Sandigan orders Kokoy to account for P139-M funds from sequestered firm

The Sandiganbayan Fifth Division has ordered former Ambassador Benjamin “Kokoy” Romualdez to account for some P139 million belonging to one of his companies, which was sequestered by the government after it was alleged to be part of the ill-gotten wealth of the Marcoses.

The anti-graft court issued a similar order to the Presidential Commission on Good Government  (PCGG) for the accounting of millions of funds in their control and that of Romualdez, brother of former First Lady Imelda Marcos.

The Sandiganbayan likewise directed PCGG officials to submit a complete and detailed report on the status of the sequestered shares of Equitable PCI Bank (EPCIB) registered in the name of Trans-Middle East Equities Inc. (TMEE), one of Romualdez’s firms sequestered by the government.

The PCGG is also required to submit a full accounting of the P39.98 million paid to the shares from 1986 and 1990, which was handed to the commission, including the interests and profits accrued.

The Sandiganbayan had earlier rejected PCGG’s request to cite Romualdez and EPCIB officials for contempt of court, but it ordered TMEE to turn over the P139.63 million with corresponding interest to the Sandiganbayan Fifth Division’s executive clerk of court.

The PCGG said Romualdez was able to withdraw P139.63 million in cash dividends paid to EPCIB shares in October 2005.

The amount consisted of dividends paid on the TMEE-held bank shares from 1991 to 1995.

Romualdez allegedly used the position of his son, Martin Romualdez, who was then the bank’s chairman, to get the cash dividends, court records said. 

The PCGG said Romualdez was able to get the funds after presenting to the bank a copy of the Sandiganbayan resolution dated Jan. 2, 2003, which nullified a PCGG sequestration over the subject shares for having only one signature of a commissioner, in violation of the collegial nature of the agency.

Due to the request of government lawyers, the Sandiganbayan summoned EPCIB officials to explain why the withdrawal of the funds that were supposedly under court custody was allowed.

In a manifestation dated Dec. 6, 2006, TMEE admitted it withdrew the total amount of P139.63 million and asked the court to recall subpoenas issued to bank officers.

However, it strongly objected to put the funds and shares in escrow at the Land Bank of the Philippines due to the alleged illegal sequestration of the PCGG, which has deprived the firm the right to ownership for more than 20 years.

TMEE had assured the Sandiganbayan that the entire amount remains intact and would be turned over to the court when ordered to do so.

But the anti-graft court had dismissed TMEE’s objection and noted the lifting of the writs of sequestration does not automatically give the TMEE “unbridled or absolute power to dispose of the shares” which would be prejudicial to the interest of the party that will eventually win the ownership dispute.

It modified its previous order so that instead of placing the cash dividends in escrow, the same will be kept in a high-yield savings account at the Land Bank of the Philippines.