New York court sets settlement on Marcos assets

MANILA, Philippines — A federal court in New York will decide next week on the settlement agreement that will divide some $20 million worth of ill-gotten assets by the Marcos family that were recovered in the United States. 

New York district court Judge Katherine Polk Failla has scheduled a hearing on Tuesday to decide whether to transfer the money to human rights victims under the settlement agreement being contested by the Philippine government, according to American human rights lawyer Robert Swift. 

“Should the (Philippine) government succeed in upsetting the settlement, the court will enter crippling sanctions for its refusal to produce witnesses during discovery,” Swift told The STAR in an e-mail. 

“Apparently, common sense is in short supply at Malacañang,” he added. 

Swift is the lawyer of the martial law victims that successfully won the $2-billion class action suit against the Marcos family in Hawaii in 1995.

The government, through the Presidential Commission on Good Government (PCGG), earlier entered into negotiations with the victims on how to divide the fund, which came from the sale of paintings seized from Vilma Bautista, an aide of former first lady and Ilocos Norte Rep. Imelda Marcos. 

In the draft agreement, the victims were set to receive $13.75 million, while the Philippine government will get $4 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.

The Office of the Solicitor General (OSG) on Wednesday confirmed that it issued a disapproval to the settlement, saying it found its terms grossly disadvantageous to the government and not in accord with existing Philippine laws and jurisprudence.

It said the decision not to proceed with the settlement was later unanimously approved by lawyers from the OSG, PCGG and the Department of Justice. 

PCGG acting chairman Reynold Munsayac said the Philippine government would instead pursue its claim to all of the recovered properties of the Marcoses in the cases pending before the Sandiganbayan. 

Swift earlier expressed confidence that the court would approve the settlement, which will enable the distribution of $1,500 to each of some 6,500 members of the class suit.