Transcript of U.S. Ambassador Francis Ricciardone’s interview over
Radio DZBB-AM with Mike Enriquez, October 18, 2004

Q: Mr. Ambassador, good morning. This is Mike Enriquez.

A: Magandang umaga Mike.

Q: Magandang umaga po, Ambassador. Mr. Ambassador, we’ve been getting all these reports these past few days about lots of money about like 1.4 million dollars in the case of a General of the Philippine Army that was brought to the U.S. Is there anything that the U.S. Government can do about a situation like this where there is money alleged to have been ill-gotten and that is being moved to the U.S., Mr. Ambassador?

A: Well, I tend to look on the bright side of all this…

Q: Okay, hold on. Mr. Ambassador we’re having problems with the audio. You’re not coming in strong enough. Hello?

A: Yes, I can hear you loud and clear.

Q: Okay, okay. It’s better, much better. Go ahead Mr. Ambassador.

A: Okay, I will try to switch to another phone while we’re speaking and see if I can get even better.

Q: You’re okay now. You’re 5 by 5 now.

A: Great. Fanstastic.

Q: Okay, go ahead Mr. Ambassador with your answer.

A: Yes. Well, I think this whole situation really -- I tend to look at the bright side about so many things in the Philippines and this is another example. I see all the various elements of the Philippines’ democracy working here, and we have our own role from the outside in that working and I think it’s a good thing. Let me explain what I mean. I see the various elements of democracy here working on a serious problem and making headway. On the Government side, we have President Arroyo herself making clear that she wants a vigorous investigation and follow up. Secretary Cruz has made that clear. General Abaya is pressing the case. On the legislative side in the House of Representatives, National Defense Chairman Golez has already begun hearings last week, and has begun them in a forthright and responsible manner. The witness that has tried to evade that is clearly going to be called to account in your system, and I have every confidence that it is going to work out, not least because you in the media are also doing your jobs in a democracy. You’re fulfilling your role. It’s important that you all do so persistently, but also responsibly, so I’m optimistic. On the question of American involvement and support, we very much support the President’s efforts to clean things up and to reform the AFP and other institutions of Government.

You know, President Arroyo visited President Bush in May of 2003, and President Bush came here in October. And in that period, one of the lead items in their conversation was how the United States could support what was then called a “Joint Defense Assessment,” and what by October had been sort of re-tooled as the “Philippines Defense Reform.” And if you check today’s Philippine Star, you’ll see that Secretary Cruz has been describing that in greater detail publicly. The PDR will help root out corruption, I believe, in the Philippines’ Armed Forces by introducing greater transparency, by fixing up the financial management systems, and making them more open and monitorable; also by fixing up the training systems, and the assignment systems, by making sure the soldiers get the support they need, and that everybody is held to account.

So, this is a good thing. I don’t see this as something frightening. I see it all as something very encouraging.

Q: Okay. Mr. Ambassador, what happens to this money, that is supposed to have been brought to the U.S., that amounts, as of latest reports, to as much as 1.4 million dollars, and this is the case for just one individual? What is the law, or what is the international convention, or agreement between the two countries regarding money, or assets like this that is moved to, in this case, from our country to yours?

A: Well, as you probably know, we’re working very hard with the Philippines to strengthen the anti-money laundering regime worldwide, and in the Philippines, and in our own country. Right now, what we have is a global network of national laws, pretty much, where each country tries to strengthen its own internal financial practices in banking. In the Philippines, you have come a long way. You’re still on the Financial Action Task Force’s black list, but there’s been great improvement over the past few years in the anti-money laundering legislation which will help prevent corrupt officials and other criminals -- drug dealers, traffickers in people, traffickers in arms, anyone who is dealing illegally. A tight anti-money laundering regime in your country will help prevent them from profiting from their ill-gotten gains.

Now, in the United States we have a requirement, which you know about, that as you enter the United States, to declare any cash, or any financial instruments in excess of 10,000 dollars. In the case at hand today, that apparently triggered the uncovering of some information about a given individual. That has brought a lot more to light. If you don’t mind, I’m going to refrain from commenting on the specifics of a given case because when it’s under law enforcement or judicial or congressional investigation, I don’t think it’s a good idea for me to…

Q: Okay, we’ll respect that Mr. Ambassador. Now, my next question is this: there’s a lot of military assistance that comes from the United States towards the Philippines. What is the effect on that assistance in the light of news reports about alleged anomalies in the Armed Forces of the Philippines?

A: Well, I wouldn’t expect that there would be any – for these reasons. Number one, these allegations are nothing new. Number two…

Q: …nothing new?

A: No. Allegations of corruption of such…

Q: in the military? Yes, yes…

A: Wherever we provide military assistance or for that matter economic assistance around the world – because of the possibilities of malversation or corruption, we put into place extremely strict controls. Now, in the case of our military assistance here, it’s in the form of training. It’s in the form of equipment. Training, of course, is something that we conduct and do conduct, and we make sure that gets delivered and that can’t go astray. When it comes to equipment, we have a very strict inventory system, and bar codes are involved. And we’re absolutely satisfied that the Armed Forces of the Philippines are cooperating with us in maintaining the inventories and accounting for every last weapon or system, or piece of equipment that we turn over to them. We follow up, they know it, and we’re very happy on that account. There’s only one case where money goes from the United States to the Armed Forces of the Philippines, and that is after a training exercise where the Armed Forces of the Philippines has delivered certain quantifiable, measurable services to American forces that come here to train. I say, goods and services.

Q: So, we got you on this one. We have you clear that all these news reports about all the shenanigans, alleged shenanigans going on in the military, is not going to affect U.S. military assistance to the Philippines? Did I get that correct?

A: Yes, IF…

Q: If?

A: Yes, provided…

Q: Provided?

A: Provided that the Government, that is to say, not just the executive branch but also the legislature, and all the institutions of the executive branch really do, vigorously investigate, and follow up and take it wherever it will go, and maintain the confidence of the citizens and, for that matter, of foreign governments like mine, that want the strength of your country, that want the success of your country, and of your democracy. Whether that’s in important institutions, whether in law enforcement, or the Armed Forces, or any of the organizations of government.

Q: Okay, Mr. Ambassador, what is happening now with our military and our country in general does not strengthen the position of sectors in the U.S., in the legislative branch, for example, and even in the executive branch that advocate the lessening of aid of military assistance, and other forms of assistance to countries like the Philippines especially now when taxpayers’ money and domestic issues are at the forefront in America, especially now that the election is just a couple of weeks away?

A: Sure. Well, I think if we were to see a situation like this swept under the rug, or ignored, or if this is a media story for two or three days, and it goes away, and people are concerned about some sex scandal next week, and a typhoon the week after, and this is all forgotten, then I think it would cause a serious blow. But I don’t see any sign that that is the case. The President herself has called publicly for action. Secretary Cruz has made clear he is following up. Chairman of the House National Defense Committee Roy Golez is following up, not just vigorously but I think responsibly and soberly so far, with his committee investigation. The media is not going to let this story die, I think. So, I find grounds for optimism. I think you guys are going to pull this out, and make the country stronger, and make the AFP stronger for having gone through this episode.

Q: Okay. My final question Mr. Ambassador, to your knowledge as of this morning while I interview you on the radio, has your Government, has the Embassy received any official request from the Philippine Government regarding the money and other assets about the individual that is being investigated at the moment, a general of the Armed Forces, is concerned? Have there been any requests for your government to do something about these assets that are in the U.S.?

A: Well, we’re in conversation all day long everyday about many, many law enforcement actions involving our citizens and your citizens that are doing things across each other’s borders that may violate one or both countries’ laws. But what we don’t do publicly is get into details of those for, what I think, are obvious reasons. We don’t risk disrupting any of the investigations or the prosecutions -- and the prosecutions are extremely important -- by saying things publicly that would seem to pre-judge. But let me just say we have really excellent cooperation between the two Governments on law enforcement issues, in prosecution issues, in extradition. These involve money laundering, movements of people, crimes committed in either country.

We do have a Mutual Legal Assistance Treaty that has become very effective in the last few years. I arrived in February of 2002. One of the first things that President Arroyo asked is that we send more justice attachés to my Embassy. We had our FBI Director Mueller come in March of that year, and we’ve done that. And we got more justice attaches and people who work with Filipino counterparts in the Department of Justice, in the Philippines’ National Police, and for that matter in the AFP to make sure we’re strengthening each other’s pursuit of criminals.

Q: Mr. Ambassador, we’d like to thank you for the time you gave us, and our station and our listeners this morning. And like to thank you also for the positive outlook you have for the country in spite of reports about what’s going in the military, and the other institutions of the country including the media. I noticed you had a couple of good words for the role that media is playing not only in this current story, but in the context of the overall situation in the Philippines.

A: Absolutely. You know, this is a great and wonderful country. We have every interest in seeing it become even stronger and more prosperous, and everybody has got to do their part. I’m not saying the media always gets it right, or your Government always gets it right, or my Government always gets it right, but it’s a democracy and when we get it wrong, we have institutions that hold our Governments to account, and there’s even mechanisms for the media to be held to account now and then. So, watch out, do things right.

Q: Okay, Mr. Ambassador, once again thanks very much to you. Good morning.

A: Thanks. Good morning.

Q: Bye bye.

A: Bye bye. Salamat.

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