IN December 2003, a son of former Armed Forces comptroller Maj. Gen. Carlos Garcia was caught bringing $100,000 into the U.S. and held by Customs authorities. Garcia later admitted the money was his and said it was intended for his wife’s medical treatment in the U.S.
The horde of cash triggered an investigation by the Office of the Ombudsman, then headed by Simeon Marcelo, which eventually slapped a slew of charges against Garcia. Among the charges was perjury because Garcia allegedly failed to declare vehicles and bank deposits in his Statements of Assets, Liabilities and Net Worth from 1997 to 2000.
Garcia was the last of the big fish to be prosecuted for graft and corruption and subjected to a lifestyle check based on their SALNs. The first and most celebrated case under the Arroyo administration was that of former President Joseph Estrada, who was also charged with perjury for failing to disclose in his SALNs the businesses he and his family had been engaged in, and the income that came with them.
“We tried to give emphasis to the big cases,” Marcelo said then, arguing that unless the big fish were convicted, anti-corruption programs would be ineffective.
Charges of graft and corruption were also filed against officials of the Department of Public Works and Highways, Bureau of Internal Revenue and the Bureau of Customs, which Filipinos perceive to be among the most corrupt agencies in government.
In all these cases, graft investigators at the Ombudsman used the SALN as a tool to compare officials’ lifestyles with their declared incomes. Those whose net worth and lifestyle did not match are put under suspicion of having used public money for their own gain.
Ombudsman investigators list what they call “red flags” when conducting lifestyle checks. These “red flags” are the justifications that those under investigation often provide when their SALNs and lifestyles are under scrutiny.
These “red flags” pointing to their spouses as being wealthy, putting property in their spouses’ names, or listing property as assets of corporations. Investigators also are wary of officials who declare that they have taken out loans from relatives since these cannot be proven with documents in the same manner that loans from banks can.
Under Marcelo, the Office of the Ombudsman would pick up leads from the news reports about grafters in government, and initiate investigations even without any formal complaint.
No big fish have been prosecuted since Marcelo left office. Estrada and Garcia were themselves eventually acquitted of perjury, with the courts ruling that both of them did not intentionally and maliciously try to hide their assets and income.