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| ON THE OTHER HAND |
| GMA and Garcia By Antonio C. Abaya Written Oct. 25, 2004 For the Manila Standard October 28 issue To make some sense out of the revelations regarding the alleged ill-gotten wealth of Maj. Gen. Carlos F. Garcia, I have prepared the following timeline from different media accounts. 1993 � By her own admission, Mrs. Garcia flies to the US with $200,000. . Nov. 04, 1993 � Gen. Garcia flies to the US with $15,000. 1995 � By her own admission, Mrs. Garcia flies to the US with $200,000. Aug. 01, 1995 � Gen. Garcia flies to the US with $10,400. May 10, 2002 � Mrs. Garcia flies to the US with $48,000. January 2003 � Mrs. Garcia flies to the US with $200,000. Dec. 17, 2003 � Mrs. Garcia flies to the US with $100,000. . Dec. 19, 2003 � Son Ian Carl Garcia flies to the US with $100,000. This was seized by US Customs but was apparently returned to the Garcias after Mrs. Garcia pleaded in a handwritten affidavit that �(Gen Garcia) receives travel money and expenses in excess of thousands of dollars��I often travel with my husband on business and my travel and shopping in excess of $10,000-$20,000 is provided to me�.My husband also receives cash for travel and expenses in Europe and Asia that (came from) contracts awarded for (the purchase of) military hardware�..(My husband) also receives gifts and gratitude money from several Philippine companies that (came from) military contracts to build roads (and) bridges and (undertake) housing (projects.)�The gratitude money that he receives is common and unsolicited. Contracted companies and personnel from different branches of the service are grateful for my husband�s assistance and timely payments of contracted work�..� The AFP supposedly investigated Garcia after this incident, but the probe was discontinued �for lack of evidence.� Jan. 14, 2004 � Mrs. Garcia flies to the US with $204,230. Not clear from media accounts if this was seized by US Customs. To retrieve the $100,000 seized from son Ian Carl, Gen. Garcia wrote the Fines, Penalties and Forfeitures Office in San Francisco on Jan. 12, 2004, explaining that the money came from �savings, honoraria and dividends from savings� and was intended, among other things, as initial down payment for an apartment that his son Timothy planned to buy in New York where he was studying, as well as for Timothy�s tuition and for the family�s Christmas expenses there. Jan. 15, 2004 - $308,000 was brought in to the US by one of the Garcias and deposited in Citibank�s Park Avenue branch. From media accounts, it appears that only the $100,000 brought in by son Ian Carl Garcia was seized by US Customs, perhaps because it was not declared by him upon arrival. February 2004 � Gen. Garcia is removed by Gen. Abaya as deputy chief of staff for comptrollership and appointed deputy chief of staff for plans and programs, as the AFP begins its investigation into Gen. Garcia�s alleged ill-gotten wealth. Aug. 02, 2004 � Gen. Garcia explains in a letter to Gen. Abaya that the money seized by US Customs came from �personal loans from friends here and abroad� and was intended for his wife�s medical examination and his eldest son�s treatment for hepatitis C. Completely different from the reasons Gen. Garcia gave in his letter of Jan. 12, 2004 to the US government (above). Sept. 28, 2004 � Gen. Garcia is suspended by the Ombudsman for allegedly having accumulated unexplained wealth in the US amounting to $1.4 million. Sometime in September, date unspecified, President Arroyo is said to have ordered the court-martial of Gen. Garcia. Oct. 14, 2004 � Acting on the request of the Anti-Money Laundering Council, the Court of Appeals ordered the freezing of the 40 accounts held by Gen. Garcia and his family in six banks and in the AFP Savings and Loan Association. Solicitor General Alfredo Benipayo reveals that Gen. Garcia�s transaction between 2002 and 2004 totaled more than P185 million, while his Statement of Assets and Liabilities for 2003 put his net worth at only P1.253 million. Oct 15, 2004 � The US Government puts on hold the real estate holdings of Gen. Garcia in New York and Ohio, identified by the US Dept. of Homeland Security as a $765,000 condo on 502 Park Ave., a $750,000 apartment at 222 East 34th Street, both in New York City; and a house in the town of Westerville, Ohio, of undisclosed value. Gen. Garcia served in the logistics office (the military procurement office) from l989 to 1996. He was named deputy chief of staff for comptrollership on March 28, 2001, with a monthly salary of P37,000, until he was relieved in February 2004. If you compare these appointment dates with the recorded dollar transfers above, you will note that the Garcias transferred at least $425,000 while the general was with the logistics command, and another $960,230 when he was the military comptroller. He does not appear to have transferred any amount during the in-between years (1996-2001), when he was assigned to the corps of engineers. On the theory that Garcia could not have acted alone and must have had accomplices both below and above him in the chain of command, investigators should zero in on who his superiors and direct subordinates were in 1989-1996, and who they were in 2001-2004 aside from Gen. Abaya, (we are not related to each other), who was COS from February 2003 to October 2004. The most intriguing aspect of this scandal is the timing of its exposure to the public. US Customs seized the $100,000 in mid-December 2003 and informed the Office of the Ombudsman about it. The Garcia spouses tried to retrieve the money through an affidavit by Mrs. Garcia in December, and a letter by Gen. Garcia in January. The AFP began investigating it in February. But all the while no word was leaked to the public�.until, I understand, Columnist Jarius Bondoc wrote about it in his column sometime in August 2004. I find it hard to believe that President Arroyo was kept completely in the dark about Garcia by the Office of the Ombudsman when it was informed by US Customs in December, or by AFP COS Gen. Abaya when he ordered an investigation of Garcia in February. If she was indeed deliberately kept uninformed about such an explosive development, by two of the most important institutions of government, then one must wonder what kind of a leader she is that she is out of the loop in her own administration. On the other hand, if she knew about Gen. Garcia�s shenanigans in December or February, then why did she act only in September, when she supposedly ordered court-martial proceedings against him? Like it or not, she is damnable if she did, and damnable if she didn�t. Whichever way she cuts it, the quality of her leadership is on the dock here. Not surprisingly, speculations are running wild: a) that Garcia was a major contributor to her campaign kitty last May; b) that reconciliation with the Magdalo mutineers was initiated last September because Garcia has proven them substantially correct about corruption in the military; and c) that the Americans deliberately leaked news to Philippine media in August about Garcia�s dollar transfers, to get back at PGMA for pulling out of the Coalition of the Willing last July (in order to save the life of Angelo de la Cruz). More significantly, President Arroyo was described as �the weakest leader in the region� in a recent analysis by Dana Dillon of the Heritage Foundation, not only for pulling out all 51 Filipino soldiers and policemen from Iraq last July, but also for signing an agreement with Beijing in early October for joint oil exploration in the disputed Spratly Islands, an act which American conservatives view as kowtowing to the Chinese. The Heritage Foundation, together with the American Enterprise Institute and the Hudson Institute, comprise the brain trust of the Project for the New American Century (PNAC), the neo-conservative grouping founded in 1997 and headed by Dick Cheney (who became vice-president) and Donald Rumsfeld (who became defense secretary), which has monopolized US defense policy since George W. Bush became president in 2000. Among the stated strategic goals of the PNAC: establish permanent military control of the Middle East �whether or not Saddam Hussein remains in power� (hence the invasion of Iraq and, soon, Iran); encourage regime change in China; and increase American forces in Southeast Asia. (See my article �Uncle Dick and the PNAC�, Sept 07.) By pulling out the Philippine contingent from Iraq, President Arroyo has weakened the US� plans for permanent military control of the Middle East, if only symbolically. She has also encouraged anti-war and anti-US sentiments in the Philippines, which could make the country less hospitable to the stationing of more US forces in our territory. By signing an agreement with China for the joint exploration for oil in the Spratlys, she has given China undisputed access to the potentially rich deposits under the islands and has thus strengthened the regime in Beijing that the PNAC neocons would like to change. From the neocon point of view, President Arroyo has, wittingly or unwittingly, undermined these goals, and has therefore outlived her usefulness. She can only hope that John Kerry wins on Nov. 2. ***** Reactions to [email protected]. Other articles in www.tapatt.org. OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Reactions to �GMA and Garcia� Bravo Tony...I think you should head a special task force CIVILIAN ANTI CORRUPTION COMMITTEE composed of NGO heads and the Christian Churches. We need data like this on ALL civilian and military economic saboteurs. Compile your columns before it is too late. Have special student editions out for high schools to read...required reading. They will inherit the earth and our country. Di ba? Awed by your skill and talent. Tony Joaquin, [email protected] October 30, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Mr. Abaya, I am really disheartened by the kind of civilian and military leadership that we have. Why can't our leaders follow the examples of our heroes, like say, Gen Emilio Aguinaldo? After the pact of Biak-na-bato of December 1898, Aguinaldo with some of his staff opted to live in exile in Hongkong. The $400,000 Mexican dollars recompense which the Spanish government paid to the revolutionaries were deposited in several Hongkong banks, in the name of Aguinaldo, upon insistence of his comrade-in-arms, who expressed full trust and confidence in him. Aguinaldo never withdraw a cent from the money. One of the leaders of the revolution, Isabelo Artacho, did not trust Aguinaldo and demanded to divide the money, and even threatened to sue Aguinaldo in a Hongkong court, but Aguinaldo fleed to Singapore, and refuse to divide the money. When the Americans seek his alliance in the fight against Spain, Aguinaldo withdrew some of the money to pay for 2,000 rifles and ammunitions, which were conveyed to the Philippines through an American warship. It was also claimed that a second withdrawal, also for the purchase of arms, was allegedly entrusted to an American consul, but Aguinaldo never receive the armaments, and the whereabouts of the money was never ascertained. For the rest of the money, it is believe that the initial requirements of the First Philippine Republic was funded by the Hongkong money and used to buy more military hardware for use in the succeeding war with the Americans. In the battle of San Jacinto, Pangasinan in Sept 1899, the Americans believed Aguinaldo had 7,000 new Japanese rifles. These could have come only through an importation from Japan and surreptitiously brought into the country through Filipino-owned commercial vessels, such as the 100 ton steamship "Taaleno", which was captured by the Americans. After the war, Gen Aguinaldo chose to live a simple life, detached from the social and political interaction with the new colonizers, perhaps day dreaming the glory that would have been if the revolution succeeded. In any case, we, who inherited this country, have Aguinaldo and the rest of the heroes of the revolution as models. The sad part is, we seemed to have ignored, or do not really know them. Yours truly, Virgilio Leynes, [email protected] October 30, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Mr. Abaya, One particular issue that I would comment on is about GMA signing an agreement with China for the joint exploration of oil in the Spratlys. Whether the U.S. likes it or not, GMA was left with no choice. GMA has no better option than this in order to avoid a direct confrontation with China. No way will China give up its claims and never will it agree to the Philippines owning up the Spratlys or any part of it for itself alone just like the other claimants in the region. But being partners is a better deal. As the saying goes, if you can't beat them, join them. Better an ally than an enemy and make everybody happy. Cesar M. de los Reyes, [email protected] October 31, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Forwarded by Auggie Surtida, [email protected] Some of you must be wondering what I meant by the following comment: [quote]--f) the US "empire" or hegemonic position in the world peaked already during the decade of the 70s after being in ascendance for 80 years since the Spanish-American War (circa 1890). The empire is in long-term decline; there is a collapse portion that usually takes place during long-term declines. There are no exceptions. All bubbles collapse.[unquote] Even if the US has no colonies, in the old imperial sense, it had been and is a real empire. The essence of empire involves a "center"(the US mainland) that acquires wealth and benefits from a"periphery", (most of the trading countries worldwide). The mechanics of empire has been enforced by the US, especially after 1945, in the following manner: 1) the Bretton Woods Conference in 1945 installed US dollar hegemony over the so-called free world. The dollar became the world's reserve currency as well as the dominant currency for int'l trade settlements. Seventy percent of all world trade is denominated in dollars while Americans are only 5%of the world population. Why is dollar hegemony so economically beneficial to the US? The answer could be very long but I will simplify. Imagine that our own beloved Einsty has been granted the exclusive right to print money and issue checks for the whole Philippines. Einsty would become filthy fucking rich beyond his wildest imagination. He could buy a dozen of the most expensive mansions, a dozen BMUs, a dozen of the most beautiful high-priced women and pay the suppliers with paper or checks that he manufactured. Everyone else who writes checks will find that his checks return to his bank for debiting. But a large amount of Einsty's checks never returns to his bank !! That is because all Filipinos and corporations have to keep Einsty's money as reserves to run their daily lives and businesses. That is one gigantic reason the US is much richer than Germany, France, and Britain even on a per capita basis. The other reason had something to do with WWII. It was only US industry that survived undamaged. All other powers were devastated. This US privilege, which no single country should ever be endowed with, is under serious threat from the Euro currency because of excessive US debts and deficits. 2) Also after WWII, while other powers were prostate and could not object, the US instituted self-serving copyright, licensing and patent laws which became international law. Since the US was the leading manufacturer and exporter of many types of merchandise and services, it could sell its stuff at outrageous prices to the rest of the world. That is another way wealth is transferred from the periphery to the center. That is also a reason why most of the third world is poor or problematic. That can also be called"state economic terrorism". 3) Whenever weaker countries get into dollar reserve problems, the IMF, which takes its orders from the US, comes around to lend more dollars but at the same time ensure that the country's markets are wide open to US exports and contractors. The IMF also enforces repayment of loans. Africa and South America are the greatest victims of this US tool. 4) IF the IMF and World Bank cannot get into the weaker country and the country refuses to cooperate with US policy, "regime change" goes into action. This could be covert CIA operations, attacking the country's currency in the financial markets or outright invasion. The US has messed up more than 30 countries this way since 1945. The most dramatic examples are in the Middle East, Iran, Iraq, the Emirates. Saudi Arabia was handled differently. The US installed a monarchy, the House of Saud, arguably the most corrupt in the world, to control the population. In Iran, the monarchy failed. Does anyone still not know why the US is so hated in the Arab world. To an Arab militant, the US deserves 9/11 and ten times more. And why are Americans so easily scared by GWB's antics? Because they know deep within they are guilty. Decline Of The Empire The US empire's power and influence rose for 80-90 years from 1890. The explosive or "bubble" phase took place after WWII up to the 1970s or early 80s. After 1980, three pillars of American power were eroding. First to go was the "ideological basis" of empire. Real power comes from the consent or if not, at least the acquiesense, of the governed. For the imperial center to be most profitable, the periphery must not resist its moves.The US ideological myths consist of making people believe that it is a force for 'good", democracy, freedom and prosperity. That is why "communists" are evil murderers and opposed to freedom. The other myth is that if the 3rd world follows America, they can eventually attain its high living standards. Vietnam, Che Guevarra (the revolutionary with a pure heart) and the stagflation of the 70s undermined the US myths. This ideological support is gone by now and anything the US does is resisted-even to the death. Second, the loss of ideological support resulted into a hemorrhaging of political soft power. It is not anymore simple for the US to covertly overthrow Venezuela's recalcitrant Chavez. No one in South America would support the US. In the UN, the US cannot win a General assembly vote; and at the Security Council, France can stop the US anytime and there is no leverage the US can use against the French. That is lack of political power. The US has very few valuable friends left--Australia maybe. The closest US neighbors, Canada and Mexico, avoid the US like the plague. Their silence is deafening whenever, the US is asking for something. Compare the present situation to the time of John Kennedy, the peak of US power. The German Chancellor and French President would say; Mr. President, I heard you the first time or "if you say so, it is good enough for me". Third, during the stagflation of the 70s, German and Japanese economic power surged and soared at the US expense. Germany and Japan took larger and larger shares of the export market while US car assemblers and steel mills moved to Japan and Germany. Later on, the Asian tigers cut down the US further. Now it is China that is doing the greratest damage. US financial and economic power has suddenly evaporated in a matter of a quick 2 5 years. The US is now the greatest debtor nation with trade deficits running at $600 billion a year and budget shortfalls at $422 billion. The US is literally at the financial mercy of Saudi Arabia, Japan, China and the EU. Remaining US Pillars OF Power The US has two cards left to play: military and cultural dominance. Cultural hegemony is useless in the exercise of geopolitical power. It is a legacy and reminder of former US dominance just as the Latin language dominated Europe for a thousand years after Rome fell. We will be speaking English for another 200 years. Military power is the only playable card left and George Bush and the neocons decided to use it in Afghanistan and Iraq. To use it, the US has to make a monumental shift from multilateralism to unilateralism. Unilateralism involves pre-emptive war. All of this is spelled out in the PNAC document; the US will attack anyone it chooses to and the hell with everyone else's opinion. Actually, PNAC is a gigantic bluff attempted to scare the world into re-accepting US hegemony. The problem is; it is too obvious a bluff to perceptive students of geopolitics--the US is financially bankrupt!! Also it is becoming evident that very little critical analysis was done by the Neocons in their chosen strategy. The neocons are blind ideologues who seem to believe that "faith" conquers all--that if they believe America will triumph, it will??? They can;'t even hurdle Iraq. Their superior weapons don't work against 5,000 to 10,000 bedraggled mujaheddins whom they find hard to find. Gradually, Iraq is descending into civil war and when that happens, the US is lost. It has to go home. This is the meaning of an empire in decline. It is like a long-term bear market. Anything you touch turns into a loss. The link below by Immanuel Wallerstein says that the invasion of Iraq is a massive blunder that will hasten the decline of the US empire. Tony Anciano, [email protected] October 29, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Tony: It's obvious that GMA benefited greatly from Garcia's kurakot expertise. That's why Nonong Cruz had to issue a denial that she benefited from campaign contributions even if no one was asking. As to who else was part of the cabal, it's obvious that all of GMA's AFP CoS participated, with Col. Rabusa as the "baby sitter" of Garcia to make sure he doesn't short-change Angie Reyes, who's the logical mastermind since the "all-out war in Mindanao" during Erap's term made conversion a lucrative venture for insiders who didn't care about the safety of AFP's soldiers. Unfortunately, ordinary citizens like you and me can't access files and people who could provide evidence to prove what seem like obvious conclusions when one lines up timelines like you did. I guess we'll just have to wait for the young officers to take over. The sooner, the better. As to whether GMA gets a break in a Kerry win, that's a no-no. The US, whether under Bush or Kerry, will need a more competent and reliable partner to implement the US plans in the area. And GMA is not only incompetent. She's also greedy - and corrupt. Witness all her new appointees, particularly to financial institutions. It is clear that these people of ill-repute are fielded to complete the rape of Philippine finances. Happy Halloween, Philippines! GMA is still President! Tito Osias, [email protected] October 31, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Dear Mr. Abaya: Two things bother me with your expose. The first is, Gen.Garcia did not show any money transferswhile he was assigned to the corps of engineers while a lot of money went here and there while he was a military comptroller. It clearly shows as you have accurately indicated in your timeline that his hands were busy getting cookies from the cookie jar. He definitely needs more than a slap on the wrists. The other thing is, why GMA invites China to join our country to explore oil in the Spratlys? China right now is in the midst of a very strong economic expansion and needs all the oil she can get to fuel this phenomenal economic transformation. According to my retired neighbor who got nothing to do but read the papers all day, this is the reason why I am paying more at the pump. This move by GMA, puts the Philippines directly in-front of a rampaging giant, very hungry for oil to achieve world economic power. Personally, when it comes to oil, the prudent thing to do is to do it alone. But when it comes to Gen. Garcia we need to get all the people involved in helping him buy properties in New York and Ohio. I love reading your articles. We need more people like you who have the courage to enlighten other people who are kept in the dark on what is really going on in the Philippines. More power to you. sir. Sincerely yours, Emil Diaz, Jr., [email protected] November 01, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww I do not disagree with your views at all! Rudy Villarica, [email protected] November 01, 2004 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Sent by postal mail) Office of the Ombudsman 28 October 2004 Dear Mr. Abaya, We write in connection with your article entitled �GMA and Garcia� published under the Opinion columns of the 28 October 2004 issue of the Manila Standard. Unfortunately, you were given the erroneous information that the Office of the Ombudsman had previous information or notice, from the Armed Forces of the Philippines, the United States authorities, or elsewhere, of the seizure of US$100,000, by the United States Customs in mid-December 2003, right after said seizure. The truth of the matter is that said information was given to our Office, for the first time, only on 10 September 2004. On 10 September 2004, officials from the United States Immigration and Customs Enforcement (ICE) verbally briefed the head (undersigned) of our investigation unit about the investigation they are conducting against Maj. Gen. Garcia and his family for possible violation of United States laundering laws. Thereafter, on 16 September 2004, in a letter dated 14 September 2004, the ICE informed the Ombudsman about said investigation. Transmitted with the said letter were various documents pertaining to their investigation. Based on the contents of the said transmittal, our investigating unit immediately conducted a fact-finding investigation (not only on the seizure of US$100,000 on 19 Dec ember 2003) against Maj. Gen. Garcia for probable violations of anti-graft laws. A formal complaint was filed on 27 September 2004 by our investigating unit with our Office of the Deputy Ombudsman for the Military and Other Law Enforcement Offices. Within twenty four hours, our Office already issued an order placing Maj. Gen. Garcia on a six-month preventive suspension. Said order of preventive suspension was served on Maj. Gen. Garcia the following day, 29 September 2004. A copy of the letter dated 14 September 2004 from the ICE is enclosed for your reference. The story broke out in the newspapers for the first time only on 4 October 2004. We hope that you will publish this correction in your next column. Thank you and best regards. Very truly yours, (Sgd) Melchor Arthur H. Carandang Acting Assistant Ombudsman wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww (Enclosed by Acting Assistant Ombudsman Carandang) U.S. Immigration and Customs Enforcement September 14, 2004 Honorable Simeon V. Marcelo Tanog Bayan, Office of the Ombudsman Agham Road, Diliman, Quezon City Attn: Attorney Melchor Arthur H. Carandang Dear Mr. Marcelo: I would like to take this opportunity to inform you that the Department of Homeland Security, Immigration and Customs Enforcement (DHS/ICE) is currently investigating General Carlos Flores Garcia and his immediate family members, Clarita, Ian Carl, Juan Paolo and Timothy Mark for violating U.S. money laundering laws. This investigation was initiated after Customs and Border Patrol (CBP) officials discovered and seized $100,000 USD from General Garcia�s sons, Ian and Juan after they entered the U.S. from the Philippines on December 19, 2003. Our records indicate that General Garcia and his wife Clarita have transported over $500,000 USD into the U.S. from the Philippines since 1993. ICE agents also have information the family owns several properties in the U.S., including two condominiums in New York and a dwelling in Ohio. The condominiums are valued at over $1,420,000 USD alone. In statements submitted by General Garcia and Clarita to ICE agents, the two stated the currency that was seized by CBP officials came from savings and gratuities offered to General Garcia for military contracts that he approved. On September 10, 2004, Deputy Attache (DA) Kevin Peters and Senior Special Agent (SSA) Loan McIntosh-Rupp briefed Attorney Melchor Arthur Carandang of the UCE investigation. DA Peters and SSA McIntosh-Rupp requested Attorney Carandang work �in conjunction with ICE officials on this investigation. A copy of all the documents related to the ICE investigation will be forwarded to Attorney Carandang for review. In regard to this, we respectfully request assistance from Attorney Carandang and your office on this investigation. If you have any further questions related to this matter, feel free to contact SSA McIntosh-Rupp at 528-6300 Ext. 5351. With best wishes, (Sgd) David E. Meisner ICE Attache U.S. Embassy, Manila OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO |