Santiago believes Morales may have violated AMLA

MANILA, Philippines - Sen. Miriam Defensor-Santiago believes Ombudsman Conchita Carpio-Morales may have violated the Anti-Money Laundering Act (AMLA) when she investigated the alleged $10-million bank deposit of Chief Justice Renato Corona.

Speaking to Morales on the witness stand, Santiago said the Office of the Ombudsman should have filed a case first against Corona before asking the assistance of the Anti-Money Laundering Council.

“It appears that you take the position that the power of the Ombudsman under the Constitution to request the AMLC for assistance and information should prevail over the procedure provided in the AMLC over the decision by the Supreme Court on the Eugenio case,” she said.

Under the Foreign Currency Deposit Act, foreign “currency deposits are considered of absolute confidential nature, except upon the written permission of the depositor such foreign currency deposits can be looked into by any person, government official your office, whether judicial or administrative or legislative or any other entity whether public or private,” she added.

Santiago asked Morales: “Is it your position, madam witness, that the powers of the Ombudsman override the provision of the AMLA as passed by Congress?”

Morales replied: “I just abide by the provision under the Ombudsman Law.”

Under Rule 10.4 of the Revised Implementing Rules and Regulations of AMLA, the AMLC Secretariat is authorized “to conduct an inquiry into subject accounts once the regional trial court grants the application to inquire into and/or examine the bank accounts.”

Defense lead counsel Serafin Cuevas said information on the alleged bank deposits of Corona should not be discussed outside the office of Morales.

Based on the cover letter attached to the 17-page document that the AMLC had provided the Office of the Ombudsman, the information provided them “is strictly confidential, meaning for intelligence purposes only,” he added.

Santiago asked Morales the purpose of her investigation when an impeachment trial is already going on.

In response, Morales said the purpose was to file another impeachment case against Corona if he is acquitted.

“If the charges presently being investigated by Ombudsman are not included in the impeachment charges, then I don’t see any reason why there should be no chance to file another impeachment complaint,” she said.

“Even if this court acquits him (Corona), he can expect another impeachment complaint in December this year. You (Corona) are so warned,” referring to Senate President Juan Ponce Enrile.

Meanwhile, the Bank of the Philippine Islands (BPI) issued the following statement yesterday on the Corona impeachment trial:

“Banking has always been built on trust. Through the years, we have built and sustained the trust of our customers because of our adherence to the time-honored banker and depositor confidentiality within the boundaries of law. Thus, only when the law expressly permits will we be able to make a comment on the alleged dollar accounts.”

AMLC helped in GMA’s case

Morales said the AMLC assisted the Office of the Ombudsman in the complaints filed against former President Gloria Macapagal-Arroyo.

Senate President Pro Tempore Jinggoy Estrada brought up the name of Arrroyo as a “high-profile respondent” who has cases before the Office of the Ombudsman.

Morales said the AMLC provided her office with the financial transactions of the Arroyo on their own initiative.

“I think, on the contrary, it was they who furnished us,” she said.

“Assistant Ombudsman (Joselito) Fangon says there is no request, neither is there a transmittal.”

Two cases against Arroyo have already been dismissed, Morales said.

Morales testified the other day that she sought the assistance of the AMLC in her investigation of Corona and that she was provided with information about the financial transactions of Corona in several financial institutions.

AMLC executive director Vicente Aquino himself turned over the documents to her, she added.

Morales said with the help of the Commission on Audit they were able to analyze the data from the AMLC and determine that Corona kept a total of $10 million in several banks and financial institutions over a period of eight years.

She has the power to seek the help of any government agency in the performance of her function of investigating public officials for graft and corruption, she added.

Senators Estrada, Ferdinand Marcos Jr. and Joker Arroyo were among the senators who expressed concern that certain laws like those related to bank secrecy could be circumvented at the mere request of the Ombudsman for information from the AMLC.

Foremost among the concerns was that the administration could use this as a tool to harass opponents.

Estrada told Morales that he was concerned that the administration could use the Office of the Ombudsman and the AMLC in looking into their bank accounts and possibly freezing them.