bangladesh

Sen. Bam thanks Bangladesh for patience, assures $81M will be returned

Sen. Bam Aquino thanked Bangladesh for its patience and assured that the Philippine government will leave no stone unturned to ensure the $81 million stolen from its central bank is returned as soon as possible.

“Thank you very much, Mr. Ambassador, for being so patient in our hearings,” Sen. Bam told Bangladeshi ambassador John Gomes during the Senate blue ribbon committee’s last hearing on the hacking incident.

 Despite the adjournment of the hearing, Aquino said the process of returning the stolen money to Bangladesh will continue.

“We won’t stop until the money stolen from the Bangladeshi people is returned, up to the last centavo,” said Sen. Bam.

During the hearing, the Anti-Money Laundering Council (AMLC) confirmed that the $81 million was stolen by unidentified hackers from the Central Bank of Bangladesh.

Of the $81 million, the AMLC said $15 million was returned by junket operator Kim Wong, $21 million allegedly went to casinos, $28 million is subject to Supreme Court’s decision on the petition for review and $17 million still at large.

 The AMLC said a court order is needed to forfeit the $15 million in its safekeeping while the Bangladesh government can file a third-party claim to prove that the money belongs to them.

The process, according to the AMLC, will take about three to five months.

The money trail back to Bangladesh

We are finally making headway in locating portions of the $81 million stolen from Bangladesh and siphoned into the Philippines.

So far we have confirmed that Solaire Resort & Casino received P1.365 billion ($30 million) and Eastern Hawaii Leisure Company, owned by casino junket operator Kim Wong, received P1 billion ($23 million) of the stolen money.

Based on money transfer firm PhilRem’s testimony before the committee, it was alleged that around $30.64 million, broken down to $18 million and P600 million, was delivered to Weikang Xu over 6 tranches.

It was only during the Senate hearing last March 29 that we were able to dissect further the location of a portion of the stolen money with the testimony of Kim Wong.

Wong contested PhilRem’s testimony and claimed that they only released P400 million and $5 million over 4 tranches.

Wong also testified to receiving P1 billion from Philrem: P450 million ($9.7 million), which he accepted as payment for a debt of one Shuhua Gao, and P550 million entered to Midas Hotel and Casino. However, of the P550 million, P510 million was lost to Midas and only P40 million is left.

Since his statement, Wong has already turned over P38 million ($863,000) and $4.63 million to the Anti-Money Laundering Council (AMLC) for safekeeping. He has also stated his willingness to return the P450 million or $9.7 million paid to him to cover Gao’s debt, but requested for a month to deliver.

Today, a total of about $5.5 million has already been reclaimed from Wong. And once he is able to return the additional $9.7 million, we will have recovered $15.2 million of the $81 million stolen from Bangladesh.

On the other hand, PhilRem offered to return the P10.47 million (about $232,000) representing the fee they purportedly received for conducting the transactions. However, this was rejected by Bangladesh.

In the case of Bloomberry Resorts, operator of Solaire, they’ve stated that they were able to freeze $2.33 million or P107 million of the stolen money in their casino – another amount we can add to the pot for Bangladesh, should they agree to turn it over.

We will continue to probe the money trail through Solaire and will seek to verify if there is still recoverable dirty money in Midas.

Plus, there is the issue of the other junket operators that are still in the process of confirming receipt of over P1 billion from Solaire.

In the next few weeks, we should be able to pinpoint the rest of the illicit funds so we can return as much as we can to Bangladesh.

The AMLC already said that it is within their powers to reclaim money that is laundered ‘regardless of where the money went. However, they would need to go through a court process and the necessary legal proceedings, which will inevitably take time.

The question is whether these institutions will contest a possible civil forfeiture of laundered money still within their coffers.

If I were them, instead of fighting the court case, I would, in good faith, turn over to the AMLC all illicit funds that coursed through their internal systems.

“Yung maduming pera, dapat ibalik,” said Wong. We can hope everyone shares this sentiment.

This flagrant crime perpetrated in our shores with the involvement of Philippine individuals and institutions has tarnished our country’s reputation and now the world is watching our every move.

A crucial step in redeeming ourselves is to return as much of the stolen money to Bangladesh at the soonest possible time.

Are you following the investigation of the stolen $81 million from Bangladesh? Whose story do you believe? What questions would you ask the resource persons?

First Published on Manila Bulletin

Bam on Kim Wong

Kim Wong returning 4.6 million dollars is only the first step.

In the previous hearing, we know that he received much more than that. In fact, I am hoping that all institutions that  received the illegally acquired funds will return it at the soonest possible time.

We should insist that the other junket operators, casinos and other institutions return the money that coursed through them, in good faith, and because it is the right thing to do.

Of course, these actions will not absolve any party as the investigation by the authorities is ongoing and the the true picture of what happened is still unclear to the public.

Bam on the $81M Hearing: Nakakahiya sa Bangladesh

Transcript of the Ambush Interview after the Senate Hearing

 

Q: There seems to be growing frustration on your end. You’re the only Senator before Sen. Koko Pimentel spoke that really focused your attention on how to get the money back. It’s all about trying to dissect what happened and who is involved but to you, it’s really about getting the Bangladeshi people’s money back.

Sen. Bam Aquino:

That’s right. In fact, in all of the hearings, the ambassador of Bangladesh is there. To be frank, nakakahiya that we talk about everything but we’re not talking enough about how to get them the 81-million US dollars back.

 

I don’t think the previous hearings were able to cover where exactly the money is currently. Earlier, we found out that there is discrepancy in the testimony of Kim Wong and Philrem on the cash that was given out.

 

At the same time, we found out that some of the money was actually still in the casinos through their junket operators. We’re hoping to get to the bottom of this and if we can actually get that money back for Bangladesh.

 

Q: What’s your reaction to what the AMLC said about getting information before they file a freeze order to the court of appeals? Isn’t that putting a lot of layers to the bureaucracy when at this minute we have Kim Wong saying I can just give you the money and bring it to the BSP for safe keeping.

 

Sen. Bam Aquino:

Exactly. Many of these questions have not been asked and I understand that the focus would be the Filipino actors who were part of this scam. But I think, first and foremost, we should focus on securing the money, making sure it’s intact, and giving it back to the people of Bangladesh.

 

Can you imagine if that happened to the Philippines, if 81-million dollars of our money was stolen elsewhere? The first thing we would want to ensure is that it gets back to our own treasury.

 

I think the minimum that we need to do is to go through AMLC, go through the motion, and ensure that whatever money is found is held and eventually returned to Bangladesh.

 

Q: Do you feel that we have the moral obligation not only to investigate the matter but really return the money to the Bangladeshi people?

 

Sen. Bam Aquino:

Yes, yes. Definitely. And hopefully everyone will cooperate. If Eastern Hawaii through Kim Wong is willing to cooperate, that’s great.

 

Hopefully, we get to the bottom of how much cash was given out because currently it’s a contradictory story of how much was encashed and how much was given to Kim Wong and Weikang Xu.

 

If there is Bangladesh money in our casinos then maybe our casinos can also cooperate and be willing to return the money without going through a lengthy court procedure. AMLC said it is within the powers of the current laws to get the money and eventually file civil forfeiture cases against those involved.

 

But I hope we don’t reach that. If the money is still there and if it can still be returned, we should return it at the soonest possible time.

 

Q: We’ve already proven that the bank accounts are fictitious so what is there for the bank secrecy law to protect?

 

Sen. Bam Aquino:

Exactly. That was the subject of the first part of the hearing and Sen. Osmena was very frustrated with the answers given to him regarding the bank secrecy law specially considering that these are fictitious accounts and, more or less, it has been established that the money came from a theft or a heist.

 

So the Senate lawyers are looking into this further. Of course, it’s the position of the bank right now that even if it’s fictitious, you can’t disclose any of these amounts but definitely the committee and our offices are looking into this further.

 

Q: 3rd day of the hearing, who are you most likely to believe at this point?

 

Well, we don’t want to pre-judge. We’re often accused of pre-judging everyone. But if you listen to the hearings, it’s becoming clear that this could not have been perpetrated by just one person.

 

I don’t want to talk about guilt or innocence at this point but definitely you need a lot more people and a lot of moving parts to get this to happen. Whether they’re guilty of theft, money laundering, or negligence, that’s something we will uncover in the next few hearings. And AMLC is doing a parallel process to go after the people who perpetrated this crime.

Not a Victimless Crime

Boardrooms, dinner tables, and coffee shops are abuzz with theories explaining the $81-million heist, which involved funds of the Bangladesh central bank being transferred to local RCBC accounts and eventually into our Philippine casinos.

The public is visibly intrigued and the media has covered the story as eagerly as our national campaigns.

Who were involved? Who is the mastermind? Who are the hackers and how did they get past the U.S. financial system’s safeguards? What does the branch manager know? Are bank officials involved? Who profited from this audacious crime? Is there a political angle to this heist?

These and many more questions have our minds occupied and keep casual conversations lively and engaging.

We are hopeful that throughout the course of our investigation in the senate, the truth will be revealed, the perpetrators will be brought to justice, and most of these questions will be answered.

But, sadly, no one is asking about Bangladesh.

So for the next few paragraphs, allow me to write about the real victims of this crime – the Bangladeshi people.

There are nearly 160 million people in Bangladesh as of 2015 with over 30% or 48 million living in poverty. In the 2015 Rankings of the Poorest Countries in the World based on GDP, Bangladesh ranked 46th poorest, while the Philippines ranked 68th.

Like in the Philippines, Bangladesh is dealing with issues that are rooted in poverty, such as hunger, sanitation, improved access to education, severe congestion of urban areas, and delivery of basic government services, among others.

The Bangladesh government and civil society groups are aggressive in their efforts to create better opportunities and greater wealth for the masses and they have churned out interesting, effective solutions.

One example is the world-renowned Grameen Bank spearheaded by economist and social entrepreneur Muhammad Yunus that pioneered the principles of microcredit and microfinance utilized around the world today

The government has also made leaps in improving access to government services with their ‘Digital Bangladesh, Vision 2021’ program that seeks to make all government services, public records, and even text books accessible through online channels by 2021, which sounds like the Freedom of Information (FOI) and the Open Government Partnership efforts.

They hope that ICT and an all-encompassing digital system in government will curb corruption – another one of our common adversaries.

Naturally, like in the Philippines, there is still a lot of work to be done before Bangladesh can eradicate poverty. But a key element to getting things done is adequate funding.

Can you imagine how far the stolen 81-million US dollars, which is equivalent to 6.35-billion Bangladeshi taka, could have gone to address hunger, livelihood, education, or health?

Now imagine if the tables were turned.

Think of billions of pesos worth of Philippine tax money stolen and siphoned off to the pockets of unscrupulous foreigners.

Billions of pesos that could have been used to fund infrastructure projects, livelihood programs, or improvements in government services are hacked then digitally wired to foreign nationals.

Picture the outrage in our streets and the frenzy on our social media feeds. What racist remarks will spew? What will the Philippine public demand? And what could ever appease hearts broken by this injustice?

Many of us, including politicians like myself, are caught up with the audacity of this heist, the intriguing anecdotes of the revealed personalities, and the tarnished image of the Philippines.

It is our nature to focus on the Filipino side.

But as a member of the global community and as a country known for its heart and compassion, we must realize how valuable the stolen money is in improving the lives of the millions of poor Bangladeshis.

With this in mind, it is imperative that we continue to push for reforms in our financial system, institute tighter and stricter policies, ferret out the truth, bring the perpetrators to justice, and most importantly return the stolen 81-million US dollars to the Bangladeshi people.

If this happened to us, we would expect nothing less.’

First Published on Manila Bulletin

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