NEWSFLASH

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PCGG STILL AFTER FM CRONIES FOR BEHEST LOANS

Manila, Nov. 24, 1997 - Almost twelve years after the task, the Presidential Commission on Good Government now says it needs until the end of the year to finish collating documents and securing affidavits to finalize its investigation into behest loans of suspected Marcos cronies.

PCGG Chairman Magtanggol Gunigundo said his office is still studying the possibility of filing forfeiture or civil cases against former officials of sequestered companies which had obtained billions of pesos in behest loans during the Marcos administration.

Behest loans are loans, guarantees and other forms of financial accommodations granted directly or indirectly by government-owned or controlled financial institutions at the behest, command, or urging of previous top government officials to the disadvantage of the government and the people.

According to Gunigundo, most of the behest loans were acquired during the 70s, and because the Anti-Graft and Corrupt Practices Act provides a prescription period of 15 years, his office might find it difficult to convince the Ombudsman that such cases should be an exception.

Earlier, the Ombudsman dismissed more than 50 cases involving P23 billion filed against behest loans borrowers because the cases were filed beyond the prescription period.

The PCGG filed a petition for certiorari before the Supreme Court seeking an extension. "The clock should start only upon the discovery that behest loans were granted to favored firms and individuals," Gunigundo said.

The motion is still pending at the high tribunal.

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