Jinggoy bats for amendment of foreign currency deposit law

MANILA, Philippines - Sen. Jinggoy Estrada yesterday proposed to amend the law on foreign currency deposits in the country and allow the opening of accounts upon order of an impeachment court.

A senior administration lawmaker at the House of Representatives also filed a similar proposal seeking to allow the courts, the Ombudsman and the impeachment court “to examine, inquire or look into the foreign currency deposits of all public officials and employees or when the account is the subject matter of litigation.”

Estrada filed Senate Bill 3120, introducing an amendment to the four-decade old Republic Act 6426 to include the “order of an impeachment court or any competent court on cases involving public officials charged with violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act” as exception to the confidentiality clause of the law.

The proposed amendment further provides that probable cause should be established that the foreign currency deposit involved is directly related to the cause of action in the complaint.

“The said law is being used as an excuse and as a refuge to hide alleged illegally acquired wealth of public officials and employees,” Estrada said in the bill’s explanatory note.

The measure seeks to cover accounts of all public officials, including those identified as impeachable officers, who may have engaged in corrupt and other criminal activities.

Camarines Sur Rep. Salvio Fortuno, on the other hand, filed House Bill No. 5838 seeking to prevent criminals and corrupt officials from using foreign currency deposit units (FCDUs) as a haven for their stash.

In filing the bill, Estrada cited recent developments during the impeachment trial of Chief Justice Renato Corona on the issues raised on the secrecy of certain bank accounts and the need to promote transparency and accountability in government.

RA 6426, otherwise known as “An Act Instituting a Foreign Currency Deposit System in the Philippines,” was enacted into law in 1974.

The law declares that all foreign currency deposits are considered of absolutely confidential nature, except upon the written permission of the depositor.

The law also states that in no instance shall foreign currency deposits be examined, inquired or looked into by any person or government office whether judicial, administrative or legislative, or any other entity.

Article XI (Accountability of Public Officers) of the 1987 Constitution provides that the president, the vice president, the members of the Supreme Court, the members of Constitutional commissions, and the Ombudsman may be removed from office through impeachment.

Estrada explained that the bill aims to discourage private individuals who may intend to hide their unlawful deposits by converting their illegal income into foreign currency deposits.

Fortuno, for his part, said a possible constitutional crisis was averted when the Senate impeachment court voted to respect the temporary restraining order (TRO) on the subpoena of the supposed dollar accounts of Corona.

He said there is a need to review RA 6426 in light of the TRO issued against opening up the accounts of Corona.

“The Foreign Currency Deposit Act has provided and will effectively provide a safe haven for corrupt public officials and criminals since they could escape liability for the wrongful acts by merely converting their loot to a foreign currency and depositing it a foreign currency deposit account beyond the reach of the authorities,” Fortuno said.

He expressed confidence the measure will get the support of his colleagues who have pushed for Corona’s impeachment.

Fortuno, who is also a signatory to the Articles of Impeachment, said the bill would amend RA 6426. – With Paolo Romero