Saudi Sheik Earmarks Funds for Muslim Minority : Alleged Marcos Coup Money Redirected

A Saudi Arabian businessman has given the Philippine government $25 million that ousted President Ferdinand E. Marcos is alleged to have tried to borrow to finance a coup in Manila, a spokesman for the businessman said Friday.

The money was transferred to President Corazon Aquino’s government to help the Muslim minority in the Philippines, a spokesman for Sheik Mohammed Fassi told reporters by telephone from the Saudi capital of Jidda.

He said Fassi had accepted the honorary post of Philippine consul general in Saudi Arabia in return for his help. Aquino offered Fassi the post during a telephone conversation, the spokesman said.

Conditions for Loan

A statement by Fassi’s office said he initially agreed to lend the money to Marcos on condition he signed a document saying he would grant autonomy to Muslims in the Philippines if he ever returned to power.

The two men were friends and maintained close contacts, but Fassi was later told by his American lawyer, Richard Hirschfeld, that Marcos was plotting a coup, the statement said.

It said Hirschfeld, the CIA and several U.S. congressmen had telephoned Fassi asking him not to lend money to Marcos, who fled to Hawaii after a civilian-backed military coup in February, 1986.

Hirschfeld told Fassi that the United States would never forget that favor and that the U.S. authorities were working on foiling Marcos’ coup, the statement added.

Hirschfeld, who had approached Fassi about making a loan to Marcos, said last week that he and an associate posing as an arms dealer had tricked Marcos into revealing that he was plotting a coup.

According to tape recordings, secretly made by Hirschfeld and his associate, Marcos promised the two men a financial reward and Fassi a diplomatic appointment in return for a loan of between $18 million and $25 million to pay soldiers and buy arms.

Lawyers for Marcos later dismissed the affair as a “con trick,” saying the tapes had been doctored.

Meanwhile in Manila, Marcos challenged the government to allow him to return to the Philippines to defend himself against charges that he amassed $10 billion of illegal wealth during his nearly 20-year rule.

Marcos, in a statement released by his lawyer in Manila, said the charges--contained in civil suits filed Thursday--were an example of attempts by President Corazon Aquino’s government to harass him.

“If the government prevents my return to face my accusers, that would only constitute further injustice and violation to my basic human rights,” said Marcos.

Aquino has barred Marcos from returning to the Philippines, saying his presence could cause political instability.

Marcos’ lawyer, Rafael Recto, told reporters that Marcos could not afford to pay his attorney’s fees and thus would have to return home to defend himself in person.