Cash rewards for hidden wealth informants eyed

Senate President Aquilino Pimentel Jr. is urging the incoming 12th Congress to approve the grant of cash rewards to persons and entities that will provide information leading to the recovery of the alleged ill-gotten wealth of the Marcoses and their cronies.

Pimentel filed Senate Bill No. 828 that will authorize individual informants to get five to 10 percent and juridical informants 15 percent of plundered wealth that is actually recovered by the government through information they have supplied.

In batting for the incentive scheme, he noted that the government has not been successful in recovering the billions of dollars of ill-gotten Marcos wealth that are reportedly deposited in banks in Switzerland, Hong Kong and other countries.

"Perhaps, by adopting a system of reward for those who provide the government with credible and relevant information on the whereabouts of the Marcos hidden or ill-gotten wealth, the people might just get their hands on it sooner than later," Pimentel said.

Based on the Pimentel bill, financial rewards will be granted to qualified informants as follows:

For individual informants:

1. Ten percent of any amount recovered of less than $1 million or its equivalent in pesos.

2. Seven percent of any amount recovered that is $100 million or more but is less than $500 million or its equivalent in pesos.

3. Five percent of any amount recovered that is $500 million or more or its equivalent in pesos.

For juridical informants, 15 percent of any amount recovered.

The cash rewards will be tax-free.

Explaining why the reward is higher for institutional or corporate informants, Pimentel said "this is purposely intended to encourage depository banks, foreign or local, holding the stolen wealth, to come forward and report the ill-gotten hoards in their vaults."

Some 15 years after the creation of the Presidential Commission on Good Government (PCGG) in 1986, he said the search for the so-called Marcos loot has brought in only minimal results in relation to the amount sought to be recovered.

In the case of the alleged billions of dollars of alleged Marcos deposits in Switzerland and nearby European countries, Pimentel said the bank accounts were found to have been in the names of fictitious persons, relatives, cronies trustees or agents, making it difficult to track down and recover the tainted money.

"The bank deposits were hidden in layers upon layers of foundations or trust accounts that serve as formidable legal covers for the beneficial owner, Mr. Marcos himself or the immediate members of the family," the Senate President said.

Under SB 825, cases for the recovery of ill-gotten wealth may be filed by qualified informants with any regional trial court or with the Sandiganbayan at their option.

The bill also grants immunity from suit to informants.

However, the bill imposes penalties to any bank, financial institution, foundation or corporation or any of its officers and employees who shall fail to inform the PCGG of the existence of ill-gotten assets or properties of the Marcoses or their associates that are being held or managed by them.

The penalties will be in the form of fines, imprisonment or forfeiture in favor of the government of the plundered wealth or assets that the entities or officials/employees have failed to disclose.