SUMMARY
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MANILA, Philippines – The Sandiganbayan Fifth Division on Wednesday, September 26, affirmed its June 11, 2012 ruling that junked the government’s claim on 60% of the holdings of businessman Lucio Tan in his various companies.
In junking the government case, the court held that there is neither proof that any of Tan’s companies benefited from the supposed favors extended by the Marcos government nor evidence that any of those special favors were actually implemented.
In its 70-page resolution, the court however also threw out counterclaims filed by Tan, his co-defendants and companies against the government seeking payment of damages and compensation for legal expenses totaling P900 million.
A separate counterclaim by the heirs of the late former Central Bank Governor Gregorio Licaros for P205 million was also denied.
Associate Justice Roland B. Jurado, division chairman, penned the ruling with Associate Justices Teresita V. Diaz-Baldos and Alex L. Quiroz concurring.
In its earlier resolution issued last June 11, the Sandiganbayan ruled that government lawyers presented inadequate evidence against Tan and his co-defendants.
The court said what the Office of the Solicitor General (OSG) and lawyers of the Presidential Commission on Good Government (PCGG) presented were only hearsay testimonies, unverified affidavits and photocopied documents despite the fact that they took more than two decades to prove the case.
The government had sought forfeiture of 60% of Fortune Tobacco Corp., Himmel Industries Inc., Foremost Farms Inc., Asia Brewery Inc., Grandspan Development Corp, Silangan Holdings Inc. and Dominium Realty and Construction Corp.
It also prayed for the award of P51 billion in various damages and fees.
No new evidence
PCGG-OSG filed a motion for reconsideration last June 27 disputing the court’s pronouncement that its evidence are not competent and reliable.
It asserted that Tan’s assets may be forfeited in favor of the State even if defendants’ lawyers argued that such properties did not directly come from a raid of government coffers.
The Sandiganbayan however said government lawyers failed to present new evidence or raise valid legal issues as all the arguments in the motion for reconsideration have previously been passed upon and set aside for lack of merit.
“…(I)ssues raised by the Republic in its Motion for Reconsideration …had been dealt with in the assailed Decision and we reiterate our pronouncement and discussion therein. There is nothing in the instant Motions which raises substantial new matters which would warrant the reversal of or modification of the assailed Decision,” the Court stressed.
One of Asia’s wealthiest taipans, Tan is a known crony of the late President Ferdinand Marcos.
He has since formed a joint venture with multinational Philip Morris for his cigarette business, Fortune Tobacco, which flourished during the Marcos years.
His most active and direct businesses now are in banking and real estate.
Allied Bank, PNB merger
This is the latest court decision favorable to the upcoming merger between two of Tan’s banks: Philippine National Bank (PNB) and Allied Banking Corp.
The government, through the PCGG, tried to block the merger as it sought to recover Tan’s alleged ill-gotten wealth that includes shares in Allied Bank.
Two of the 3 regulators — the Bangko Sentral ng Pilipinas and the Philippine Depository Insurance Corp. — have given their go signal to the merger. Only the nod from Securities and Exchange Commission is pending.
The merger will create the country’s 4th largest privately owned bank 5th largest among all local banks.
PNB will be the surviving entity and will have a network of 646 branches nationwide, total assets of P514 billion. – Rappler.com
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