January 23, 2004

H.E. PRESIDENT GLORIA MACAPAGAL-ARROYO

OFFICE OF THE PRESIDENT

Malacañang Palace, Manila

Dear President Macapagal-Arroyo,

We are writing in connection with the impending transfer to the National Treasury of some $684 million of forfeited Marcos ill-gotten assets consisting of monetary instruments, bonds, shares of stock and investments instruments from the escrow account with the Philippine National Bank pursuant to the Writ of Execution issued by the Sandiganbayan.

There is reason to fear that the transfer of the entirety of the forfeited assets to the National Treasury (excepting only about $22 million still being held in Singapore) may result in the said amount being liquidated to fund all sorts of unfunded government projects considering the huge budget deficit of the government amounting to some P197 billion. We also take note that the government has not exhibited strong political will to ensure passage of a law compensating the martial law victims. There may not be sufficient time to enact such a measure before the 12th Congress adjourns on February 6, 2004.

We allude to your Excellency's repeated public statements to the effect that your government intends that at least eight (8) billion pesos of this forfeited assets be preserved as a special fund for the compensation of victims of human rights abuses during martial law.

In order to preserve sufficient resources for the martial law victims pursuant to your own expressed wish that eight (8) billion pesos of the forfeited assets be preserved as a special fund for them pending passage of a law for the compensation of martial law victims in the 12th or, God forbid, the succeeding Congress, we advice your excellency to LEAVE the amount of eight (8) billion pesos IN THE ESCROW ACCOUNT with the Philippine National Bank (PNB) and maintain the same amount therein for the said purpose.

                                                                                                                                                               Very truly yours,

                                                                                                                                                               MARIE HILAO ENRIQUEZ

                                                                                                                                                               Secretary General

                                                                                                                                                               Assisted by the Public Interest Law

                                                                                                                                                               Center as counsel of SELDA

Copy Furnished:

Presidential Commission on Good Government

(PCGG)

IRC Building

EDSA, Mandaluyong City