by Jomar Canlas Reporter

MONEY Laundering charges were filed by the Office of the Ombudsman on Monday before the Sandiganbayan against beleaguered retired Armed Forces of the Philippines comptroller, Major Gen. Carlos Garcia, along with his wife Clarita and children Ian Carl, Juan Paolo and Timothy Mark.

The 10-page information signed by Ombudsman Maria Merceditas Navarro-Gutierrez showed that the Garcia family was indicted for violating Section 4A of Republic Act 9160, or the Anti-Money Laundering Law.

Plunder proceeds

This is a new criminal case before the Sandiganbayan against the Garcias who have been indicted for allegedly amassing over P300-million worth of unexplained wealth. The general is still in detention for a nonbailable plunder charge pending before the graft court’s Second Division while the Philippine government is exerting efforts to have his wife and children extradited from the United States.

The Ombudsman found that the Garcias held accounts in United Coconut Planters Bank, Bank of the Philippine Islands (BPI), Land Bank of the Philippines, Allied Banking Corp., Banco de Oro (BDO), Planters Development Bank, Export and Industry Bank, Centennial Bank, Armed Forces and Police Savings and Loan Association Inc. (AFPSLAI) and Wing Savings and Loan Association Inc. (AMWLAI).

Huge withdrawals

Prosecutors said various bank transactions by the Garcias involving total deposits of P303.27 million and withdrawals amounting to P73 million and $967,215.99 constitute “unlawful activity” punishable under Republic Act 9160 because the funds involved were proceeds of plunder.

Attached with the charge sheet, the prosecution also prepared several graphs/tables detailing the movement of money among the various accounts of the family.

One table showed each defendant emptied their bank balances within four days, between October 5 and 8, 2004, shortly after then- Tanodbayan Simeon Marcelo subpoenaed the Armed Forces of the Philippines for access to Garcia’s service records and 2003 statements of assets, liabilities and net worth (SALN).
Garcia’s 2003 SALN showed declared total assets of only P2.76 million.

Money movement

According to the prosecution’s summary, Garcia, Clarita and/or Ian Carl made several withdrawals from Allied Bank and BPI branches in Blue Ridge, Quezon City and Iloilo-Main branch totaling P10.14 million in checks and P2.77 million in cash on October 5, 2004.

Based on the same paper, the following day the Garcia couple also took out P18.47 million in cash and P256,556.76 in checks from AFPSLAI, BDO-Valero and BPI-Mandurriao (Iloilo).

On the third day, the entire family made separate withdrawals totaling P21.63 million from UCPB-Valero and P6 million from AFPSLAI.

On the fourth day, Ian Carl and Juan Paulo each extracted P5 million from AFPSLAI while Gen. Garcia moved investments in AMWSLAI worth P3.16 million. From October 5 to 7, 2004, the family also drained their dollar accounts of $967,215.99.

Valencia’s assets

The Ombudsman’s latest ruling on the Garcia plunder case followed its eight-page petition before the Regional Trial Court of Manila for the forfeiture of assets of Chief Customs Operation Officer Manuel Valencia official in view of his unexplained wealth, which includes bank accounts totaling $3.825 million, roughly worth P181 million.

The petition asked the court to forfeit in favor of the Philippine government the total amount of $3,825,414.18, which the respondent deposited with the Far East Bank under separate accounts, Certificate 962460 ($2,013,248.80) and Certificate 962461 ($1,812,165.38).

The anti-graft body opined that the dollar deposits and assets are in excess of Valencia’s lawful and legitimate gross annual earnings of P47,622 in 1988 and P275,820 at present, and thus should be forfeited in favor of the government.

Net worth

Valencia’s net worth according to his SALN was P875,070 as of December 31, 1999 and P975,070 in 2001. In both SALNs, respondent listed under assets and real properties a house and lot in Parañaque worth P1.2 million.

The Ombudsman also asked the court to forfeit the real properties of Valencia, which include five parcels of land in BF Homes Parañaque and a residential house located at Batac corner Cabellon streets, BF Homes, Parañaque.

The Ombudsman said that there was prima facie evidence that Valencia violated Republic Act 3019, or the Anti-Graft and Corrupt Practices Act.

Garcia’s on the run

While the Office of the Ombudsman has recommended bail in the amount of P120,000 for the temporary liberty of each of the accused in money laundering case versus the Garcia, the mother and sons continue to fight the government’s move to extradite them to the Philippines to face trial before the Sandiganbayan.

They were arrested in Detroit and New York five days after the arrests of Juan Paulo in Pontiac, Michigan, and Ian Carl in Las Vegas, Nevada, for cash smuggling charges in February.