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NEWS FEED: CJ admits 4 dollar, 3 peso accounts, but no waiver - 23 May 2012

by Marvin Sy (The Philippine Star)




MANILA, Philippines - Chief Justice Renato Corona yesterday told the impeachment court that he has only three peso accounts and four dollar accounts, contrary to the testimony of Ombudsman Conchita-Carpio Morales last week.

Corona said that there are only four peso accounts left as of December 2011: the Bank of the Philippine Islands (BPI) San Francisco del Monte branch (account number 3244108104); Allied Bank (1582002676) and Philippine Savings Bank (account numbers 0141024292 and 0131002826).

Citing Republic Act 6426 or the Foreign Currency Deposit Act, which guarantees the

absolute confidentiality of dollar deposits, he admitted not including his dollar assets in his statement of assets, liabilities and net worth (SALN) because he said he honestly believed he had no obligation to do so.

Using a PowerPoint presentation, the Chief Justice showed that he has only four and not 82 foreign currency accounts as of December 2011.

Without disclosing any amount, he showed how his funds were transferred or merged from one account to another as part of the typical movement of money placed in time deposits and investment instruments.

Using the same report provided by the Anti-Money Laundering Council (AMLC) to the Office of the Ombudsman, the Chief Justice said that an analysis was made by his accountants to disprove the Ombudsman’s conclusions.

“A careful analysis of the AMLC report will show that many of these accounts were already closed and the funds thereof transferred to settlement accounts. These bank accounts represent time deposits or investments,” Corona said.


He explained that each time a time deposit account would mature and roll over, a new account would be created for him by the bank or consolidated as a new placement so that it could earn higher interest.

He cited his deposits in BPI Acropolis branch where he held seven accounts, all of which were closed as early as 2004 or 2005.

These funds were then transferred to the Tandang Sora, Quezon City branch of BPI and the Cainta branch of PSBank.

For the BPI Tandang Sora branch, Corona said that all accounts were closed between 2004 and 2007 and transferred to the San Francisco del Monte branch of BPI and the Cainta branch of PSBank.

A total of 34 accounts in the San Francisco del Monte branch were closed between 2007 and December 2011.

He also had deposits in Allied Bank, placements in Citibank and Deutsche Bank, all of which were closed as of December 2011.

As far as PSBank Cainta branch is concerned, Corona said that the accounts were closed in 2008 and transferred to the Katipunan branch of the bank.

“Mrs. Ombudsman, are you able to get a good night’s sleep in spite of your (guilty) conscience, if you have one. You know that I don’t have $10 million to $12 million and I don’t have 82 bank accounts. Why are you peddling these lies to the public?” Corona said in Filipino.

He accused the Ombudsman of lying about not knowing the balance of his accounts when she was asked about it in court last week.

“I know that you know. You just didn’t want to say it because it would belie your claim that I have $10 to $12 million,” he said.


Dollars investments paid off

The Chief Justice explained that he started his investments in dollar deposits in the late 1960s when the exchange rate was at P2 to $1.

He said that he was earning a decent living as a private lawyer back then and he decided to convert all his savings into dollars for investments.

Corona explained that the choice of a dollar deposit investment was based on his notion that this was very safe and could make him a lot of money because of its constant appreciation over the peso.

“We did not go wrong with this investment. It is now more than seven times its value from 40 years ago,” Corona said, adding that he never touched the interest earned by these investments because he was earning enough from his job to make ends meet.

SALN omission was deliberate

He said that based on his understanding of the law, US dollar deposits do not have to be declared in the SALN because of the confidentiality provision of the law.

“This is an absolute rule,” Corona said, emphasizing that he has nothing to hide and the fact that he disclosed all of his assets under his name was proof of this.

Just like his dollar accounts, Corona did not disclose the amounts in his peso accounts but merely connected these to various sources, primarily the proceeds from the sale of a property owned by Basa-Guidote Enterprises Inc., which was owned by the family of his wife Cristina Corona.

“Why did I not declare this in my SALN? Because these are co-mingled funds that we don’t own. Who owns these? This is comprised of the expropriation proceeds from the BGEI property and in 11 years this earned interest,” the Chief Justice said.

He also cited the money he inherited from his mother, which he used to pay for her medical and eventually funeral expenses.

Corona said that he also used the money to help his older brother Arturo, who had a heart ailment and underwent a medical procedure two years ago where he spent close to P1 million.

He said the peso accounts also included the money of his children Carla and Francis, which were co-mingled with his deposits to earn a higher interest.

He alleged that his daughter Charina’s savings, which were intended for the construction of a house in McKinley Hill in Taguig City, were also in those accounts.

“The inaccuracies in my SALN do not constitute an impeachable offense. Not every omission, not every inaccuracy is an impeachable offense,” Corona said.


Waived waiver

After thanking his supporters and vowing to continue fighting for what is right, the Chief Justice brought out a prepared waiver and signed it before the senator-judges and everyone else watching on national television.

Several senator-judges had earlier demanded this waiver from him in order to ensure that all details of his dollar accounts would be disclosed in court.

In his statement, Corona said that he could provide plenty of reasons why he was under no obligation to execute a waiver, especially since he was protected by the provisions of Republic Act 6426 or the Foreign Currency Deposit Act, which provides for absolute confidentiality of dollar deposits.

He also authorized the Bureau of Internal Revenue, AMLC, Securities and Exchange Commission and the Land Registration Authority to disclose to the public any and all information that may show his SALN, business interests and financial connections, to include those of his spouse.

However, instead of turning over the waiver to the court and the pertinent authorities for their immediate action, the Chief Justice sprung yet another surprise in the form of a condition for the release of this waiver.

He asked all 188 complainants from the House of Representatives, led by the congressmen in the prosecution panel, and Sen. Franklin Drilon, to also sign a waiver.

“This is no trick or manipulation. This is an invitation, a challenge for public accountability, made only with the hope that we can all together give our nation one shining moment in public service,” he added.

The Chief Justice said that any of the 188 legislators could turn down his challenge to them for whatever reason.

“But if you decline, then you will affirm to me and all who are watching that there is in fact no legal obligation or duty to disclose foreign currency holdings and deposits,” the Chief Justice said.

He said he will release his waiver once all 188 legislators have signed the waivers.

If not, he would immediately instruct his lawyers to rest their case because he believes that the prosecution was not able to prove any of their allegations against him.


Government officials hit back at CJ

At the Palace, officials weighed in on Corona’s impeachment trial via Twitter, with Finance Secretary Cesar Purisima saying the magistrate should not have tied the waiver to conditions.

Purisima also said the Chief Justice could not invoke Republic Act 6426 or the confidentiality of dollar deposits as reasons why he did not disclose his dollar accounts in his SALN.

“CJ wants special treatment and a special interpretation of the law; he should read his own decisions on cases involving SALN,” Purisima tweeted.

Deputy presidential spokesperson Abigail Valte also said Corona owned at least six properties and not five – two lots in Xavierville Subdivision in Quezon City, one unit in Bellagio in Taguig City, one unit in the Columns in Makati, one unit in Bonifacio Ridge and one unit in One Burgundy. “That makes six,” she tweeted.

After he delivered his statement, walked out and then came back, Presidential Communications Development and Strategic Planning Office Undersecretary Manuel Quezon III said: “Corona returns to session hall in a wheelchair.”

“Eerily familiar scene,” Quezon tweeted.

A wheelchair-bound former President and Pampanga Rep. Gloria Macapagal-Arroyo also tried to leave the country as she claimed to be sick and needed to get medical treatment abroad.

Justice Secretary Leila de Lima, in a statement, said Corona’s conditional waiver was detestable.

“It was consistent with the culture of impunity that he espouses – that you cannot convict me because we are all guilty. No one can do right because we are all evil. What arrogance! What twisted psyche,” De Lima said.

Drilon, on the other hand, said he would not fall into Corona’s trap.

“That is all part of his game plan. It only shows that the Chief Justice has no intention to be cross-examined by the impeachment court, that he, after all, is insincere when he said he is willing to divulge all his bank accounts, including his dollar accounts,” he said.

Bayan Muna Rep. Teodoro Casiño said Corona’s challenge was “obviously a publicity stunt that does not deserve any consideration.”

Aurora Rep. Juan Edgardo Angara said the prosecution team is not taking the challenge seriously.

A mockery of laws

Corona yesterday accused the government of making a mockery of laws in its bid to oust him from office and decried alleged efforts to tarnish his reputation through what he called “invented” evidence.

In his lengthy opening statement before the impeachment court, Corona claimed the Aquino administration used its entire machinery to malign him and his family.

“Binaboy nila ang proseso (They desecrated the process),” Corona said.

“They broke all laws to fish evidence against me. They attempted to pin me down by undermining laws. As defender of the law, I won’t allow this to happen. This is not acceptable to me,” he added.

Corona said the government had violated due process, the Constitution and statutes like the Anti-Money Laundering Act.

“This is worrisome for our democracy and for our nation. If they can do this to the highest magistrate of the government, can’t they do this to ordinary people? Can’t they do this to you senators? Can’t they do this to any official of the government?” he said.

The defense panel has claimed that Ombudsman Morales did not follow the proper procedures when she conducted a probe on Corona’s alleged dollar accounts.

Morales told the impeachment court early this month that Corona maintained 82 dollar accounts in five banks between 2003 and 2011 and made more than 400 transactions during that period.

Citing data from the Anti-Money Laundering Council (AMLC), Morales said Corona’s alleged 82 dollar accounts worth at least $10 million were spread out in nine different banks.

Some senators believe Morales did not follow procedure when she asked AMLC for assistance while probing the chief magistrate’s alleged dollar accounts.

Corona’s lawyers believe that a court proceeding is necessary before the Ombudsman could coordinate with AMLC. They insisted that dollar deposits are protected by the law.

Corona said there are three reasons why the Aquino administration wants him ousted.

He said President Aquino is getting back at him because of a Supreme Court ruling that ordered the distribution of Hacienda Luisita to farmers. The sprawling sugar estate is owned by the relatives of Aquino.

“What right does he (Aquino) have to be angry over the distribution of Hacienda Luisita? It was just lent to them. It was grabbed from the ancestors of the farmers. They (Aquino’s relatives) benefited from the estate for almost 60 years. Now, they don’t want to return it,” Corona said.

Corona claimed another reason why an impeachment case was filed against him is the supposed desire of Aquino to control all branches of government.

“President Aquino wants to control all three branches of government and destroy the equality of the executive, legislature and judiciary through the use of power to achieve his objective,” he said.

The third reason, Corona said, is related to the supposed plan of leftists to take over the government.

Corona claimed political affairs adviser and Akbayan party-list organization member Ronald Llamas is controlling Aquino.

Private prosecutor Mario Bautista tried to prevent Corona from continuing with his testimony, saying the chief magistrate was making accusations against people who can’t defend themselves.

“This is highly irregular. The Chief Justice is taking advantage of this platform and allowed to speak without the benefit of cross-examination,” Bautista said.

Senate President Juan Ponce Enrile, however, allowed Corona to continue, saying the prosecution can cross-examine him or ask him questions at the proper time.

Corona went on to accuse the prosecution of resorting to black propaganda and fabricated stories to destroy his reputation.

“Ladies and gentlemen of the prosecution, this is my only question to you: If you really have a strong case against me, why do you need to invent evidence? Answer this to the people. Why do you need to use black propaganda?” Corona said.

“Why tap dirty, unlawful and hurtful ways? We hope this sad chapter of our history won’t happen again to anyone,” he added.

‘My conscience is clear’

Corona maintained that his conscience is clear and that he would not testify before the impeachment court if he knows he did something wrong.

“I will not drag my family in this impeachment. If deep within myself I have even a smallest doubt that I did something wrong, I won’t drag my family to this,” Corona said.

“From the start, my conscience is clear. I repeat. My conscience and that of my family is clear. We did not do anything wrong contrary to what others want to project to the media,” he added.

Corona claimed his family has been living modest lives and they managed to earn money through prudent spending.

The chief magistrate also claimed his family has no household help and they are not even using air conditioners at home to save on electricity costs.

“The lifestyle of our family is so simple. We are thrift and we don’t waste money. We are not fond of socializing. For 40 years, we still live in the same house,” Corona said.

“We do not use air conditioner because we easily get sick in the cold. Believe it or not, we don’t have a house help at home. Sometimes, someone goes to the house to clean it and to iron clothes,” he added.

Corona claimed there are only two major items in their budget – food and tuition.

“For the past 45 years since I started working, no month passed without me posting savings,” he said.

Corona was teary-eyed after he said that they were accused of stealing public funds despite their efforts to live modestly.

“It really hurts that after we save money for almost 45 years, they will ask us why we have a lot of cash and then accuse me of being a thief,” he said.

Family feud

Corona also denied that he and his wife Cristina had oppressed the Basas, who had accused them of using their influence to take over a company owned by the family.

Corona said it was the Basas who had aggrieved his mother-in-law and wife.

Corona said the family feud stemmed from a two-hectare property in Libis, Quezon City that was conservatively valued at P2.5 billion.

He said the lot was previously under the name of his mother-in law Asuncion Basa-Roco and Cristina’s uncle Jose Basa III.

Corona said Basa had managed to secure a title that did not contain the name of Roco.

“We can’t tell how Jose managed to come up with a title for the Basa compound that did not contain the name of my mother-in-law,” Corona said, adding the lot caused the conflict within the family.

He said Jose did not have a job and merely relied on his mother for his needs.

“I’m sorry to say this. I apologize for having to say it now but he (Jose) did not have a job and all of his life he was a spoiled brat. When he needed something, he would go to Lola Charing. When she had no money, properties were sold,” he said.

Corona said Jose had wanted to sell a Basa-Guidote property in Sampaloc, Manila but his mother refused.

“My mother-in-law said enough is enough. You already got your share from the property in Libis. My name has been omitted but I remained silent,” the chief magistrate said.

The BGEI sold the Sampaloc property to the Manila City government for P34.7 million.

Corona said they have been silent about the allegations of the Basas since they do not want to speak ill about Jose, who died in 2002.

Sought for comment, Carmen Basa said Corona lied and lamented that her late father Jose got dragged into this.

“I just wanted to say that we are very sad with the development that the name of our good father was being dragged into these proceedings. He is not here to defend himself,” said Carmen, who was accompanied by her sisters Ana and Isabel and her brother Eric.

“What he (Corona) said was untrue, unkind and shows his true character as Chief Justice. He should know better. At this point, we will not go down to his level and we will not justify his false statements,” she added.

BGEI shares sale justified

Corona also justified his daughter’s purchase of Basa-Guidote Enterprises Inc. (BGEI) for only P28,000.

In a letter read by the Chief Justice, Carla, Corona’s daughter, maintained that proper processes were followed when she purchased the shares.

“My mother (Cristina) has to observe due process for these cases to be resolved in accordance with law,” she said.

Ana Basa, Cristina’s cousin, previously claimed the Coronas had used their influence to control BGEI.

Cristina won libel cases against her relatives, who had to raise funds to pay the P500,000 in civil damages ordered by the court.

Mrs. Corona filed the libel suits against her uncle Jose Maria Basa III, his wife Raymunda and other relatives in 2001. The case stemmed from print ads that supposedly damaged her reputation.

“Now who is oppressing who? My mother (Cristina) is a victim of grievous crime against her honor,” Carla said.

An auction for the shares was held in September 2003 to allow the respondents to pay the damages that stemmed from the libel suit.

Early this month, Joseph Bisnar, sheriff of the Quezon City Regional Court Branch 216, said the shares, which represent more than 90 percent of the company, had been bought for P28,000 by Carla.

No other party had expressed interest in the shares.

Mrs. Corona, then the assistant corporate secretary of BGEI, was present during auction.

The Basas questioned Carla’s purchase of the shares, saying they were not asked to bid for them.

Carla said she took a huge risk when she bought the shares, since it was a subject of a family squabble.

Carla also defended her mother from accusations that she used her husband’s influence to secure favorable rulings.

“My mother (Cristina) has been very careful to be perceived as using my dad’s influence over magistrates. She has left it to her lawyers to file motions and careful to the extent of not attending hearings,” she said.

Carla also accused the Basas of delaying the pending cases involving relatives. – With Christina Mendez, Aurea Calica, Alexis Romero, Helen Flores, Edu Punay

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