The rule of law and bank secrecy

I don’t know if many read the article purportedly from Wikileaks that the US government had criticized Philippine laws and local court rulings that block investigation and prosecution of suspected corrupt government officials.

It was said to be an unclassified cable 08MANILA622, dated March 12, 2008 and sent by then Ambassador Kristie Kenney to the US Secretary of State who said “anti-corruption efforts in the Philippines were being hampered by local institutions themselves.”

Isn’t it an artful coincidence that this leak should be published at the same time that the SC stops the subpoena on dollar accounts of CJ Renato Corona at PS Bank?

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But how is bank secrecy dealt with in America? Let us hear from Robert Goulder’s article :“US Bank Secrecy is Alive & Kickin’”

“American taxpayers are basically on the honor system when it comes to declaring income from hidden Swiss bank accounts. US politicians pitch a fit when Americans take advantage of foreign bank secrecy rules to conceal income from the IRS — and rightfully so — yet we do the same thing to other countries?

Apparently the US government’s indignation over bank secrecy is, shall we say, selective.

We object to bank secrecy when another country (i.e., Switzerland) erodes our tax base and prevents us from taxing our own citizens, yet we do precisely the same thing to every other country (other than Canada).

Why does Congress tolerate US bank secrecy?

Simple: our banks need the money.

My purpose here is not to defend Switzerland or UBS account holders who knowingly violate US law. It’s merely to point out a glaring double standard when I see it.” Hmm. This is food for thought.

There were other aspects that the framers of the bank secrecy law must have considered. Like the US bank secrecy whether rightly or wrongly is practiced in the US as well because the banks need the money. If US banks need the money it would be hypocritical to say that the Philippine banks do not need the money. But there you are, the ugly head of double standard again rearing its head.

It is a matter of concern that an impeachment hearing that was called for by 188 congressmen without reading the reasons for impeachment for dubious reasons like huge pork barrels and other bribes should now take the moral high ground and earn their pay at the expense of the country’s banking system.

I think the business community should take heed on what is happening. The Philippine banking system is being made a casualty in burning the Philippine house to impeach CJ Renato Corona.

We are all praises for Philippine Savings Bank president Pascual Garcia III who unlike the prosecution congressmen knows and understands what his duty is under the law. The rule of law is paramount.

Garcia referred time and again to the Foreign Currency Deposit Act (Republic Act No. 6426). Section 8 states: “All foreign currency deposits authorized under this Act are hereby declared as and considered of an absolutely confidential nature and, except upon the written permission of the depositors, in no instance shall … be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or private. If the prosecutor congressmen or the senator-judges want Garcia to accede to their demands, then they will have to change the law first.

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The issue yet again as it has been from the very beginning of the impeachment trial is whether we should protect the rule of law. It supersedes any other consideration if we are to preserve democracy in the Philippines.

Therefore we should vigorously oppose and denounce the prosecution for acting as a quasi judicial body to compel banks to reveal deposit documents, both peso and foreign currency, without the express and written consent of the depositor.

Thankfully the Supreme Court issued an indefinite temporary restraining order on the subpoena issued by the impeachment court on the alleged dollar accounts of Chief Justice Renato Corona in Philippine Savings Bank. The TRO that SC issued was on PSBank’s separate petition that sought to prevent violation of the law and protect its 600,000 depositors, sources said.

By doing so the Supreme Court exercised its mandate in the Constitution to interpret the law and protect it from the vagaries of politics.

At press time I was told that the chief prosecutor, Congressman Niel Tupas also banks with the same branch. It may be that there was no need for the “little woman” to come along to bring the envelope.

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The Supreme Court’s TRO against the Senate tribunal was defended by Fr. Joaquin Bernas. It has less to do with whether or not CJ Corona has deposits in a bank or any bank for that matter. The issue is about the mandate of the Supreme Court under the Constitution.

He said that the SC has the power to enjoin actions and rulings of the Senate sitting as impeachment court if found to be against the Constitution. It may review interlocutory orders of the impeachment trial and enjoin those it found to be issued with grave abuse of discretion.

“The SC can come in when needed to determine the meaning of the law. This does not mean superiority of the SC over the other departments. All it means is that the Constitution has placed in the SC the power to determine with finality the meaning of the law,” Bernas told the Philippine Constitutional Assembly.

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While politicians burn the Philippine house, ordinary Filipinos are moving heaven and earth to help the victims of the earthquake in Negros Oriental. Louie Sarmiento, head of the Philippine Mine Safety and Environment Association (PMSEA) texted this column:

Ten minutes ago, PMSEA’s Pusong Minero team from Apex Mines recovered one body in Barangay Solongon, La Libertad. PMSEA Director Roger Casido, PR Officer Bojo Sta. Maria and I were accompanied by La Libertad Mayor Lawrence Limkaichong to Solongon. Our geologists from the Mines and Geosciences Bureau (MGB) Region 7 and University of the Philippines National Institute of Geological Sciences (UPNIGS) are doing geohazard assessment.

Meanwhile, PMSEA’s Portable Water Filtration System (PWFS) is supplying 30 gallons per minute of drinking water at Guihulngan.

For those who want to help earthquake victims in Vallehermosa, please get in touch with Tess Lopez at 0917-8971567.