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Dela Paz clams up on anti-money laundering quiz

abs-cbnNEWS.com | 11/15/2008 7:49 PM

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Retired police comptroller Eliseo dela Paz invoked his right to self-incrimination as Sen. Loren Legarda fired off what she termed a "basic question" to the beleaguered former Philippine National Police official during the Senate's joint committee investigation into the "euro generals" mess.

"I reserve the right to self-incrimination, your honor," said dela Paz after conferring with lawyer Noel Malaya.

Legarda had first asked dela Paz if he knew the existing government circular against carrying undeclared currency in excess of $10,000 abroad, which is a safeguard against money laundering.

Dela Paz said he did not know that such a circular from the Bangko Sentral ng Pilipinas existed. Pressed by Legarda, he withdrew his statement and said that he had knowledge about the rule after all.

The senator questioned dela Paz again why he failed to declare the 105,000 euros seized from him at the Moscow international airport if he knew about the existence of the circular but instead of answering, the former police official asked for permission to talk to Malaya.

Dela Paz explained that he may have forgotten to declare the cash he was carrying since a delay took place during their connecting flights from Hong Kong to Moscow, Russia and then to St. Petersburg for the 77th International Police General Assembly.

He said that no one from Russia told him and his co-delegates that they should declare any amount they carried above $10,000.

They were also not given disembarkation cards that would require them to declare huge amount of foreign currency that they may be carrying, he added.

Why that much money?

Meanwhile, dela Paz also bared that Russian authorities also seized $20,000 of his personal money.

Sen. Manuel Roxas II said he is surprised to know that dela Paz carried that much money abroad.

The former police comptroller said that since he was due to retire anyway, he and his wife carried the money since they were planning to embark on a tour after the Interpol meet.

For his part, Sen. Richard Gordon asked dela Paz if he declared the $20,000 in cash at the Ninoy Aquino International Airport (NAIA).

Again, dela Paz invoked his right to self-incrimination.

He also said that customs and immigration authorities did not check him and his co-delegates for undeclared cash at the NAIA since they were high-ranking PNP officials anyway.

Apart from the $20,000 in cash, dela Paz said that he did not declare the 45,000 euros that his friend, Tyrone Ng Arejola, gave him for the purchase of two designer watches.

Will BSP seize PNP money?

According to Bangko Sentral ng Pilipinas deputy governor Diwa Gunigundo, those proven guilty of violating the BSP circular will be fined P50,000 up to P200,000 and may be imprisoned from two to 10 years or both.

Gunigundo also said that the foreign currency in question may be confiscated.

However, he clarified that such a seizure of the money, in this case the PNP's contingency fund, may only be done after the court finishes discussing the case.

"I think it is for the court to decide until the case is finished," Gunigundo said.

Earlier, dela Paz told Sen. Gregorio Honasan that the mess resulting from the Moscow incident it was a lapse on his part and it was his alone. He said he admits the mistake.

"It is a lapse on my part, even deliberate," dela Paz said.

Honasan then posed a question to dela Paz if the mistake was an abuse of discretion on the former official's part. To this dela Paz said, "I would think so."