SC exec: P5-B fund intact and 'never concealed'

Reacting to reports that the Supreme Court (SC) allegedly defied the law by failing to deposit to the national treasury over P5 billion in trust funds, SC spokesman Atty. Jose Midas Marquez, said the fund was intact and "never concealed." "The amount is intact and deposited in Land Bank. That is why this is always reflected in the annual reports of the Supreme Court submitted to the COA. This fiduciary fund was never concealed," Marquez said in a statement distributed to the media on Friday. A Newsbreak report published on December 23 said the SC did not deposit to the Bureau of the Treasury over P5 billion in trust funds and millions of pesos more earned on fiduciary fund interests. "The fiduciary fund includes trust receipts, performance bonds, cash bonds, etc. Over the years, this has accumulated to more than P5B," Marquez explained. "Pending determination of some legal issues, Chief Justices Narvasa, Davide, Panganiban and Puno did not allow its remittance to the national treasury," he said. Marquez said the court of SC Chief Justice Corona has been deliberating on the issue about the funds for some time now. "Considering that this was collected by the courts over the years, the issues now are how and for what purpose can this be spent, and whether or not this must be remitted to the national treasury," Marquez said. "This is what the Corona Court is now finding out. The Court has been deliberating on this for a few months now, and this issue is again in the Court’s agenda in January 2011," he added. Marquez said in 2008 former SC Chief Justice Reynato Puno has approved the remittance to the national treasury of the interests of the fund deposited at Land Bank. "In November 2008, Chief Justice Puno approved the remittance of the interest on the fund, allotting the payment of P1 million per month," Marquez said. "Then in December 2009, another P.5 million was added, making the monthly remittance of interests in the amount of P1.5 million per month," he said. "Chief Justice Corona has continued with this arrangement, pending the Court’s determination of what to do with the principal which remains intact and untouched in Land Bank," he added. Newsbreak report Citing Commission on Audit (COA) reports in 2008 and 2009, Newsbreak, an online news magazine said the SC allegedly defied the law by failing to deposit to the national treasury over P5 billion in trust funds. "The COA found out that, in 2008, the Court did not deposit P4.8 billion in trust receipts. By 2009, the running total was already P5.38 billion," said the Newsbreak article written by veteran journalist Marites Danguilan Vitug. The article said the SC has yet to comply with COA's recommendations that the unremitted trust funds and interests earned on fiduciary funds be turned over to the treasury. Newsbreak said "the COA reports also show that, in 2008, interest earned on fiduciary funds and forfeited and confiscated bonds that was not remitted to the treasury was P74.6 million." Fiduciary funds are proceeds that do not belong to the holder, which is mandated to remit the amount. According to the Newsbreak article, forfeited or confiscated bonds "are derived from surety or cash bonds whenever the accused fails to appear in court when summoned." These bonds are what are popularly known as 'bail-money.' – Sophie Dedace, Veronica Pulumbarit, GMANews.TV