Generals handling funds now under suspicion
Generals handling funds now under suspicion
Updated 10:41pm (Mla time) Oct 19, 2004
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the October 20, 2004 issue of the Philippine Daily Inquirer.
THE TESTIMONY of Major General Carlos F. Garcia before a committee of the House of Representatives, during which he repeatedly invoked his right against self-incrimination, sounded so much like the testimony of President Gloria Macapagal-Arroyo’s brother-in-law, now a congressman, Iggy Arroyo on the Jose Pidal bank deposits, during which he also repeatedly refused to answer questions by invoking his right to privacy. In both hearings, the legislators threw up their hands in exasperation and failed to get any information from their witnesses.
But actions speak louder than words. Why would a witness be afraid to talk and incriminate himself if he isn't guilty of something? An innocent person would only be glad to tell everything he knows to prove his innocence, wouldn’t he? But silence is the refuge of the guilty, like the Mafia mobsters.
Alas, the House investigation of the former comptroller of the Armed Forces of the Philippines (AFP) has turned into a comedy, with the general and his lawyers outwitting the congressmen. The congressmen have to find other sources of evidence; they can't get any from the mouth of the accused himself. I think the strategy should be to charge him with unexplained wealth. Make him explain how he acquired all his bank deposits and real estate properties. That would be interesting to hear.
* * *
Because of the Garcia scandal, all AFP generals are now under suspicion, especially those who handle funds. One of them is retired Brigadier General Jose S. Ramiscal, who is in trouble simply because he is the president of the formerly cash-rich AFP Retirement and Separation Benefits System (AFP-RSBS). But unlike Garcia who obviously doesn't want to be subjected to any investigation, Ramiscal wants the charges against him to be heard as quickly as possible. It is the prosecution that is dragging its feet. The case has been percolating in the offices of the Ombudsman and the Sandiganbayan anti-graft court for several years.
The case against Ramiscal is simplicity itself. The AFP-RSBS bought 148 separate parcels of land in Laguna province for real estate development back when the market was robust, before the Asian economic crisis. The total area purchased was 964,494 square meters. The total amount paid by the AFP-RSBS was P195,852,513, or an average price of P203 per square meter. The total amount registered at the register of deeds was P28,226,090, or an average price of only P30 per square meter. What happened to the difference of P167,626,423? Conclusion: Ramiscal pocketed it. And because of this, Ramiscal is facing at least 148 cases of “estafa” [swindling], which, judging by the number, gives the impression that the general must be a hardened criminal.
It is not that simple, Ramiscal told me. I interviewed the general over dinner at our neighborhood coffee shop one night last week, and he gave me the facts and explained what happened. There is no missing P167 million, he said, and he has not pocketed a single centavo.
The 148 parcels of farmland, he explained, were bought through a "consolidator" or broker. The AFP-RSBS did not negotiate directly with the farmers. This was necessary because if it were known that the AFP-RSBS was buying their properties and negotiating separately with each farmer, the asking price would rise progressively higher. It was the job of the consolidator to haggle for as low a price as possible, consolidate all the purchased parcels and then turn them over to the RSBS as one parcel.
The AFP-RSBS board of trustees approved an acquisition cost of P225 per square meter, but the consolidator was free to bargain with the owners for a lower price. The difference between the amount paid by the AFP-RSBS and the amount actually received by the owners was the fee, or commission of the consolidator. From this, the consolidator would pay the capital gains tax and other taxes due, as well as sundry expenses. What is left after this is his profit.
The law allows the consolidator to unilaterally report to the register of deeds the purchase price. The deeds of sale were signed only by the sellers. Neither Ramiscal nor the AFP-RSBS had any part in this.
Based on the findings of Special Prosecutor Dennis Villa-Ignacio in his June 15, 2004 memorandum to the Ombudsman, the average amount actually received by the sellers from the consolidator was P150 per square meter. But the consolidator registered an average price of only P30 per square meter for a total price of P28,226,090 obviously to lower the capital gains tax. This is falsification of public documents for which the consolidator is liable, but not the RSBS or Ramiscal, the latter said.
The acquisition price approved by the board of trustees was P225 per square meter but the RSBS paid only an average price of P203 per square meter, so Ramiscal saved it P22 per square meter or a total of P21,218,868.
Since the amount acknowledged to have been received by the sellers from the consolidator was P150 per square meter (not only P30 per square meter as reported to the register of deeds) and the total area bought was 964,494 square meters, it logically follows that the amount received by the sellers from the consolidator was P144,674,100.
If the amount paid by the AFP-RSBS to the sellers through the consolidator was P195,852,513 and the amount acknowledged by the sellers to have been actually received from the consolidator was P144,674,100, we are looking at a difference of P51,178,413 which possibly went to pay for the capital gains tax, documentary stamp tax, tenants' disturbance fee and consolidator's fee as stipulated in the memorandum of understanding between the AFP-RSBS and the consolidator.
There is no "missing" P167 million.
As for the 148 estafa cases against Ramiscal, there are so many because each deed of sale was counted as one case. Technically, there are 148 counts of only one case.
Updated 10:41pm (Mla time) Oct 19, 2004
By Neal Cruz
Inquirer News Service
Editor's Note: Published on page A14 of the October 20, 2004 issue of the Philippine Daily Inquirer.
THE TESTIMONY of Major General Carlos F. Garcia before a committee of the House of Representatives, during which he repeatedly invoked his right against self-incrimination, sounded so much like the testimony of President Gloria Macapagal-Arroyo’s brother-in-law, now a congressman, Iggy Arroyo on the Jose Pidal bank deposits, during which he also repeatedly refused to answer questions by invoking his right to privacy. In both hearings, the legislators threw up their hands in exasperation and failed to get any information from their witnesses.
But actions speak louder than words. Why would a witness be afraid to talk and incriminate himself if he isn't guilty of something? An innocent person would only be glad to tell everything he knows to prove his innocence, wouldn’t he? But silence is the refuge of the guilty, like the Mafia mobsters.
Alas, the House investigation of the former comptroller of the Armed Forces of the Philippines (AFP) has turned into a comedy, with the general and his lawyers outwitting the congressmen. The congressmen have to find other sources of evidence; they can't get any from the mouth of the accused himself. I think the strategy should be to charge him with unexplained wealth. Make him explain how he acquired all his bank deposits and real estate properties. That would be interesting to hear.
* * *
Because of the Garcia scandal, all AFP generals are now under suspicion, especially those who handle funds. One of them is retired Brigadier General Jose S. Ramiscal, who is in trouble simply because he is the president of the formerly cash-rich AFP Retirement and Separation Benefits System (AFP-RSBS). But unlike Garcia who obviously doesn't want to be subjected to any investigation, Ramiscal wants the charges against him to be heard as quickly as possible. It is the prosecution that is dragging its feet. The case has been percolating in the offices of the Ombudsman and the Sandiganbayan anti-graft court for several years.
The case against Ramiscal is simplicity itself. The AFP-RSBS bought 148 separate parcels of land in Laguna province for real estate development back when the market was robust, before the Asian economic crisis. The total area purchased was 964,494 square meters. The total amount paid by the AFP-RSBS was P195,852,513, or an average price of P203 per square meter. The total amount registered at the register of deeds was P28,226,090, or an average price of only P30 per square meter. What happened to the difference of P167,626,423? Conclusion: Ramiscal pocketed it. And because of this, Ramiscal is facing at least 148 cases of “estafa” [swindling], which, judging by the number, gives the impression that the general must be a hardened criminal.
It is not that simple, Ramiscal told me. I interviewed the general over dinner at our neighborhood coffee shop one night last week, and he gave me the facts and explained what happened. There is no missing P167 million, he said, and he has not pocketed a single centavo.
The 148 parcels of farmland, he explained, were bought through a "consolidator" or broker. The AFP-RSBS did not negotiate directly with the farmers. This was necessary because if it were known that the AFP-RSBS was buying their properties and negotiating separately with each farmer, the asking price would rise progressively higher. It was the job of the consolidator to haggle for as low a price as possible, consolidate all the purchased parcels and then turn them over to the RSBS as one parcel.
The AFP-RSBS board of trustees approved an acquisition cost of P225 per square meter, but the consolidator was free to bargain with the owners for a lower price. The difference between the amount paid by the AFP-RSBS and the amount actually received by the owners was the fee, or commission of the consolidator. From this, the consolidator would pay the capital gains tax and other taxes due, as well as sundry expenses. What is left after this is his profit.
The law allows the consolidator to unilaterally report to the register of deeds the purchase price. The deeds of sale were signed only by the sellers. Neither Ramiscal nor the AFP-RSBS had any part in this.
Based on the findings of Special Prosecutor Dennis Villa-Ignacio in his June 15, 2004 memorandum to the Ombudsman, the average amount actually received by the sellers from the consolidator was P150 per square meter. But the consolidator registered an average price of only P30 per square meter for a total price of P28,226,090 obviously to lower the capital gains tax. This is falsification of public documents for which the consolidator is liable, but not the RSBS or Ramiscal, the latter said.
The acquisition price approved by the board of trustees was P225 per square meter but the RSBS paid only an average price of P203 per square meter, so Ramiscal saved it P22 per square meter or a total of P21,218,868.
Since the amount acknowledged to have been received by the sellers from the consolidator was P150 per square meter (not only P30 per square meter as reported to the register of deeds) and the total area bought was 964,494 square meters, it logically follows that the amount received by the sellers from the consolidator was P144,674,100.
If the amount paid by the AFP-RSBS to the sellers through the consolidator was P195,852,513 and the amount acknowledged by the sellers to have been actually received from the consolidator was P144,674,100, we are looking at a difference of P51,178,413 which possibly went to pay for the capital gains tax, documentary stamp tax, tenants' disturbance fee and consolidator's fee as stipulated in the memorandum of understanding between the AFP-RSBS and the consolidator.
There is no "missing" P167 million.
As for the 148 estafa cases against Ramiscal, there are so many because each deed of sale was counted as one case. Technically, there are 148 counts of only one case.
posted by Dante at 12:00 AM
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