The Court of Appeals has ordered the Anti-Money Laundering Council to produce evidence linking former agriculture secretary Jocelyn "Joc-joc" Bolante to the suspicious accounts that have been frozen by the appellate court.

The order came as the CA questioned the freeze order sought by the AMLC when its investigation into Bolante’s accounts is still ongoing.

CA first division presiding justice Conrado Vasquez asked "whether it is proper to file the petition (for the freeze order) before the investigation" and why the AMLC is only "investigating now when you could have done it a long time ago."

The first division on Tuesday conducted a summary hearing on the petition filed by AMLC for the issuance of a freeze order on 70 accounts in 17 banks and insurance firms that were believed to be involved in the alleged P728-million fertilizer fund scam.

Twenty-three of the accounts were under Bolante’s name.

The hearing sought to determine whether the 20-day freeze order issued by the CA last July 1 should be "modified, extended or quashed."

Lawyer Cristina Lim, representing the Office of the Solicitor-General, informed the justices that the questioned accounts were imbued with public interest since these could possibly involve money from the fertilizer fund.

She pointed out the need to extend the freeze order, which would lapse on July 21, to prevent the dissipation of the accounts.

Expired accounts

Counsel for Bolante, Antonio Zulueta, however countered that there was no basis for the issuance of the freeze order citing flaws in the AMLC report to the CA. Zulueta cited in particular the Philippine National Bank accounts by Livelihood Corp., where Bolante was acting chair.

The AMLC said Livelihood Corp. transferred P172.6 million to the accounts of Molugan Foundation Inc in April 2004 while another P40 million was transferred to the account of the Assembly of Gracious Samaritans Foundation Inc. The AMLC said the transactions had "no underlying legal or trade obligations, purpose of economic justification" and were "not commensurate to the business or financial capacity" of the two firms.

The AMLC initiated the investigation in Sept. 2006 after receiving suspicious transaction reports from the PNB.

But Zulueta said Bolante was no longer chair of Livelihood Corp. at the time of the transactions.

Two other firms, Pru-Life Insurance Corp. of UK and Standard Insurance Company also sought the lifting of the freeze order, saying that the questioned accounts under one Samuel Bombeo had already expired. Bombeo has been identified as one of the directors of the foundations that supposedly were used as conduits in the fertilizer fund.

Pru-Life lawyer Gabriel Roveniol said there was nothing to freeze anymore since Bombeo’s account was already "surrendered, expired or lapsed."

Standard Insurance Company compliance officer Wilfredo Reyes, on the other hand, castigated the AMLC for dragging the firm into the mess, saying that Bombeo’s account with the bank involved the insurance of a 2004 Ford Everest Vehicle, of which he even hasn’t paid the P846.00 premium.

"The alleged participation (of Standard Charter) could even be considered laughable if not absurd," the bank’s manifestation said. It complained that the case "sends a wrong message to the public and business community that Standard Charter has been involved in an illegal activity."

No forefeiture yet

During the hearing, AMLC compliance and investigation group deputy director Julia Bacay-Abad admitted that no forfeiture proceedings have yet been filed against Bolante’s accounts, as its investigation is still in progress.

This prompted Vasquez to voice out that the case puts the CA "in a precarious position." The AMLC wants a freeze order for six months to complete its investigation.

Abad said money-laundering transactions are so complex that it takes time to build a case. She showed a power-point presentation detailing the money trail of Bolante’s account.

However, the power-point presentation left the justices more confused than ever.

Justice Lucas Bersamin told the AMLC to submit proof linking Bolante to the questioned accounts "otherwise (the petition for extension of freeze order) will not be sympathetically considered."

Abad however countered that the CA’s order may be easier said than done as AMLC databases on suspicious accounts are confidential in nature

Bersamin reminded Abad that the court needs "authentic and competent evidence," adding that what the court is trying to determine is "probable cause and not probable speculation."

Bersamin said that what the Court only wants "are the basic facts in the investigation" linking Bolante to the suspicious accounts and the fertilizer fund.

The Court gave AMLC and the Sol-Gen seven days to submit its memoranda on the petition and 10 days for Bolante’s counsel to submit his memoranda. (abs-cbnNEWS.com/Newsbreak)

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