'Euro general' Dela Paz slapped with P200,000 fine over non-declaration of excess cash in 2008 Russia trip

The Sandiganbayan has convicted former police comptroller Eliseo dela Paz for failure to declare cash in excess of US$ 10,000 provided under Bangko Sentral Circular 507 during his 2008 Russia trip.

In a decision penned by Sandiganbayan Fourth Division chairperson and Associate Justice Frederick Musngi, Dela Paz was ordered to pay P200,000 in fine.

It also stated that Dela Paz's bail bond, which he earlier posted for temporary liberty, will only be released after he pays the P200,000 fine.

The anti-graft court junked the defense of Dela Paz that he did not violate the BSP Circular because they only brought US $10,000 each upon leaving the country as Eliseo distributed the subject money to other police officials prior to their trip, saying such defense is not backed up by evidence.

"He allegedly gave €85,000 to General [Ismael] Rafanan and the remaining €40,000, in the amounts of €6,000 to €7,000, to the other six members of the delegation. No proof other than the self-serving testimonies of the accused was offered to corroborate the claim that the money was distributed to the other PNP delegates prior to their departure from the Philippines," it said in its ruling.

"Also despite numerous inquiries of the Senate Blue Ribbon Committee, accused Eliseo did not mention the distribution of the subject money and only mentioned this supposed excuse in the present case," the Sandiganbayan added.

The anti-graft court then said the trial proved two things: that Dela Paz was in possession of the €105,000 prior to their departure as he was responsible for the amount as the SDO (Senior Directorate for Operations) of the Philippine National Police (PNP) delegation to the INTERPOL assembly, and that he deliberately did not declare that he will be bringing out the said amount from the country prior to his departure, despite knowledge of this requirement.

"Accused  Eliseo, through his own admission, was able to bring out of the country the subject cash without being apprehended by the local authorities and was only constrained to admit bringing out the cash and produce documents to show lawful possession, after his wife was apprehended by Sheremetyevo International Airport authorities," the Sandiganbayan said.

Meanwhile, Dela Paz's wife and co-accused Maria Fe was acquitted of the same charge "due to the prosecution's failure to prove beyond reasonable doubt the crime charged."

"No proof was offered to show that accused Maria Fe brought out from the Philippines an amount in excess of $10,000.00.  The fact that she was the one who was caught by the authorities in the Sheremetyevo International Airport in Moscow carrying an excessive amount is outside the jurisdiction of this Court and what BSP Circular No. 507 requires is the declaration of money brought into or out of the Philippines," the Sandiganbayan said.

"In conclusion, the totality of the evidence shows that accused Eliseo was in possession of and was responsible for bringing out the €105,000 in cash and deliberately did not declare it to the Customs as required by BSP Circular No. 507. While it was also proven that accused Maria Fe had in her possession an amount in excess of US $10,000.00 in Russia,  such is not required  to be declared as the possession was outside the territorial jurisdiction of this Court and the transport was not into or out of the Philippines, but of another nation ," it added.

Dela Paz and Maria Fe immediately left the building after the promulgation.

Euro generals

Dela Paz and eight other police generals were on their way back to the Philippines after attending the said INTERPOL General Assembly in Russia when the former PNP comptroller was found by authorities in a Moscow airport to be carrying 105,000 euros or an estimated P7 million.

This incident earned Dela Paz and his colleagues the monicker "Euro Generals."

Back in October 2019, the Sandiganbayan Second Division already junked the graft and technical malversation charges against Dela Paz and eight other former police officials who allegedly used P10 million of the Philippine National Police’s (PNP) intelligence fund as contingency fund and travel allowance in attending the said 2008 INTERPOL conference in Russia due to lack of evidence.

In acquitting Dela Paz and others, the anti-graft court said that the prosecution's evidence of Commission on Audit Circular 88-293,  which defined confidential and intelligence funds (CIF) as “funds allotted for national defense, national security, peace and order, internal security or counter insurgency, usually involving covert or classified operations, psychological warfare and surveillance operation and other specified intelligence and confidential operations of the national government as well as government owned or controlled corporations and local governments units" does not prove that CIF does not cover the INTERPOL engagement.

In February 2020, the Sandiganbayan also acquitted former PNP officials, including Dela Paz, of the charge of prolonging performance of duty in relation to the alleged Euro generals issue in 2008.—AOL, GMA News