Sandiganbayan forfeits Ferdinand Marcos account

MANILA, Philippines - The Sandiganbayan yesterday ordered the forfeiture of another $35 million in Marcos money in the US after ruling that it formed part of the ill-gotten wealth acquired by former President Ferdinand Marcos during his rule.

The anti-graft court’s Special Division, in a 54-page decision, said all assets, investments, securities, properties, shares, interests and funds of Arelma Inc. managed by Meryll Lynch Asset Management in New York are being forfeited in favor of the Philippine government.

Records show that the account was opened in September 1972, and in 1983 its value was placed at $3.3 million but because of interests accrued, the Philippine Commission on Good Government (PCGG) and the Office of the Solicitor General (OSG) believe that it is now worth some $35 million.

The Sandiganbayan ordered the forfeiture of the Arelma account as it granted a motion for summary judgment of the case filed in May 2005 based on the argument that the assets of the so-called Marcos foundation “are grossly disproportionate to the lawful income” of former president Marcos and his wife Imelda, which was only $304,372.43.

The court said the value of the Arelma account when it was opened “is almost ten times the amount” which the spouses legally earned during their stay in power.

The PCGG and the OSG were able to establish that the Marcoses own the account based on Malacañang documents, like letters that informed the former president of the value of the account in 1983.

In their effort to block the grant of summary judgment, Mrs. Marcos, her son Ferdinand “Bongbong” Marcos Jr., and daughters Ma. Imelda “Imee” Marcos-Manotoc and Irene Marcos-Araneta raised a number of legal issues and arguments to convince the court to dismiss the motion.

Bongbong said they are not even the owners of the funds in the Arelma account and that there is no basis to determine their legitimate incomes and earnings considering how his father’s properties or income acquired before he became president were not even counted.

Mrs. Marcos said the grant of summary judgment will violate their rights to due process because the respondents will not be allowed to present evidence to rebut the “presumption of unlawful acquisition.”

In response, the Philippine government said the Marcoses are merely rehashing arguments that were already presented before the Supreme Court in the Republic versus Sandiganbayan and the heirs of former president Marcos which settled the issue of the legitimate income of the former president and his wife with finality.

The PCGG and the OSG stood firm on its claim that it has already established the presumption that the dollar account deposits were unlawfully acquired.

In their decision, Special Division Chairman Norberto Geraldez and Associate Justices Efren de la Cruz and Teresita Diaz-Baldos sided with the Philippine government and ruled that the forfeiture of the Arelma assets on summary judgment is justified.

 “While disclaiming ownership of Arelma Inc., they (Marcoses) do not deny control and beneficial interest over its assets, funds, and investments,” the anti-graft court noted.

Meantime, an attorney who filed a notice of appeal in the case Wednesday confirmed that various claimants to the money are seeking an accounting from US District Judge Manuel Real on how the assets were managed while the case was wending its way through the courts, ultimately winding up at the US Supreme Court.

Lawyer Charles Rothfeld of Washington, who handled the high court case, said Thursday that the appellants have asked Real for an accounting but were given a one-page document which is “incomprehensible and gives no idea of what happened to the money.” He said there is a reference to about $5 million in disbursements but no explanation of what those may be.

The 85-year-old Real, based in Los Angeles, was temporarily sitting at a federal court in Hawaii when he made decisions in the case and the funds were held by the court there during the litigation.

Without an accounting from Real, Rothfeld said it’s impossible to ascertain whether the $35 million was invested and has grown and if so, how much remains. With AP