MANILA, Philippines—The Sandiganbayan has dismissed the government's complaint against sequestered companies owned by Benjamin "Kokoy" Romualdez, a younger brother of former First Lady Imelda Marcos, widow of the late dictator Ferdinand Marcos, after government lawyers failed to file supporting documents that would establish how they were used as conduits to amass the ill-gotten wealth of the Marcoses.
The anti-graft court's Fifth Division granted the January 16 motion to dismiss the complaint filed by Palm Avenue Realty & Development Corp. and Palm Avenue Holding, Inc., collectively referred to as the Palm Companies.
The Palm Companies were owned and controlled by Romualdez.
The court dismissed the case on the ground that the government lawyers failed to comply with its order to file a "bill of particulars", or the documents that would clarify issues such as the process how the Palm Companies were used by the Marcoses to accumulate their ill-gotten wealth.
The Office of the Solicitor General on Friday filed a motion for reconsideration of the court's decision, saying that the dismissal of the case was "inconsistent with the pronounced government policy for recovery of ill-gotten wealth."
The OSG also said that the basis of the court's dismissal was "not only contrary to law, jurisprusence, and the attendant facts of the case, but likewise stumps on this Honorable Court's own actual previous directive to implead the Palm Companies, which directive had been squarely affirmed by the Supreme Court."
The OSG contended that it had "actually attempted to comply with the Order of Bill of Particulars".
"The record of the case contains allegations that the Palm Companies have been used and perhaps even actively cooperated with the other defendants, as instruments or conduits for conversion of public funds or property or illicit or fraudulent acquisition of favored Government contracts, etc., slight reflection would nevertheless lead to the conclusion that the defect is not fatal, but one correctible under the applicable adjective rules," the OSG said.
The OSG reiterated that the anti-graft court itself found that Palm Companies were the registered owners of 16,237,339 shares in Benguet Corporation which the Presidential Commission on Good Government sequestered on April 5, 1986 "on the strength of the evidence in its possession that movant (Palm Companies) were owned and controlled" by Romualdez.
The government lawyers added that it was because of the sequestration of the Benguet Corporation shares that a graft case had been filed against Romualdez.
"To date, the rationale for the impleading of the Palm Companies is still present. Indeed, there is still no final determination by the courts as to the ill-gotten nature of Benjamin (Kokoy) Romualdez wealth, which includes, among others, the shares of stock in Benguet Corporation registered in the name of the Palm Companies.
"For the Palm Companies to continue to be bound by whatever judgment to be rendered by this Honorable Court against Benjamin (Kokoy) Romualdez, particularly concerning the shares of stock in Benguet Corporation, the Resolution granting the Motion to Dismiss (filed by the Palm Companies) should be reconsidered and reversed," the OSG said.
