Bank able to withdraw from frozen ‘pork’ account

MANILA, Philippines - A bank is being quizzed on why P40 million linked to the pork barrel scam was withdrawn from an account that the Court of Appeals had ordered frozen.

Executive Judge Marino de la Cruz of the Manila regional trial court ordered yesterday the United Coconut Planters Bank (UCPB) to explain how P40 million was deducted from the P46.995 million contained in an account under the name of First Integrated Bonding and Insurance Co.

The withdrawal was discovered after a lawyer from UCPB informed the court that P40 million has been subtracted from the P46.995 million during the hearing on the civil forfeiture case yesterday.

Lawyer Isar Pepito from the Office of the Solicitor General (OSG) said the UCPB counsel had manifested that a transaction was made, withdrawing P40 million from the account.

“We were surprised because that was the first time that we have learned about it,” he said.

“We asked the UCPB for details, but they could not provide us. So the judge required them to file a motion to enlighten the court on this transaction.”

UCPB told the court the P40 million was withdrawn after the CA’s freeze order had already expired and before the Manila judge had issued the asset preservation order.

Technically speaking, nothing was wrong with the transaction, UCPB insisted.

However, Pepito said any transaction involving frozen assets would require clearance from the Anti Money Laundering Council (AMLC).

UCPB failed to present this certification yesterday, he added.

UCPB also failed to state the exact date as to when the withdrawal was made, and the reason for it.

The AMLC had asked the CA to freeze the account.

The freeze order allegedly expired on May 8, UCPB said.

After the expiration, the OSG filed a civil forfeiture case so the government could recover the money and assets that were sourced from the pork barrel scam.

While the proceedings are going on, the judge will issue either a provisional or permanent preservation order to prevent withdrawals from the frozen account.

The account of First Integrated is part of the second batch of questionable assets and bank accounts that the AMLC wants to recover.

The petition was filed on June 5 and an asset preservation order was issued the next day.

Also included in the second batch are Gigi Reyes, former chief of staff of Senate Minority Leader Juan Ponce Enrile; Paulene Labayen, a staff of Sen. Jinggoy Estrada; and former lawmaker Samuel Dangwa.

At Malacañang, Presidential Communications Operations Office Secretary Herminio Coloma Jr. said yesterday the administration is determined to go after Janet Lim-Napoles’ alleged ill-gotten wealth regardless of the tedious process involved.

“Despite the challenges and hindrances, the government is determined to enforce the law,” he said in Filipino.

“In accordance with law and the decision of the court, we will take all necessary steps to recover all stolen wealth from everyone,” he added.

Chairman Andres Bautista of the Presidential Commission on Good Government (PCGG) said based on their experience it took nearly three decades for the government to recover alleged questionable assets of the late President Ferdinand Marcos and his associates.

Reclaiming stolen money and properties from a private individual – like Napoles – might prove to be more challenging than that from an erring government official, he added.

Bautista said confiscating Napoles’ wealth would mean undertaking a years-long legal battle that could be delayed by pleas from Napoles’ lawyers.

“A case will be filed in court and many appeals would be made – petitions for certiorari on every interlocutory order that would be issued by the courts,” he said.

Bautista said state prosecutors might not also be able to focus on the task as they are “overworked.”

“Over 200 cases on the Marcos wealth are still pending in various courts,” he said.

Coloma said nobody facing charges before the Sandiganbayan in connection with the pork barrel scam would be prejudged.

“There are rules pertaining to that and we will follow,” he said. “There is also a process in court that is not within the jurisdiction of the executive branch, that is why we need to wait for the court to rule.”

Coloma said the government has no policy to focus on high-profile personalities.

“If we can fix the justice system, there will be the certainty of acquittal for those who are truly innocent and certainty of punishment for those who are guilty,” he said. “That is our focus, not the accused. We are all equal in the eyes of the law.”

Coloma said people must be slow to pass judgment because due process must be followed.

“Let’s wait for the Sandiganbayan, what its ruling would be because (the cases) are now in the hands of the court,” he said.

He also gave assurance that “whatever the law is and whatever the court order will be, the government will follow.”

Budget Undersecretary Mario Relampagos faces 42 counts of graft before the Sandiganbayan, the most of any government personality among those charged on June 9 over the illegal diversion of lawmakers’ development funds.

He is included in all 42 newly filed information for violation of the anti-graft law and is accused of “causing undue injury to the government” for over P1 billion in PDAF releases.

The amount was supposed to fund community development projects but was siphoned off for kickbacks of those involved in the scam.

The Department of Budget and Management (DBM) issues Special Allotment Release Orders (SAROs) for the release of lawmakers’ PDAF to implementing agencies.  – With Delon Porcalla, Aurea Calica