SC upholds lifting of sequestration orders vs Marcos firms

The Supreme Court has upheld a ruling by the Sandiganbayan lifting the sequestration orders against corporations allegedly used by the Marcos family and their cronies as repositories for their supposed ill-gotten wealth. The orders were from the Presidential Commission on Good Government (PCGG), a body formed to sequester all assets illegally acquired by the late President Ferdinand Marcos and his family and cronies during his 20-year rule. In a decision penned by Associate Justice Roberto Abad, the SC’s Second Division said no grave abuse of discretion could be attributed to the Sandiganbayan in dismissing the complaint for recovery filed by PCGG against the corporations. “For an act to be struck down as having been done with grave abuse of discretion, such abuse must be patent and gross, a screaming aberration, to use a phrase. The Sandiganbayan’s dismissal of the complaint against respondent corporations cannot be regarded as falling in this category," part of the 11-page ruling read. The SC said the anti-graft court merely relied on the high court’s own ruling in the previous case of Republic vs. Sandiganbayan wherein it held that “impleading corporations which are alleged to have been capitalized with ill-gotten wealth, is unnecessary since judgment may be rendered against the individual defendants, divesting them of their shares stock." Among these corporations are the Philippine Village Hotel, Philroad Construction Corp., Silahis International Hotel, Fantasia Filipina Resorts Inc., Monte Sol Development Corp., Olas del Mar Development Corp., Puerto Azulo Beach and Country Club Inc., and Ternate Development Corp. These corporations were listed under the names of several alleged Marcos associates led by Modesto Enriquez, Trinidad Diaz-Enriquez, Rebecco Panlilio, Erlinda Enriquez-Panlilion, Leandro Enriquez, Don Ferry, Roman Cruz Jr., and Gregorio Castillo. In upholding the Sandiganbayan’s ruling, the Court held that the sequestration orders were issued in violation of Section 26, Article XVIII of the Constitution, which requires prima facie findings that the properties are ill-gotten wealth prior to the issuance of a sequestration order. The SC also noted that the sequestration orders issued by the PCGG against Philippine Village, Philroad and Silahis were null and void since it was signed by only one commissioner. PCGG rules require the signatures of at least two commissioners on a sequestration order. The SC however noted that the lifting of the sequestration orders will not affect the prosecution of the main case since it does mean that the sequestered properties are not ill-gotten. “The effect of the lifting of the sequestration simply means that the government may not act as conservator or may not exercise administrative or housekeeping powers over the corporations. Historically, such option has not fared well," it said. - KBK, GMANews.TV