Supreme Court clears way for prosecution of GenBank sale for only P500,000

Manila Bulletin

Supreme Court clears way for prosecution of GenBank sale for only P500,000
By REY G. PANALIGAN

The Supreme Court yesterday paved the way for the criminal prosecution of the heirs of the late Central Bank (CB) Governor Gregorio Licaros who allegedly conspired with the late former President Ferdinand Marcos in the purchase by businessman Lucio C. Tan of the more than P688 million assets of the then-General Bank and Trust Company (GenBank) now Allied Banking Corporation, for only P500,000 in 1977.

In a decision written by Justice Artemio V. Panganiban, the High Court dismissed the petition filed by the Licaros heirs challenging the August 13, 2002 resolution of the Sandiganbayan ordering their prosecution for ill- gotten wealth based on a complaint lodged by the Presidential Commission on Good Government (PCGG).The Licaros heirs also challenged the Feb. 6, 2003 resolution of the Sandiganbayan that dismissed the motion for reconsideration.

In a 22-page decision, the High Court ruled: “Wherefore, the petition is hereby dismissed and the assailed resolutions affirmed.”

The decision issued by the High Court�s third division, chaired by Panganiban, was concurred in by Justices Angelina Sandoval Gutierrez, Renato Corona, and Cancio Garcia. Justice Conchita Carpio-Morales was on official leave of absence.

On July 17, 1987, the PCGG filed with the Sandiganbayan a complaint for reversion, reconveyance, restitution, accounting, and damages (ill-gotten wealth) against the Marcoses and Tan in connection with the 1977 acquisition of GenBank.

The criminal complaint alleged that Tan, in connivance with government officials in 1977 � notably the late former President Marcos and the late CB Governor Licaros � took over GenBank with assets of more than P688 million for only P500,000.

Four years later, the complaint was amended by the PCGG which detailed the alleged participation of Licaros in the reported fraudulent transaction.

The amended complaint stated that Tan, besides using his influence with Marcos, also capitalized on the manipulation made by Licaros and former Philippine National Bank (PNB) president Panfilo Domingo in the purchase of the financially-distressed GenBank.

Ruling in favor of the PCGG, the Sandiganbayan accepted the amended complaint and impleaded Licaros in the charges.

When the Licaros heirs� motion to dismiss and the subsequent motion for reconsideration of the dismissal were denied, they elevated the case to the Supreme Court.

Ruling on the issue, the High Court said the allegations in the amended complaint “clearly and unequivocably outlined the cause of action against defendant Licaros. The alleged conspiracy to defraud the Republic put the case against the estate or heirs of Licaros squarely under the exclusive jurisdiction of the Sandiganbayan,” the High Court said.

At the same time, the High Court noted that the contention of the heirs that the actions imputed against Licaros were official acts of the members of the Monetary Board in 1977 and that the acquisition of GenBank was done through public bidding and in good faith “were evidently matters of defense, the veracity of which must be determined in a full blown trial and not in a mere motion to dismiss.”

The High Court paid tribute to the PCGG and the Office of Solicitor General “for their demonstrated zeal in prosecuting this case.”

This court is as interested as the government in recovering ill-gotten wealth, it pointed out.

This ingrate Intsik thinks he can cheat the high IQ Ferdinand? He is lucky that Bongbong and family don’t still think of stopping him breathing.