MANILA, Philippines - Lawyers of the Office of the Ombudsman have asked the Sandiganbayan First Division to confiscate in favor of the government all known bank deposits and real estate assets of former Bureau of Internal Revenue chief Jose Ong beyond his alleged lawful income of only P1.69 million.

In a 23-page memorandum filed last December 9, assistant special prosecutor Ma. Janina Hidalgo and Diosdado Calonge formally sought a ruling in Civil Case No. 0160, a forfeiture case filed in 1992 against Ong and his wife, Nelly.

They claimed Ong only had total salaries of P79,200 from January to May 1989 when he left the auditing firm of Sycip, Gorres, Velayo and Company (SGV); and P407,962.50 from July 1989 to May 30, 1993 when he was appointed as BIR commissioner by then President Corazon Aquino.

Records presented by the Ombudsman showed Ong likewise collected P1.2 million as 'retirement and separation pay' from SGV also in 1989.

However, based on the complaint initiated then by the late former Sorsogon Rep. Bonifacio Gillego, the Ongs had assets amounting to P22,404,585.

Deducting living expenses of an estimated P600,000, government lawyers said the couple's total net worth still left P21,317,422.50 'unaccounted or unexplained wealth'.

In their own 41-page memorandum submitted last October 5, the defendants argued that documentary and testimonial evidence presented by them sufficiently established that all their properties were legitimately acquired.

Among the Ongs' properties being sought for State confiscation are a house and lot in Alabang worth P5.5 million, two residential lots also in Alabang with a combined value of P10.18 million, a condominium unit in Makati acquired for P744,585 and a lot in Alabang assessed at P4.68 million registered under the name of the defendants children and son-in-law.

Ong, testifying in his own defense, pointed out that he was already wealthy even before he was tapped by President Aquino to head the BIR, as he pointed out that he served as a manager and principal/partner in SGV from 1959 to 1988.

His statement of assets and liabilities in 1988 showed he had a declared net worth of P10.85 million in addition to his gross income of P7.49 million from 1979 to 1988.

Checks presented by his lawyers likewise revealed that he was paid P7.8 million in retirement benefits from SGV.

Government lawyers however questioned the veracity of the P7.8 million retirement fund because it was not declared in Ong's income tax return.

On the defendant's claim that the money was tax-exempt, other documents presented by Ong himself that the government adopted for its exhibits showed a sum of P106,613 was deducted as 'advanced withholding tax'.

"Between his unreported, undocumented, and biased claim of receiving P7,800,000 and the retirement and separation income (of) P1,200,000 he entered in his sworn declaration of assets and liabilities for the year 1989, the latter deserves substantially more weight," the Ombudsman lawyers insisted.'