Sandigan orders return of stock transfer book to ETPI

The Sandiganbayan recently ordered the return of the stock and transfer book (STB) of Eastern Telecommunications Philippines Inc. (EPTI) to the firm’s corporate secretary, lawyer Barbara Anne Migallos, over the objections of the Presidential Commission on Good Government (PCGG) and defendant Victor Africa.

In a 23-page ruling penned by Associate Justice Efren dela Cruz, the Sandiganbayan Third Division said there was no basis on the PCGG’s argument that giving the books back to ETPI would dissipate the government’s stake.

The government holds a 10.2-percent stake in ETPI, which they are trying to sell.

The shares were sequestered by the government in 1987 on allegations that they form part of the ill-gotten wealth of the Marcoses.

The PCGG said leaving the STB with the Sandiganbayan prevented unauthorized transfer, conveyance, encumbering, depletion or concealment’ of the seized assets because the anti-graft court was able to monitor such moves.

The Sanbdiganbayan, however, noted that it only required submission of the STB in 1989 to verify who had the rightful claim over a P120-million dividend paid by ETPI on class “A” shares.

This issue was already resolved in 1999 in favor of independent stockholders.

“The basis for the continued holding of the STB has ceased to exist and therefore its release to the corporation is called for in consonance with the mandate of Section 74 of the Corporation Code of the Philippines. The arguments advanced by the Republic and defendant Africa do not convince us to take exception to the mandate of the law,” the Sandiganbayan said.

As to the issue of safeguarding the State’s stake in ETPI, the anti-graft court pointed out that PCGG itself is empowered by law to inquire into the status of its stake at any given time and even to punish for direct or indirect contempt any person who would commit an act detrimental to government interest.