Operation Big Bird
Encyclopedia
"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
. Conceived by Philippine banker Michael de Guzman, it commenced shortly after Marcos was forced into asylum
in the United States
. 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. Salonga countered that Ordoñez had prevented the Philippine government from losing a large sum of money. Evidence suggests that de Guzman acted in good faith
on behalf of the new government but that a double cross
may have been present.
(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.
The banks, financial institutions and other companies that dealt with the Marcos wealth and assets were held in various countries, namely :
in Geneva and New York
) on December 29, 1986. Almonte arrived with De Guzman in Malacanang, and was met first by Executive Secretary Joker Arroyo
who stalled the two along with Justice
Secretary Ordoñez from meeting the President.
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.
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).
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.
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. Jovito Salonga, who by 1989 was already the Senate President, and Ordoñez who became Justice Secretary, have fully denied these accusations.
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 $213 million) if the monies were recovered, and thus he had an interest in ensuring that recovery did take place.
On December 20, 1990, the Federal Supreme Court of Switzerland
decided that the US$ 213 Million along with other banking documents should be transferred to the Philippine government, with conditions however.
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.
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.
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.
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.
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.
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.
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.
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
. This led to Senate Blue Ribbon Committee inquiry concluding that Pres. Arroyo mismanaged the fund - which then became known as the Fertilizer Fund scam
.
Corazon Aquino
Maria Corazon Sumulong Cojuangco-Aquino was the 11th President of the Philippines and the first woman to hold that office in Philippine history. She is best remembered for leading the 1986 People Power Revolution, which toppled Ferdinand Marcos and restored democracy in the Philippines...
to recover the alleged US$ 7.5 billion of hidden accounts and assets of President Ferdinand Marcos
Ferdinand Marcos
Ferdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
and his family in the Swiss banks
Banking in Switzerland
All banks in Switzerland are regulated by Swiss Financial Market Supervisory Authority , which derives its authority from a series of federal statutes...
. Conceived by Philippine banker Michael de Guzman, it commenced shortly after Marcos was forced into asylum
Right of asylum
Right of asylum is an ancient juridical notion, under which a person persecuted for political opinions or religious beliefs in his or her own country may be protected by another sovereign authority, a foreign country, or church sanctuaries...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. 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
Solicitor-General of the Philippines
The Office of the Solicitor General is the law firm of the Republic of the Philippines. It is tasked to represent the People of the Philippines, the Philippine Government, its Agencies and Instrumentalities, Officials and Agents in any litigation or matter requiring the services of a lawyer...
Sedfrey Ordoñez and the Swiss bank lawyers. Salonga countered that Ordoñez had prevented the Philippine government from losing a large sum of money. Evidence suggests that de Guzman acted in good faith
Good faith
In philosophy, the concept of Good faith—Latin bona fides “good faith”, bona fide “in good faith”—denotes sincere, honest intention or belief, regardless of the outcome of an action; the opposed concepts are bad faith, mala fides and perfidy...
on behalf of the new government but that a double cross
Double cross
Double Cross may refer to:In film and television:* Double Cross , a film by Albert H. Kelley* Double Cross , a Bollywood action film* Double Cross , a Bollywood film...
may have been present.
Background
After Ferdinand Marcos fled the Philippines, President Aquino's Executive Order No. 1 on February 28, 1986, created the Presidential Commission on Good GovernmentPresidential Commission on Good Government
The Presidential Commission on Good Government, PCGG, is a special body created by Pres. Corazon Aquino to recover ill-gotten wealth accumulated during the Marcos regime.-History:...
(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
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
and other countries. De Guzman then was put in touch with Brigadier General
Brigadier General
Brigadier general is a senior rank in the armed forces. It is the lowest ranking general officer in some countries, usually sitting between the ranks of colonel and major general. When appointed to a field command, a brigadier general is typically in command of a brigade consisting of around 4,000...
Jose T. Almonte
Jose T. Almonte
Jose T. Almonte was the former National Security Advisor and Director-General of the National Security Council in the Cabinet of Philippine President Fidel V. Ramos. He was also the head of the National Intelligence Coordinating Agency, the Director Economic Intelligence and Investigation Bureau ...
and Charlie Avila.
The banks, financial institutions and other companies that dealt with the Marcos wealth and assets were held in various countries, namely :
- SwitzerlandSwitzerlandSwitzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
- LiechtensteinLiechtensteinThe Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...
(for foundationsPrivate foundationA private foundation is a legal entity set up by an individual, a family or a group of individuals, for a purpose such as philanthropy. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets...
) - AustriaAustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
- Cayman IslandsCayman IslandsThe Cayman Islands is a British Overseas Territory and overseas territory of the European Union located in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica...
- VanuatuVanuatuVanuatu , officially the Republic of Vanuatu , is an island nation located in the South Pacific Ocean. The archipelago, which is of volcanic origin, is some east of northern Australia, northeast of New Caledonia, west of Fiji, and southeast of the Solomon Islands, near New Guinea.Vanuatu was...
(formerly New HebridesNew HebridesNew Hebrides was the colonial name for an island group in the South Pacific that now forms the nation of Vanuatu. The New Hebrides were colonized by both the British and French in the 18th century shortly after Captain James Cook visited the islands...
) - United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
- Hong KongHong KongHong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
- United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
- PanamaPanamaPanama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
(for trust companiesTrust companyA trust company is a corporation, especially a commercial bank, organized to perform the fiduciary of trusts and agencies. It is normally owned by one of three types of structures: an independent partnership, a bank, or a law firm, each of which specializes in being a trustee of various kinds of...
and real estateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
s) - MonacoMonacoMonaco , officially the Principality of Monaco , is a sovereign city state on the French Riviera. It is bordered on three sides by its neighbour, France, and its centre is about from Italy. Its area is with a population of 35,986 as of 2011 and is the most densely populated country in the...
- Bahamas
- Vatican CityVatican CityVatican City , or Vatican City State, in Italian officially Stato della Città del Vaticano , which translates literally as State of the City of the Vatican, is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, Italy. It has an area of...
- Netherlands AntillesNetherlands AntillesThe Netherlands Antilles , also referred to informally as the Dutch Antilles, was an autonomous Caribbean country within the Kingdom of the Netherlands, consisting of two groups of islands in the Lesser Antilles: Aruba, Bonaire and Curaçao , in Leeward Antilles just off the Venezuelan coast; and Sint...
(for real estateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
s in New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
)
Pre-EDSA Revolution
- July 7, 1967
- Marcos opened his first bank account in Chase Manhattan BankChase (bank)JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
in New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. He deposited US$215,000.00.
- Marcos opened his first bank account in Chase Manhattan Bank
- March 1968
- An official of Credit SuisseCredit SuisseThe Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
in ZurichZürichZurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
, Walter Fessler, was brought to ManilaManilaManila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
on the request of Malacanang. Forms were filled out and signatures appended. Marcos, on his signature verification form, wrote "William Saunders," an alias he had used in his World War IIWorld War IIWorld War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
days, and underneath that name he wrote his real name. Imelda MarcosImelda MarcosImelda R. Marcos is a Filipino politician and widow of 10th Philippine President Ferdinand Marcos. Upon the ascension of her husband to political power, she held various positions to the government until 1986...
did the same, choosing "Jane Ryan" as her pseudonym. Four bank accounts were opened. Four checks, totaling US$950,000.00 were given for the deposit.
- An official of Credit Suisse
- January 1, 1970
- Marcos makes a public announcement "admitting" that he is rich, and he gained his wealth on the discovery of the Yamashita TreasureYamashita's goldYamashita's gold, also referred to as the Yamashita treasure, is the name given to the alleged war loot stolen in Southeast Asia by Japanese forces during World War II and hidden in caves, tunnels and underground complexes in the Philippines. It is named for the Japanese general Tomoyuki Yamashita,...
.
- Marcos makes a public announcement "admitting" that he is rich, and he gained his wealth on the discovery of the Yamashita Treasure
- Sometime in 1982
- Credit Manila establishes its operations in ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
with the incorporation of Exportfinanzierungsbank GmbH.
- Credit Manila establishes its operations in Vienna
- Sometime in 1985
- Mike De Guzman makes acquaintance with Victor Bou Dagher in Vienna, a Lebanese national residing in AustriaAustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
who has some connections and acquaintances in the European banking network. De Guzman later introduces Dagher to Gen. Almonte in Manila in view of the news of Marcos hiding and moving their wealth in the Swiss banks. The group outlines their plans in capturing the Marcos money.
- Mike De Guzman makes acquaintance with Victor Bou Dagher in Vienna, a Lebanese national residing in Austria
- February 25, 1986
- The People Power Revolution brings the downfall of Pres. Ferdinand Marcos. Marcos, his family, and retinueRetinueA retinue is a body of persons "retained" in the service of a noble or royal personage, a suite of "retainers".-Etymology:...
, are taken by U.S. Air Force helicopters from the PSG Compound across the Pasig RiverPasig RiverThe Pasig River is a river in the Philippines that connects Laguna de Bay to Manila Bay. Stretching for , it is lined by Metro Manila on each side...
from Malacanang Palace, and are brought to Clark Air BaseClark Air BaseClark Air Base is a former United States Air Force base on Luzon Island in the Philippines, located 3 miles west of Angeles City, about 40 miles northwest of Metro Manila. Clark Air Base was an American military facility from 1903 to 1991...
. The next day they were flown to GuamGuamGuam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...
.
- The People Power Revolution brings the downfall of Pres. Ferdinand Marcos. Marcos, his family, and retinue
Post-EDSA Events & The Lebanese Connection
- February 26, 1986
- The Marcos party arrived in Honululu, HawaiiHawaiiHawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
, beginning their exile. U.S. Customs officers take 5 hours to go over the 278 crates that group brought along with them. Twenty-two crates contained more than Php27.7 million in newly minted currency, mostly hundred-peso denominations worth approximately US$1,270,000.00 - There were other certificates of deposit from Philippine banks worth about US$1 million, five handguns, 154 videotapes, seventeen cassette tapes, and 2,068 pages of documents - all of which were impounded by Customs. The Marcos party was allowed to keep only US$300,000.00 in gold and $150,000.00 in bearer bonds that they brought in with their personal luggage because they declared them and broke no US customs laws.
- There were 24 one-kilo gold bars fitted into a $17,000 hand-tooled GucciGucciThe House of Gucci, better known simply as Gucci , is an Italian fashion and leather goods label, part of the Gucci Group, which is owned by French company PPR...
briefcase with a solid gold buckle and a plaque on it that read, "To Ferdinand Marcos, from Imelda, on the Occasion of our 24th Wedding Anniversary."
- The Marcos party arrived in Honululu, Hawaii
- March 1, 1986
- De Guzman returns to Vienna and meets Dagher who updates him on the various reactions in the Swiss banking community regarding the recent developments in Manila. De Guzman begins to take action on how to transfer the money from the Swiss Banks to Austria.
- March 2, 1986
- De Guzman and Dagher fly to LebanonLebanonLebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
via CyprusCyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
to meet with some influential contacts in the European banking industry - BeirutBeirutBeirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...
being the banking capital of the Mediterranean basin.
- De Guzman and Dagher fly to Lebanon
- March 3, 1986
- At LarnacaLarnacaLarnaca, is the third largest city on the southern coast of Cyprus after Nicosia and Limassol. It has a population of 72,000 and is the island's second largest commercial port and an important tourist resort...
, De Guzman was finally able to get through to Gen. Almonte, who has been tied down with the recent changes in the government after his role in the EDSA Revolution, particularly the Reform the Armed Forces MovementReform the Armed Forces MovementThe Reform the Armed Forces Movement, also referred to by the acronym RAM, is a cabal of officers of the Armed Forces of the Philippines that attempted to seize power in the Philiipines during the 1980s and 1990s...
. Almonte informs De Guzman that he needs to get back to Manila to recommend him to Pres. Aquino for a possible appointment in the new government. De Guzman informs Almonte of his plans in Lebanon and promised to get back to him after his trip. - After arriving in JouniehJouniehJounieh is a Mediterranean coastal city about 16 kilometers north of Beirut, Lebanon. Jounieh is known for its seaside resorts, pubs, restaurants and nightclubs, as well as its old stone souk, ferry, and cablecar , which takes passengers up the mountain to the shrine of Our Lady of Lebanon in...
, De Guzman and Dagher met with fellow bankers who give him an idea on how IranIranIran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
was able to recover the frozen assets of the abdicated Shah in Switzerland. De Guzman was informed by the contacts that the Swiss banks will be moving the Marcos money to various financial institutions to safeguard the deposits and avoid a massive withdrawal - which the bankers alleged was a the dark practice of the Swiss banking systems even in little affairs such as marital divorceDivorceDivorce is the final termination of a marital union, canceling the legal duties and responsibilities of marriage and dissolving the bonds of matrimony between the parties...
. This brought forth the suggestion that De Guzman should go to Hawaii and meet with the Marcoses to get a Power of AttorneyPower of attorneyA power of attorney or letter of attorney is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter...
to withdraw the money in their behalf before the banks close in on the accounts. De Guzman claims he has no intimate associations with the Marcoses, but that his only contact would be Col. Irwin Ver, former Commanding Officer of the Presidential Security GroupPresidential Security Group- External links :*...
, and son of General Fabian VerFabian VerFabian C. Ver was a General and Chief of the Armed Forces of the Philippines under President Ferdinand Marcos...
. It was here where De Guzman and his associates started calling the plan "Operation Big Bird."
- At Larnaca
- March 12, 1986
- President Aquino passes Executive Order No. 2, freezing all Marcos assets in the Philippines.
- March 15, 1986
- De Guzman and Dagher return to Vienna, and was able to get the new contact details of Irwin Ver in Hickam Air Force BaseHickam Air Force BaseHickam Field, re-named Hickam Air Force Base in 1948, was a United States Air Force facility now part of Joint Base Pearl Harbor-Hickam, named in honor of aviation pioneer Lt Col Horace Meek Hickam.- History :...
in Hawaii through his in-Laws who were still in Manila.
- De Guzman and Dagher return to Vienna, and was able to get the new contact details of Irwin Ver in Hickam Air Force Base
The Power of Attorney from the Marcoses
- March 18, 1986
- De Guzman and Dagher arrive in Honolulu and meets Col. Ver and Gen. Ver. The meeting was mainly a personal one.
- March 19, 1986
- De Guzman and Dagher meets with the Vers once more and convinces them to raise the subject with the Marcoses on the Swiss banks freezing their accounts. Gen. Ver initially refuses as he says that this was a matter to Marcos alone and not himself, but De Guzman was able to convince the elder Ver.
- March 20, 1986
- De Guzman receives a call from Irwin Ver who confirms that a meeting has been arranged with the Marcoses - Ferdinand, Imelda and BongbongFerdinand Marcos, Jr.Ferdinand Romualdez Marcos, Jr. , also known as Bongbong Marcos is a Filipino politician and a senator to the 15th Congress. He is the only son of Ferdinand E. Marcos, the former president of the Philippines , and former First Lady Imelda Romualdez-Marcos...
- at their temporary lodging in the base housing inside Hickam AFB. - At the meeting, De Guzman shared the news that the Swiss banks will make a move on their account. Marcos wanted to confirm this information and sends Bongbong and De Guzman around 10:00 pm to Honolulu International AirportHonolulu International AirportHonolulu International Airport is the principal aviation gateway of the City & County of Honolulu and the State of Hawaii and is identified as one of the busiest airports in the United States, with traffic now exceeding 21 million passengers a year and rising.It is located in the Honolulu...
to call their personal banker in Credit Suisse, Ernst Scheller. The off-base call was made to avoid possible wire taps or listening devices. - Upon their return to the base housing, the Marcoses hold a family meeting where Bongbong updates the family on the teleconference. An hour later, Bongbong leaves with De Guzman for the airport once more, but this time the telephone operator refuses to give Bongbong the international connection. They return to the base housing, where De Guzman received a note from Imelda stating "Palmy Foundation" and a plastic bag containing traveler's chequeTraveler's chequeA traveler's cheque is a preprinted, fixed-amount cheque designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for that privilege.- Usage :As traveler's cheques can usually be replaced if lost or stolen A traveler's cheque...
s worth US$ 300,000.00.
- De Guzman receives a call from Irwin Ver who confirms that a meeting has been arranged with the Marcoses - Ferdinand, Imelda and Bongbong
- March 21, 1986
- De Guzman is called for a lunch meeting by Col. Ver. In the said meeting, Gen. Ver hands De Guzmanan Allied BankAllied BankAllied Bank, formally known as Allied Banking Corporation, is one of the largest banks in the Philippines, ranking tenth in terms of assets...
Hong Kong Cashier's checkCashier's checkA cashier's check is a check guaranteed by a bank. They are treated as guaranteed funds and are usually cleared the next day. It is the customer's right to request "next-day availability" when depositing a cashier's check in person...
worth US$ 150,000.00 from Lucio TanLucio TanLucio Tan is a prominent Chinese Filipino business magnate and is one of the most prominent business magnates in the Philippines...
, and requested the latter to clear the check and send the money back. De Guzman later admitted in the Philippine House of Representatives' investigation on Operation Big Bird that he didn't intend to return the money, but use it to fund the said operation. - Imelda produces the Power of Attorney and tasks Bongbong to hand this to De Guzman back at the hotel. Bongbong orients De Guzman on their contact in Credit Suisse, Ernst Scheller, and told him to get in touch with the gentleman once they enter Switzerland.
- De Guzman is called for a lunch meeting by Col. Ver. In the said meeting, Gen. Ver hands De Guzmanan Allied Bank
Initial attempt in Switzerland
- March 22, 1986
- De Guzman and Dagher leave Hawaii for Vienna, and proceed in securing their entry visas to Switzerland.
- March 24, 1986
- De Guzman flies with Dagher to Zurich to meet with Scheller and present the Power of Attorney to transfer the Marcos money to the Exportfinanzierungsbank in Vienna. They were initially informed by Scheller that the Swiss authorities have put a "freeze order" on all the accounts linked to the Marcoses, but failed to produce any formal documentation on this. Scheller also mentioned that he re-documented the records already and moved the accounts as instructed by Ms. Fe Gimenez, Marcos' personal secretary, three weeks before after their evacuation of Malacanang Palace. Without the formal notice of the freeze order, De Guzman suspects Scheller of stalling the transfer in protection of the interest of Credit Suisse and not the Marcoses.
- After the meeting, Scheller calls on the Swiss Federal Banking Commission that De Guzman was trying to transfer US$ 213 Million to Vienna. That very same evening the Banking Commission, in an unprecedented move, imposed an emergency freeze order on all the accounts of the Marcoses. This act was questioned later since the Banking Commission does not have the authority to freeze bank accounts.
- The Swiss Federal CouncilSwiss Federal CouncilThe Federal Council is the seven-member executive council which constitutes the federal government of Switzerland and serves as the Swiss collective head of state....
taking note of the confusion created by the Banking Commission's "freeze order" made a follow through act, and formalized the freeze order in anticipation of the new Philippine government's claim on the said accounts. The Aquino government welcomed the freeze order, and the PCGG hired three prominent Swiss lawyers Messr. Sergio Salvioni, Guy Fontanet, and Moritz Leuenberger, to handle its case. The said lawyers were recommended by Chief Justice of the Federal Supreme Court Otto Konstantin Kaufmann, who was the classmate of Salonga in Yale UniversityYale UniversityYale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
.
- April 18, 1986
- The Philippine government submitted an informal request to the Swiss authorities for mutual assistance in the recovery of the Marcos wealth.
- April 25, 1986
- The Government of the Philippines submits a follow-through formal request for mutual assistance to investigate and retrieve the ill-gotten wealth. The Swiss Federal Office of PoliceFederal Office of PoliceThe Federal Office of Police or fedpol of Switzerland is subject to the Federal Department of Justice and Police. It is responsible for the coordination between cantonal police corps and between Swiss and foreign police forces...
then issued a freeze order in substitution for the exceptional freezing order of the Federal Council.
- The Government of the Philippines submits a follow-through formal request for mutual assistance to investigate and retrieve the ill-gotten wealth. The Swiss Federal Office of Police
Operation Big Bird under the Philippine Government
- May 7, 1986
- Mike de Guzman attempts once more to retrieve the Marcos money in the Swiss accounts, by making Scheller acknowledge their personal meeting and the Power of Attorney. Scheller replied by telexTelexTelex may refer to:* Telex , , a communications network** Teleprinter, the device used on the above network* Telex , a Belgian pop group...
from Credit Suisse, but informs De Guzman that the freeze order is still in place. - De Guzman finally calls Gen. Almonte and updates him of his recent activities. Almonte on the other hand informed De Guzman that there are some parties in the new government who are have serious doubts on him as he had a reputation for being an associate of Danding CojuangcoEduardo Cojuangco, Jr.Eduardo Murphy Cojuangco, Jr. , also known as Danding Cojuangco, is the chairman of San Miguel Corporation, the largest food and beverage corporation in the Philippines and Southeast Asia, former Philippine ambassador, and former governor of Tarlac. In 2005, his personal wealth was estimated at...
, a Marcos crony. This prompts De Guzman to head to Manila to present his plans for Operation Big Bird to the new Philippine Government.
- Mike de Guzman attempts once more to retrieve the Marcos money in the Swiss accounts, by making Scheller acknowledge their personal meeting and the Power of Attorney. Scheller replied by telex
- June 16, 1986
- Back in Manila, Gen. Almonte arranges a meeting between De Guzman and the brother of Pres. Aquino, Congressman Peping CojuangcoJose Cojuangco, Jr.Jose Sumulong Cojuangco, Jr. , more popularly known as Peping Cojuangco, is a former Philippine Congressman and the current president of the Philippine Olympic Committee.-Personal life:...
(Tarlac, 1st District). De Guzman offered to help the Aquino government in retrieving the Marcos wealth in return for a fee of 20% commission on the initial batch of funds. De Guzman presented that they had identified accounts in Credit Suisse amounting to US$213 million, and eleven foundations that held a total of US$4.5 billion in deposits in nine different banks with an additional US$3 billion in precious metals and securities on deposit - or a tentative total of US$7.5 billion. And most of all, they had the Power of Attorney from the Marcoses. Cojuangco instructs Dr. Fernando Carrascoso, who was present in the meeting, to arrange for De Guzman's introduction to PCCG Chairman Jovito Salonga.
- Back in Manila, Gen. Almonte arranges a meeting between De Guzman and the brother of Pres. Aquino, Congressman Peping Cojuangco
- June 18, 1986
- Dr. Carrascoso informs De Guzman that Chairman Salonga was not available, and thus he was instead referred to Commissioner Raul Daza. The meeting was also attended by Mayor Charlie Avila. De Guzman briefs the gentleman on the plans of Operation Big Bird. Daza committed to get approval from Salonga.
- June 20, 1986
- Daza receives the approval from Salonga to head to Vienna, and he informs De Guzman right away. Plans are made for Avila, Daza, and De Guzman to head to Vienna on June 22 to meet up with Dagher and his associates.
- June 22, 1986
- Salonga changes his order a few hour before the group was to depart for Vienna, and informs Daza to stay in Manila for a court case. De Guzman was caught surprised by this sudden change and arranges for a meeting with Salonga at the latter's residence in Mandaluyong to plead the importance of the group's mission to Vienna. Salonga was hesitant, and tells De Guzman that he should instead coordinate with the PCGG's Swiss lawyers in Bern. Having no other recourse, De Guzman requests Salonga for a letter of introduction to Philippine Ambassador Luis Ascalon who would arrange for the meeting with the Swiss lawyers.
- De Guzman confers with Gen. Almonte once more and informs him of Salonga's decision, and pleads with the General to accompany him to Switzerland to give his mission an official basis. Almonte and De Guzman proceeds to Peping Cojuangco's residence and updates the Congressman on the meeting with PCGG and the change of plans. It was then decided to push through with the Operation, and De Guzman informs Dagher of their arrival by June 25.
- June 25, 1986
- Gen. Almonte receives a last-minute clearance from Executive Secretary Arroyo, and flies with De Guzman to Vienna where they meet Dagher and his associates, who then proceeds in orienting Almonte on the possible actions to take to retrieve the Marcos money identified in the Swiss banks. Almonte satisfied with the plan sends a telex to Peping Cojuangco.
- June 26, 1986
- De Guzman, Dagher, and Almonte fly to Bern where the group, through the arrangement made by Amb. Ascalon, met with PCCG lawyer Dr. Salvioni, who advises them that any request made by the Philippine Government must be signed by the Solicitor-General of the Philippines.
- After the meeting Dagher updates De Guzman that the Swiss banks have received the news of their arrival and thus they might take action in moving the funds. Taking this matter seriously, Almonte calls on Cojuangco to request Arroyo to authorize Ambassador Ascalon to file the official documents for the request of transfer in place of the Solicitor-General. Cojuangco connects Almonte to Arroyo directly, who confirms verbally that he will prepare the formal authorization for Ascalon. The group waits for two days in Bern without any follow through from Malacanang.
- June 28, 1986
- After losing two days in Bern, De Guzman and Almonte return to Manila with a sense of urgency and met up with Cojuangco, to give him a personal debriefing on the developments in Switzerland, and to activate the plan of the government to retrieve the plundered money in the Swiss banks. Cojuangco assessed the situation and weighed on the possibility of Operation Big Bird failing. That if it failed it would damage the President's reputation as well as cause another turmoil for the country. Almonte countered that if they didn't proceed with Operation Big Bird, the country will lose 3 to 5 years before gaining a hand on the money. Cojuangco concluded that he will confer with his brother, Pedro Cojuangco, before they present it to the President, their sister.
- July 1, 1986
- After conferring with his older brother, Congressman Cojuangco presents the options to President Aquino, and a meeting was arranged for General Almonte and De Guzman to orient the President on Operation Big Bird. Aquino approved the plan, and Operation Big Bird finally commenced with De Guzman, Almonte, being joined by Solicitor-General Sedfrey Ordoñez. De Guzman makes Ordoñez and Almonte members of the Board of Exportfinanzierungsbank, along with Almonte's former mentor and former Marcos Executive Secretary, Amb. Alejandro Melchor, Jr.
Second attempt with the Philippine Government
- July 4, 1986
- De Guzman, Almonte, and Ordoñez arrive in Bern, and are met by Ascalon. Ascalon informs the new Philippine government recovery team that the three Swiss lawyers of the PCGG and a gentleman by the name of Pieter Hoets was waiting at the Philippine Embassy. Upon arrival at the Embassy, Hoets and the lawyers insisted that the scheduled meeting with the Swiss bankers should only be attended by Ordoñez, and that De Guzman and Almonte should not be included. Almonte defends the group and reminds that they have all been appointed by the President to work as a team on Operation Big Bird. A long argument ensues between the Swiss lawyers and the Philippine representatives.
- Having enough of the stalling of the three lawyers and Hoets, and with the 11:00am appointment coming, General Almonte called De Guzman, Ascalon and Ordoñez aside, and to the surprise of the Swiss lawyers, sped off to the meeting at the Federal Department of Justice and Police (FDJP). The group arrived just in time, and sat down with Dr. Lionel Frei, Chief of Section in charge of the case, Dr. Pierre Schmidd, Vice Director of the FDJP, and Dr. Hess, representative of Elisabeth KoppElisabeth KoppElisabeth Kopp is a Swiss politician and the first woman elected to the Swiss Federal Council .Elisabeth Kopp grew up in Bern. After finishing her law studies in 1960 she married Hans W. Kopp...
, Member of the Swiss Federal Council who is overseeing the FDJP. After Ascalon and Ordoñez's formalities with the Swiss officials, Almonte proceeds in explaining the government's position. The three Swiss lawyers and Hoets joined the meeting when De Guzman presented the Power of Attorney from the Marcoses, the list of identified accounts, and the action plan for transferring the money to Austria. Overall the meeting only took 20 minutes, when the Swiss authorities unanimously decided to approve in principle the selective defreezing of only those identified Marcos accounts and foundations, amounting to US$ 213 million. The Swiss authorities advised the Philippine representatives to formalize the request, and even told them to finish this before the day's end. - Upon returning to the Philippine Embassy, the group calls Chairman Salonga and Congressman Cojuangco on the success of the Operation, and rushes to complete the required formal documents. Dr. Salvioni questions the urgency of the Filipino team, but was ignored and Ordoñez signed the request accordingly. The letter arrived at the FDJP with 15 minutes to spare before the 6:00 pm deadline. FDJP was to act on the request, and by Monday, July 7, have the Zurich Court execute a transfer instruction to the Swiss banks.
- July 5, 1986
- Ordoñez, Almonte, and De Guzman arrive in Vienna after a 12-hour train ride, to prepare the transfer of the funds to the Philippine Government's account at the Exportfinanzierungsbank.
- July 6, 1986
- De Guzman receives additional information on the newly identified Marcos accounts in Switzerland amounting to US$ 3 billion in six different banks. The breakdown of the deposits are US$ 700 million in money placements, US$ 1.3 billion in securitiesSecurity (finance)A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
and bondsBond (finance)In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
, and US$ 1 billion in Gold certificates. It was suggested for the team to prepare the same request as those of July 4, and that Almonte shall fly to Switzerland first thing the next day to endorse the documents to Ambassador Ascalon for a formal communication to the FDJP.
- De Guzman receives additional information on the newly identified Marcos accounts in Switzerland amounting to US$ 3 billion in six different banks. The breakdown of the deposits are US$ 700 million in money placements, US$ 1.3 billion in securities
- July 7, 1986
- Almonte flies alone to Zurich at 6:00am with the signed documents, but Ascalon refuses to affix the official communication of the Embassy without the approval of Dr. Salvioni. De Guzman, who was in Vienna, frantically tries to track down Dr. Salvioni to no avail. Almonte returns to Vienna that night and briefly updates Ordoñez on what has transpired in Bern. Ordoñez postpones the meeting until the next day.
- The FDJP meanwhile acts on the request and lifts the freeze order on the US$ 213 Million identified by the Philippine representatives.
- July 8, 1986
- The Judge of Instructions in Zurich ordered Credit Suisse to release and transfer the defreezed Marcos deposits to the account of the Philippine Government in Exportfinanzierungsbank in Vienna.
- Ordoñez however made a turn around, in fear of the money being diverted from Vienna to a Marcos-favored destination. The Swiss lawyers hired by the PCGG tipped Ordoñez on the credibility of De Guzman and his bank in Vienna. Ordoñez instructed the Swiss lawyers, without informing Almonte and De Guzman, to request the FDJP and Credit Suisse to direct the transfer of the monies to a new destination, the newly opened account of the Philippine Government within the said bank.
- Ordoñez secretly left Vienna for Zurich then to Manila on the orders of PCGG Chairman Salonga. Almonte and De Guzman are left in Vienna without an idea as to what happened to the Solicitor-General, and frantically search Vienna for the Filipino official, until confirming on July 10 that Ordoñez was already in Manila.
- Meanwhile, before the transfer was made, the Credit Suisse official, Ernst Scheller, contacted the son of the former President, Bongbong MarcosFerdinand Marcos, Jr.Ferdinand Romualdez Marcos, Jr. , also known as Bongbong Marcos is a Filipino politician and a senator to the 15th Congress. He is the only son of Ferdinand E. Marcos, the former president of the Philippines , and former First Lady Imelda Romualdez-Marcos...
, and informed him of the Philippine Government's actions. This gave Ferdinand Marcos to execute a revocation of his Power of Attorney to De Guzman.
- July 11, 1986
- De Guzman and Almonte head back to Manila and debrief Congressman Cojuangco on the events that took place in Bern and Vienna.
- Marcos' revocation of the Power of Attorney was sent by facsimile to his Swiss lawyer, Bruno de Preux of the law firm Tavernier, Gillioz, de Preux, Dorsaz in Geneva.
- July 13, 1986
- The Philippine Daily InquirerPhilippine Daily InquirerThe Philippine Daily Inquirer, popularly known as the Inquirer, is the most widely read broadsheet newspaper in the Philippines, with a daily circulation of 260,000 copies. It is one of the Philippines' newspapers of record...
quotes Ordoñez that they were able to retrieve the initial US$ 213 million of Marcos' plundered money in Switzerland, and that the said fund will be in the government's hands soon. - Marcos' Swiss lawyers submit copies of the revocation to the Swiss authorities.
- The Philippine Daily Inquirer
- July 20, 1986
- The FDJP rescinded the defreeze order reference to the Revocation Letter received from Marcos on the Power of Attorney given to De Guzman.
Aftermath
Almonte receives a call from Malacanang on December 24, 1986, and was called for a meeting with the President to debrief her on what actually happened in Switzerland and Austria. The meeting was confirmed by Ms. Ching Escaler, Aquino's Appointments Secretary (and later Philippine Ambassador and Permanent Representative to the UNUnited Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
in Geneva and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
) on December 29, 1986. Almonte arrived with De Guzman in Malacanang, and was met first by Executive Secretary Joker Arroyo
Joker Arroyo
Joker Paz Arroyo is a Filipino lawyer, politician and Senator of the Republic of the Philippines. He has no direct relation with former Presidential spouse Jose Miguel Arroyo.-Early life and career:...
who stalled the two along with Justice
Department of Justice (Philippines)
The Department of Justice , abbreviated as DOJ, is the executive department of the Philippine government responsible for upholding the rule of law in the Philippines...
Secretary Ordoñez from meeting the President.
Meanwhile, on October 21, 1988, a US Federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
Grand Jury
Grand jury
A grand jury is a type of jury that determines whether a criminal indictment will issue. Currently, only the United States retains grand juries, although some other common law jurisdictions formerly employed them, and most other jurisdictions employ some other type of preliminary hearing...
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
Doris Duke
Doris Duke was an American heiress, horticulturalist, art collector, and philanthropist.-Family and early life:...
posted a US$ 5 million bail.
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).
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.
On the side of De Guzman and Gen. Almonte however, they also lay the blame on Executive Secretary Joker Arroyo
Joker Arroyo
Joker Paz Arroyo is a Filipino lawyer, politician and Senator of the Republic of the Philippines. He has no direct relation with former Presidential spouse Jose Miguel Arroyo.-Early life and career:...
, and Philippine Ambassador to Bern, Luis Ascalon, aside from Ordoñez and Salonga. Jovito Salonga, who by 1989 was already the Senate President, and Ordoñez who became Justice Secretary, have fully denied these accusations.
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 $213 million) if the monies were recovered, and thus he had an interest in ensuring that recovery did take place.
On December 20, 1990, the Federal Supreme Court of Switzerland
Federal Supreme Court of Switzerland
The Federal Supreme Court of Switzerland is the supreme court of Switzerland. It is located in Lausanne.According to the Constitution of Switzerland, the court has jurisdiction over violations of:*federal law;*public international law;*intercantonal law;...
decided that the US$ 213 Million along with other banking documents should be transferred to the Philippine government, with conditions however.
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
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...
(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.
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
Sandiganbayan
The Sandiganbayan is a special court in the Philippines which was established under Presidential Decree No. 1606. Its rank is equivalent to the Court of Appeals. The court consists of 14 Associate Justices and 1 Presiding Justice...
which now grew to US$ 540 Million due to interest.
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
Salvador Laurel
Salvador Roman Hidalgo Laurel , also known as Doy Laurel, was Vice President of the Philippines from 1986 to 1992 under Corazon Aquino. Before that, he briefly served as Aquino's first Prime Minister from February 25 to March 25 of 1986...
would reflect that this their administration's greatest failure.
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.
On July 29, 1999, Sandiganbayan Presiding Justice Francis E. Garchitorena
Francis E. Garchitorena
Francis E. Garchitorena was a Filipino Sandiganbayan Presiding Judge from 1986 to 2002.Francis studied in Ateneo de Naga University and graduated from the Law School of Ateneo de Manila University in 1962. He was one of the leading lawyers during his time. He was appointed Sandigan Bayan Justice....
denies the motion to release US$ 150 million from the funds to pay Marcos human rights
Human rights
Human rights are "commonly understood as inalienable fundamental rights to which a person is inherently entitled simply because she or he is a human being." Human rights are thus conceived as universal and egalitarian . These rights may exist as natural rights or as legal rights, in both national...
victims.
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
Enrique Zobel
Enrique Jacobo Emilio Zobel y Olgado , was a prominent Filipino businessman. The only child of Colonel Jacobo Zóbel y Roxas and Ángela Olgado, he was a member of the influential Zobel de Ayala family of the Philippines and a first cousin of Jaime Zobel de Ayala.Zobel was chief executive officer of...
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
Vatican City
Vatican City , or Vatican City State, in Italian officially Stato della Città del Vaticano , which translates literally as State of the City of the Vatican, is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, Italy. It has an area of...
trust in gold accounts to pay off the loan.
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.
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
Department of Agrarian Reform (Philippines)
The Philippines' Department of Agrarian Reform , abbreviated as the DAR, is the executive department of the Philippine Government responsible for all land reform programs in the country, with the purported aim of promoting social justice and industrialization through massive taxation of rich and...
and Department of Agriculture
Department of Agriculture (Philippines)
The Philippines' Department of Agriculture , abbreviated as DA, is the executive department of the Philippine government responsible for boosting the income of farmers as well as reducing the incidence of poverty in the rural sector, as stipulated inthe Government's Medium Term Philippine...
.
However, by 2005, the Philippine Center for Investigative Journalism
Philippine Center for Investigative Journalism
The Philippine Center for Investigative Journalism is a non-profit media organization specializing in investigative journalism. It is based in Quezon City, Philippines. Established in 1989 by nine Filipino journalists, the organization funds investigative projects for both the print and broadcast...
(PCIJ) reports that the portion of the money was diverted by the Arroyo administration for the President's campaign during the 2004 elections
Philippine general election, 2004
The senatorial election was held in the Philippines on May 10, 2004. The major coalitions that participated are the Koalisyon ng Katapatan at Karanasan sa Kinabukasan composed of parties that support the candidacy of president Gloria Macapagal-Arroyo, and the Koalisyon ng Nagkakaisang Pilipino ,...
. This led to Senate Blue Ribbon Committee inquiry concluding that Pres. Arroyo mismanaged the fund - which then became known as the Fertilizer Fund scam
Fertilizer Fund Scam
The Fertilizer Fund Scam is a Philippine political controversy involving accusations that Agriculture Undersecretary Jocelyn Bolante diverted P728 million in fertilizer funds to the 2004 election campaign of President Gloria Macapagal-Arroyo.-Details:...
.
See also
- Ferdinand MarcosFerdinand MarcosFerdinand Emmanuel Edralin Marcos, Sr. was a Filipino leader and an authoritarian President of the Philippines from 1965 to 1986. He was a lawyer, member of the Philippine House of Representatives and a member of the Philippine Senate...
- Imelda MarcosImelda MarcosImelda R. Marcos is a Filipino politician and widow of 10th Philippine President Ferdinand Marcos. Upon the ascension of her husband to political power, she held various positions to the government until 1986...
- Jovito R. Salonga
- Jose T. AlmonteJose T. AlmonteJose T. Almonte was the former National Security Advisor and Director-General of the National Security Council in the Cabinet of Philippine President Fidel V. Ramos. He was also the head of the National Intelligence Coordinating Agency, the Director Economic Intelligence and Investigation Bureau ...
- People Power Revolution
- Presidential Commission on Good Governance
- Swiss Banks
- Bank secrecyBank secrecyBank secrecy is a legal principle in some jurisdictions under which banks are not allowed to provide to authorities personal and account information about their customers unless certain conditions apply...
- World Jewish Congress lawsuit against Swiss banksWorld Jewish Congress lawsuit against Swiss banksThe World Jewish Congress lawsuit against Swiss banks was launched to retrieve deposits made by victims of Nazi persecution during and prior to World War II.-Negotiations:...
External links
- Declaration of Michael C.U. De Guzman in support of the Republic of the Philippines House of Representatives investigation on the "Marcos Deposits in Switzerland" by the Special Committee on Public Accountability
- Marcos Chronology Report
- Tracking the Proceeds of Organized Crime - The Marcos Case
- G.R. No. 152154. Sandiganbayan; July 15, 2003
- Efforts to Recover Assets Looted by Ferdinand Marcos of the Philippines (background paper), International Centre for Asset Recovery (ICAR) September 2007