OSG blocks fund distribution to Marcos victims

MANILA, Philippines — The Office of the Solicitor General (OSG) has not authorized the settlement agreement that will allow the distribution of funds to martial law victims using ill-gotten assets recovered in the United States.

Reynold Munsayac, acting chairman of the Presidential Commission on Good Government (PCGG), yesterday said the Philippine government will instead pursue its claim to all of the recovered properties of the Marcoses in the cases pending before the Sandiganbayan.

He said they informed New York district court Judge Katherine Polk Failla that the court failed to secure the authority of the OSG that would allow implementation of the settlement agreement, which would divide the proceeds from the sale of paintings recovered from an aide of former first lady and Ilocos Norte Rep. Imelda Marcos.

Munsayac disputed the claim of American human rights lawyer Robert Swift that the agreement has been finalized and that the New York judge already approved the release of the funds.

“Not true. The proposed settlement agreement was approved by Judge Failla subject to certain conditions like the presentation of the Republic of the Philippines of authority to enter into the same,” he told The STAR.

“We just submitted a letter to Judge Failla manifesting that the required authority from the Office of the Solicitor General was not secured, thus, the implementation of the settlement agreement cannot proceed. In fact, (PCGG) commissioner Rey Bulay is in New York right now to inform the court of this development,” he added.

The PCGG earlier entered into negotiations with the camp of the martial law victims, represented by Swift, that won the $2-billion class action suit filed in Hawaii in 1995.

The negotiations involved some $20 million worth of assets seized from former Marcos’ aide Vilma Bautista in New York, including high value paintings.

In the draft agreement, the government was set to receive $4 million while the victims in the class action would get $13.75 million.

A third party, the Golden Buddha Corp. and the estate of Roger Roxas that allegedly discovered the Yamashita treasure, would also get a portion of the proceeds from the sale of some of the paintings.

In a statement Friday, Swift said California district court judge Manuel Real, who handled the Hawaii case, has already approved the distribution of $1,500 each to some 6,600 members of the class action.

Swift told The STAR in an e-mail exchange that the settlement has been finalized and that the New York court issued a ruling providing for the release of the funds in January.

But that ruling may not be implemented, Munsayac said, as one of its conditions is securing the approval of the OSG.

Swift has yet to comment on this new development.

Earlier this year, the PCGG chief said they have received authorization from Malacañang to negotiate for a compromise agreement on how to divide ill-gotten assets of the Marcoses that were recovered in the US.

It was a deviation from the previous position of the government, which refused to implement the $2-billion class action award and insisted on recovering all of the assets in favor of the Philippine government.

Munsayac at the time said Malacañang approved the negotiations as the compromise agreement would still benefit martial law victims.

With the OSG decision to disapprove the terms of the settlement, it appears that the government has reverted to its previous position of claiming the ill-gotten assets in its favor.

The PCGG was created in 1986 to run after the ill-gotten wealth of the Marcoses and their cronies, which is estimated to reach as much as $10 billion.

Some P170 billion (around $3.4 billion) have already been recovered.