Consolidating gains

As a general rule, we do not discuss work-related and provide personal greetings in this column.  But for those who have been regularly following us for the last five years, they are familiar with the exception to that rule which is when the birth anniversary falls on a Saturday. Today happens to be the “birthday” of the Presidential Commission on Good Government (PCGG).  Twenty-nine years ago, it was created by President Corazon C. Aquino by virtue of Executive Order Nos. 1 and 2), making it the first official act of the new government – predating the present Philippine Constitution. It was the original anti-corruption agency preceding the Office of the Ombudsman (1987) and even the United Nations Convention against Corruption (2005).

 The PCGG is primarily tasked to recover the ill-gotten wealth amassed during the Marcos regime with estimates ranging from $5 to $10 billion, according to former UP President Jose Abueva’s foreword in Jovito Salonga’s (the first PCGG Chairman) book entitled Presidential Plunder.

Through the years, the PCGG has been subjected to criticisms relating to its perceived failure to deliver on its primary mandate. To be fair, the agency did not have a template to follow. Looking for, seizing and managing ill-gotten assets was not a straightforward endeavour. There were no anti-money laundering laws at that time and bank secrecy legislation remained sacred. Moreover, internal challenges and external variables such as technical rules and the structural flaws of our judicial system frustrated its recovery efforts. Negative perceptions of corruption and incompetence weighed down an institution which started out with so much promise.

From April 1986 to 31 December 2014, it has recovered a total of P168.6 billion (approximately $4 billion) while spending approximately P3 billion. For 2014, PCGG remitted P1.58 billion to the National Treasury on an annual budget of P106 million. This translates to a cost/recovery ratio of P1 to P14. The amount recovered from 1986 to 2010 was P92.5 billion while under the present Aquino administration, the PCGG was able to recover P72.2 billion. It still oversees approximately P15 billion of assets that are up for privatization with another P35 billion in assets still tied up in litigation.

In addition, 3000+ hectares of agricultural lands in Laguna, Cavite and Biliran were transferred to the Department of Agrarian Reform which were distributed to farmer-beneficiaries.

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Outside the Philippines, the efforts of the Commission have been lauded as among the most important asset recovery cases. The successful recovery of the Swiss deposits – $659 million in 2001 and $29 million in 2014 – led to the enactment of stricter anti-money laundering laws worldwide. Indeed, the Philippine experience in recovering ill-gotten wealth served as the genesis of the global asset recovery agenda.

P10 billion from the recovered Swiss deposits has been set aside for the specific purpose of providing compensation to the martial law victims of human rights violations pursuant to the Human Rights Victims Reparation and Recognition Act of 2013.

In 2012 and 2013, the PCGG received the distinction as the best performing agency among the 11 attached agencies under the DOJ. For instance, in 2012, it surpassed the priority targets of its key result areas by 10,000%. It is again on track to pull a “three-peat” in 2014.

Yet, despite all these positive outcomes, challenges still abound. The Commission is still litigating more than 260 cases in various courts, with most cases dating back to the late ’80s. Indeed, the slow grind of the Philippine justice system has delayed the resolution of its recovery efforts.

Fairly recent, the Commission scored significant progress to recoup the expensive yet highly movable and easy to conceal artworks and paintings. PCGG provided key testimonial and documentary evidence to the New York District Attorney’s Office which helped secure the conviction of one of former First Lady Imelda Marcos assistants, Ms. Vilma Bautista. This represents an important victory as it serves to deter art collectors from purchasing artworks stolen from the Philippine government. PCGG is now working to recover the proceeds and assets which were confiscated from Ms. Bautista.

Last October, the Sandiganbayan Sheriff, together with the PCGG, Office of the Solicitor General and the National Bureau of Investigation, seized 15 paintings in compliance with the Writ of Attachment issued by the Court. The paintings are currently stored at the National Museum for safekeeping.

Last November, PCGG, in collaboration with the Federal Department of Foreign Affairs of the Swiss Confederation, hosted the Asia-Europe Meeting (ASEM) International Experts’ Workshop on Stolen Assets and Hidden Wealth which was attended by 140 representatives from 20 countries. This served as platform for the Commission to further its oft-overlooked mandate to pursue the “adoption of safeguards to ensure that [graft and corrupt practices] shall not be repeated in any manner.”

As the Commission commemorates its 29th anniversary, it seeks to consolidate the gains it has achieved thus far. It believes that documenting these gains are essential imperatives if we are to avoid committing mistakes of the past. Thus, the duty to prevent corruption must be institutionalized and complemented with concrete actions that promote good governance by and among the nation’s stakeholders, a call to action that must resonate with our post-EDSA youth who must take on these challenges as their own. Indeed, to those too young to remember, it is not yet too late to know. To those old enough to have known, it is too late to forget.

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Greetings: Birth anniversary best wishes to Pasig City Representative Roman Romulo. And while his birth day was yesterday, let me make an exception in greeting 98 years young pioneer stockbroker Alex Trinidad De Castro. The Donato family is looking forward to your centennial celebration!

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“Don’t explain your philosophy. Embody it.” – Epictetus

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Email: [email protected]