How the gov’t lost its bid to forfeit $5.19M Romualdez family funds

MANILA, Philippines – The government failed to secure a judicial lien on $5.19 million in escrowed funds at the Philippine National Bank (PNB) linked to the family of the late ambassador Benjamin “Kokoy” Romualdez.

The forfeiture case, filed at the anti-graft court on November 21, 2025, aimed to recover money previously held at the Union Bank of Switzerland in Geneva.

Romualdez, who died in 2012, was the youngest brother of former first lady Imelda Marcos and father of former House speaker Martin Romualdez. He was considered one of the Marcos cronies, and he held key positions in government during the Marcos dictatorship.

The 6th Division of the Sandiganbayan granted the motion by the Romualdez family, dismissing the government’s petition to forfeit the funds, case SB-25-CVL-0001.

The money was transferred from Swiss accounts to the Philippine government on December 29, 1998, under an order from a district attorney of the Canton of Zurich. Swiss authorities allowed the transfer on the condition that it remain in escrow and could only be released if a Philippine court declared the funds ill-gotten.

Since the escrow account was set up in 1999, the funds have remained untouched at PNB for 16 years.

The government filed on August 17, 2011 a petition with a verified urgent ex parte application seeking a writ of preliminary attachment. But the 4th division of the anti-graft court dismissed the case on June 18, 2018, noting that it had been filed by the Office of the Ombudsman, and allowed the Office of the Solicitor General to refile it. A subsequent motion for reconsideration by the government was also denied.

The Romualdezes subsequently filed on June 10, 2025, a motion to release escrowed funds, which the same Sandiganbayan division approved, covering the full $5.194 million plus any interest accrued. It stated that the government’s prolonged inaction was seen as a waiver of its right to pursue the forfeiture.

Rather than contesting the decision, the OSG filed a new forfeiture petition, which was assigned to the Sandiganbayan’s 6th Division. It eventually ruled that the petition was improper as it effectively sought to have one division override the decision of a co-equal division, adding that it cannot do that under the doctrine of non-interference.

The anti-graft court also pointed out that the government had already filed a petition for certiorari with the Supreme Court, seeking to overturn the Sandiganbayan 4th Division’s ruling, and sought an order to prevent the release of the escrowed funds. – Rappler.com