Appeals court junks press club’s appeal to regain Intramuros lot

MANILA, Philippines—The Court of Appeals has denied the appeal filed by the National Press Club to reverse the findings of the Office of the Ombudsman that dismissed the criminal complaint against officials of the Government Service Insurance System (GSIS) including its former head Winston Garcia.

NPC filed a case for nonfeasance and grave misconduct against Garcia and 13 others for their “stubborn” refusal to enforce a 30-year-old law that requires the state agency to return to the NPC a piece of property in Intramuros, Manila,  where the NPC building stands.

Nonfeasance is a criminal offense arising from the failure or refusal of a public official to perform a duty mandated by law. Republic Act 6770 empowers the Ombudsman to suspend and dismiss public officials found guilty of nonfeasance and grave misconduct.

However, the Ombudsman, in 2007, dismissed it, saying the complaint filed by the NPC through lawyer Berteni Causing was a “mere afterthought and a leverage for the cases filed against NPC by GSIS.”

GSIS then filed a case against NPC to vacate its building. It also filed a complaint for theft against NPC officials for selling a Vicente Manansala mural that used to adorn the building.

GSIS wants NPC to vacate the 4,288-square meter lot in Intramuros  after NPC failed to pay its loan from 1975 as well as its real property tax. The lot was sold at a public auction in Manila and GSIS won the bid.

Former President Ferdinand Marcos issued  Letter of Instruction (LOI) No. 500 ordering GSIS to donate the lot to the NPC,  saying such a donation “will not impair or prejudice the total financial exposure of the GSIS.”

But GSIS proceeded to transfer the certificate of title to the agency’s name. It also issued a demand letter to NPC asking it to vacate the building. GSIS also filed a case of unlawful detainer before a Manila court and a complaint for theft.

NPC then filed a case for nonfeasance with the Ombudsman.  This was dismissed by the Ombudsman in 2007, thus prompting the NPC to appeal the case before the Court of Appeals.

In its decision, the appeals court’s 14th division through Associate Justice Elihu Ybanez explained that the Letter of Instruction issued by Marcos was a mere administrative issuance. It said as such, it cannot be considered part of a law unless it was issued in response to a grave emergency or threat.

It also agreed with the arguments raised by GSIS that their acts are confined to their official duty of protecting the contributions of their members, thus, they cannot give away “more than P130 million worth of real property to a delinquent borrower and taxpayer.”

The appeals court added that the NPC itself was not able to comply with the condition set by Marcos before the property can be donated to them which is conveying to GSIS its rights and privileges under its lease contract with Philippine Long Distance Telephone Company. PLDT is leasing a portion of the NPC building.

“Since the NPC failed to perform its concomitant obligation, NPC cannot blame GSIS for the non-implementation of the LOI,” the appeals court said.

It further added that NPC is barred from taking any action against GSIS since it waited 30 years after the issuance of the LOI before taking action against GSIS.

For failure to exercise due diligence, the appeals court said petitioner’s claim has turned into a “stale demand.”

The decision was concurred in by Associate Justices Japar Dimaampao and Victoria Isabel Paredes.