ISAFP/PNP TEAM
Marriot Residence Inn
1350 Veterans Boulevard, South San Francisco
California
28 June 2001
SUBJECT: The PANFILO LACSON Money Laundering Investigation in the United States
TO: Chief, ISAFP
POST
I. Background
A. Factual
Sometime February 2001, the Philippine National Police launched an Intelligence project to investigate reports regarding the existence of US dollar deposits of former PNP Chief Panfilo “Ping” Lacson in several banks in the continental US. There were indications that the total amount of his deposits could reach approximately 320 million US dollars. The project was likewise aimed to determine the necessary legal steps towards filing the appropriate charges against LACSON before Philippine courts.
Police Senior Superintendent Rodolfo B. MENDOZA, JR. assigned with the PNP Intelligence Group was the original Project Officer. Senior Supt. MENDOZA was able to locate and convince a US citizen, Ms. Blanquita PELAEZ to file a civil and possibly a criminal lawsuit against LACSON. This lawsuit arose from LACSON’s failure to settle PNP financial obligations with Ms. PELAEZ in the PNP-Smith & Wesson contract wherein the PNP purchased handcuffs from Smith & Wesson, which Ms. PELAEZ represented in the Philippines. LACSON, who was then the Chief, PNP blatantly refused to settle said financial obligation with Ms. PELAEZ even after the local courts and even when the Philippine Senate, in an inquiry into the matter found, weight on Ms. PELAEZ’ claim. The lawsuit was designed for Ms. PELAEZ to request US Federal Attorneys to request for grand jury subpoenas on LACSON’s bank records and properties in the United States. Once the bank accounts, transactions and properties are obtained and found authentic the Philippine government can now proceed in filing the following cases against LACSON: a) Violation of the Anti-Graft and Corrupt Practices of Republic Act 3019 for amassing wealth way beyond his lawful means, b) Violation of the Code of Conduct fro Public Officers and Employees of Republic Act 6713 for not truthfully disclosing his assets and net worth. Aside from this, when the US bank records are made available, he could also be charged among others with Plunder, Perjury and Unexplained Wealth.
In a related development, this project was also able to gather substantial information on the criminal activities and the possible amassing of unexplained wealth of several officers who serve under LACSON.
In view of these developments and in order to avoid impediments in the conduct of the mission and the Investigation, P/SSupt. MENDOZA requested Colonel Victor CORPUS, Chief Intelligence Service of the Armed Forces of the Philippines to participate in the investigations and to help in sending a joint AFP-PNP team to United States to coordinate and work closely with the US Customs officials who had taken particular interest on this case. P/SSupt. MENDOZA also got the approval from Colonel CORPUS for the inclusion off Ms. Mary ONG, as corroborating witness for the US Federal-case against LACSON.
On 20 May 2001, Her Excellency, President Gloria MACAPAGAL-ARROYO approved the mission to the United States based on the recommendation of colonel CORPUS. The team was composed of Colonel Mario F. CHAN of ISAFP; Police Senior Superintendent Rodolfo B. MENDOZA, JR. and SPO2 Egdon R. LISCANO, both of the PNP Intelligence Group: Ms. Blanquita PELAEZ and Ms. Mary ONG –the complainant and the witness and Attorney Stephen V. JAROMAY, who acted as the legal counsel of the team. The joint team departed Manila on 02 Jun 2001 for Hong Kong for a connecting flight to San Francisco on 05 Jul 2001, hence this report.
B. Legal Background
At about the time the PNP launched a discreet inquiry in the alleged US dollar deposits of LACSON in the United States, Ms. Blanquita PELAEZ reached a dead end in her numerous attempts to collect the total amount of P30M from the PNP. The said obligation arose from a contract for the delivery of handcuffs entered into between the PNP and smith and Wesson, USA through PELAEZ as the Philippine agent for the latter.
As a US Citizen residing in the Philippines, PELAEZ was advised that since she exhausted all local remedies towards the enforcement of her claims, she would face better chances of recovery under US courts through the PNP Chief LACSON, who appeared to have maliciously denied her claims despite the legality thereof as upheld by the Office of the Ombudsman, the Senate and other departments of government.
Under international law, PELAEZ, as a US citizen, is not bound to file the appropriate action, civil or criminal, against any person (natural or artificial) in the Philippines, restrictively before courts. If, as in the instant case, she has exhausted all legal remedies, she may resort to the courts of her own country. However, for the US courts to gain jurisdiction over any Philippine national or resident, the latter must at least have properties in the United States against which a so called action in rem could be instituted.
Through her own personal efforts, PELAEZ obtained information that LACSON has several substantial dollar deposits/accounts in US banks. As LACSON was the PNP Chief who was most vehement in denying. PELAEZ’ claims, the latter decided to file civil and criminal suits against the former before US courts and thus seek redress from LACSON’s properties and bank accounts threat. Hence, PELAEZ’ decision to proceed against LACSON in the US.
At About the same time, P/SSupt MENDOZA apprised PELAEZ of the PNP Intelligence Project against LACSON and thus was able to convince her to cooperate in the said effort.
Under existing laws and practices relative to the exchange of information on criminal activities with an international dimension, it is usually the Department of Justice in conjunction with the Department of Foreign Affairs which takes the lead role. In such set-up, records and other pertinent documents on individuals that may be subjects of future criminal action are exchange between the Philippines and other countries such as the United States through diplomatic channels. Evidently, such diplomatic course of action is at best slow and deliberate and at worst prone to political mood swings both in the requesting and host countries.
With the cooperation of PELAEZ and the intelligence data produced by the PNP and the AFP, a legal framework was designed to attempt a short cut of the information exchange process between the US and the Philippines insofar as the foreign bank accounts of LACSON are concerned.
The primary objective of the said legal framework is to identify, with absolute certainty and without any witnesses being intimidated by any possible counterchange for perjury or libel, any and/or all of the Us bank accounts of LACSON and assess if the same have ever been declared in his Statement of Assets and Liabilities during his tenure as a PNP officer as well as determine of the amounts contained therein, as any given time, could be lawfully earned by LACSON in keeping with his means as then PNP officer.
If, at any time after a determination of the existence of such bank accounts, it is found that LACSON did not declare the same in his SALS and that there is no way that he could have earned the amounts deposited therein on the basis of his pay as a police officer, he may be criminally charged under any or all of the following laws: (a) the Anti-Graft and Corrupt Practices (RA 3019) for amassing wealth beyond his lawful means; (b) The Code of Conduct for Public Officers and Employees (RA 6713) for not stating assets in his SAL and also for ill-gotten wealth; (c) RA 7080 for Plunder (if the total amount of the deposits is at least P50M; RA1397 for amassing ill gotten wealth as well as for simple Perjury on his SALs.
An equally important objective is to seek the criminal indictment and prosecution of LACSON in the US for possible violation of the Anti-Racketeering and Money Laundering Act of the US (RICO Law).
In order to immediately set the wheels of the prosecution in Philippine courts of LACSON, it was deemed imperative that copies print the bank statements confirming the existence of his accounts in the US obtained or, at the very least, the existence of his accounts in the US be obtained or, at the very least, the existence thereof be attested by any witness who is given the opportunity to view the same.
With PELAEZ as complainant before the US Customs Service and the other members of the Team, including MARY ONG, serving as corroborating witnesses, it was expected that a Grand Jury could be convened earliest and subpoena be issued to the appropriate American banks so that confirmation of the LACSON bank accounts could be achieved soonest. With PELAEZ, ONG and the other members of the Team appearing before the Grand Jury as witnesses, it was expected that at least one of them would be able to see the bank accounts and execute an Affidavit attesting to their existence so that the proper charges could be filed against LACSON in the Philippines soonest. At the same time, LACSON’s indictment in the US could be hastened. Through the foregoing framework, it was expected that the timeframe for the filing of charges against LACSON prior to any proper diplomatic exchange of information could be shortened.
II. Mission Objectives
A. Rationale
Former Chief, PNP Panfilo M. LACSON has been accused and subsequently charged with several heinous crimes in the Philippines namely: the KURATONG BALELENG rub out case in 1992; the Bubby DACER murder case in January 2001; the kidnapping for ransom with murder of five (5) Chinese nationals in 1998-99; and allegations of involvement in drug trafficking from 1992 to date. However, at this point, there is no certainty that even one of these cases could result in the conviction of LACSON. He was recently elected as senator of the senate and has not minced words in warning those investigating his illegal activities that he will use all the powers available to him as senator to get back at those digging up his illegal activities. This fact, compounded by intelligence information that he has established and intricate network within the judiciary, to include the Office of the Ombudsman, makes the task of prosecuting and convicting him very, very difficult and complex.
The move to seek an indictment of LACSON for large-scale money laundering in the United States was considered because of the impartial nature of the US judicial system, which even the well-influenced LACSON could not manipulate. Furthermore, it is believed that the US courts can render swift and fair judgment of LACSON’s case, which will finally expose the true nature of this corrupt and nefarious individual. This option has become imperative for ISAFP to support in order to prevent LACSON from further expanding his domain over well-organized criminal networks in the country. ISAFP has assessed that if LACSON is no put before the bar of justice within a year or two and given his skill in manipulating the media to his advantage and into consideration his devious criminal inclinations, the country is facing prospects of creating an ASEAN version of General Manuel NORIEGA of Panama by the year 2004. This future scenario is not far fetched and will definitely aggravate the deepening problem of peace and order in the Philippines, which has, by and large, developed into a serious threat to national security.
B. General Objectives
1. To establish intelligence exchange with the US Customs Service officials regarding the large-scale money laundering activities of LACSON, et.al. in the United States
2. To coordinate and assist the US Customs Service in order to initiate a full-blown investigation of money laundering activities of LACSON in the United States
3. To determine the intricacies of existing US legal procedures relative to the investigations, filing for the case and eventual indictment of Philippine citizens for large-money laundering in the United States
C. Specific Objectives
1. To gather information regarding the various dollar bank accounts of former Chief, PNP Panfilo LACSON in the United States
2. To assist in the filing of a civil suit on behalf of Ms. PELAEZ and pursue the criminal indictment of LACSON in the United States
III. Narration of Events
A. Chronological Presentation
1. The Hongkong meetings
On 02 June 2001, the team arrived in Hongkong. On 041000 June 2001, Mr. Doug CREER, a Senior Special Agent of the Office of the Internal Affairs, of the United States Customs Service, Department of Treasury; Mr. Thomas HOWE, US Customs Attaché in Hongkong; and Mr. Andy YU, a US Customs Representative met the joint AFP/PNP team at the US Customs Service Headquarters at 11/F, St. John’s Building, 33 Garden Road, Hongkong. The focus of the meeting with the US Customs Service representatives in Hongkong were as follows:
a) The purpose of the joint AFP/PNP team in proceeding to the United States
b) Merits of the case and a review of documentary as well as testimonial evidences provided by the point AFP/PNP team
c) Limited question and answer session witness Ms. Mary ONG
Mr. CREER emphasized that their objective in meeting with the joint AFP/PNP team in Hongkong was to ascertain and ensure that the purpose of the investigations were not politically motivated and that no specific agency and/or office of the US Embassy in Manila would be negatively affected by the investigations. This move was done in order not to adversely jeopardize the opening of the Office of US Customs Attaché in Manila sometime middle of this year.
Before the meeting, was adjourned, Mr. CREER expressed his opinion based on the information the team had shared with the US Customs Officials, that the team should go directly and work for the criminal indictment of LACSON in the United States rather file civil suit. He however pointed that the information on the criminal liability of LACSON for money laundering must be presented convincingly to the US Custom Service officials in San Francisco who will in turn write up their recommendation to the US District Attorneys
2. San Francisco, USA
a) On 052045H June 2001 the joint team arrived in San Francisco from Hongkong. The following day, 061000 June 2001 Colonel CHAN and Attorney JAROMAY call on Consul General Delia M. ROSAL at her office at the Philippine Consulate at the 6th Floor of 447 Sutler ST., San Francisco, California 94108. Consul General ROSAL, in the presence of Consul Leoncio CARDENAS, voluntarily offered whatever support and assistance they could provide the team in its mission in San Francisco.
b) On 071000 June 2001, Mr. Terry NEELEY, Group Supervisor and MR. Jerald Kawai, Special Agent who are both with the High Intensity Drug Trafficking Area (HIDTA) and Money Laundering Group of the US Customs Service met the joint team at the conference room of Marriot Residence Inn in South San Francisco. During the meeting several informal exchanges of information between the two groups were made particularly on the identities of persons, dates, places, specific incidents in the movement of money and the alleged sources of US dollars believed to have been laundered by LACSON to the US. At this point, the main focus of the Us Customs authorities was to determine the filing of appropriate information with the US Attorney for money –laundering investigation of LACSON. MR. KAWAI emphasized and made it very clear that the US government’s full support and cooperation in the money-laundering investigation on LACSON is anchored on the condition that all their efforts must not be pre-empted by a news leak or uncalled for media publication whether in the Philippines or in the United States. In short, as what was also emphasized by Senior Special Agent CREER in Hongkong, the US Customs Service officials in consultation with the US Attorneys, have imposed a “gag” order on the LACSON money-laundering case. They said that this is so so that US Federal cooperation will cease the moment the US Customs Service or any US Federal Agency is dragged into the press.
c) Mr. KAWAI informed the team that the US Customs Service has established its offices in Manila last 05 Jun 2001 with Mr. Dave MEISNER designated as the Customs attaché.
d) Colonel CHAN provided MR. NEELEY a photocopy of the letter of Colonel Victor CORPUS to the US Deputy Chief of Mission in Manila dated 30 May 2001. However, the letter addressed to the US Customs Commissioner (Attention: Special Agent Gerald KAWAI) from Colonel CORPUS dated 21 May 2001 ws not handed over to Mr. NEELEY because his enter to the US DCM in Manila had the same content.
e) Much of time during the meeting was devoted in debriefing of Ms. Mary ONG regarding her past activities and direct knowledge of LACSON’s criminal operations in the United States to include his associates.
f) Before the meeting adjourned, Special Agent KAWAI unofficially revealed the existence of one bank account of LACSON. It was in Bank of America with Account Number 17478004, with an initial deposit of $18,000.00 in1996. However, he did not disclosed the current status of the account as well as what Bank of America branch it was opened at. However, he hinted that the said account is active and contains substantial amount.
g) On 111100 June 2001, another meeting was held at the same venue. The two (2) US Customs Service officials continued with their debriefing of Ms Mary ONG. They were given copies of documents, which the joint AFP/PNP team brought along. During this meeting, Colonel CHAN had the opportunity to read from the notes of Mr. NEELEY. He read the following “received the photocopy of the letter addressed to US DCM but never the letter addressed to US Customs Commissioner: Attention Gerald Kawai.”
h) The results of this meeting were as follows:
1) The US Customs Service will commence with the formal investigation on allegations that LACSON is involved in large-scale money laundering activities in the United States. They will request for subpoenas addressed to the banks where LACSON is believed to have US dollar deposits/accounts. However, the US Customs authorities said in all likelihood, it would sometime before the results of their inquiry would be known because of the big volume of cases that their office are currently investigating. It is because of this that the return of subpoena will therefore take sometime. They also said that US banks will usually take their “own sweet time” in responding to these subpoenas.
2) IN obtaining the needed bank records, the informal channel was used because the US Customs authorities said that an official and formal government-to-government arrangement will definitely take a time. If that arrangement was made, the US Customs Attaché in Manila will have to do all the necessary liaison and coordination with the Philippine agencies concerned, hence prolonging the process. The use of the informal channel of information exchange, i.e. with Ms. PELAEZ serving as conduit in her capacity as US citizen-private complainant, was a more direct and expeditious approach.
3) On 14 June 2001 at 1245H, another meeting was held with the US Customs agents. The purpose of the meeting was to assess Ms. Mary ONG as a witness. The US Customs agents asked additional questions from MS. ONG which was intended as a credibility assessment. This move was to ascertain the truthfulness and veracity of her revelations because of their observation that she was withholding vital and relevant information. Discussion was made on the benefits and/or compensation and immunity that she will get from the US government, granting the US District Attorney find her a credible witness. This was prompted by Ms. ONG’s surprise disclosure, during the last meeting, regarding her involvement in arms smuggling from the US to the Philippines. Eventually. The US Customs agents revealed that what they wanted to achieve is not only to find the money (LACSON’s bank accounts which is the object of the mission) but also go for the freezing, seizure and eventual forfeiture of LACSON’s money in favor of both the US and the Philippine governments. The US Customs agents expressed this ultimate objective of the US authorities during the 11 June 2001 meeting. As for the current status of the investigation by the US Customs, they started to write up the reports, which will be the basis for the issuance of the subpoena to the banks on 18 June 2001.
j) What was significant during the 14 June 2001 meeting was the disclosure of Mr. KAWAI that according to Mr. Andy YU of the US Customs Service in Hong Kong, Us Customs Service surveillance agents reported that Ms. ONG met with known Chinese Triad personalities. They were able to identify two (2) personalities namely: Grace TANG and a certain CONEY (LNU) and certain Dominic WAN.
k) The debriefing on Ms. ONG was continued from 1400H-1600H of the same day. The focus of the debriefing was to know more about her past activities in order to prepare her testimony should the Grand Jury convene and go for the seizure and forfeiture proceedings. The debriefing process on Ms. ONG was resumed and terminated on 18 June 2001.
l) The US Customs officials who interviewed and debriefed Ms. ONG finally evaluated her not to be credible as a witness for the time being. However, they said that they could interview her on a later date to further evaluate her testimony once LACSON’s bank accounts are identified and have been legally documented.
m) In view of the need for more information to support the us Federal investigation and succeeding legal action, the team embarked on various intelligence networking and information collection operations. These efforts resulted on the following:
1) Discovery of another house owned and registered under Alice Deferio LACSON, wife of /LACSON, located at 2295 California St San Francisco California. This is at downtown San Francisco (please see attached photo)
2) Discovery of bank account belonging to Alice D. LACSON. Bank of America, Account Number: 2430601369. Deposited at BA branch located at 7255 Woodman St., Van Nuys, California. This address was obtained from the check paid by Alice LACSON in buying two (2) luxury Sports Utility Vehicles (SUVs), Toyota Sequioas during first quarter of the year.
3) Located the address if a certain Jaime BOADO REGACHO at 28 Buttercup Court, Alamo California. This Address was used by LACSON and his other cohorts (to include P/Director Reynaldo ACOP and P/SSupt Michael Ray AQUINO among others) several times whenever they and that he had no visible and legal means of acquiring the same when he was still with the government service.
q) In the US Customs case against LACSON, it is imperative that they must prove that the money deposited in his bank accounts were derived from the proceeds of criminal activity. Mr. KAWAI said that the Philippine Department of Justice can now formally request for the bank records of LACSON from the United States Department of Justice invoking the MLAT and by using the information acquired by the joint AFP/PNP team in making the official request. The documentary and material evidences from the kidnapping and drug trafficking cases against LACSON and other additional information obtained in the US should be collated and exploited by the Philippine DOJ as basis for the request. On the other hand, the team passed to Mr. KAWAI, the Alice LACSON Bank of America account number and address in California St in San Francisco.
IV. Results of the Mission
A. Short Term
1. the joint AFP/PNP team was able to obtain two (2) bank accounts in the United States. One belonging Ping LACSON himself, and the other to his wife, Alice Deferio LACSON. Both bank accounts were never declared in his Statement of Assets and Liabilities for the last five (5) years.
a) Ping’s Bank Account Number: MUL-RK DEVL 1747800046 with Bank of America. Opened in 1996 with an initial amount of $18,000.00
b) Alice Deferio LACSON, Bank of America, account Number 2430601369 in Van Nuys, California . Estimated deposit: $20 million US dollars
2. Initiated and developed mutual understanding, cooperation and assistance between the joint AFP/PNP team and the US Customs /Service authorities. This mutual understanding and cooperation eventually led to the convening of the official investigation in LACSON for suspicion of involvement in large-scale money laundering activities in the United States. This is a serious criminal offense in the United States
3. The team was able to determine the intricacies and technicalities of the various US legal procedures in the conduct of investigations and indictment of money laundering cases
4. The mission paved the way for the establishment of person-to-person contacts between the AFP/PNP intelligence operatives for intelligence and information exchange with US Customs Service officials insane Francisco and Hongkong, especially with officials from its Internal Affairs Office and the High Intensity Drug Trafficking Area, Money Laundering Group. It also obtained information and introduction with the US Customs Office established in Manila on 05 June 2001.
5. The criminal suit against LACSON has taken precedence over the civil suit of Ms. PELAEZ in the United States. The US Customs authorities believe that the criminal case against LACSON is the more important case than the civil suit of Ms. PELAEZ which could come after the resolution of his criminal case.
B. Long Term
1. The various information derived from the mission will definitely be very useful in handling future cases of money laundering in the United States. As a result, it improved and strengthened mutual understanding and cooperation between two countries in prosecuting high profile cases of this nature in the future without the hint of any political color.
2. The mission was able to show that the time given for the team to obtain the bank accounts through grand jury indictment was not enough. It required a minimum of 4 to 6 weeks at the least for the evaluation of all information and subsequent preparation of the reports. The consolidation of evidences and case evaluation by the US Attorneys prior to indictment is likewise a long process. This is such because the main objective of the US Customs Service officials id focused on the seizure and forfeiture of the money laundered while the team’s main priority is to secure the official records of LACSON’s bank accounts.
V. Assessment
The mission was a significant breakthrough and a step closer in the government’s quest to bring Panfilo LACSON in the bar of justice. The mission was able to successfully provide US Federal Authorities sufficient information to warrant the start of formal investigation of LACSON for the possible violations of US laws particularly money laundering case and the RICO statutes. From an intelligence standpoint, the mission was accomplished with excellent results. The intelligence exchange has confirmed that, indeed, Ping LACSON has sizeable amounts of dollars deposited in several banks in the United States. Although, US laws the US counterparts from divulging the exact information on these accounts, they have unofficially told the team to seek for its disclosure through the MLAT, therefore confirming that the LACSON dollar accounts exists.
However, as a result of the intricacies and legal technicalities of the US judicial system, the team was not able to wait for the results of the grand jury hearings, which as earlier stated would take from 4 to 6 weeks after the report of the US Customs has been submitted to the US Attorneys. Part of the reason that brought about the time constraint problem of the team was the lost time of about two weeks, which was by US Customs “must do” procedures. The mission’s preparations were relatively inadequate, too in terms of legal ground working. The absence of US Customs Office in the Philippines then likewise contributed to delay inasmuch as the Philippines was then under the territorial jurisdiction of the US Customs Service in Hongkong.
Likewise, the limitations of the team in getting information on procedures about the US legal system was unforeseen and the team’s dependence on relatively inadequate and second hand information on the intent of the US Federal authorities in so far as to their ultimate objective was not clear from the beginning. However, as a result of this mission it has become evident that the United States government will go all out for seizure and forfeiture while Philippine government side was content on getting the official bank records of LACSON. Lastly, the US Federal authorities said that at this stage the evidences for the seizure and forfeiture of LACSON’s money by the US Customs are weak, hence there is a need for them to deepen their investigations.
While the initial result obtained by the mission could not be used for the filing cases in the Philippines courts against LACSON, the information that the team was able to acquire is very vital, material and relevant to initiate the Philippine government’s request for his official bank records through the MLAT, by the DOJ. Passing these information to the DOJ would mean that the request for information on these accounts would be hastened given the fact there is sufficient information showing that what the Philippine government is requesting from the US Department of Justice are existing bank records and not products of so-called “fishing expeditions,” It is believed that as a result of the team’s efforts the MLAT requests could be greatly expedited.
In view of these developments, the need for the creation of a joint legal team from the DOJ and the OSG to take over from where the joint AFP/PNP team left off is imperative in order to see the finality of the cases against LACSON.
It is opined that the results of the mission at this point in time must not be divulged to the public. Divulging any of the aforementioned developments as a propaganda tool against LACSON is not only counterproductive but could create serious damage to the efforts of both governments to prosecute him. In fact, it is assumed that LACSON himself will attempt to highlight this issue to bait government authorities to answer tirades. It is assessed that this is a well-crafted PR design to put the issue in public view which will precipitate a withdrawal of support from the US side because of the “media gag order” that has been agreed upon prior to the formal investigation. US cooperation may not be extended if they feel that any of their Federal agencies would be dragged before the Philippine media unnecessarily. But if the government waits for the official transmittal of the bank records and proceeds in filing the appropriate cases in the local courts in coordination with the US Attorney’s Office, the prospects of successfully in prosecuting LACSON and seizing and forfeiting his million dollar deposits are much greater.
VI. Comments, observations and Recommendations
A. Comments
1. The establishment of a US Customs Office in Manila may have stalled the mission in the US. Because of the high-profile nature of the case, the US Customs Attaché might have taken special interest since it would be his first case in the Philippines.
2. The US Customs authorities in San Francisco have strong interest in this case.
3. The US customs authorities in San Francisco informed the Team that a certain Evaristo GANA from the Department of Justice contacted a DEA agent in Manila to introduce him to US Customs agents in Manila. GANA allegedly told his DEA contact that he wanted to talk to the US Customs representative in Manila “to present Ping LACSON’s side of the story on the bank accounts.” This information was relayed to the team during the last day of consultations with the US Customs officials before the team departed back to Manila. In a related development, Ms. Mary ONG told the US Customs officials that the same Evaristo GANA contacted her and offered her PHP 10 milllion to withdraw all her complaints against LACSON and his cohorts and also stop her anti-LACSON CRUSADE. However, there is no way for the joint AFP/PNP to verify the authenticity of Ms. ONG’s statements.
C. Recommendations
1. The PNP must now pay the PHP 30 million it owes Ms. PELAEZ in the handcuffs transactions. PHP 9 million of this amount, which was advanced to Ms. PELAEZ, prior to the mission, must be reimbursed to the Office of the President.
2. A well-screened team from the DOJ-SOG in consultation with the joint AFP/PNP team should be created into a secret task group to work for the MLAT request of LACSON’s bank records in close coordination with the US Customs Attache mi Manila, Mr. Dave MEISNER. The legal team will likewise be responsible in filing the appropriate charges against LACSON once the documents are obtained.
3. Ms. Mary ONG should undergo comprehensive debriefing because of the US Custom’s findings on her credibility. Likewise, the joint AFP/PNP team believed that Ms. ONG has an agenda different from that of the government in general and ISAFP in particular.
4. A total media gag order is needed to ensure success of this undertaking. The government will have all the necessary media mileage it desired once all the records have been officially transmitted to the Philippine government or when the US indictment has been successful.
MARIO F. CHAN
Col PA (USC)
Team Leader