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MANILA, Philippines – The anti-graft court Sandiganbayan has dismissed a graft case against two former executives of the Land Bank of the Philippines in relation to the sale of the bank’s 46,596,596 shares of stock in the Manila Electric Company (Meralco) in 2008.
The Sandiganbayan’s Third Division cleared Gilda Pico, former Landbank president and chief executive officer; and Carel Halog, former Landbank vice president for the Local Currency Department.
In its resolution dated June 14, the court invoked the Supreme Court decision nullifying with finality the complaint filed against the two former bank officials.
“Given the nullification of the same complaint with finality, the Information subject of the present case has completely lost its efficacy,” the court said.
“The Court is aware of its place in the hierarchy of courts. It is likewise mindful of the teaching of the Supreme Court that by tradition and in our system of judicial administration, it is the final arbiter of any justiciable controversy. The present case against all of the accused is hereby dismissed,” it added.
Presiding Justice Amparo M. Cabotaje-Tang penned the resolution with concurrences from Associate Justice Bernelito R. Fernandez and Associate Justice Ronald B. Moreno.
The other co-defendants in the six-year-old case are former LBP doard director Margarito Teves, former LBP first vice president for Treasury Group Roberto Sandoval, and LBP board directors Marianito Roque, Patricia Rualo-Bello, Eduardo Nolasco, Albert Balingit, George Regalado, and Cyril del Callar.
They were accused of conspiracy in relation to the Share Purchase Agreement (SPA) entered into with Global 5000 Investment Incorporated on December 2, 2008, on the sale of the LBP’s Meralco shares.
The Ombudsman had said that the SPA was “manifestly and grossly disadvantageous to the government.”
The Ombudsman said that based on the agreed terms and conditions, Global, even with just a 20% down payment, can collect “any and all dividends” on the subject shares, exercise full voting rights, and pay only P553.847 million on fixed-term interest for three years.
Prosecutors had said that the the P553.847-million interest spread over three years means the rate is only 4.4% per annum or “far below the legal interest” of 6%. – Rappler.com
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