US indicts woman at heart of Philippine graft scandal

AFP  |  Manila 

A at the centre of a massive corruption scandal has been charged in the US with laundering about USD 20 million allegedly pilfered from the Philippine state, prosecutors said, adding they would seek her

Napoles, along with five family members, is accused of wiring USD 20 million of the stolen money from the to bank accounts, the US attorney's office said in a statement.

Lim, 54, is already behind bars in the Philippines, where she is on trial over graft charges stemming from the alleged embezzlement.

The firm representing her declined to comment.

The US indictment alleges the defendants used the money to buy real estate, shares in businesses, two Boxsters and finance the living expenses of three US-based family members.

"We will work with our Philippine counterparts to secure the of the defendants to the United States," said US

The won a court order in 2015 to freeze USD 12.5 million worth of assets bought by and others using the allegedly stolen funds.

"If the court orders the assets forfeited, the will work... to return the stolen funds back to the Philippine government," the statement said.

The money was intended for use in development projects chosen by lawmakers, but instead it was diverted to phoney non-profit organisations and stolen.

The scandal rocked the Philippines, where one in five people live on the equivalent of just over a dollar a day.

Three Filipino senators were among those arrested in in 2014 over the scam.

After her arrest in Manila, the said, and her family attempted to quietly liquidate the American assets and move the cash back to the or accounts in the US and Britain.

The defendants also allegedly attempted to give some of the money to Napoles's US-based daughter, one of those indicted, who used the cash to open a fashion business.

Last year Napoles won a legal victory when a Philippine appellate court acquitted her of charges of abducting and detaining a former who turned state witness against her in the plunder and graft charges.

However, recently dropped an earlier proposal to turn her into a state witness, which could have lessened her exposure to a long prison sentence if convicted.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 01 2018. 16:15 IST