Judge Silvino Pampilo Jr., of Branch 26 of the Manila City Regional Trial Court, also ordered the arrest of Leo Villan, president and chairman of the board of trustees of People’s Brigada, because his bail bond expired two months ago.
Pampilo said that while there had been other libel cases resolved in the past, "this is a landmark case because this is the first time a media man was convicted of libel wherein there is malice because he extorted money worth P2 million. So far in Philippine history, no one has been convicted of libel for extortion. His intention was to extort money."
A separate extortion case against Villan is still pending before another Manila court for the same incident.
Pampilo also issued a commitment order transferring Villan to the Manila City Jail (MCJ). The court sheriff handcuffed Villan and brought him to the fifth floor of the Manila City Hall, where the holding area for MCJ prisoners is located.
The court found Villan guilty of libel and is sentenced to suffer imprisonment from six months to two years and 11 months and 10 days as maximum penalty. He should also pay P5 million in moral damages, another P5 million in exemplary damages and P20,000 to cover legal fees.
Apart from Villan, the court also found People’s Brigada managing editor Nestorio Ibanez and editor-in-chief Zandro Peralta guilty of the offense. The two remain at large and Pampilo has ordered their arrest.
On Sept. 12, 2002, People’s Brigada published an article – headlined "Pagcor Chairman and CEO Efraim Genuino, Resign Now!" – which was allegedly based on an open letter sent by a certain Randolph Subiri, assigned at Casino Filipino at Holiday Inn in Manila, and from officers and rank-and-file old-timers and employees of the gaming office.
The group reportedly accused Genuino of incompetence and ignorant of casino operations. He secured the position because he was a close friend of First Gentleman Jose Miguel Arroyo, the letter claimed.
The letter also charged Genuino with nepotism and graft, accusing him taking a 10-percent cut in exchange for approving licenses for slot machine arcades.
Prosecutors told the court that Villan had demanded P2 million and handed Mabuhay Rosero, managing head of Pagcor’s surveillance department, and a piece of paper with his name, bank account number and instructions to deposit the money in a meeting at Hyatt Hotel in Pasay City on Sept. 11, 2002.
Villan denied the allegations. "This is part of our work as journalists. If we are victims to these kinds of accusations it is because it is part of our work," he told the court, claiming that he was being framed.
Genuino’s lawyer Jojo Allado said they could not have known about the bank account if Villan did not provide the information. "He wrote on a yellow pad his bank account number. We did not throw the piece of paper. We kept it and used it as evidence. The accused even admitted in court that it was in his penmanship."
Allado added that since the bank secrecy law prevented Genuino from asking the bank about the account’s details, Pagcor deposited P500 in the account on Dec. 9, 2002 to verify its existence.