MANILA, Philippines -- (UPDATE) The Court of Appeals has issued a freeze order on accounts in 23 banks and insurance companies that have been linked to the fertilizer scam, including those belonging to a former official of the Department of Agriculture.
The ruling covers accounts under former Agriculture undersecretary Jocelyn “Joc-Joc” Bolante who has been accused of allegedly diverting fertilizer funds to the campaign coffers of President Gloria Macapagal-Arroyo during the 2004 polls.
“The court finds that petitioner, AMLC [Anti-Money Laundering Council] was able to establish probable cause that an unlawful activity had been committed and that the subject accounts are related to such activity,” according to the First Division in a ruling penned by Associate Justice Pampio Abarintos.
The freeze order, which has a 20-day life span, takes effect upon receipt of the resolution by the parties concerned. But a summary hearing has also been scheduled on July 8 to determine if the freeze order should be extended or not.
Bolante has 22 accounts in four of the 23 firms -- Prudential Bank, Bank of the Philippine Islands, Union Bank of the Philippines, Rizal Commercial Banking Corp. and Standard Chartered Bank.
Aside from the four banks, other banks with fertilizer scam-related accounts are AIG Philam Savings Bank, Banco de Oro Universal Bank, Citibank, East-West Bank, Equitable PCI Bank, Maybank Philippines, Metropolitan Bank and Trust Co., Philippine National Bank, Philippine Savings Bank, Planters Development Bank, Philippine Business Bank, and Union Bank.
The insurance firms include Insular Life Company, PruLife Insurance, Standard Insurance, BPI/MS Insurance, and Performance Foreign Exchange.
The AMLC started its investigation in 2006 after the PNB informed them of several suspicious transactions.
These transactions included the transfer, over four occasion, of P172.6 million from the Livelihood Corporation (Livecor), chaired by Bolante, to the accounts of the Molugan Foundation; and the transfer of P78 million from Molugan to the Assembly of Gracious Samaritans Foundation.
PNB told AMLC that the transactions had no legal or economic justification.
The Makati City Regional Trial Court allowed the examination of several deposits and investments.
Bolante left the country after the Senate summoned him to appear before its inquiry into what is now known as the fertilizer scam.
When the Senate issued an order for his arrest, the US embassy here cancelled Bolante’s visa. He was arrested and detained on entering the US, and his application for asylum was subsequently denied.
After the Senate wrapped up its investigation, it provided the AMLC a copy of its report. Another investigation was then conducted which led to the discovery of other accounts.
