IN 2013, the Court of the Southern District of New York, sentenced Vilma Bautista, a former aide of Imelda Marcos, to six years’ imprisonment for tax evasion. It emerged that she had sold an artwork of Claude Monet entitled “Waterlilies” in New York but had omitted to pay New York City and State taxes.
The sale had taken place in 2010. The purchaser, Alan Howard, a British citizen living in Switzerland, had paid $43 million of which $32 million was received by Vilma Bautista. $11 million was obtained by various middlemen. It is fair to say that had Vilma paid the taxes due, she would have been free and clear with at least $25 million (P1.3 billion).
The tax evasion case attracted the attentions of the Presidential Commission of Good Government (PCGG) and of Robert Swift, a Hawaii-based attorney representing, initially, 7,539 Filipino clients who allegedly suffered during the Martial Law era. Swift reportedly prevailed on Alan Howard to provide $10 million which Swift attempted to distribute amongst his clients. Swift experienced difficulties in locating many of them as it was more than 27 years since they signed up with him.
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Also in 2013, Republic Act 10368 was passed. This Act specified a fund of P10 billion to be distributed to those who were able to prove that they suffered grievously as a result of Martial Law. Some payments were made in 2018. How much and to how many, I do not know. It is clear, however, that the process has not been completed.
President Duterte has signed a congressional resolution extending until Dec. 31 “the maintenance, availability and release of funds.”
He also signed on Feb. 22 Joint Resolution No 4, which authorizes the Bureau of Treasury and the Land Bank of the Philippines to “release the funds and ensure the payment of claims and for the Commission on Human Rights to administer the effective distribution of the funds to qualified victims or their heirs and representatives.”
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So that’s all right then.
Unfortunately not.
Last November, more artworks in the possession of the Marcos family were auctioned in New York. These included another Monet, an 1881 work entitled ‘L’Eglise De Vetheuil’ which sold for $2.6 million. The paintings were the subject of a pending civil forfeiture case before the anti-graft court Sandiganbayan.
Oops!
The Office of the Solicitor-General (OSG) has cried foul and said it had no prior knowledge of the sale.
The OSG, Department of Justice (DOJ) and PCGG have now joined forces. The OSG has objected to a deal proposed by the Court of the Southern District of New York. This deal proposed that $20 million be allocated so that $13.75 million be given to Robert Swift via the Hawaii District Court, $4 million to the Philippine Government and the remainder to be shared between Golden Buddha Corporation and the estate of Roger Roxas, who allegedly discovered the Yamashita treasure.
A complicating factor is that Judge Manuel Real has already approved the payment of $13.75 million to Robert Swift for distribution to his clients.
Did PCGG acquiesce to the deal earlier, only to find out that OSG does not agree?
I am concerned about the November 2018 auction. The prices obtained from the sale of the artworks are suspiciously low.
Who were the buyers?/PN
