Court of Appeals extends freeze order on Legacy accounts

MANILA, Philippines -  The Court of Appeals has extended a freeze order on more than 1,000 bank accounts identified with the Legacy Group for 75 more days to give the Anti-Money Laundering Council more time to examine them.

In a five-page resolution issued on Monday, the former special third division of the appellate court granted the petition of the Office of the Solicitor General (OSG) for an extension of the 20-day freeze order, which is supposed to expire tomorrow. The 75-day extension begins on Friday.

The CA said there is a need to extend the freeze order, citing “strong public interest involved in the case.”

Associate Justice Rosalinda Asuncion penned the decision.

The CA division has also set a hearing on April 27 to determine if there would be a need for another extension.

Earlier, State Solicitor Hermenegildo Dumlao II said they wanted more time to determine whether the bank accounts “originated from unlawful or illegal activities” of Legacy officials led by Sto. Domingo, Albay Mayor Celso de los Angeles.

At yesterday’s hearing, lawyers of the respondents questioned why they were not given copies of the OSG’s petition for a freeze order.

Gregorio Batiller, lawyer for Victorino de los Angeles – Celso’s brother – said knowledge of the details of the petition would have helped him defend his client more effectively.

But Dumlao argued that letting the respondents know of the petition would have prompted them to withdraw the questioned bank accounts.

“They (respondents) have a mistaken belief that they are entitled to a copy of a petition for the issuance of the 20 day freeze order. The whole point of the ex parte petition is to prevent the accounts from being withdrawn,” Dumlao explained.

The CA ruling, however, compels the OSG to provide copies of the petition to the respondents later.

The Justice Department is investigating the numerous complaints against Legacy and its officials led by De los Angeles and his relatives.

Legacy Group allegedly siphoned off millions of pesos from plan holders and depositors of its rural banks.

Syndicated estafa charges have been filed against the Legacy officials by the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, the Philippine Deposit Insurance Corp., as well as by private investors and individuals.