Lest we forget, this was what she said

GOTCHA By Jarius Bondoc , The Philippines Star, Friday, April 18, 2008

On Dec. 19, 2003 US Customs detained two brothers who had just landed at San Francisco Airport from Manila. Ian Carl Garcia, 26, and Juan Paolo Garcia, 23, did not declare their $100,000 cash, a federal offense. On questioning, they swore to be US citizens but didn’t know the gravity of the misdeed. Ian owned up to the mistake, saying he had fallen asleep and let his brother fill up the Customs form. Juan said he only wanted to avoid questioning, having been accosted in a similar trip two months earlier for flying first class though only a college kid. Unmoved, the US agents confiscated the cash.

Their mother came to the rescue. Pleading for return of the money, she submitted a sworn statement on Apr. 6, 2004, to wit:

“I, Clarita D. Garcia, date of birth Dec. 3, 1950, swear the following are true and correct to the best of my knowledge.

“On or about Dec. 19, 2003, I instructed my sons Juan Paulo and Ian Carl to bring cash in the amount of $100,000 into the US from our home in the Philippines. I told both my sons to declare the money when entering the US. The money was to be used as down payment for a condominium in New York City where my son Timothy would live while going to school. Timothy was paying the amount of $3,000 per month to rent an apartment. My son Juan Paulo told me he didn’t declare the money because ‘it was too much hassle.’ I always declare the money when I bring it into the US. I declared the money in 1993, in 1995 when I had a medical operation. I declared $100,000 on Dec. 17, 2003. I also declared $200,000 in Jan. 2003. My son Juan Paulo is a risk-taker and is very spoiled.

“Source of Funds: My family’s income is from four sources, two corporations, a daycare school, and my husband’s job as a Two Star General in the Philippine Military. My family has 80% interest in the two corporations and we may earn a monthly income equivalent to US$8,000. The daycare brings in more money, perhaps $10,000 per month. However, based on Philippine tax laws regarding both the corporations and daycare, we are allowed to declare zero income. The income received from these businesses was not reported as a basis for tax liability. The two corporations, IJT Mango Orchard Inc. and IJT Katamnan Corp., were incorporated on March 22, 2002.

My husband Carlos Garcia (Two Star General in the Armed Forces) was assigned to the Comptroller’s Office until Apr. 4, 2004. He receives a salary that is declared as income for tax purposes. In addition, Carlos receives travel money and expenses in excess of several thousands of dollars. I often travel with my husband on business and my travel, expenses and shopping money in excess of US$10,000 to $20,000 is provided to me. He often receives cash for travel and expenses from the businesses that are awarded contracts for military hardware. These businesses are in Europe and Asia. He also receives gifts and gratitude money from several Philippine companies that are awarded military contracts to build roads, bridges and military housing.

“As the comptroller, my husband handles all budgets for the Armed Forces. My husband prepared the budget for the armed forces based on the requests from each branch of the military. The budget is sent to the Secretary of National Defense and it is sent to the Senate for approval. The Armed Forces Committee reviews each contractor’s bids. Once the bids are approved and the review committee has checked out the companies, my husband’s is the final signature for funding the contracts.

“The expense money, gratitude money and shopping money are not declared as income.

“My husband will always thank the person that provides the gratitude. If someone stops by the house with a gift or gratitude, my husband insists that their name and telephone number be taken so they may be called and personally thanked. As the wife of a general, I am afforded several privileges including a 4,000-gallon per month gasoline allowance, security detail and five drivers. I have a military cook that also provides piano music upon request.

“My husband’s position in the Armed Forces is one of privilege. The gratitude money that he receives is common and unsolicited. Contracted companies and personnel from the different branches of the armed services are grateful for my husband’s assistance and timely payments for contracted work. In addition, I provided Agent Van Dyke with a four-page handwritten statement that explains my husband’s job and our additional source of funds. Signed: Clarita D. Garcia. Date: 4/06/04.”

* * *

E-mail: jariusbondoc@workmail.com