Capitol laments ruling, says it may affect P37 M refund claim

The family of the late Engr. Luis Balili scored yet another legal victory over the Capitol.

In a May 2 order, copies of which were distributed only last Friday, Regional Trial Court Judge Ester Veloso of Branch 6 affirmed the release of P7.4 million to Luis’s four children as their share in the P98.9 million sale of the Balili family’s property to the province.

The property is the subject of an ongoing graft investigation by the Office of the Ombudsman-Visayas.

A pending motion for reconsideration was filed by the Capitol last Friday.

“The court believes its primary duty in the instant case is to settle the estate of the deceased. Since there are no more claims against it on record, it must do no less,” Judge Veloso said.

Provincial Attorney’s Marino Martinquilla and Rose Arnado said the release of the P7.4 million to Luis’ children would further risk the province’s efforts to reclaim the P37.8 million as refund for the portions of the Balili property that were found to be underwater.

About 9.4 hectares of the property were underwater in barangay Tinaan, Naga City.

A bigger area of 20.2 hectares is classified as timberland or public land not subject to sale based on a survey by Department of Environment and Natural Resources (DENR) survey.

Named respondents in the case are Cebu Gov, Gwendolyn Garcia,  over 20 Capitol officials, the widow Amparo and the estate executor Romeo Balili.

The provincial government requested the court to freeze the P37.8 million pending resolution of a civil case filed before RTC Judge Rafael Yrastorza of Branch 14.

Liquid assets

The Capitol asked the court to compel the Balili Estate to refund the amount paid for the portion of the property that is underwater.

A total of P44.48 million was withdrawn by Luis’s widow Amparo from the estate’s account in the F. Ramos branch of BDO last Dec. 7.

After the withdrawal, Balili estate executor Romeo Balil said there is only P24 million and P789,950.87 earnings left as “liquid assets” after the withdrawal or less than the P37.8 million sought by the province.

The court directed the executor to account for the funds of the estate. As of now, Romeo hasn’t complied with the court order.

Martinquilla said the release of the P7.4 million to Luis’ children is improper.

“Without the said proper accounting and return of the funds reserved for the claim of the province, the release of the checks/amount is not only improper but a great mockery of the administration of justice,” he said in a pleading submitted in court.

Judge Veloso, however, said the Capitol “has no legal standing to object to how the estate is partitioned.”

Veloso said while there was an agreement between the executor and the Capitol to set aside the P37.8 million for the provincial government, the province never filed a formal claim against the estate.

“This informal agreement between the executor and the counsel for the Province of Cebu cannot take precedence over the right of the heirs to receive their share of the estate of their father,” Judge Veloso said.

Long overdue

Luis’ daughters Louise Therese, Karla, Janette, and son Pocholo, who were born out of wedlock, earlier asked the court to allow the release of the P7.4 million out of the more than P24 million remaining in their deposited bank account.

In their petition, the children’s lawyer Dave Villarin said their share should not be denied amid an ongoing legal dispute over the amount to be returned by the  Balili estate to the Capitol.

“The share of the children as specified in the approved Declaration of Heirship and Revised Partial Partition has been long overdue,” Villarin said in his pleading.

Villarin said the P7.4 million which the children ought to receive is “separate” from the P37.8 million which the Capitol wished to recover.

“The children’s share should not be prejudiced,” he said.

Villarin said disputes on the computation of the withdrawals made by Amparo should be settled by the persons concerned.

The lawyer said the check should be released lest it become stale.

The executor and Amparo did not object to the children’s request to release the P7.4 million. The court “found merit” in the children’s motion.

About P44.48 million was withdrawn by Amparo from the estate’s account in the F. Ramos branch of BDO last Dec. 2010.

The withdrawal was made without the presence of the executor.

Three manager’s checks were issued by the bank. Two checks for P22.2 million and P14.8 million were claimed by Amparo as her court-declared share of her husand’s estate.

A third check for P7.4 million is intended for Luis’ children and is still with the court sheriff.

Based on the will, Amparo would received 2/3 of the estate or P14.8 million.

His daughters Louise Therease, Karla, Janette, and son  Pocholo  would share the remaining 1/3 or P7.4 million.