Sandigan to PTIC: Remit P5 B

The Sandiganbayan has ordered the Philippine Telecommunications Investment Corp. (PTIC) to turn over to the government a total of P5 billion representing dividends and stock earnings paid by the Philippine Long Distance Telephone Co. (PLDT) but which were forfeited after they were declared part of the Marcos ill-gotten wealth.

The order by the anti-graft court’s fourth division, issued on Nov. 7, was contained in an eight-page resolution penned by Associate Justice Jose Her-nandez, and concurred in by Associate Justices Gregory Ong and Rodolfo Ponferrada.

With its decision, the Sandiganbayan junked objections raised by Prime Holdings Inc. (PHI), the estate of Ramon and Imelda Cojuangco, and other PTIC claimants.

“Let a writ of execution be immediately issued ordering Philippine Telecommunications Investment Corp. (PTIC) to account, deliver, and remit to the Republic of the Philippines, through the PCGG, all cash and property dividends and all stock dividends pertaining to the 111,415 shares, from 1986 to the present, including compounded interests appurtenant to these shares, and their authentic documentations as well within 30 days from service of the writ,” the Sandiganbayan order stated.

“The judgment is very clear. (The late President Ferdinand) Marcos was the owner of PHI and the PTIC shares registered under PHI form part of the ill-gotten wealth that belong and must be recovered by the Republic,” it added.

On Jan. 20, 2006, the Supreme Court ruled that 111,415 PTIC shares registered under PHI were part of the Marcos ill-gotten wealth. The SC order became final and executory in October of the same year.

PHI and the Cojuangcos said the SC ruling does not cover the dividends being claimed by the government.

But the Sandiganbayan said the government has a rightful claim over the dividends after the SC upheld its ownership of the disputed PTIC shares.

“Dividends do not exist except to accrue to the shareholdings. If the 111,415 shares belong to the Plaintiff (Republic of the Philippines) from 1986, who then other than the Plaintiff is entitled to the dividends that accrued to these same shares? We hold that it should be no other than the Plaintiff,” the court added.

“The contentions of the Plaintiff in this Motion are not mere reiterations of the arguments previously raised, as this is the first opportunity of Plaintiff to substantiate its claim for accounting and delivery of dividends pertaining to the PTIC shares,” the Sandiganbayan stated. “Its arguments are, in fact, novel arguments worthy of this Court’s consideration,” the graft court said of the government’s position.

The PCGG sold the PTIC shares to First Pacific Co. Ltd. of Hong Kong for P25.2 billion last Feb. 28.

PCGG said the dividends and stock earnings reached P5 billion because they date back to 1986.