Sandigan clears ex-Tidcorp execs, 5 others of corruption

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MANILA, Philippines — The Sandiganbayan on Tuesday acquitted two former officials of a government export guarantee corporation and five directors of one of its client companies over a P1.8-billion loan guarantee in 2003.

The antigraft court’s Sixth Division cleared former executive vice president Rolando Alonzo and former account officer Teresita Cometa, both of the state-owned Trade and Investment Development Corp. (Tidcorp), now known as Philippine Guarantee Corp. It is mandated to provide credit guarantees to support trade, investment and exports, among others.

Also acquitted were private individuals Alison Sy (president), Guillermo Sy (shareholder), Derrick Sy (board member), Renato Ang (board member), and Nena Ang (board member), all officers of World Granary Inc. (WGI).

In particular, the respondents were accused of “syndicated corruption” and conspiring to violate Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, because the two Tidcorp officials approved a guarantee facility to WGI, allowing it to secure a bank loan, despite it supposedly being an “unqualified borrower.”

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Not convinced

In its decision, however, the Sandiganbayan said it was “not persuaded” by the prosecution’s arguments and the evidence presented “fail[ed] to measure up to the requirement of guilt beyond reasonable doubt.”

“It would appear that WGI’s application went through an honest-to-goodness process. Accused Alonzo and Cometa had no carte blanche to unduly influence the [credit committee], legal department and board of directors to blindly approve [the] application,” the court said.

While the Sandiganbayan noted that there were “shortcomings here and there” in the transaction between Tidcorp and WGI, the court said the deal was “aboveboard.”

“If WGI was, in the first place, ineligible for the priority sector guarantee program … neither a bridge facility nor additional guarantee, which required separate approval, would have been extended,” it said, adding that Alonzo already had no hand in the subsequent contracts.

The court agreed with Alonzo in his defense that the “evaluation of the account passed through three presidents of Tidcorp, all of whom did not make adverse comments or findings.”

The decision was penned by Associate Justice Kevin Vivero, and concurred in by Associate Justices Karl Miranda and Sarah Jane Fernandez, who wrote a separate concurring opinion.

While Fernandez said she shared the same stance in Vivero’s ponencia, she “respectfully disagreed” with the view that the full and final settlement of WGI in the amount of P966.04 million “negates any undue injury suffered by Tidcorp.”

Fernandez also pointed out that had the prosecution been able to substantiate its allegations, recovery of the remaining amount would only reduce or wipe out the accused’s civil liability, “but will not affect [their] criminal liability.”

The cases were based on a complaint filed by then Tidcorp president and chief executive officer Francisco Magsajo Jr. The Ombudsman later filed a criminal complaint against the seven accused in April 2013.