Operation Big Bird

This article is part of a series on the
politics and government of
the Philippines
  • Philippines portal

"Operation Big Bird" was the attempt of the Philippine Government during the presidency of Corazon Aquino to recover the alleged US$ 7.5 billion of hidden accounts and assets of President Ferdinand Marcos and his family in the Swiss banks.[1][2] Conceived by Philippine banker Michael de Guzman, it commenced shortly after Marcos was forced into asylum in the United States.[3] Initially, Operation Big Bird did not recover any money with two differing reports by Representative Victorio Chaves and Senator Jovito Salonga. Chaves laid the blame upon Salonga, Solicitor-General Sedfrey Ordoñez and the Swiss bank lawyers.[3] Salonga countered that Ordoñez had prevented the Philippine government from losing a large sum of money.[3] Evidence suggests that de Guzman acted in good faith on behalf of the new government but that a double cross may have been present.[3]

Background

  Countries that dealt with the Marcos wealth and assets
  Republic of the Philippines

After Ferdinand Marcos fled the Philippines, President Aquino's Executive Order No. 1 on February 28, 1986, created the Presidential Commission on Good Government (PCGG). The mandate of the PCGG was to recover all the ill-gotten wealth of Ferdinand Marcos, his family, relatives, associates, and cronies. Salonga was called to head the PCGG.

Operation Big Bird began when Filipino banker and Chairman of Credit Manila, de Guzman, contacted the Aquino administration and offered his services to recover the Marcos' wealth in the various banks in Switzerland and other countries. De Guzman then was put in touch with Brigadier General Jose T. Almonte and Charlie Avila.[4]

The banks, financial institutions and other companies that dealt with the Marcos wealth and assets were held in various countries, namely:[4][5]

Timeline of Marcos wealth and Operation Big Bird

Pre-EDSA Revolution

Post-EDSA Events & The Lebanese Connection

The Credit Suisse Building in Zurich.

The Power of Attorney from the Marcoses

Initial attempt in Switzerland

Operation Big Bird under the Philippine Government

Second attempt with the Philippine Government

The former office of the Exportfinanzierungsbank along Prinz Eugen Strasse in Vienna.

Aftermath

Almonte receives a call from Malacañang on December 24, 1986, and was called for a meeting with the President to debrief her on what actually happened in Switzerland and Austria.[7] The meeting was confirmed by Ms. Ching Escaler, Aquino's Appointments Secretary (and later Philippine Ambassador and Permanent Representative to the UN in Geneva and New York) on December 29, 1986. Almonte arrived with De Guzman in Malacañang, and was met first by Executive Secretary Joker Arroyo who stalled the two along with Justice Secretary Ordoñez from meeting the President.[7][13]

Meanwhile, on October 21, 1988, a US Federal Grand Jury in New York indicts Ferdinand and Imelda Marcos for a US$ 268 million racketeering scheme, siphoning the Philippine Treasury of US$ 103 million, and defrauding US banks of US$ 165 million. By November 3, Imelda returns to Hawaii after Doris Duke posted a US$ 5 million bail.[9]

The Philippine Government thus lost its chance to recover the money in the Marcos Swiss accounts through 'Operation Big Bird. The whole fiasco was then brought into light by the Philippine House of Representatives' Committee on Public Accountability in mid-1989, under the Chairmanship of Cong. Victorico "Concoy" Chaves (2nd District, Misamis Oriental).[11]

The Chaves Report suggested that the Philippine Government would have immediately recovered the $213 million in July 1986 from Credit Suisse and its affiliates had the operation not been stopped by PCGG Chairman Salonga and Solicitor-General Ordoñez, and that this would have "paved the way to the recovery of the other deposits of the Marcoses with the Swiss banks" which was estimated by the Chaves Report to be at least $3 billion.[11]

On the side of De Guzman and Gen. Almonte however, they also lay the blame on Executive Secretary Joker Arroyo, and Philippine Ambassador to Bern, Luis Ascalon, aside from Ordoñez and Salonga.[2] Jovito Salonga, who by 1989 was already the Senate President, and Ordoñez who became Justice Secretary, have fully denied these accusations.[16][17]

The Chavez Report also rejected the view of the Swiss attorneys and PCGG Chairman Jovito R. Salonga that they had saved the Philippine Government from a massive theft. It concluded that if the funds were remitted to the Vienna bank to the account of Philippine government, whose authorized joint signatories were Solicitor-General Ordoñez and Gen. Almonte, there was no realistic chance that De Guzman would have stolen the money. In addition to this the Exportfinanzierungsbank in Vienna was also strictly regulated by the Austrian Federal Market Authority (FMA), and that the bank's board even had Almonte, Ordoñez, and Amb. Alejandro Melchor - ensuring the Philippine government's interest in the bank protected. And finally, De Guzman expected to receive a commission of $40 million (i.e. a 20% commission on the $213 million) if the monies were recovered, and thus he had an interest in ensuring that recovery did take place.[11]

On December 20, 1990, the Federal Supreme Court of Switzerland decided that the US$ 213 Million along with other banking documents should be transferred to the Philippine government, with conditions however.[18]

On August 10, 1995, the PCGG filed with the District Attorney in Zurich, Switzerland, an additional request for the immediate transfer of the deposits to an escrow account in the Philippine National Bank (PNB). The request was granted. On appeal by the Marcoses, the Swiss Federal Supreme Court, in a decision dated December 10, 1997, upheld the ruling of the District Attorney of Zurich granting the request for the transfer of the funds. In 1998, the funds were remitted to the Philippines in escrow.[6]

On December 10, 1997 under the Swiss Federal Act of International Mutual Assistance in Criminal Matters (IMAC), the Swiss Federal Supreme Court, issued the final decision to transfer the fund to the Sandiganbayan which now grew to US$ 540 Million due to interest.[18]

Also in 1997 the Philippine Senate's Blue Ribbon Committee and the House of Representatives' Committee on Good Government, would again review the saga of Operation Big Bird, with the same conclusion. Aquino's Vice President, Salvador Laurel would reflect that this their administration's greatest failure.[19]

Starting April 1998 up to July of that year, the Swiss authorities started transferring the identified Marcos money in Swiss banks to an escrow account in the PNB.[20]

On July 29, 1999, Sandiganbayan Presiding Justice Francis E. Garchitorena denies the motion to release US$ 150 million from the funds to pay Marcos human rights victims.[6][21]

On October 27, 1999, the Senate Blue Ribbon Committee held a special hearing in the Philippine Consulate in Honululu. In the hearing, businessman Enrique Zobel testified that in early 1989, he met with Marcos as he was for asking a US$ 250 million loan from him. Zobel in turn, refused it unless there was a financial backing. Marcos later produced documents of a Vatican trust in gold accounts to pay off the loan.[22]

On February 4, 2004, the Marcos money which now grew to US$ 683 million, was finally transferred by PNB to the Bureau of the Treasury.[18][23][24]

According to the Agrarian Reform Law, part of the retrieved Marcos wealth will be utilized for the government's agrarian reform program, and the remaining part for the compensation of the victims of the Marcos dictatorship. Once all pending legalities were settled regarding the US$ 683 Million in escrow, the fund was finally transferred to the Department of Agrarian Reform and Department of Agriculture.

However, by 2005, the Philippine Center for Investigative Journalism (PCIJ) reports that the portion of the money was diverted by the Arroyo administration for the President's campaign during the 2004 elections.[25] This led to Senate Blue Ribbon Committee inquiry concluding that Pres. Arroyo mismanaged the fund - which then became known as the Fertilizer Fund scam.[26][27]

See also

References

  1. "Manila Standard Today - Latest News in the Philippines". Retrieved 19 April 2015.
  2. 1 2 "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  3. 1 2 3 4 Peter, Lamour; Nick Wolanin (May 2001). Corruption and anti-corruption. Google Books. pp. 104–106, 251, 260. ISBN 978-0-7315-3660-3. Retrieved 31 May 2010.
  4. 1 2 3 4 5 6 7 8 9 10 11 12 Marcos Chronology Report
  5. Dunlap, David W. (January 13, 1991). "Commercial Property: The Bernstein Brothers; A Tangled Tale of Americas Towers and the Crown". The New York Times. Retrieved 12 June 2010.
  6. 1 2 3 "Rep of the Phil vs Sandiganbayan : 152154 : July 15, 2003 : J. Corona : En Banc". Retrieved 19 April 2015. line feed character in |title= at position 72 (help)
  7. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  8. 1 2 "Phoenixmaterials.org" (PDF). Retrieved 19 April 2015.
  9. 1 2 Efforts to Recover Assets Looted by Ferdinand Marcos of the Philippines
  10. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  11. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Tracking the Proceeds of Organized Crim - The Marcos Case
  12. Letter of Jovito Salonga to Pres. Gloria Macapagal Arroyo, January 30, 2006
  13. 1 2 3 4 "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  14. "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  15. 1 2 "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  16. "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  17. "Manila Standard - Google News Archive Search". Retrieved 19 April 2015.
  18. 1 2 3 "Today's Newspaper - The News International". The News International, Pakistan. Retrieved 19 April 2015.
  19. From the lips of dying President
  20. "Supreme Court: Bankruptcy Proceedings". Retrieved 19 April 2015.
  21. "The Manila Times Online - Trusted Since 1898". The Manila Times Online. Retrieved 19 April 2015.
  22. "DEPOSITION OF MR. ENRIQUE J. ZOBEL". Senate of the Philippines. October 27, 1999. Retrieved 12 June 2010.
  23. $683M still in escrow at PNB, Malacañang assures
  24. PNB given until Feb. 2 to remit $683-M funds
  25. "Billions in Farm Funds Used for Arroyo Campaign". Retrieved 19 April 2015.
  26. "Sandbagging the opposition". Retrieved 19 April 2015.
  27. "Senate links Arroyo to fertilizer fund scam". Retrieved 19 April 2015.

External links


This article is issued from Wikipedia - version of the Wednesday, April 27, 2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.