Audit (COA), who exposed the massive corruption in the Armed Forces.
“We are grateful to the US government for their cooperation in curbing corruption and helping the government in its investigation,” Castelo said.
The Armed Forces of the Philippines (AFP) also welcomed the development.
“We welcome that. It will also discourage future similar dubious investments,” said AFP Deputy Chief for Civil Military Operations Commodore Jose Miguel Rodriguez.
The Ligot couple is also facing a P428-million tax evasion charge filed by the Bureau of Internal Revenue (BIR) before the DOJ.
The BIR said the former general failed to file his income tax return (ITRs) for taxable year 2001 while his wife Erlinda failed to file hers from 2001 to 2004. The couple also failed to declare their income.
De Lima said they would assess how the return of the proceeds would impact on the tax evasion case against the Ligots, which apparently included the forfeited property in the US.
Asked if this property would also be covered by DOJ’s fact-finding probe on corruption in the military, De Lima said it would depend on the aspects of the case.
“If this involves other transactions of the Ligots, it will be covered by evaluation,” she said. -With Michael Punongbayan, Delon Porcalla, Paolo Romero, Jaime Laude