"Operation Big Bird" (

Filipino Filipino may refer to: * Something from or related to the Philippines ** Filipino language, standardized variety of 'Tagalog', the national language and one of the official languages of the Philippines. ** Filipinos, people who are citizens of th ...

: ''Oplan Big Bird'') was the attempt of the

Philippine Government The Government of the Philippines ( fil, Pamahalaan ng Pilipinas) has three interdependent branches: the legislative, executive, and judicial branches. The Philippines is governed as a unitary state under a presidential representative and d ...

during the presidency of Corazon Aquino to recover the alleged US$7.5 billion of hidden accounts and assets of President Ferdinand Marcos and his family in the

Swiss banks Banking in Switzerland dates to the early eighteenth century through Switzerland's merchant trade and has, over the centuries, grown into a complex, regulated, and international industry. Banking is seen as emblematic of Switzerland, along with ...

. Conceived by Philippine

banker A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Becaus ...

Michael de Guzman, it commenced shortly after Marcos was forced into

asylum Asylum may refer to: Types of asylum * Asylum (antiquity), places of refuge in ancient Greece and Rome * Benevolent Asylum, a 19th-century Australian institution for housing the destitute * Cities of Refuge, places of refuge in ancient Judea ...

in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

. Initially, Operation Big Bird did not recover any money with two differing reports by Representative Victorio Chaves and Senator

Jovito Salonga Jovito "Jovy" Reyes Salonga, KGCR (; June 22, 1920 – March 10, 2016) was a Filipino politician and lawyer, as well as a leading opposition leader during the regime of Ferdinand Marcos from the declaration of martial law in 1972 until the P ...

. Chaves laid the blame upon Salonga, Solicitor-General Sedfrey Ordoñez and the Swiss bank lawyers. Salonga countered that Ordoñez had prevented the Philippine government from losing a large sum of money. Evidence suggests that de Guzman acted in good faith on behalf of the new government but that a double cross may have been present.

Background

After Ferdinand Marcos and his family were sent to exile in Hawaii, President Aquino's Executive Order No. 1 on February 28, 1986, created the

Presidential Commission on Good Government The Presidential Commission on Good Government (PCGG) is a quasi-judicial government agency of the Philippines whose primary mandate is to recover the ill-gotten wealth accumulated by Ferdinand Marcos, his immediate family, relatives, subordin ...

(PCGG). The mandate of the PCGG was to recover all the ill-gotten wealth of Ferdinand Marcos, his family, relatives, associates, and cronies. Salonga was called to head the PCGG. Operation Big Bird began when Filipino banker and Chairman of Credit Manila, de Guzman, contacted the Aquino administration and offered his services to recover the Marcos' wealth in the various banks in Switzerland and other countries. De Guzman then was put in touch with

Brigadier General Brigadier general or Brigade general is a military rank used in many countries. It is the lowest ranking general officer in some countries. The rank is usually above a colonel, and below a major general or divisional general. When appointed ...

Jose T. Almonte and Charlie Avila. The banks, financial institutions and other companies that dealt with the Marcos wealth and assets were held in various countries, namely: * Switzerland *

Liechtenstein Liechtenstein (), officially the Principality of Liechtenstein (german: link=no, Fürstentum Liechtenstein), is a German-speaking microstate located in the Alps between Austria and Switzerland. Liechtenstein is a semi-constitutional monarch ...

(for foundations) *

Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...

* Cayman Islands *

Vanuatu Vanuatu ( or ; ), officially the Republic of Vanuatu (french: link=no, République de Vanuatu; bi, Ripablik blong Vanuatu), is an island country located in the South Pacific Ocean. The archipelago, which is of volcanic origin, is east of no ...

(formerly

New Hebrides New Hebrides, officially the New Hebrides Condominium (french: link=no, Condominium des Nouvelles-Hébrides, "Condominium of the New Hebrides") and named after the Hebrides Scottish archipelago, was the colonial name for the island group ...

) *

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...

Panama Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Co ...

(for

trust companies A trust company is a corporation that acts as a fiduciary, trustee or agent of trusts and agencies. A professional trust company may be independently owned or owned by, for example, a bank or a law firm, and which specializes in being a trust ...

and

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

s) *

Monaco Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Lig ...

Bahamas The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to 88% of the ar ...

Vatican City Vatican City (), officially the Vatican City State ( it, Stato della Città del Vaticano; la, Status Civitatis Vaticanae),—' * german: Vatikanstadt, cf. '—' (in Austria: ') * pl, Miasto Watykańskie, cf. '—' * pt, Cidade do Vati ...

* Netherlands Antilles (for

s in

New York City New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...

)

Events of Operation Big Bird

Pre-EDSA Revolution

On March 21, 1968, Marcos opened his first bank account in

Chase Manhattan Bank JPMorgan Chase Bank, N.A., doing business as Chase Bank or often as Chase, is an American national bank headquartered in New York City, that constitutes the consumer and commercial banking subsidiary of the U.S. multinational banking and fi ...

and deposited US$215,000.00.Marcos Chronology Report
/ref> In March 1968, an official of Credit Suisse in Zurich, Walter Fessler, was brought to

Manila Manila ( , ; fil, Maynila, ), officially the City of Manila ( fil, Lungsod ng Maynila, ), is the capital of the Philippines, and its second-most populous city. It is highly urbanized and, as of 2019, was the world's most densely populate ...

on the request of Malacañang. Forms were filled out and signatures appended. Marcos, on his signature verification form, wrote "''William Saunders''," an alias he had used in his

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...

days, and underneath that name he wrote his real name.

Imelda Marcos Imelda Romualdez Marcos (; born Imelda Remedios Visitacion Trinidad Romualdez; July 2, 1929) is a Filipino politician who served as the First Lady of the Philippines from 1965 to 1986, wielding significant political power during the dictato ...

did the same, choosing "''Jane Ryan''" as her pseudonym. Four bank accounts were opened and four checks, totaling US$950,000.00 were deposited. In 1982 Credit Manila established its operations in

Vienna en, Viennese , iso_code = AT-9 , registration_plate = W , postal_code_type = Postal code , postal_code = , timezone = CET , utc_offset = +1 , timezone_DST ...

with the incorporation of Exportfinanzierungsbank GmbH. In 1985 Mike De Guzman made acquaintance with Victor Bou Dagher, a Lebanese national residing in

who had some connections and acquaintances in the European banking network. De Guzman later introduced Dagher to Gen. Almonte in Manila in view of the news of Marcos hiding and moving their wealth in Swiss banks. The group outlined their plans to capture Marcos' money. On February 25, 1986, the

People Power Revolution The People Power Revolution, also known as the EDSA Revolution or the February Revolution, was a series of popular demonstrations in the Philippines, mostly in Metro Manila, from February 22 to 25, 1986. There was a sustained campaign of c ...

brought about the downfall of Pres. Ferdinand Marcos. Marcos, his family, and retinue were taken by

U.S. Air Force The United States Air Force (USAF) is the air service branch of the United States Armed Forces, and is one of the eight uniformed services of the United States. Originally created on 1 August 1907, as a part of the United States Army Sign ...

helicopters from the PSG Compound across the

Pasig River The Pasig River ( fil, Ilog Pasig) is a water body in the Philippines that connects Laguna de Bay to Manila Bay. Stretching for , it bisects the Philippine capital of Manila and its surrounding urban area into northern and southern halves. Its ...

from Malacañan Palace, and were brought to Clark Air Base. The next day they were flown to

Guam Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...

Post-EDSA events and the Lebanese connection

On February 26, 1986, The Marcos party arrived in

Honolulu Honolulu (; ) is the capital and largest city of the U.S. state of Hawaii, which is in the Pacific Ocean. It is an unincorporated county seat of the consolidated City and County of Honolulu, situated along the southeast coast of the island ...

Hawaii Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only state ...

, beginning their exile. U.S. Customs officers take 5 hours to go over the 278 crates that group brought along with them. Twenty-two crates contained more than Php27.7 million in newly minted currency, mostly hundred-peso denominations worth approximately US$1,270,000.00 There were other

certificates of deposit A certificate of deposit (CD) is a time deposit, a financial product commonly sold by banks, thrift institutions, and credit unions in the United States. CDs differ from savings accounts in that the CD has a specific, fixed term (often one, t ...

from Philippine banks worth about US$1 million, five handguns, 154 videotapes, seventeen cassette tapes, and 2,068 pages of documents - all of which were impounded by Customs. The Marcos party was allowed to keep only US$300,000.00 in gold and $150,000.00 in

bearer bonds A bearer bond is a bond or debt security issued by a business entity such as a corporation or a government. As a bearer instrument, it differs from the more common types of investment securities in that it is unregistered—no records are kept ...

that they brought in with their personal luggage because they declared them and broke no US customs laws. There were 24 one-kilo gold bars fitted into a $17,000 hand-tooled

Gucci Gucci (, ; ) is an Italian high-end luxury fashion house based in Florence, Italy. Its product lines include handbags, ready-to-wear, footwear, accessories, and home decoration; and it licenses its name and branding to Coty, Inc. for fragran ...

briefcase with a solid gold buckle and a plaque on it that read, "''To Ferdinand Marcos, from Imelda, on the Occasion of our 24th Wedding Anniversary''." On March 1, 1986, De Guzman returned to Vienna and meets Dagher who updates him on the various reactions in the Swiss banking community regarding the recent developments in Manila. De Guzman begins to take action on how to transfer the money from the Swiss Banks to Austria. On March 2, 1986, De Guzman and Dagher fly to

Lebanon Lebanon ( , ar, لُبْنَان, translit=lubnān, ), officially the Republic of Lebanon () or the Lebanese Republic, is a country in Western Asia. It is located between Syria to Lebanon–Syria border, the north and east and Israel to Blue ...

via

Cyprus Cyprus ; tr, Kıbrıs (), officially the Republic of Cyprus,, , lit: Republic of Cyprus is an island country located south of the Anatolian Peninsula in the eastern Mediterranean Sea. Its continental position is disputed; while it is ge ...

to meet with some contacts in the European banking industry—

Beirut Beirut, french: Beyrouth is the capital and largest city of Lebanon. , Greater Beirut has a population of 2.5 million, which makes it the third-largest city in the Levant region. The city is situated on a peninsula at the midpoint o ...

being the banking capital of the Mediterranean basin. After arriving in Jounieh, De Guzman and Dagher met with fellow bankers who give him an idea on how Iran was able to recover the frozen assets of the abdicated Shah Mohammad-Rezā Shāh Pahlavi in Switzerland. De Guzman was informed by the contacts that the Swiss banks will be moving the Marcos money to various financial institutions to safeguard the deposits and avoid a massive withdrawal—which the bankers alleged was a dark practice of the Swiss banking system. This brought forth the suggestion that De Guzman should go to Hawaii and meet with the Marcoses to get a

power of attorney A power of attorney (POA) or letter of attorney is a written authorization to represent or act on another's behalf in private affairs (which may be financial or regarding health and welfare), business, or some other legal matter. The person auth ...

to withdraw the money in their behalf before the banks close in on the accounts. De Guzman claims he has no intimate associations with the Marcoses, but that his only contact would be Col. Irwin Ver, former Commanding Officer of the

Presidential Security Group The Presidential Security Group, shortened as PSG, is a Philippine close protection agency. It is the primary agency concerned with providing close-in security and escort to the president, their immediate families, former presidents of the Philip ...

, and son of General

Fabian Ver Fabian Crisologo Ver (born Fabian Maria Trinidad Juan Cirilo Crisologo y Ver; 20 January 1920 – 21 November 1998) was a Filipino military officer who served as the Commanding Officer of the Armed Forces of the Philippines under President Ferd ...

. It was here where De Guzman and his associates started calling the plan "Operation Big Bird." On March 12, 1986, President Aquino passes Executive Order No. 2, freezing all Marcos assets in the Philippines.Efforts to Recover Assets Looted by Ferdinand Marcos of the Philippines
/ref>

The power of attorney from the Marcoses

On March 18, 1986, De Guzman and Dagher arrive in Honolulu and meet Col. Ver and Gen. Ver. On March 20, 1986, De Guzman receives a call from Irwin Ver who confirms that a meeting has been arranged with the Marcoses - Ferdinand, Imelda and Bongbong - at their temporary lodging in the base housing inside

Hickam AFB Hickam Air Force Base is a United States Air Force installation, named in honor of aviation pioneer Lieutenant Colonel Horace Meek Hickam. The installation merged in 2010 with Naval Station Pearl Harbor to become part of the newly formed Joint ...

. At the meeting, De Guzman shared the news that the Swiss banks will make a move on their account. Marcos wanted to confirm this information and sends Bongbong and De Guzman around 10:00 pm to

Honolulu International Airport Daniel K. Inouye International Airport , also known as Honolulu International Airport, is the main airport of Oahu, Hawaii. Upon their return to the base housing, the Marcoses hold a family meeting where Bongbong updates the family on the teleconference. An hour later, Bongbong leaves with De Guzman for the airport once more, but this time the telephone operator refuses to give Bongbong the international connection. They return to the base housing, where De Guzman received a note from Imelda stating "Palmy Foundation" and a plastic bag containing

traveler's cheque A traveller's cheque is a medium of exchange that can be used in place of hard currency. They can be denominated in one of a number of major world currencies and are preprinted, fixed-amount cheques designed to allow the person signing it to ma ...

s worth US$300,000.00. Imelda produced a

Power of Attorney A power of attorney (POA) or letter of attorney is a written authorization to represent or act on another's behalf in private affairs (which may be financial or regarding health and welfare), business, or some other legal matter. The person auth ...

and tasks Bongbong to hand this to De Guzman back at the hotel. Bongbong orients De Guzman on their contact in Credit Suisse, Ernst Scheller, and told him to get in touch with the gentleman once they enter Switzerland.Tracking the Proceeds of Organized Crim - The Marcos Case
/ref>

Initial attempt in Switzerland

On March 24, 1986, De Guzman flew with Dagher to Zurich to meet with Scheller and present the Power of Attorney to transfer the Marcos money to the Exportfinanzierungsbank in Vienna. They were initially informed by Scheller that the Swiss authorities have put a "freeze order" on all the accounts linked to the Marcoses, but failed to produce any formal documentation on this. Scheller also mentioned that he re-documented the records already and moved the accounts as instructed by Ms. Fe Gimenez, Marcos' personal secretary, three weeks before after their evacuation of Malacañan Palace. Without the formal notice of the freeze order, De Guzman suspects Scheller of stalling the transfer in protection of the interest of Credit Suisse and not the Marcoses. After the meeting, Scheller calls on the

Swiss Federal Banking Commission The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. This includes the supervision of banks, insurance companies, stock exchanges and securities dealers, as well as other fi ...

that De Guzman was trying to transfer US$213 Million to Vienna. That very same evening the Banking Commission, in an unprecedented move, imposed an emergency freeze order on all the accounts of the Marcoses. This act was questioned later since the Banking Commission does not have the authority to freeze bank accounts. The

Swiss Federal Council The Federal Council (german: Bundesrat; french: Conseil fédéral; it, Consiglio federale; rm, Cussegl federal) is the executive body of the federal government of the Swiss Confederation and serves as the collective head of state and governm ...

taking note of the confusion created by the Banking Commission's "freeze order" made a follow through act, and formalized the freeze order in anticipation of the new Philippine government's claim on the said accounts. The Aquino government welcomed the freeze order, and the PCGG hired three prominent Swiss lawyers Messr. Sergio Salvioni, Guy Fontanet, and Moritz Leuenberger, to handle its case. The said lawyers were recommended by Chief Justice of the Federal Supreme Court Otto Konstantin Kaufmann, who was the classmate of Salonga in

Yale University Yale University is a Private university, private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the List of Colonial Colleges, third-oldest institution of higher education in the United Sta ...

.Letter of Jovito Salonga to Pres. Gloria Macapagal Arroyo, January 30, 2006
On April 18, 1986, the Philippine government submitted an informal request to the Swiss authorities for mutual assistance in the recovery of the Marcos wealth. On April 25, 1986, the Government of the Philippines submitted a follow-through formal request for mutual assistance to investigate and retrieve the ill-gotten wealth. The Swiss Federal Office of Police then issued a freeze order in substitution for the exceptional freezing order of the Federal Council.

Operation Big Bird under the Philippine government

On May 7, 1986, Mike de Guzman attempts once more to retrieve the Marcos money in the Swiss accounts, by making Scheller acknowledge their personal meeting and the Power of Attorney. Scheller replied by

telex The telex network is a station-to-station switched network of teleprinters similar to a telephone network, using telegraph-grade connecting circuits for two-way text-based messages. Telex was a major method of sending written messages electroni ...

from Credit Suisse, but informs De Guzman that the freeze order is still in place. De Guzman finally calls Gen. Almonte and updates him of his recent activities. Almonte on the other hand informed De Guzman that there are some parties in the new government who have serious doubts about him as he had a reputation for being an associate of Eduardo Cojuangco, Jr., a Marcos crony. This prompts De Guzman to head to Manila to present his plans for Operation Big Bird to the new Philippine Government. On June 16, 1986, in Manila, Gen. Almonte arranges a meeting between De Guzman and the brother of Pres. Aquino, Congressman

Jose Cojuangco, Jr. José "Peping" Sumulong Cojuangco Jr. (born September 19, 1934) is a Filipino former congressman and the 9th President of the Philippine Olympic Committee from 2004 to 2018. He is a member of the influential Cojuangco political family. Early lif ...

( Tarlac, 1st District). De Guzman offered to help the Aquino government in retrieving the Marcos wealth in return for a fee of 20% commission on the initial batch of funds. De Guzman presented that they had identified accounts in Credit Suisse amounting to US$213 million, and eleven foundations that held a total of US$4.5 billion in deposits in nine different banks with an additional US$3 billion in precious metals and securities on deposit - or a tentative total of US$7.5 billion. And most of all, they had the Power of Attorney from the Marcoses. Cojuangco instructs Dr. Fernando Carrascoso, who was present in the meeting, to arrange for De Guzman's introduction to PCCG Chairman Jovito Salonga. On June 18, 1986, Dr. Carrascoso informed De Guzman that Chairman Salonga was not available, and thus he was instead referred to Commissioner Raul Daza. The meeting was also attended by Mayor Charlie Avila. De Guzman briefs the gentleman on the plans of Operation Big Bird. Daza committed to get approval from Salonga. On June 26, 1986, De Guzman, Dagher, and Almonte fly to Bern, where the group, through the arrangement made by Amb. Ascalon, met with PCCG lawyer Dr. Salvioni, who advises them that any request made by the Philippine Government must be signed by the Solicitor-General of the Philippines. On July 1, 1986, After conferring with his older brother, Congressman Cojuangco presents the options to President Aquino, and a meeting was arranged for General Almonte and De Guzman to orient the President on Operation Big Bird. Aquino approved the plan, and Operation Big Bird finally commenced with De Guzman, Almonte, being joined by Solicitor-General Sedfrey Ordoñez. De Guzman makes Ordoñez and Almonte members of the Board of Exportfinanzierungsbank, along with Almonte's former mentor and former Marcos Executive Secretary, Amb. Alejandro Melchor, Jr.

Second attempt with the Philippine Government

On July 4, 1986, De Guzman, Almonte, and Ordoñez arrive in Bern, and are met by Ascalon. Ascalon informs the new Philippine government recovery team that the three Swiss lawyers of the PCGG and a gentleman by the name of Pieter Hoets was waiting at the Philippine Embassy. Upon arrival at the Embassy, Hoets and the lawyers insisted that the scheduled meeting with the Swiss bankers should only be attended by Ordoñez, and that De Guzman and Almonte should not be included. Almonte defends the group and reminds that they have all been appointed by the President to work as a team on Operation Big Bird. A long argument ensues between the Swiss lawyers and the Philippine representatives. A meeting with the

Federal Department of Justice and Police The Federal Department of Justice and Police (german: Eidgenössisches Justiz- und Polizeidepartement, french: Département fédéral de justice et police, it, Dipartimento federale di giustizia e polizia, rm, ) is one of the seven departmen ...

only took 20 minutes, when the Swiss authorities unanimously decided to approve in principle the selective defreezing of only those identified Marcos accounts and foundations, amounting to US$213 million. The Swiss authorities advised the Philippine representatives to formalize the request, and even told them to finish this before the day's end. Upon returning to the Philippine Embassy, the group calls Chairman Salonga and Congressman Cojuangco on the success of the Operation, and rushes to complete the required formal documents. Dr. Salvioni questions the urgency of the Filipino team, but was ignored and Ordoñez signed the request accordingly. The letter arrived at the FDJP with 15 minutes to spare before the 6:00 pm deadline. FDJP was to act on the request, and by Monday, July 7, have the Zurich Court execute a transfer instruction to the Swiss banks. On July 6, 1986, De Guzman receives additional information on the newly identified Marcos accounts in Switzerland amounting to US$3 billion in six different banks. The breakdown of the deposits are US$700 million in money placements, US$1.3 billion in

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

and bonds, and US$1 billion in

Gold certificates Gold certificates were issued by the United States Treasury as a form of representative money from 1865 to 1933. While the United States observed a gold standard, the certificates offered a more convenient way to pay in gold than the use of coin ...

. It was suggested for the team to prepare the same request as those of July 4, and that Almonte shall fly to Switzerland first thing the next day to endorse the documents to Ambassador Ascalon for a formal communication to the FDJP. On July 7, 1986, Almonte flies alone to Zurich at 6:00am with the signed documents, but Ascalon refuses to affix the official communication of the Embassy without the approval of Dr. Salvioni. De Guzman, who was in Vienna, frantically tries to track down Dr. Salvioni to no avail. Almonte returns to Vienna that night and briefly updates Ordoñez on what has transpired in Bern. Ordoñez postpones the meeting until the next day. The FDJP meanwhile acts on the request and lifts the freeze order on the US$213 Million identified by the Philippine representatives. Export Finanzierungs Bank (EFBA)

On July 8, 1986, The Judge of Instructions in Zurich ordered Credit Suisse to release and transfer the defreezed Marcos deposits to the account of the Philippine Government in Exportfinanzierungsbank in Vienna. Ordoñez however made a turn around, in fear of the money being diverted from Vienna to a Marcos-favored destination. The Swiss lawyers hired by the PCGG tipped Ordoñez on the credibility of De Guzman and his bank in Vienna. Ordoñez instructed the Swiss lawyers, without informing Almonte and De Guzman, to request the FDJP and Credit Suisse to direct the transfer of the monies to a new destination, the newly opened account of the Philippine Government within the said bank. Ordoñez secretly left Vienna for Zurich then to Manila on the orders of PCGG Chairman Salonga. Almonte and De Guzman are left in Vienna without an idea as to what happened to the Solicitor-General, and frantically search Vienna for the Filipino official, until confirming on July 10 that Ordoñez was already in Manila. Meanwhile, before the transfer was made, the Credit Suisse official, Ernst Scheller, contacted the son of the former president, Bongbong Marcos, and informed him of the Philippine Government's actions. This gave Ferdinand Marcos to execute a revocation of his Power of Attorney to De Guzman. On July 11, 1986, De Guzman and Almonte head back to Manila and debrief Congressman Cojuangco on the events that took place in Bern and Vienna. Marcos' revocation of the Power of Attorney was sent by facsimile to his Swiss lawyer, Bruno de Preux of the law firm Tavernier, Gillioz, de Preux, Dorsaz in Geneva. On July 13, 1986, The

Philippine Daily Inquirer The ''Philippine Daily Inquirer'' (''PDI''), or simply the ''Inquirer'', is an English-language newspaper in the Philippines. Founded in 1985, it is often regarded as the Philippines' newspaper of record. The newspaper is the most awarded br ...

quotes Ordoñez that they were able to retrieve the initial US$213 million of Marcos' plundered money in Switzerland, and that the said fund will be in the government's hands soon. Marcos' Swiss lawyers submit copies of the revocation to the Swiss authorities. On July 20, 1986, The FDJP rescinded the defreeze order reference to the Revocation Letter received from Marcos on the Power of Attorney given to De Guzman.

Aftermath

Almonte received a call from Malacañang on December 24, 1986, and was called for a meeting with the President to debrief her on what actually happened in Switzerland and Austria. The meeting was confirmed by Ms. Ching Escaler, Aquino's Appointments Secretary (and later Philippine Ambassador and Permanent Representative to the UN in Geneva and

) on December 29, 1986. Almonte arrived with De Guzman in Malacañang, and was met first by Executive Secretary

Joker Arroyo Ceferino "Joker" Paz Arroyo Jr. (January 5, 1927 – October 5, 2015) was a Filipino statesman and key figure in the 1986 EDSA People Power Revolution which ousted dictator Ferdinand Marcos. He was a Congressman for Makati from 1992 to 2001 and ...

who stalled the two along with

Justice Justice, in its broadest sense, is the principle that people receive that which they deserve, with the interpretation of what then constitutes "deserving" being impacted upon by numerous fields, with many differing viewpoints and perspective ...

Secretary Ordoñez from meeting the President. Meanwhile, on October 21, 1988, a US federal grand jury in New York indicted Ferdinand and Imelda Marcos for a US$268 million racketeering scheme, siphoning the Philippine Treasury of US$103 million, and defrauding US banks of US$165 million. By November 3, Imelda returned to Hawaii after

Doris Duke Doris Duke (November 22, 1912 – October 28, 1993) was an American billionaire tobacco heiress, philanthropist, art collector, horticulturalist, and socialite. She was often called "the richest girl in the world". Her great wealth, luxurious l ...

posted a US$5 million bail. The Philippine Government thus lost its chance to recover the money in the Marcos Swiss accounts through Operation Big Bird. The whole fiasco was then brought into light by the

Philippine House of Representatives The House of Representatives of the Philippines ( fil, Kapulungan ng mga Kinatawan ng Pilipinas, italic=unset, ''Kamara'' or ''Kamara de Representantes'' from the Spanish word ''cámara'', meaning "chamber") is the lower house of Congress, the ...

' Committee on Public Accountability in mid-1989, under the Chairmanship of Cong. Victorico "Concoy" Chaves ( 2nd District, Misamis Oriental). The Chaves Report suggested that the Philippine Government would have immediately recovered the $213 million in July 1986 from Credit Suisse and its affiliates had the operation not been stopped by PCGG Chairman Salonga and Solicitor-General Ordoñez, and that this would have "paved the way to the recovery of the other deposits of the Marcoses with the Swiss banks" which was estimated by the Chaves Report to be at least $3 billion. On the side of De Guzman and Gen. Almonte however, they also lay the blame on Executive Secretary

, and Philippine Ambassador to Bern, Luis Ascalon, aside from Ordoñez and Salonga. Jovito Salonga, who by 1989 was already the Senate President, and Ordoñez who became Justice Secretary, have fully denied these accusations. The Chaves Report also rejected the view of the Swiss attorneys and PCGG Chairman Jovito R. Salonga that they had saved the Philippine Government from a massive theft. It concluded that if the funds were remitted to the Vienna bank to the account of Philippine government, whose authorized joint signatories were Solicitor-General Ordoñez and Gen. Almonte, there was no realistic chance that De Guzman would have stolen the money. In addition to this the Exportfinanzierungsbank in Vienna was also strictly regulated by the Austrian Federal Market Authority (FMA), and that the bank's board even had Almonte, Ordoñez, and Amb. Alejandro Melchor - ensuring the Philippine government's interest in the bank protected. And finally, De Guzman expected to receive a commission of $40 million (i.e. a 20% commission on the $213 million) if the monies were recovered, and thus he had an interest in ensuring that recovery did take place. On December 20, 1990, the

Federal Supreme Court of Switzerland The Federal Supreme Court of Switzerland (german: Bundesgericht, french: Tribunal fédéral, it, Tribunale federale, rm, ) is the supreme court of the Swiss Confederation and at the head of the Swiss judiciary. The Federal Supreme Court ...

decided that the US$213 Million along with other banking documents should be transferred to the Philippine government, with conditions however. On August 10, 1995, the PCGG filed with the District Attorney in Zurich, Switzerland, an additional request for the immediate transfer of the deposits to an escrow account in the

Philippine National Bank The Philippine National Bank (PNB, Filipino/ tl, Bangko Nasyonal ng Pilipinas, lit=; es, Banco Nacional Filipino; Hokkien ) is one of the largest banks in the Philippines. It was established by the Philippine government on July 22, 1916, duri ...

(PNB). The request was granted. On appeal by the Marcoses, the Swiss Federal Supreme Court, in a decision dated December 10, 1997, upheld the ruling of the District Attorney of Zurich granting the request for the transfer of the funds. In 1998, the funds were remitted to the Philippines in escrow. On December 10, 1997, under the Swiss Federal Act of International Mutual Assistance in Criminal Matters (IMAC), the Swiss Federal Supreme Court, issued the final decision to transfer the fund to the

Sandiganbayan The Sandiganbayan ( en, Support of the Nation) is a special appellate collegial court in the Philippines that has jurisdiction over criminal and civil cases involving graft and corrupt practices and other offenses committed by public office ...

which now grew to US$540 Million due to interest. Also in 1997 the

Philippine Senate The Senate of the Philippines ( Filipino: ''Senado ng Pilipinas'', also ''Mataas na Kapulungan ng Pilipinas'' or "upper chamber") is the upper house of Congress of the bicameral legislature of the Philippines with the House of Representatives a ...

's Blue Ribbon Committee and the House of Representatives' Committee on Good Government, would again review the saga of Operation Big Bird, with the same conclusion. Aquino's Vice President,

Salvador Laurel Salvador Roman Hidalgo Laurel (, November 18, 1928 – January 27, 2004), also known as Doy Laurel, was a Filipino lawyer and politician who served as the vice president of the Philippines from 1986 to 1992 under President Corazon Aquino an ...

would reflect that this their administration's greatest failure. Starting April 1998 up to July of that year, the Swiss authorities started transferring the identified Marcos money in Swiss banks to an escrow account in the PNB. On July 29, 1999, Sandiganbayan Presiding Justice Francis E. Garchitorena denies the motion to release US$150 million from the funds to pay Marcos

human rights Human rights are moral principles or normsJames Nickel, with assistance from Thomas Pogge, M.B.E. Smith, and Leif Wenar, 13 December 2013, Stanford Encyclopedia of PhilosophyHuman Rights Retrieved 14 August 2014 for certain standards of hu ...

victims. On October 27, 1999, the Senate Blue Ribbon Committee held a special hearing in the Philippine Consulate in Honolulu. In the hearing, businessman

Enrique Zobel Enrique Jacobo Emilio Zóbel y Olgado (January 7, 1927 – May 17, 2004), better known as Enrique J. Zóbel and EZ, was a prominent Filipino businessman, pilot, and polo player belonging to the prominent Zóbel de Ayala family who are of Spanis ...

testified that in early 1989, he met with Marcos as he was for asking a US$250 million loan from him. Zobel in turn, refused it unless there was a financial backing. Marcos later produced documents of a

Vatican Vatican may refer to: Vatican City, the city-state ruled by the pope in Rome, including St. Peter's Basilica, Sistine Chapel, Vatican Museum The Holy See * The Holy See, the governing body of the Catholic Church and sovereign entity recognized ...

trust in gold accounts to pay off the loan. On February 4, 2004, the retrieved Marcos money which now grew to US$683 million, was finally transferred by PNB to the Bureau of the Treasury. According to the Agrarian Reform Law, part of the retrieved Marcos wealth will be utilized for the government's agrarian reform program, and the remaining part for the compensation of the victims of the Marcos dictatorship. Once all pending legalities were settled regarding the US$683 Million in escrow, the fund was finally transferred to the

Department of Agrarian Reform The Department of Agrarian Reform ( fil, Kagawaran ng Repormang Pansakahan}, abbreviated as DAR or KRP) is an executive department of the Philippine government responsible for the redistribution of agrarian land in the Philippines. List of t ...

and Department of Agriculture. However, by 2005, the

Philippine Center for Investigative Journalism The Philippine Center for Investigative Journalism (PCIJ) is a non-profit media organization specializing in investigative journalism. It is based in Quezon City, Philippines. Established in 1989 by nine Filipino journalists, the organization ...

(PCIJ) reports that the portion of the money was diverted by the Arroyo administration for the President's campaign during the 2004 elections. This led to Senate Blue Ribbon Committee inquiry concluding that Pres. Arroyo mismanaged the fund - which then became known as the Fertilizer Fund scam.

References

External links

Declaration of Michael C.U. De Guzman in support of the Republic of the Philippines House of Representatives investigation on the "Marcos Deposits in Switzerland" by the Special Committee on Public Accountability

Tracking the Proceeds of Organized Crime - The Marcos Case

Efforts to Recover Assets Looted by Ferdinand Marcos of the Philippines (background paper), International Centre for Asset Recovery (ICAR) September 2007
{{Philippines topics 1986 in the Philippines Ferdinand Marcos Imelda Marcos Political history of the Philippines Presidency of Corazon Aquino