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From the Daily Tribune:

AMID REPORTS OF U.S. FREEZING BANK ACCOUNTS
Reyes, Mendoza, generals slated to leave for abroad

Things may be getting too hot for certain generals for them to think of taking off for abroad soon.

Reportedly panicking over confirmed reports that the United States government has frozen the assets and bank accounts of former Armed Forces of the Philippines (AFP) comptroller Maj. Gen. Carlos Garcia, who is slated to appear before a congressional committee on charges of corruption in the military, two former ranking military and police officials who are now members of the Arroyo Cabinet were reportedly set to leave for abroad this weekend.

Airline officials the Tribune talked with yesterday confirmed that the two Cabinet members, identified as Department of Interior and Local Government (DILG) Secretary Angelo Reyes and Transportation and Communications Secretary Leonardo Mendoza were reportedly booked on separate evening flights to San Francisco and Los Angeles.

A check with the airline manifest for last night's flight, however, showed no listings of their names.

An airline official, however, said this “is usual” as high-ranking officials who don't want the public to learn of their departure have themselves listed under assumed names and later, on upgrades, quickly get on board.

DILG insider, however, confirmed that Reyes was getting ready to leave for abroad and will be stopping by Hong Kong first.

“He (Reyes) is really in a panic over the possibility of a probe being readied by US officials who have been known to transmit 'damaging' documents on Filipino officials regarding their assets to the Philippine authorities.

The two Cabinet secretaries identified as former military and police officials who were reported in the newspapers early this week to be under investigation for alleged dollar-salting by US authorities, as well as some other military generals, were said to have been making arrangements to leave the country, not to fly the coop, but to allegedly transfer the accumulated bank deposits from the US, a favorite country, to accounts in Hong Kong, Malaysia and even the Caymans banks, reliable sources told the Tribune yesterday.

“They (Reyes and Mendoza) are flying on either PR Flight 102 or 103,” airline official said yesterday.

Malacañang the other day debunked the reports of Reyes, Eduardo Ermita all Cabinet secretaries and all former military officers, being under investigation by the US authorities, claiming that the US Embassy in Manila had denied that an investigation of the three Arroyo officials was being conducted.

It was noted, however, that Ronald Post, the embassy public information counselor, did not quite deny the report, only saying the Manila mission was not aware of the probe.

Another reliable source informed the Tribune also yesterday that there was such investigation by an agency operating under the US Homeland Security Department, called the Financial Intelligence Agency (FIA), which is looking in on these financial transactions of several military generals and Cabinet secretaries.

Former Sen. and now opposition leader Francisco Tatad has pointed out that the corruption in the AFP “virtually involves all high-ranking military officials.”

Tatad, apparently nursing doubts over the limitations of the current congressional investigation, also yesterday said this probe should leave no stone unturned.

“What has to be determined is whether the practice has been going on with the knowledge and tacit approval of Malacañang,” he pointed out during an interview.

Tatad was apprehensive at the outcome of the investigation in view of the fact that the military generals and other senior-ranking officers are staunch supporters of Mrs. Arroyo, some of whom were instrumental in her ascendancy to Malacañang.

“How is Mrs. Arroyo going to prosecute all those involved and clean the Armed Forces of the Philippines given the fact that she is in power because of the open partisan support of the AFP?” he asked.

The opposition leader explained that with the cleanup in the AFP now it would probably be the duty of all those officers who are not involved in the system of corruption to take the lead.

“This is a challenge to the junior officers to make sure that the AFP is purged of all corrupt and undesirable elements at the top,” Tatad said.

Rep. Roilo Golez, chairman of the House committee on national defense also yesterday reiterated that the investigation of the charges of amassing ill-gotten wealth and corruption against Garcia would include former defense and military officials during the incumbency of Garcia. Reyes is one of them.

“The possible resource persons would include all the chiefs of staff during the incumbency of Maj. Gen. Garcia,” Golez told the Kapihan sa Sulo even as he ignored calls by leaders of the minority bloc to inhibit himself from the investigation or relinquish its investigation to the House committee on good government.

House Minority Leader Rep. Francis Escudero and Deputy Minority Leader Joel Villanueva said Golez should be included in the investigation because he was the national security adviser and chief of the National Intelligence and Coordinating Agency at the time alleged “conversions” took place.

A source from the House has said some of the lawmakers are in the business of supplying parts and equipment to the AFP for quite some time and are also into the “conversion” business.

Golez said suppliers would also be included in the investigation.

For its part, Malacañang also yesterday dared critics of Reyes to provide concrete evidence that could sway President Arroyo into firing her military patron.

During a radio interview, presidential spokesman Ignacio Bunye said: “We have established that the statement of retired Navy Commodore Rex Robles against the Cabinet secretaries of President Arroyo allegedly involved in money-laundering activities has no basis.” If Robles and other critics are not into a demolition job against Mrs. Arroyo's Cabinet secretaries, they should come out with concrete evidence instead of resorting to insinuations.

“So far, there is no concrete evidence against any of our President's Cabinet officials,” He noted, stressing that Reyes has effectively explained his side on the allegations leveled against him in the media.

“We have said before that we will not be bullied into making any decisions just because of screaming headlines,” he said, adding “the secretary has been explaining his side in the media and I believe that the explanations of Secretary Reyes are sufficient.”

Meanwhile, members of the House of Representatives also yesterday expressed frustration over Malacanang's full backing of Reyes amid controversies surrounding his P18 million in assets.

Ilocos Norte Rep. Imee Marcos, an opposition congressman and a member of the House contingent in the Commission of Appointments, said should Malacañang continue tolerating Reyes despite all the controversies in which he is mired, then the DILG secretary will have to be dealt with accordingly in the CA deliberations.

“If Malacañang would simply ignore all the allegations leveled against him, then the CA is the best group that can possibly look into all these,” Marcos warned.

The legislator earlier told reporters that Reyes would be one among the several Cabinet secretaries who will face rough sailing at the CA.

“I don't think he can easily secure his confirmation,” Marcos told the Tribune during a telephone interview. She, however, said the Palace allies in the CA could do “all the maneuvering,” with the backing of Malacañang, so Reyes may be able to squeeze through - but only after a full hearing on the controversies surrounding Reyes.

Malacañang last Friday rejected the mounting calls for Reyes' resignation, and even believed that the Interior secretary had sufficiently answered the allegations leveled against him concerning his assets.

Other lawmakers have expressed no surprise over the continued support that Malacañang gives Reyes.

Bayan Muna Rep. Satur Ocampo said Malacañang cannot easily dump Reyes because the DILG chief has been with Mrs. Arroyo through “thick and thin” and even despite the possibility that the secretary could be implicated in Maj. Gen. Carlos Garcia's corruption case.

“(The President) sticks out her neck for Reyes because he has shown loyalty to her and has been showing results she credits herself for,” Ocampo said during a separate interview.

Escudero, for his part, maintained his earlier position that Malacanang should recall the appointment of Reyes.

Muntinlupa Rep. Rufino Biazon, an administration congressman, echoed Malacañang's statement and said he would not be coerced into making any decisions because of sensational reports.

Biazon said it would be better if the accusers formalize their accusations by filing appropriate charges, not by just coming out in the media.

“Those who have something against Reyes should come forward and file their cases. They cannot expect Malacañang to do that for them. They made the accusations, therefore the burden of proof is with them,” he added.

In Reyes' statement of assets and liabilities (SAL), he reported an increase in his cash deposits from P75,000 in 2002 to P4.1 million last year. Not only that, he also listed in his statement two restaurants and a P10-million house at the AFP Officers Village in Fort Bonifacio.

Reyes, who claimed that he had already explained well his side on his SAL and net worth, is also facing a probe by the House committee on national defense and banks and financial intermediaries concerning the graft issues against Garcia.

The joint committees have thought about summoning other past chiefs of staff of the Armed Forces including Reyes to shed light on the issues concerning Garcia.

Will this lead to a revolt by the Junior officers