On December 19, 2003, brothers Juan Paulo and Ian Carl Garcia arrived at San Francisco International Airport off a flight from Manila. Headed through customs, US officials asked them the routine question: “Do you have anything to declare?”
Welcome to Whale Hunting, a weekly newsletter (and podcast) exploring the hidden worlds of the rich and powerful. On a recent trip in South-East Asia, I was speaking to a long-time anti-corruption official who told me the amazing story of General Garcia of the Phillipines. Our intrepid correspondent Clara took the ball and ran with it to share the amazing true story of one of the Phillipines' most brazen corruption cases in recent years. – Bradley
On December 19, 2003, brothers Juan Paulo and Ian Carl Garcia arrived at San Francisco International Airport off a flight from Manila. Headed through customs, US officials asked them the routine question: “Do you have anything to declare?”
The brothers said they had $1,000. But when customs officers opened up their bags, they found several thousands of dollars in bundles. A further search of the two men uncovered even more bundles, stuffed into jacket pockets and inside their shoes. In total, they were carrying $100,000 in cash between them.
The pair – aged 26 and 23 – later claimed that their mother had packed their bags for them, and told them not to declare the money. All of the cash was seized, in what seemed – at first – like an open-and-shut case of customs fraud.
Soon after, though, Matthew Van Dyke, the US Customs agent who oversaw the seizure, received an unusual document. It was a written statement from Clarita Garcia, the mother of Juan Paulo and Ian Carl. She wanted the money back.
Clarita, it turned out, was the wife of a high ranking Philippine military general, Carlos Garcia – and she insisted she had a perfectly legitimate explanation as to where the cash came from:
“My husband, Carlos Garcia (Two Star General in the Armed Forces) was assigned to the Comptrollers Office until April 4, 2004 … Carlos receives travel money and expenses in excess of several thousands of dollars … He also receives gifts and gratitude money from several Philippine companies that are awarded military contracts to build roads, bridges and military housing … The expense money, gratitude money and shopping money is not declared as income.”
There’s shooting yourself in the foot, and then there’s blowing off your own leg with a hand grenade. Clarita had signed and sealed a statement detailing extensive kickbacks and bribes received by her husband, as well as some hefty tax evasion.
