AMLC extends freeze order on Powergen accounts, properties

MANILA, Philippines - The Anti-Money Laundering Council (AMLC) has extended for three months its freeze order on the bank accounts and properties of Power Generation Trading Corp. (Powergen) and its officials, who were accused of being involved in a multi million-peso investment scam.

The AMLC issued the order after the Court of Appeals (CA) has granted its request for extension pending the completion of its investigation on Powergen accused of money laundering activities.

The CA allowed the request to allow the AMLC to conclude its investigation on Powergen “in view of leading either to the exoneration or prosecution of responsible persons for anti-money laundering activities.”

The CA, however, reminded the AMLC that it will no longer extend the freeze order beyond May 19, 2009, citing a Supreme Court circular that a freeze order may only be extended not exceeding six months.

The AMLC on Feb. 3 filed an urgent motion for an extension of the freeze order saying they are not yet ready to file criminal charges for money laundering against the officials of Powergen as it has yet to conclude its investigation on their bank accounts and motor vehicles.

The AMLC said the delay in the investigation was due to a recent SC ruling declaring that an application for bank inquiry cannot be made ex parte, citing an application for bank inquiry before the Manila Regional Trial Court last November to fully examine the subject bank accounts and the other web of accounts related to the case.

The Office of the Solicitor General said it has to ensure the due service of summons to the respondents, which has caused the delay in the bank inquiry.

The AMLC said the extension for another three months of the freeze order is necessary to prevent the “withdrawal, removal, transfer, concealment and/or disposition” of the accounts and motor vehicles pending the completion of its investigation.

The Department of Justice (DOJ) has filed a P512.2-million syndicated estafa case against Powergen officials led by Rudy Enrique Olalia before the Manila RTC. Powergen is registered as a company that retails petroleum products.

The AMLC also sought to forfeit the motor vehicles of the company, namely Olalia’s Porsche Cayenne, Chrysler Town & Country, and BMW motorcycle; Lourdes Olalia’s Mazda Tribute; Janet Alfaro’s Mitsubishi Outlander; and Angelo David’s Toyota Vios and Honda Civic.

Powergen was accused of allegedly soliciting fuel orders from customers like bus companies and shipping lines that were buying on credit.

Powergen allegedly failed to fulfill its obligations to their clients, prompting them to file charges.