Cash-strapped Manila seeks Marcos millions deal

Cash-strapped Manila seeks Marcos millions deal

By Claire Wallerstein

MANILA: The Philippines government, crippled by the Asian currency crisis, is hoping to bail itself out by striking a controversial deal with the family of Ferdinand Marcos to share the late dictator's illegally hoarded millions.

The country's new president, former screen idol Joseph Estrada, is desperately in need of funds to make good on his election campaign promises to help the country's 35 million poor.

But with the peso falling 45 percent in value since last year, the country that once hoped to join Asia's tiger economies is now struggling to meet a US$206 million budget deficit and debts of $66 billion.

The administration proposes to split the ill-gotten wealth 75:25 between the government and members of the Marcos family -- who still insist the despot made his fortune legitimately through brilliant stock market deals.

It is not known how much money Marcos and his profligate wife Imelda spirited away before they fled during the People Power uprising of 1986, but estimates range from $10 billion to $36 billion.

But extensive investigations ordered by the governments of Cory Aquino and Fidel Ramos managed to unearth only $577 million in a Swiss bank account. It is this money that the government is proposing to divide up with the family in an out of court settlement.

A political analyst at the University of the Philippines, Alex Magno, said: "While there is undoubtedly a lot more out there, it's been extremely difficult to find.

"The fear now is that the government could end up spending more on lawyers' fees than it will ever get back."

The $577 million has been transferred to the Philippine National Bank, but the government can only recover it if a member of the Marcos family is convicted of having amassed the money illegally.

Although Imelda is appealing against a conviction for corruption in an unrelated case, none of about 200 relevant cases against her has reached court. Estrada, himself a long-time Marcos ally, talked tough in his inaugural speech, vowing to wipe out cronyism and corruption, but the fortunes of the melodramatic "Iron Butterfly" seem to be on the rise.

"The wheels of justice can turn excruciatingly slowly in this country, and with all the damage done by the currency crisis, the government's now just trying to cut its losses," Magno said.

Estrada, who came to power less than a fortnight ago, has caused uproar by announcing plans to bury Marcos's embalmed body in Manila's Heroes' Cemetery. The president only backed down after several days of street demonstrations.

He is widely expected to give Imelda a presidential pardon should the supreme court uphold her corruption conviction -- as a reward for her endorsement after her last-minute withdrawal from May's presidential race.

If a deal, which eluded the last administration, is clinched now, Imelda would also expect to be granted immunity from further lawsuits and prosecution, according to one of her aides. This would leave her free to share the Marcos wealth with her three children, two of whom have won government posts.

"The Marcos family is really beginning to regain its power, and Estrada's close relationship with them worries a lot of people," Magno said.

"Even though the country may need the money, the recent burial issue shows there are still many who have not forgotten the martial law years, and will not accept any solution which lets the Marcoses off the hook."

Foremost among these are the 10,000 victims of human rights abuses during the Marcos regime, who have not seen a penny of the $2 billion in compensation they were awarded in 1994 by a United States court.

-- Guardian News Service