SC stops CA ruling lifting Delfin Lee’s arrest

MANILA, Philippines - Globe Asiatique president Delfin Lee will have to remain in jail while standing trial for syndicated estafa for the alleged anomalous housing projects in Pampanga worth P6.6 billion.

The Supreme Court (SC) issued yesterday a temporary restraining order (TRO) stopping the enforcement of a Court of Appeals (CA) ruling last year that lifted the arrest warrant against Lee and quashed the charges against him before the San Fernando, Pampanga regional trial court (RTC).

In a resolution, the third division of the high court granted the immediate relief sought by the Department of Justice (DOJ) and Home Development Mutual Fund (HDMF), formerly Pag-IBIG Fund, in separate petitions questioning the decision of the special 15th division of the CA last November favoring Lee.

The TRO issued by the SC division chaired by Associate Justice Presbitero Velasco Jr. is effective immediately and continuing until further orders.

It effectively settles the issue on whether or not the arrest warrant against Lee still stands.

Lee was arrested last March 6 by elements of the Philippine National Police (PNP) Task Force Tugis at the lobby of the Hyatt Hotel in Manila by virtue of a warrant of arrest issued by the Pampanga RTC Branch 42 in connection with the Pag-IBIG housing loan scam where Lee allegedly used “ghost borrowers” for Globe Asiatique’s housing projects.

Lee had been a fugitive since the RTC ordered his arrest in 2011.

More charges

The National Bureau of Investigation (NBI) is set to file more than 50 syndicated estafa charges against Lee.

The NBI source said the complainants for the new batch include those who bought houses in different subdivisions allegedly linked to Lee, including Xevera in Pampanga and GA towers condominium in Mandaluyong.

The NBI has yet to set a specific date on when to file case before the Department of Justice, a source said.

But should the filing push through, this would be the fifth time that Lee would be slapped with syndicated estafa charges.

Pag-IBIG Fund was the complainant in the first batch of charges. The preliminary investigation for the second to fourth batches, meanwhile, in the DOJ has yet to be concluded.

The camp of Lee used the assailed CA ruling in filing petition for writ of habeas corpus also before the appellate court earlier this week, arguing that his arrest last week was illegal since the CA already “quashed, recalled and lifted” the arrest warrant.

But the DOJ and Pag-IBIG rebutted the claim and stressed that the CA ruling was not final and executory and therefore could not be enforced.

By invoking Rule 45 of the Rules of Court, they questioned the ruling before the high court and argued that a TRO is not necessary to stay the implementation of the assailed CA ruling.

“There is no need to secure the TRO because we invoked Rule 45 and the effect of the appeal is to stay the implementation of the judgment,” Justice Secretary Leila de Lima explained.

The businessman, in hiding for two years, was presented before the CA yesterday morning in a hearing where his lawyers pleaded for his immediate release from detention at the Pampanga provincial jail.

The CA special first division issued a writ of habeas corpus last Tuesday ordering authorities to explain the arrest and detention of Lee.

After just two hours of hearing, the appellate court submitted the case for resolution.

But before the CA could rule on Lee’s bid to be released from detention, the SC issued the TRO, which, according to Assistant Solicitor General Hermes Ocampo – who represented the DOJ in the habeas corpus case – effectively suspends the case before the CA.

A member of the high court agreed to this argument, explaining that Lee cannot avail of the habeas corpus privilege because of the outstanding warrant of arrest against him.

“The writ of habeas corpus is not available to those who have existing warrant of arrest,” explained the insider who refused to be named pending resolution of the case in the SC.

Lee’s lawyer Willy Rivera, on the other hand, disagreed.

He told reporters after the hearing that it was “erroneous” to say that the CA proceedings would become moot due to the SC TRO.

Rivera claimed that the SC and CA have concurrent jurisdiction on habeas corpus cases.

In August 2011, the DOJ indicted Lee, his son Dexter Lee, GA officers Christina Sagun and Cristina Salagan, and Pag-IBIG Fund legal department employee Alex Alvarez for syndicated estafa for the allegedly anomalous housing projects in Pampanga.

The accused were charged for allegedly defrauding members of Pag-IBIG of some P6.6 billion in housing loans used in projects of Globe Asiatique in Bacolor and Mabalacat towns in Pampanga from 2008 to 2011.

Sagun was earlier cleared by the 10th division of CA, effectively downgrading the case to plain estafa since syndicated estafa requires involvement of at least five persons.

But the SC issued a TRO in April last year enjoining the enforcement of the Oct. 5, 2012 and Feb. 11, 2013 rulings of CA.

This means the case of syndicated estafa against Lee has remained.

Warning

Malacañang warned yesterday those coddling or protecting Lee could be charged but challenged those making accusations to name names and come up with evidence.

In a press briefing at the Palace, presidential spokesman Edwin Lacierda also said Congress was free to investigate the housing scam in aid of legislation.

He assured the people that the Aquino administration is committed to prosecuting those involved in the multibillion-peso housing scam allegedly perpetrated by detained developer Lee.

“I certainly know that this government is committed to prosecuting those involved in the housing scam,” Lacierda said.

With regard to the planned inquiry of the House of Representatives on the housing scam and the possible participation of some officials from the previous administration, Lacierda said it’s up to the House leadership to conduct the investigation.

“It’s within their jurisdiction to choose, if they choose to do so. I remember there was already a Senate investigation on the housing issue. If the House would prefer to also conduct their own investigation, of course, it is their prerogative to do so,” he said.

The House’s majority bloc received an authority to conduct a probe on the multibillion-peso housing scam.

Vice President Jejomar Binay said that Lee should only blame himself for creating his own bad image.

Binay said Lee should face the consequence of his own action.

Binay, chairman of the Pag-IBIG Fund and the Housing and Urban Development Coordinating Council (HUDCC), said Lee committed injustice to the Filipino people who used hard-earned money for the purchase of their dream house.

“It is very clear that there is an injustice committed to them as buyers – double sale, falsification of documents, these are all evidence,” Binay said.

“We have sufficient evidence to support our case. I do not know the legal basis for the court to issue a writ of habeas corpus. I would just like to reiterate that the decision of the Court of Appeals is not final and executory,” Binay added.

Meanwhile, Interior and Local Government Secretary Manuel Roxas II yesterday dared Binay to be responsible and divulge the identity of the politicians who tried to prevent the arrest of Lee.

Binay, in an earlier statement, said there was a politician who tried to prevent the arrest of Lee.

“I think that the most responsible thing for the VP to say is to actually reveal who is trying to prevent the arrest. Who? Other than just simply giving general, nameless, baseless, attributable-less information which just sow intrigue and innuendo,” Roxas added.

“So who exactly is trying to prevent the arrest?” asked the DILG chief, who denied being the one that tried to prevent the arrest. “Because certainly, I did not. I have zero conversation with the PNP chief Director General Alan Purisima until Wednesday morning about this matter.”

Earlier, Roxas ordered an investigation on the reports that police officials worked for the removal of Lee from the list of most wanted persons.

Roxas maintained that warrant of arrest against Lee has not been revoked.

“Lee was included in the list of five individuals wanted by the law, who each carried a monetary reward of P2 million for information leading to their arrest,” said Roxas.

Aside from Lee, the four other high profile fugitives are former Army Gen. Jovito Palparan, former Palawan Gov. Joel Reyes and his brother, former Coron mayor Mario Reyes, and Dinagat Island ex-congressman Ruben Ecleo Jr., leader of Philippine Benevolent Missionaries Association (PBMA).

Roxas noted that the court has jurisdiction of Lee’s case and the DILG will abide by the court order. – With Delon Porcalla, Aurea Calica, Jose Rodel Clapano, Cecille Suerte Felipe