Essential Truths About the

Marcos Wealth and Corruption

During the 1972-1986 Era

Jess Paul M. Pasibe

23 May 2019
 Outline

1. Legitimate Income
2. Republic’s efforts to recover
3. Schemes used to acquire, accumulate, and
conceal ill-gotten wealth
4. Marcos Excesses
5. Impact of the Republic’s recovery
IRM’s 1998 Phil Daily Inquirer interview

“We practically own everything in the

Philippines—from electricity, telecommunications,
airline, banking, beer and tobacco, newspaper publishing,
television stations, shipping, oil and mining, hotels and beach
resorts, down to coconut milling, small farms, real estate and
insurance.”
Source: https://globalnation.inquirer.net/139090/imelda-marcos-is-ready-to-be-the-mother-of-all-
filipinos#ixzz5TUyYzPhE

“If you know how much you’ve got,

you probably don’t have much.”
-IRM, Some are Smarter than Others
 Legitimate Income

A certification issued on
May 27, 1986 by then
Minister and
Budget of Management
Romulo showed
Alberto
Ferdinand that and
accumulated Imelda
salaries inhad
the
amount of P1,570,000 and
P718,750, respectively, or a
total of P2,288,750 from 1966
to 1985.
The spouses had combined salaries of P30,833.33
from January to February 1986. In other words, they had
a total
P2,319,583.33 or $304,372.43 (converted to US$ prevailing at that
time)
The Marcoses had reported P16,408,442.00 or
$2,414,484.91 in total income over a period of 20
years from 1965 to 1984. Almost 70% of this, or more
than P11 million, allegedly came from Mr. Marcos’
legal practice.
 2003 SC Decision ( Rep v. Sandigan G.R. No. 152154)

“The sum of $304,372.43 should be held as the only

known lawful income of respondents since they did
not file any Statement of Assets and Liabilities (SAL),
as required by law, from which their net worth could be
determined. Besides, under the 1935 Constitution,
Ferdinand E. Marcos as President could not receive any
other emolument from the Government or any of its
subdivisions and instrumentalities. Likewise, under the
1973 Constitution, Ferdinand E. Marcos as President
could not receive during his tenure any other emolument
from the Government or any other source.”
 2012 SC Decision (Marcos v. Republic GR No 189434)

“The alleged receivables from prior years

were without basis, because Marcos never
had a known law office nor any known
clients, and neither did he file any
withholding tax certificate that would
prove the existence of a supposedly
profitable law practice before he became
President.”
EFFORTS TO RECOVER
 The Republic’s Recovery Efforts

 Created on 28 February 1986 through

the issuance of Executive Order No.
1 by the late Pres. Corazon Aquino

A. 1st act under the

revolutionary government
B. 1st government agency,
predating even the 1987
Philippine Constitution
C. 1st step in the transition from
tyranny to democracy
PCGG’s
Mandate

“(a) The recovery of all ill-gotten wealth

accumulated by former President
Ferdinand E. Marcos, his immediate
family, relatives, subordinates and
close associates, whether located in
“(b) The investigation
the Philippines or of such cases of
abroad….”
graft and corruption as the President
may assign….”
“(c) The adoption of safeguards to
ensure that the above practices shall
not be repeated in any manner
under the new government….”
 1986: WHAT WAS RECOVERED

EXCERPTS:
“PRESIDENTIAL PLUNDER”
(Jovito R. Salonga)

 “[On 28 February 1986] xxx various

documents and articles xxx were turned over
to the Commission on Good Government.”
 “The suitcases and boxes were unloaded near
the Office of the Governor of the Central Bank.”
 “The documents were photocopied for
several days and nights on a non-stop basis,
after which the originals and the duplicates were
secured in several vaults.”
 1986: WHAT WAS RECOVERED
“Among the key documents that we found were the contracts
signed on March 20 and 21, 1968 by Ferdinand E. Marcos
and Imelda Romualdez Marcos, respectively, with Credit
Suisse Bank, adopting the use of pseudonyms (William
Saunders for Ferdinand and Jane Ryan for Imelda); and two
trust instruments signed by Joseph Bernstein on a Manila
Peninsula Hotel stationery, the first in favor of President
Marcos with respect to all matters relating to the Latsura
Corporation (involving the Crown Building on 5th Avenue in
Manhattan, New York) and the second in favor of Beneficio
Investment (pertaining to 40 Wall Street Building, also in
New York). As regards the various articles of value, they were
inventoried and then placed in the vault of the Central Bank,
with the knowledge of Governor Fernandez.”
 1986: WHAT WAS RECOVERED
“xxx when the Marcoses and their retinue fled the
Palace on the evening of February 25, 1986, they
brought with them to Hawaii documents and
articles of value, including boxes of Philippine
currency. These fell into the hands of U.S. Customs
authorities in Honolulu who inspected them. I
understand a good number of papers and articles
were released to the Marcoses, but others were
seized, inventoried and placed in custody by the U.S.
Customs authorities. Xxx Mr. and Mrs. Marcos fled
in a hurry in the evening of February 25 and left
many documents and articles behind. xxx”
 Things brought to Hawaii
The U.S. Customs Authority in Honolulu provided the Marcoses with an
official copy of the inventory of things unloaded from the two C-130
planes that accompanied them to Hawaii. 23 pages long, it
lists 23 wooden crates, 12 suitcases and 70 boxes and
bags.
They brought in almost $9 million in cash, jewelry in bonds. The baggage,
many of which were designer Louis Vuitton and Gucci with personalized
“IRM777” luggage tags, contained various documents including
certificates of time deposit, land titles and deeds to U.S. properties and
stock certificates.

More than 15 pages of the 23-page inventory of their baggage were

listings for jewelry. There were 24 gold bricks, thoughtfully inscribed
"To my husband on our 24th anniversary", 413 pieces of jewelry, including
tiaras, broaches, necklaces, bracelets, in sapphires, rubies and diamonds,
70 pairs of jewelry-studded cuff links, a three-foot ivory "Santo Nino"
 Things brought to Hawaii
There were also handguns, watches (Cartier, Rolex and
Geneve) and millions of dollars worth of freshly minted money.

They also brought enough clothes to fill 67 racks; and more

than 27 million freshly printed Philippine pesos.

There were Pampers boxes supposedly for the use of the

Marcos grandchildren which initially elicited sympathy. But
it was later shown that the boxes did not contain diapers but
expensive jewels and antiques, a stark manifestation of
their pampered lifestyle. The total value of the merchandise
was estimated at $15 million.
 “EVIDENCE, ON-HAND”
 Marcos Documents
 Left behind in Malacañan
 Hawaii papers

 Imelda Jewelry (3 collections)

 Affidavits and Testimonies
 Agreements
 Compromise Agreements
 PCGG Memoranda
 PCGG Reports and “Investigation”
Report
s
 CASES: FACTS AND EVIDENCE ESTABLISHED

 Jurisprudence on Marcos and Cronies

 Monitoring of Sequestered Corporations
 Extra-Judicial “Declarations”
 Interviews
 Documentaries
 Informants
 The PCGG recovered a total of
Php171.359 Billion from 1986-Dec. 2017

Presidential Commission on Good Government

Summary of Remittances to the Government 1986-Dec. 2017

Total Collections and Remittances to Php94,538,475,611.77

Bureau of the Treasury - National Govt.

Total Escrow Fund Php76,820,898,758.21

Grand Total: Php171,359,374,369.98
 The Commission has
transferred 1,650 hectares of
agricultural lands to DAR
which were then distributed to
famer-beneficiaries in
Laguna and Cavite; and
another 1,407 hectares in
Biliran has been transferred
to the provincial government
and distributed to legitimate
beneficiaries.
SCHEMES TO ACQUIRE, ACCUMULATE,
AND CONCEAL ILL-GOTTEN WEALTH
 Schemes to Acquire, Accumulate & Conceal

1. Establishment of shell companies, foundations,

and bank accounts
2. Receipt of kickbacks and/or commissions
3. Interests in local corporations
4. Diversion of Economic Assistance to the
Philippines
5. Behest Loans
 Shell companies, foundations, and bank account

Shell Companies
- Used as temporary repository of funds remitted by banks where Marcos
own substantial deposits coming from illegal transactions
- A number of these shell companies were incorporated in Panama and
Netherland Antilles. Laws in these countries covering investments, taxation,
foreign exchange remittances are extremely liberal and designed to clients’
need of anonymity
- The profile of the companies show that they are organized by the same
nominees, managed by the same directors, incorporation papers notarized
by the same lawyers, and annual meetings presided by the same officers.
- These companies were organized not to conduct business but only to
receive funds from various sources. Funds deposited in the accounts
of shell companies were used to acquire various properties abroad –
usually the properties are registered under the name of another off-shore
shell corporation which in turn was owned and controlled by Panamanian
corporations
 Shell companies, foundations, and bank
account
Foundations

- Several foundations were established in Zurich, Fribourg and Geneva,

Switzerland by companies designated by Marcos through his trustees,
assignees, and nominees to administer the operations of the foundations

- Used aliases and pseudonyms and resorted to the elaborate use of words
and coded messages. Withdrawals by cable were to be authenticated with
the words “Happy Birthday”

Bank Accounts

- Several peso and dollar bank accounts were opened by the Marcoses in
Traders Royal Bank and Security Bank and Trust Company through the
assistance of cronies. Accounts were mostly numbered investment
management accounts and trust accounts. No account opening forms were
accomplished as these accounts are meant to assume the character of
“Bearer Deposits”
 Kickbacks and Interests in local
companies
Kickbacks
- One big source of Marcos ill-gotten wealth came from kickbacks.
These were bribe payments mostly made by Japanese
corporations to facilitate awarding of government contracts in
their favor and by businessmen who were granted special
favors by Marcos

Interests in local corporations

- Exploitation of his power to singlehandedly amend laws

- Able to acquire lands, buildings, condo units, mansions and

shares in various companies ceded gratuitously in exchange of
interests, favors in the form of reduced taxes, duties, central bank
approvals, an government guarantees, privileges and
concessions
 Diversion of Economic Assistance and
Behest Loan

Diversion of Economic Assistance

- Through issuances of letters of instructions, Marcos succeeded in

diverting proceeds and interest earnings of the Economic Support Fund
emanating from the economic assistance component of the 1979 US-
RP Military Bases Agreement for programs such as education, public
works etc. into a confidential fund

Behest Loans

- Grant of these loans to favor crony corporations to exploit government

financial institutions as a wellspring of ready funds for their personal use

- Allowed for the condonation of all unpaid interests, guarantee, service

fees etc. and the subsequent release of collaterals involved designed to
allow business associates to recover their losing investments from out
of government funds
 The Excesses (Some are Smarter than Others)

- The traditional concept of basic needs

comprising of food, clothing, and shelter
took on a new meaning. Food, hotel
accommodations, and transportation
expenses totaled $2.4M in two years.”
- The Marcos family spent at least $3M for
clothes in their last two years in power
- Imelda was able to bring the contents of
67 of her clothing racks when she fled
the presidential palace, but some 55
racks filled with clothes were left behind.
 The Excesses (Some are Smarter than
Others)

- A partial list of the clothes of

Imelda left in Malacanan:
- Pairs of shoes 1,060
- Floor length gowns 508
- Dresses 427
- Handbags 888
- Scarves 464
- Handkerchiefs 664
- Pairs of glasses 71
- Parasols 65
- Mink coats 15
- Swan feather gown 1

- Another 1,800 pairs of shoes

were recovered in Tacloban City
 The
Excesses
”Imelda bought expensive perfume not by the ounce but by
the gallon. In her New York Olympic Towers condominium, for
example, one of the items was a gallon of Mitsuoko by Guerlin.
Similar large jars of French perfume were found in presidential
palace, all turned upside down in special dispensers, so that
Imelda would not have a hard time perfuming herself”

“From what can be gathered from partial documents, Marcos,

Imelda, and their children spent $68M in the last two years of
his reign. At least $11M of this amount appears to have been
spent on clothes, paintings, antiques, handicrafts, and other
items.”

“Handwritten notes of Imelda’s personal secretary show that the

lady spent $4.5M from May to July on a trip to New York in 1983”
 The
Excesses
This is a large historic
skyscraper in the New York
financial district. It formerly
housed the stock exchange
and for a time was the largest
office building in lower
Manhattan. This building is a
70-story tower offering a million
square feet of office space.
Trump Building
 The
Excesses
This twenty six-story tower, located at
730 Fifth Avenue, New York, was
purchased by Imelda Marcos in 1981
for US$51 million using Lasutra Corp.,
N.V., a shell corporation based in the
Netherlands Antilles. The Crown
Building is a huge office tower right
beside Central Park and is strategically
located on the corner of Fifth Avenue
and the Fifty-Seventh Street.

Crown Building
 The
Excesses
The purchase of this property was made in
February 1982 through Voloby Ltd., a
corporation based in the British Virgin Islands.
The directors of Voloby were Tantoco and the
Bernstein brothers, although one existing
document names Joseph Bernstein as its
sole director who is to act in the interest of
the shareholders. The Voloby shares were
later transferred to three other shell
corporations based in Panama: 1) Bedner
Development Corporation, 2) Compral
Investments, S.A., and Dicet Financial and
Investment Corporation. Herald
Center
 The
Excesses
This building was acquired for
US$50 million on 27 November
1983 from Harry Helmsley, the New
York estate, using Glockhurst
Corp., N.V., a shell corporation
based in Curacao. Tantoco, acting
for Glockhurst, directed that its
shares be issued to the same
Panamanian corporations which
controlled Voloby, the shell
company used to purchase the 200
Madison
Herald Center
 The
Excesses
A total of five (5) expensive Manhattan
condominiums are known to have been
bought by Mrs. Imelda Marcos and
Antonio Floirendo at the Olympic
Towers. The Olympic Towers, located
on 5th Avenue, New York City’s central
thoroughfare, is a luxury high-rise
building in the centre of New York and is
right beside Saint Patrick’s Cathedral,
one of the city’s most famous
landmarks. Olympic Towers
 The painting Sweet Peas in a Vase by
Henri Fantin-Latour, recovered from the
Princeton Pike Property, was
auctioned by Christie’s on 10
November 1987. The total proceeds
from the auction is US$400,000.00

Coronation of the Virgin

Sold for US$2.1 along with 25
other paintings from Adnan
Khashoggi
The silverwares were originally
stored at the Bangko Sentral ng
Pilipinas in Roxas Boulevard
Complex, Manila.
There were seventeen (17) crates of
silvers that arrived in New York on the
first week of October 1990. The silvers
were stored at 502 Park Avenue,
New York. The unpacking of the said
crates was conducted on 9-10
October 1990

The Magnificent Silverwares were

auctioned on 10 January 1991, where
all of the items (78 lots) were sold,
generating a total of US$4,896,485.00
ANTIQUE SAPPHIRE & Diamond
Necklace: Antique Sapphire and
Diamond Necklace, the front
designed as a graduated line of 5
oval & rectangular-cut sapphires,
each surrounded by mine-cut
diamonds, separated by old mine-cut
diamond motif, w/ detachable
alternating sapphire and diamond
chain mounted in yellow gold

US$180,000 to US$200,000
Gold and Diamond Bracelet:
Diamond and 18K bracelet designed
as twenty pierced gold & diamond-
set links-total approx. weight of 420
circular-cut diamonds: 8.40cts
SOME OF THE MISSING PAINTINGS:
THE VHB CASE
Claude Monet (1840-1926)
Water Lilies & Japanese Bridge
(Le Bassin aux nymphéas)
The Guy who Bought the
Painting
In July 2011, the NYDA seized the
following paintings of internationally
significant value from Ms. Bautista and
her associates.
Le Cyprès de Djenan Sidi Saïd by Albert
Marquet (1875-1947)
L'Eglise à Vétheuil by Claude
Monet
(1840-1926)
Langland Bay by Alfred Sisley (1839-
1899)
IRM’s Interviews
Paintings
Sold
IMPACT OF THE RECOVERY EFFORTS
P10 billion of the money remitted by the
Commission to the Bureau of Treasury has
been set aside for the purpose of providing
compensation to the victims of human rights
violations.
We seek to remind.
The insidiousness of evil lies in its ability
to confound the certainty of morality.
Any presently pervading doubt – as
regards the heroes, the villains, and the
victims
of decades past – is attributable to
the banality of the evil that
fomented it.
The recent emergence of names and
faces associated with the dictatorship
is the antithesis of the moral
renaissance that the country is in dire
need of – after the immoral two
decade plunder known as the Marcos
regime.

To those too young to remember, it is not yet

too late to know. To those old enough to have