The Supreme Court has cleared 10 members of the 1968 Board of Directors of the Philippine National Bank, one of them former Sen. Juan Ponce Enrile, of graft charges that arose from the P108 million in alleged behest loan granted to a sugar milling company.
In a decision written by Associate Justice Jose C. Reyes Jr., the SC ruled that the Ombudsman did not abuse its discretion in dismissing the criminal complaint filed against Enrile and his group.
With the ruling, the SC dismissed the petition filed by the Presidential Commission on Good Government that challenged the Ombudsman’s order.
Aside from Enrile, also cleared of graft charges were 1968 PNB Directors Roberto Benedicto, Antonio Diaz, Ismael Reinoso, Simeon Miranda, Renato Tayag, Juan Trivinio, Cesar Virata, Jose Macario Laurel IV, and Jose Leido.
Also cleared were Rafael Perez and Felicisimo Gonzalo, both former PNB-Dumaguete branch managers, and the officials of the Tolong Sugar Milling Co. Inc. Ramon Escafio, Herminio Teves, Evelina Teves, Lorenzo Teves, Catalino Noel, and Lamberto Macias.
In 1968, PNB granted TSMCI a stand-by irrevocable letter of credit in the amount of P108.91 million to cover importation of sugar machinery and equipment for the sugar firm’s proposed sugar central in Sta. Catalina and Bayawan, Negros Oriental.
The loan was granted through PNB’s board resolution and was secured, among other collaterals, by 51.2 hectares of agricultural land, machinery and equipment, building and other improvements to be erected and or installed in the company’s milling site, and a joint and solidary surety executed by TSMCI’s officials.
In its complaint, the PCGG said that TSMCI was one of the companies investigated by the Presidential Ad Hoc Fact-Finding Committee’s Technical Working Group for possible prosecution arising from behest loans.
It said that, among other things, the TWG found that at the time of TSMCI’s incorporation in 1967, the firm only had subscribed capital stock of P2 million of which only P500,000 was paid-up; it only had capitalization of P10 million; and that the two parcels of land were not titled or registered in the name of TSMCI.
Thus, the PCGG said the TWG concluded that the loan granted to TSMCI was a behest loan. (Rey Panaligan)