Mar.17, 2010, 3:42pm

Retired Maj. Gen. Carlos Garcia entered a not-guilty plea on the money laundering charges lodged against him by the Office of the Ombudsman as the Sandiganbayan arraigned him anew Tuesday.

Garcia was arraigned by the Sandiganbayan Second Division, composed of its chairman Associate Justice Edilberto Sandoval, and members Associate Justices Teresita Diaz-Baldos and Samuel Martires.

The case went again to the Sandiganbayan Second Division after a raffle was conducted by the anti-graft court. The same division holds the plunder case filed against Garcia.

Garcia was re-arraigned on the money laundering charges after the court decided to void his first arraignment in December 2009, in line with its ruling that his money laundering case should not be consolidated with his plunder case.

When asked by the court, Garcia entered the plea of not guilty as to the charge of money laundering filed against him by the Ombudsman.

Aside from the general, others who were charged were his wife Clarita and children Ian Carl, Juan Paolo and Timothy Mark.

Only Garcia is currently in detention since he was charged also with plunder before the Second Division of the Sandiganbayan.

Garcia's wife and children are still in the United States and have not yet been arraigned for plunder and money laundering charges.

It will be recalled that Ombudsman Maria Merceditas Navarro-Gutierrez charged the Garcia family anew for violating Section 4A of Republic Act 9160 or the Anti-Money Laundering Law.

Graft Investigation and Prosecution Officer Marissa Bernal made the findings and found probable cause against the Garcias.

The case has to do with the allegation that the Garcias amassed over P300 million in unexplained wealth while in active military service.

Anti-graft prosecutors said various bank transactions by the Garcias involving total deposits of P303.27 million and withdrawals amounting to P73 million and US$967,215.99 constitute “unlawful activity” punishable under RA 9160 because the funds involved were proceeds of plunder.

The Ombudsman found that the Garcias held accounts in United Coconut Planters Bank, Bank of the Philippine Islands, Land Bank of the Philippines, Allied Banking Corp., Banco de Oro, Planters Development Bank, Export and Industry Bank, Centennial Bank, Armed Forces and Police Savings and Loan Association Inc. (AFPSLAI) and Wing Savings and Loan Association Inc. (AMWLAI).