PHNO-HL: ALLEGED 82 $ ACCOUNTS: DEFENSE HITS OMBUDSMAN'S CONFUSING TESTIMONY

ALLEGED 82 $ ACCOUNTS: DEFENSE HITS
OMBUDSMAN'S CONFUSING TESTIMONY

MANILA, MAY 15, 2012 (TRIBUNE)
By By Angie M. Rosales and Benjamin B.
Pulta - Bad accounting method.
Lawyers of Chief Justice Renato Corona questioned the manner the supposed
contents of an alleged 82 dollar accounts of the impeached Supreme Court head
was presented by Ombudsman Conchita Carpio Morales, who testified yesterday
before the impeachment court as a hostile witness of the defense, saying that it
was intended to confuse the public into forming an adverse opinion against
Corona.
The Corona camp said the initial testimony of Morales was quite unfortunate
if not very malicious and questioned how she came up with her own mathematical
equation on the supposed dollar accounts of the chief magistrate.
"She made a hodgepodge out of the accounts, making her numbers chaotic. The
number of accounts alone is as best ridiculous," a statement from Corona's camp
said.
Her powerpoint diagram is a lantern of lies which only messed up her
presentation, contrary to what some believe now as damning evidence, according
to the statement.
Either she does not know what she is talking about, or is purposely
misleading the Impeachment court and the public
The Corona camp challenged Morales to resign once the lawyers of the chief
magistrate debunks "all her bloated numbers," it added.

[PHOTO COURTESY OF ABS-CBN- Senator-judges raise their hands as they
vote in favor of a PowerPoint presentation of Ombudsman Conchita Carpio Morales
at the impeachment trial of Chief Justice Renato Corona on Monday. The
presentation detailed the dollar transactions of Corona in several banks
amounting to at least $10 million in aggregate value. Photo
by Alex Nueva España, Senate Pool]
The Senate impeachment court, meanwhile, decided it will wait for the
testimony of Corona over the controversial numerous foreign currency denominated
bank accounts he supposedly owns before deciding on a motion to look into his
dollar accounts and contravene a temporary restraining order (TRO) of the
Supreme Court that barred the Senate court from divulging the contents of the
Corona dollar accounts in compliance with the Foreign Currency Deposit Act
(FCDA).
Thus, despite the testimony of Ombudsman Carpio Morales, who presented as a
hostile witness of the defense yesterday, the Senate is not expected to rush
into the opening of the Corona dollar accounts.
Prior to Morales' appearance, the senator-judges held a caucus opting to
defer acting on the motion of Sen. Aquilino Pimentel III for them to rule on
whether they should heed or not on the TRO of the SC by proceeding to delve on
the alleged dollar-deposits of Corona.
Morales in her testimony said the alleged dollar deposits of Corona were not
only five, as previously revealed before the Senate impeachment court but a
total of 82 "undisclosed" accounts based on reports she obtained from the
Anti-Money Laundering Council (AMLC).
According to Morales, an estimated $12 million was kept "untouched" by Corona
all this time and yet the amount in which money were poured into all of these
bank accounts grew as much as $28.7 million while other transactions to
represent the withdrawals or the amount taken from these accounts allegedly
totalled to $30.7 million between April 2003 to December last year.
"No voting yet and the majority of the senators wanted to hears first the
testimony of the chief justice before deciding on the motion filed by Sen. Koko
Pimentel on the TRO issued for the dollar account," Senate President Pro Tempore
Jinggoy Estrada told reporters as he relayed on what transpired during their
closed-door caucus.
Estrada said majority of the senator-judges wanted to inquire on the dollar
account but they deferred rendering any decision considering the fact the Corona
himself announced that he is willing divulge everything before the impeachment
court when he takes the witness stand.
"So we will wait for his testimony of the Chief Justice and until then, we
will make our questioning," Estrada said.
Senators Francis "Kiko" Pangilinan and Franklin Drilon confirmed the decision
of the Senate in caucus held earlier on the said issue.
"We will first hear Corona's testimony and the pieces of evidence to be
presented and until then we will not decide on the motion for the dollar
account," Pangilinan said.
"It was deferred and we will wait for the testimony and evidence to be
presented by the chief justice," Drilon added.
On top of these dollar accounts, the other purported foreign denominated
accounts have yet to be disclosed even as state auditors claimed that Corona's
peso accounts reached P242 million.
These revelations came in the course of the ongoing investigation by the
Office of the Ombudsman against Corona, following a complaint filed by Akbayan
party-list Rep. Walden Bello, defeated senatorial candidate Risa Hontiveros and
two others, on his alleged $10 million cash deposits.
In the initial stages of the impeachment trial, the president of Philippine
Savings Bank (PSBank) was prompted to admit the existence of five
dollar-denominated deposits presented by the prosecution panel but did not
identify Corona as the account holder, citing the provisions of the bank secrecy
law on foreign currency units deposits (FCUD) law.
The matter has been the subject of the temporary restraining order (TRO)
issued by the Supreme Court and due to be deliberated upon next month.
Morales said in the proceedings that the reported $10 million that she sought
to be explained within 72 hours by Corona himself, in a written order she issued
late last month, merely represented the "transactional balances."
Morales emphasized before senator-judges that the amount of $10 million was
contained in two reports, a 17-page and four-page documents, submitted to her by
Anti-Money Laundering Council (AMLC) based on the 705 "transactions" the body
monitored on peso and dollar deposits supposedly under the name of the chief
magistrate.
"The Chief Justice has at least $10 million in transactional balances; he has
82 US-dollar accounts in five banks; there were significant deposits and
withdrawals on various significant days including the 2004 and 2007 elections as
well as the week he was impeached, specifically for Dec. 12, 13, 15, 19, 20 and
22, 2011," she said.
"The significant transactions are as follows: on Dec. 12, 2011 the day Corona
was impeached, the following bank transactions were made. There was a time
deposit for termination of $418,193.32.
"This amount was added to a BPI-San Franscisco del Monte account...and then
from this, $417,978.80 was deducted from this account and placed in a regular
trust fund contribution placement," she said, in mentioning her initial
"observations" on the content of the AMLC report.
When asked by Sen. Ferdinand "Bongbong" Marcos Jr. to clarify on this matter,
Morales explained that the transactional balance refer to the transactions that
went into funds, including the inflow and outflow of funds.
"That is not the balance of the account. Those are the balances of it...that
went through the system of his (account)," she said.
Defense panel spokesman Tranquil Salvador questioned the presentation of
Morales and the use of outflow and inflow of money into the supposed accounts of
Corona saying it was hard to understand.
"Why not just present the total balance to make it plain," he said.
"In other words, the dollar transaction, when added together, the total is
$10 million, is that the determination that you made?" Marcos asked.
"It's even more I think...let's put it this way senator, our computation, my
computation which was arrived at with the assistance of CPA lawyers is that
these are 'fresh deposits' which means they never moved, they remained in that
particular account amounting to more than $12 million fresh deposits. But the
transaction, we're saying the inflow and outflow, that's it," she said in her
testimony.
"So it did not denote the balance, (it) merely denotes the total amount of
money that went through the system," the senator commented.
"Yes. But as I said, his fresh deposits amounted to more than $12 million.
When I say fresh deposits they were never moved from one bank to another, they
stayed, those accounts," Morales retorted.
Covering the period April 2003 to December 2011, the AMLC report showed that
from the lone dollar-denominated deposit kept by Corona in 2003, an additional
13 dollar accounts were opened the following year and the numbers increased
until it reached a total of 81 in 2011.
"He had 81 dollar accounts and he added another account. He has 82 dollar
accounts," she said.
Further investigations conducted by Morales which eventually led her to
employ the services of Commission on Audit (CoA) Chair Grace Pulido Tan and
Commissioner Heidi Mendoza, led the Ombudsman fact-finding team to uncover more
alleged damning information.
But before Morales was allowed to proceed with her testimony, aided by a
powerpoint presentation, another round of debates ensued with the defense panel
attempting to block it by pointing out that such was not among the subjects
covered by the direct examination.
Their objection was outvoted when one of the senator-judges, Sen. Miriam
Defensor-Santiago noted the admissibility of such kind of testimony based on the
rules of evidence of the rules of court.
Morales earlier made a request that she be the first to be presented by the
five hostile witnesses sought by the defense to present their side in the
controversy.
On the witness' stand, Morales confirmed that her office is currently
conducting an investigation on the foreign currency accounts and transactions
allegedly provided her by the Anti Money Laundering Council (Amlac).
Morales said initial information made available to her suggests that Corona
had 82 bank accounts.
Morales was ordered to return today to continue with her testimony.
Commission on Audit (CoA) Commissioner Heidi Mendoza said from April 2003 to Dec
2011, there were 423 transactions in over 82 accounts all in the name of Corona
according to the Amlac.
Records of the dollar accounts were suppressed by the Supreme Court earlier
in the trial following a petition by the PS Bank.
Under the law, a bank is required to report a deposit worth more than
P500,000 to the AMLAC.
Morales said that there were 705 transaction made by Corona in those 82 bank
accounts.
"I did it because it is my mandate to investigate. I have to discharge my
mandate to determine whether these are unexplained wealth or if it is violative
of the Anti-Graft and Corrupt Practices Act. These are material and relevant to
the complaints," Morales pointed out.
Lead defense counsel Serafin Cuevas had tried but failed to block the power
point presentation saying that those which are to be presented in the power
point were not part of the testimony of the Ombudsman. Cuevas insisted that the
cross-examination by the prosecution panel should only deal with what the
Ombudsman had testified earlier in the direct examination by the defense panel.

The issue triggered debates between the defense and the prosecutors,
prompting the Senate president to put the issue into a vote. Cuevas was
overruled.
Morales explained that Corona is a respondent in the complaint filed before
her office and that she is mandated to investigate the charges against the chief
justice. Gerry Baldo
MORALES TESTIMONY VS CORONA A 'CLASH OF TITANS


(PHILSTAR) By Michael Punongbayan - Officials
and employees of the Office of the Ombudsman and the Office of the Special
Prosecutor are expected to watch on television Ombudsman Conchita
Carpio-Morales' testimony at the impeachment trial of Chief Justice Renato
Corona today.
"This will be exciting," one insider said, echoing the statements of fellow
personnel refering to the face-off as a "clash of the titans."
"We will definitely be watching," another insider said. "We want to see her
if magtataray siya." (If she will be crabby)."
Morales had agreed to testify as a hostile witness for the defense on the
issue of Corona's alleged $10-million foreign currency bank deposits.
Her taking the witness stand was a condition of Corona for him to also appear
before the impeachment court and answer allegations against him under oath.
Before her appointment as Ombudsman in June 2011, Morales was an associate
justice of the Supreme Court.
Morales was summoned to appear before the impeachment court after she ordered
Corona to answer allegations that he has dollar deposits that were not declared
in his statements of assets, liabilities and net worth (SALNs).

[PHOTO - CHIEF JUSTICE RENATO CORONA READY TO TAKE STAND TO BARE
ALL]
Meanwhile, Morales showed everyone she was still young and athletic after
joining and leading a fun run in Quezon City last week.
Officials and employees of the anti-graft agency were surprised when she came
out of the Office of the Ombudsman compound along Agham Road to join a crowd of
participants to the marathon.
"We were surprised when she suddenly ran," said Director Edgardo Diansuy,
chief of the anti-graft agency's Media Affairs Bureau.
Despite her age, the 70-year-old Morales joined the run and indignation rally
to show that she means to eradicate and fight corruption and have a graft-free
society, Diansuy said.
Morales suddenly fired the starter pistol she was carrying and started
running with the crowd herself.
Reporters, cameramen, and photographers covering the event who were caught by
surprise were forced to join in the effort to get videos, pictures, and an
interview of Morales.
Based on the program, Morales was only supposed to start the fun run and wait
for it to finish before she was to join a march to Quezon Memorial Circle, where
a program was held as part of the Office of the Ombudsman's 24th anniversary
celebration activities.
However, Morales ended up circling the block running, striding, and walking
from Agham Road to North Avenue to the elliptical road and then to Quezon Avenue
before coming back to Agham Road.
"She exhibited strength not only of will but also of body and the
determination and endurance to finish whatever it is that she has started,"
Assistant Special Prosecutor Faye Singson said after seeing Morales take up the
challenge.
Morales even acknowledged video cameras being pointed at her during her run
by waving and smiling at the lenses.
She did break some sweat, but that did not stop her from entertaining a
"mobile" media interview with her walking briskly while reporters walked
backwards so as to be in front of her to capture her on camera continuously
talking about the fight against graft and corruption and the impeachment trial
against Chief Justice Renato Corona.
"Ombudsman Morales readily beat the younger participants. Her participation
in the 'Ombudsrun' is positive proof that she is very much capable of not just
joining the activity and finishing with such impressive result, but also shows
her fitness in discharging her duties as the Ombudsman," Assistant Special
Prosecutor Kristine Carreon said.
CJ won't seek help from Supreme Court colleagues
By Edu Punay (The Philippine Star) Updated May 14, 2012 12:00
AMComments (6)

MANILA, Philippines - Chief Justice Renato Corona said yesterday he
would not seek help from his colleagues in the Supreme Court (SC) to stop the
probe of the Office of the Ombudsman into his alleged $10-million bank deposit.

Corona also denied rumors he was silently moving to secure a temporary
restraining order (TRO) from the high court against the investigation of
Ombudsman Conchita Carpio-Morales on the graft complaints filed by various
groups.
Text messages have circulated over the weekend claiming the SC would issue
the TRO enjoining the anti-graft office from proceeding with its probe on the
alleged dollar assets of the Chief Justice.
"It's another psywar. That is absolutely not true," Corona told The STAR when
asked for comment.
The SC chief believes it was obvious where such rumors came from, apparently
referring to critics who have been pushing for his ouster from the top judicial
post.
Just like the allegation of $10-million deposits, Corona said his supposed
plan to seek SC relief on his new ordeal before the Ombudsman office was also
"fabricated."
The complainants - Akbayan party-list Rep. Walden Bello, former party-list
Rep. Risa Hontiveros, Emmanuel Tiu Santos, and Harvey Keh -reportedly denied
specifying the amount alleged against Corona. They said they never mentioned $10
million in their complaints.
Corona already denied the allegation and even dared Morales to explain where
she got the figure. He refused to dignify the insinuation, saying, "There is
nothing to explain on something that does not exist at all."
SC spokesman Midas Marquez, however, said earlier the high court might act on
the issue and rule on the legality of the Ombudsman's order if there is a
petition filed.
He cited a ruling promulgated on March 2, 2010 where the high court laid down
the limits of the power of the Office of the Ombudsman to investigate
impeachable officers under Section 22 of Republic Act 6770 (Ombudsman Act).
The high court stressed the Ombudsman should dismiss outright criminal
complaints against justices that fail to allege prima facie case or those filed
without supporting proof.
The high court made the ruling on the graft charges filed by lawyer Oliver
Lozano against former Chief Justice Hilario Davide Jr. and former Associate
Justice Ma. Alicia Austria-Martinez, which the Ombudsman eventually dismissed.

Morales, then associate justice of the SC, ironically concurred with and
signed that decision.
Morales was the only justice of the SC who opposed the appointment of Chief
Justice Corona by former President and now Pampanga Rep. Gloria Macapagal-Arroyo
during the 2010 election period.
She was chosen by President Aquino to administer his inaugural oath and was
appointed Ombudsman last year. She is first cousin of Senior Justice Antonio
Carpio, closest rival of Corona for the top judicial post in May 2010.
Morales was already summoned to appear in the impeachment trial of Corona
before the Senate to explain her action.
Despite the charges against him, Corona remains optimistic on the outcome of
his impeachment trial.
"There is God who is in control of our lives and our affairs. I have placed
everything in his hands. He will not abandon me," he stressed.
The SC had earlier stopped the Senate sitting as impeachment court from
opening the dollar deposits of the Chief Justice in Philippine Savings Bank,
citing absolute application of bank secrecy law on foreign currency accounts.

The high court, however, ruled on a petition filed by the bank - not by the
Chief Justice, who also inhibited himself from deliberations.
Again, it's all about Hacienda Luisita
With Corona expected to take the witness stand in his trial, he insisted that
his impeachment was a result of the SC ruling for the total distribution of the
sugar land estate owned by President Aquino's family in Tarlac under a lower
value of just compensation.
In his speech during national convention of Philippine Association of Court
Employees (PACE) in Puerto Princesa City, Palawan last Friday, Corona said he
expects the Aquino administration and its allies to continue attacking him until
he gives up.
"The viciousness and brutality of the attacks on the person, honor and family
of no less than the Chief Justice of the Supreme Court and head of one of the
three coequal and coordinate branches of government, came on the heels of the
decision on Hacienda Luisita," Corona lamented.
"I am expecting that they will not cease until they crush me and until they
take control of the entire Supreme Court. That's the only way they can reverse
our decision or at least get their billions of demand for compensation," he
added.
When the SC made final its ruling last April, farmers of Hacienda Luisita and
militant groups thanked Corona and called him a "champion of agrarian reform."

Still, Corona said the attacks against him and the judiciary have not been
not easy. He cited for instance how the judiciary's budget was "used
as a pawn or leverage to force (the judiciary) to kowtow to the two other
branches of government," referring to the impounding of their funds under the
new Miscellaneous Personnel Benefit Fund (MPBF).
The SC earlier decried violation of its fiscal independence by President
Aquino's veto in this year's budget, which stated that "Personal Services shall
be valid for release and obligation only until the end of Fiscal Year (FY) 2012,
while Maintenance and Other Operating Expenses (MOOE) and Capital Outlays shall
be available for release and obligation until the end of FY 2013."
Corona thanked an audience of about 2,000 court employees for their support
to him on this issue. He said their backing has been his consolation in his
fight.
The Chief Justice reiterated his fight has become a battle not for himself
but for the judiciary as an institution.
"This fight is not mine alone. It is a struggle of all freedom-loving
Filipinos who believe in the rule of law, the independence of the judiciary and
the separation of powers - principles that define us as a people and our
worthiness to live in a democracy. At the end of the day, we do not even have
any other option except to fulfill our sworn duty to defend the Constitution and
assure our people that they can trust us (the courts) with their lives, liberty
and property," he stressed in closing.



Chief News Editor: Sol
Jose Vanzi

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NEWS ONLINE
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