[ANALYSIS] Congress’ Quad Comm exposes weaknesses, lapses in financial system

At least 3 big banks are making overtures not to be touched in connection with the House quad committee’s probe, says Representative Benny Abante

The hearings conducted by the now famous “Quad Comm” body of the House of Representatives is creating so much stir. Yet, public perception as to what exactly is the motive behind the investigations continues to be divided.  

Some look at it with skepticism like another telenovela in the lower house to amuse idle minds. Others take it as a self-serving platform for grandstanding to gain popularity and votes considering that we are headed to an election year.  

At the other end are people who are truly hopeful that the hearings are earnest acts that will actually produce, this time, concrete results for the benefit of the general populace.

I became among the latter after one of its members, Manila’s 6th District Congressman Bienvenido “Bishop Benny” Abante Jr., came to speak at the Monday Circle Forum last Monday, October 21, and explained exactly what they have done — and found out — so far.

The Quad Comm is the combination of the four major committees of the lower house of Congress primarily composed of its lead chairman Representative Robert Ace Barbers, who also chairs the House Committee on Dangerous Drugs; Public Accounts chairman Representative Joseph Stephen “Caraps” Paduano; Public Order and Safety chairman Representative Dan Fernandez, and Human Rights chairman Representative Bienvenido “Bishop Benny” Abante Jr. 

As authorized, the Quad Comm is conducting a comprehensive joint investigation into the possible connection between illegal Philippine offshore gambling operators (POGOs), illegal drugs, extrajudicial killings (EJKs) and human rights violations in the course of former President Rodrigo Roa Duterte’s bloody drug war. 

Appalling revelations

At the Monday Circle Forum, Abante made an equally disturbing exposé with the same degree of horror and graveness as that of the confession of former police colonel and ex-Philippine Charity Sweeptstakes Office (PCSO) general manager Royina Garma on her role and version on the true story behind the war on drugs campaign of then president Duterte.    

To recall, Garma grabbed the spotlight last October 11 with her confession and dramatic turnaround in connection with her role in the controversial “war on drugs.”  

As to Abante’s dramatic revelation in the Monday Circle, this refers to the appalling weaknesses and lapses the Quad Comm has discovered so far in the operation of the banking system. Among the most serious concerns involve loose banking practices, lack of transparency, and deliberate failure to follow rules and policies by even the big banks.  

These deviations, if tolerated as practical norms, will certainly serve as a seed contributory to grave loss of confidence, erosion of credibility, and ultimate epic breakdown in the integrity of our financial system.

Like so, in an unbelievable twist of events, Garma executed — and read before the Quad Comm — a four-page affidavit to confess her role and participation in the war on drugs campaign.  

Damning in the confession was her revelation that the “war on drug” campaign was the creation of Duterte himself. And that the campaign actually took roots when she received a call at 5 am from Duterte asking her to report to his residence in Doña Luisa Subdivision weeks before Duterte took his oath as president on June 30, 2016. Duterte was elected President on May 9, 2016.

Garma declared that she was instructed personally by Duterte to orchestrate the nationwide implementation of the drug war campaign modelled after the so-called “Davao model” as well as its “payments and rewards” scheme for the operatives. Duterte was also looking for a police officer who is a member of Iglesia ni Cristo (INC) to lead the campaign, Garma added.  

Garma recommended her upperclassman police colonel Edilberto Leonardo, an INC member and officer assigned to the Philippine National Police (PNP) Criminal Investigation and Detection Group (CIDG) in Manila.

As further detailed in her affidavit, a meeting in the Royal Mandaya Hotel in Davao was called where Leonardo was instructed by Duterte to “organize a task force” similar to the Presidential Anti-Organized Crime Task Force (PAOCTF) for the campaign.  

Leonardo supposedly prepared the campaign proposal that detailed the task force’s operations, including an overview of the drug landscape in the country. This was “routed through Bong Go,” accordingly. The campaign was launched upon the reassignment of Leonardo to Davao, where he assumed as chief of the CIDG-Davao. The rest of the story you already know.

Challenge to the Quad Comm’s resolve

Abante disclosed that the Quad Comm will be making investigations in the banking sector in the coming days. Yet, this early, he revealed there are at least three big banks already making overtures within the corridors of powers not to be touched, notwithstanding the serious lapses and violations in banking procedures and policies.   

One simple example cited by Abante in connection with the Quad Comm’s discoveries on alleged weaknesses and lapses in the banking sector are recurring cases wherein the Anti-Money Laundering Council or AMLC is not automatically notified by banks when deposits amounting to even billions were received.   

They also discovered that there are instances when big deposits of suspicious origin are always withdrawn by the owners — as if they have a third eye — before the AMLC could take action.  

One case in point is a one-time P1.2-billion deposit by a bank client. AMLC was not notified but got wind of it and called the attention of the bank. However, on the day AMLC was to investigate it, the deposit was — coincidentally — withdrawn before their arrival.   

With the reassuring confidence exuded by Abante for the Quad Comm in his refreshing presence in the Monday Circle, there is however one question posited to him in which, despite his good retort, still left shades of skepticism from the membership.  

This stemmed from the remark made by one of the Monday Circle convenors who said: When the Quad Comm may have investigated enough so that most of their serious findings and corresponding actions may affect the interest of some of their patrons, friends or colleagues, will they not fold like they cowered before the presence of the now controversial Vice President Sara Duterte when she appeared before the members of the lower house? Abangan! (Stay tuned.) – Rappler.com

(The article has been prepared for general circulation for the reading public and must not be construed as an offer, or solicitation of an offer to buy or sell any securities or financial instruments whether referred to herein or otherwise.  Moreover, the public should be aware that the writer or any investing parties mentioned in the column may have a conflict of interest that could affect the objectivity of their reported or mentioned investment activity.   You may reach the writer at [email protected])