Napoles’ mess: Facts and perceptions

Not long ago, we bore witness to the Senate’s impeachment hearing of then Chief Justice Renato Corona.  Then, we truly understood, for the first time, what we may call the very essence of the word transparency.  Though successful, such development was quite sad.  This is so sad because as publicly accountable officials, transparency and accountability should have come naturally as an obligation.  Despite these obvious obligations, however, these public servants have remained either oblivious or deliberately unmindful of their responsibilities. 

For one, some lawmakers are now in the hot seat on account of the alleged misuse of their “pork barrel”.  Undertaken behind the supposedly decent façade of non-governmental organizations or NGOs, its purported real worth was revealed by a whistleblower named Benhur Luy.  Janet Lim Napoles, the alleged facilitator, with the able assistance of a platoon of battle-scarred lawyers, is in a constant denial mode.  Surprisingly though, while denials are so normal in parrying allegations such as this, both Houses (Senate and Representatives) are intriguingly silent.  In the past, even a rumor regarding “escort services”, “brunayuki”, “japayuki”, etc., seemed to warrant investigations in aid of legislations.  Thus, we are afraid that a huge concern, such as this, might be headed to the garbage bins.

However, before these issues are piled over by upcoming trashes, let us look into some incriminating information that can be of use.  According to Rappler, “there are three properties in California linked to the Napoleses”.  It further said that, “Based on the California Secretary of State website, which records business entities registered with the state, there are two businesses owned by Reynald Luy Lim.  Lim is the brother of Janet Lim-Napoles and her alleged partner in the multi-million pork barrel scam.  These properties are as follows:  (1) Anaheim Hotel (purchased in September, 2006 at US$7M or P351.54M), (2) A preschool in Covina (purchased in June, 2007 at US$1.2M or P55.776M), and (3) A single family home in Irvine (purchased in June, 2007 at US$1.4M or P64.176M).”  Based on the peso-dollar exchange rate at the dates of purchase, the total consideration in pesos is P471,492,000.

To these properties, we didn’t hear the Napoleses’ denials.  They unequivocally stressed that what they have right now are all fruits of their labor, their businesses, such as, JLN Corporation (JLN).  JLN was incorporated in April 27, 1999 with Magdalena Lim, Annabelle Luy, Nathaniel Tan, Gertrudes Luy and Janet Napoles, contributing P62,500 (or a total paid-up of P312,500 out of its authorized capital stock of P5M) each, as incorporators.  Today, JLN’s authorized capital stock of P5M is fully paid-up.  However, this is the intriguing part.  On May 9, 2013 they filed a General Information Sheet (GIS) with the Securities and Exchange Commission (SEC) showing that JLN is owned by Jaime Napoles (P1,250,000), Janet Napoles (P1,250,000), Jo Christine Napoles (P750,000), James Christopher Napoles (P750,000), Jeane Catherine Napoles (P750,000) and Jose Emmanuel Lim (P250,000).  Surprisingly, however, on May 15, 2013, JLN filed an amended GIS.  This time, except for Jaime Napoles, the stockholders are all different.  They are Jaime Napoles (still, P1,250,000), Filemon Agustin (P1,250,000), Andres Atan (P750,000), Cheryl Jimenea (P750,000), Peter Lavin (P950,000) and Anthony Dequiña (P50,000).  Knowing fully well that May 13, 2013 was election day, then, there were only two working days that separate these dates.  This fact is apparently revolting because transfers of fully paid shares to another person, such as, through sale, should go through the BIR.  A capital gain tax, as well as, documentary stamps shall be paid before a certificate authorizing registration (CAR) is issued by the BIR. A CAR is necessary before a transfer is recorded in the company’s stock and transfer book (STB), the primary record where GIS is based.  Apparently, to get a CAR, two days are so short.

With this development, we can’t help but join the millions of Filipinos in suspecting that there could be something fishy.  Probably, it already smelled fishy in May, 2013 that the Napoleses unloaded their shares except for their father.  Why?  It’s a no-brainer.  He is the only stockholder who can support his investments since he received benefits from the government upon his retirement from military service, the other members in the family can’t.  Moreover, even with new stockholders in tow, with the purchase price of the family’s alleged properties in the USA totaling P471,492,000, in what way shall JLN ever purchase it with a negligible P5,000,000 capitalization.

Indeed, with transparency perpetually set aside, this issue shall continue to be a thorn in the lawmakers’ term and a curse to the Napoles family.  Left unattended to, this current development shall be viewed permanently by all Filipinos as more of a farce, not at par. 

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