Imelda, Lucio Tan score court victories

Former First Lady Imelda Marcos wept and whispered a prayer after the Sandiganbayan yesterday found her innocent of graft charges filed against her in 1993, while tax evasion charges filed against taipan Lucio Tan were also dismissed.

"Thank God, thank God. I survived years of relentless persecution. Justice has prevailed," Mrs. Marcos told reporters after the verdict was handed down on the case, one of 11 being tried by the anti-graft court.

Mrs. Marcos and her co-accused Jose Conrado Benitez were charged for having illegal financial interests in the Technology Resource Center Foundation Inc. According to prosecutors, it is illegal for government officials to be involved in private corporations like TRCFI.

Government prosecutors said Mrs. Marcos was then chairman of the board of trustees of the foundation while at the same time the minister of human settlements.

Benitez, who was also cleared in the graft case, was then the human settlements deputy minister and also TRCFI president.

Meanwhile, the Marikina Metropolitan Trial Court, citing lack of evidence, dismissed charges that Tan, his Fortune Tobacco Corp. (FTC) and its executives evaded paying P25 billion by not paying the correct amount of taxes on cigarettes from 1990 to 1993.

In 1993, then Bureau of Internal Revenue commissioner Liwayway Vinzons-Chato ordered the filing of tax evasion charges against FTC and its owners, claiming that the company underdeclared its sales by selling most of its cigarettes through "fictitious" individuals and alleged dummy marketing firms. Tan’s firm allegedly owed the government P25.6 billion mostly in penalties and surcharges.

In a 34-page decision issued yesterday by presiding Judge Alex Ruiz, the court dismissed the nine criminal charges against Tan and 54 others as it granted two demurers to evidence filed by lawyers for the accused.

A demurer to evidence is a court pleading seeking dismissal of a criminal action based on the prosecution’s lack of evidence to prove the guilt of an accused "beyond reasonable doubt."

In throwing out the tax case, Ruiz said: "This court also finds that the acts and/or omissions upon which the aforementioned criminal informations are based or are anchored do not exist."

Tan and 20 of his co-accused were present during the hearing. The businessman was stoic but was in good spirits after the reading of the dispositive portion of Ruiz’s order. The brief court session lasted for only five minutes.

"This tax case started 13 years ago, the road to justice took a long trip. Fortunately, the defense was able to show that the (prosecution’s) allegations do not have any factual or evidentiary basis," said Tan’s lead counsel lawyer Estelito Mendoza.

Mendoza said under the rules of court the judge’s decision to grant a demurer is final and executory. The prosecution has no right to appeal, nor can they even move for a reconsideration of the order because it will violate the principle of double jeopardy.

The BIR filed the first case of tax evasion on Sept. 7, 1993 against FTC, its corporate officers led by Tan, and nine other corporations and their respective corporate officers for alleged fraudulent tax evasion for supposed non-payment of correct income tax, VAT and ad valorem tax for the year 1992. Two other similar charges for tax evasion for the years 1990 and 1991 were subsequently filed.

The cases were eventually raised to the Regional Trial Court, the Court of Appeals and twice to the Supreme Court. Finally, the Department of Justice on Dec. 1, 1998 filed the nine criminal informations before the Marikina Metropolitan Trial Court.

Meanwhile, after hearing the Sandiganbayan verdict, Mrs. Marcos, who is renowned for owning at least 1,200 pairs of shoes and a vast collection of jewelry, said: "I know God is always on the side of the right."

Wearing a purple skirt, long tunic jacket and a silk floral scarf with large jade and diamond earrings, Mrs. Marcos stood quietly clutching a dark green crocodile handbag as the verdict was read to a packed courtroom.

When lawyer Teresita Pabulayan, clerk of court of the Sandiganbayan’s Fifth Division, read the verdict, Mrs. Marcos’ supporters in the audience applauded as the former first lady broke into tears.

In deciding the case, the Sandiganbayan ruled that TRCFI was a "non-stock and non-profit" entity, thus there was no conflict of interest.

The anti-graft court noted that although TRCFI made investments in real estate by leasing land and constructing and selling townhouses, the money raised did not go into the pockets of foundation officials.

According to the court, based on the testimony of defense witness Arthur Aguila, the funds went into such projects as raising hybrid tilapia and for research into alternative power sources for rural communities.

"The foundation cannot be held to have been in the realty and housing businesses as charged. As disclosed by evidence, it had technology transfer projects as its principal concern or occupation basically aimed at addressing human settlement issues," the court ruled.

The essential elements of the offense charged have not been proven, the projects in question not being "businesses" in contemplation of law, it added.

Tears rushed down Mrs. Marcos’ cheeks as soon as the court declared her and Benitez innocent of a 13-year-old graft case for holding shares in a government corporation while serving in the Marcos Cabinet in 1977.

With her two lawyers Robert Sison and Benjamin Santos and journalists in tow, Mrs. Marcos went straight to a nearby Roman Catholic Church where she offered prayers, recited the rosary and kissed the icon of St. Peter.

The court said state prosecutors had failed to establish "the essential element of the offense charged" because the government corporation she was running was a non-stock and non-profit entity and would not constitute graft.

Under Philippine law, government officials must divest themselves of financial holdings in private and public businesses or face criminal prosecution.

Mrs. Marcos faces 10 more corruption cases and dozens of civil suits over billions of dollars in unexplained wealth amassed during her husband’s 20-year rule.

The 77-year-old widow of Ferdinand Marcos is also facing hundreds of cases accusing her of illegally transferring millions of dollars overseas.

Mrs. Marcos was found guilty of corruption in 1993 when she was sentenced to up to 24 years for her alleged role in anomalous deals involving the construction of a mass transit system in Manila but that decision was reversed by the Supreme Court in 1998.

In 1991, a New York court also found her innocent of racketeering charges.

"I survived 20 years of relentless political persecution," the former beauty queen told reporters.

Mrs. Marcos said her acquittal was based on the merits of her defense and not because of some favor from the administration.

"I believe in the courage and integrity of our courts," she told reporters.