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SC Affirms Dismissal of Plunder Case Against Estrada, Velarde, et al.

Date posted - 24/11/2009
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SC Affirms Dismissal of Plunder Case Against Estrada, Velarde, et al.

By Jay B. Rempillo

October 2009

Voting unanimously, the Supreme Court has affirmed the dismissal by the Office of the Ombudsman of the plunder case against former President Joseph Ejercito Estrada, El Shaddai founder and leader Mariano “Bro. Mike” Z. Velarde, et al. in connection with the Estrada administration’s PhP1.22 billion acquisition in 1999 of the nine parcels of land owned by Velarde’s AMVEL Land Corporation (AMVEL), which were affected by the construction of the Tollway Project C-5 Link Expressway.

In a 68-page resolution penned by Justice Teresita J. Leonardo-De Castro, the Court dismissed the petition of lawyer Ernesto Francisco, Jr. who was the complainant in the case for violation of RA 7080, the Anti-Plunder Law, filed against Estrada; private respondents Velarde and his son Franklin M. Velarde, AMVEL Chair and Executive Vice President, respectively; and several others before the Ombudsman.

“We find no cogent reason to weigh all over again the evidence in this case and to reverse the findings of the public respondent (Ombudsman),” held the Court. Citing Tirol v. COA, the Court stressed that it “ordinarily does not interfere with the discretion of the Ombudsman to determine whether there exists reasonable ground to believe that a crime has been committed and that the accused is probably guilty thereof…This rule is based not only upon respect for the investigatory and prosecutor powers granted by the Constitution to the Office of the Ombudsman but upon practicality as well. Otherwise the functions of the courts will be grievously hampered by immeasurable petitions assailing the dismissal of investigatory proceedings conducted by the Office of the Ombudsman…”

The Court did not give weight to Francisco’s contention that the Office of the Ombudsman gravely abused its discretion in issuing its assailed November 16, 2001 resolution, which dismissed for lack of evidence Francisco’s complaint, and its June 24, 2002 order, which denied for lack of merit Francisco’s ensuing Motion for Reconsideration.

In his complaint, Francisco alleged that the subject AMVEL properties were outrageously overpriced by PhP828.6 million to the disadvantage of the government. He argued that the purchase price for the right-of-way acquisition “should be equivalent of the zonal value plus 10 percent thereof” based on Administrative Order No. 50, which Estrada himself had issued on February 17, 1999 or PhP394.2 million for the nine parcels of land.

Then Ombudsman Aniano A. Desierto, however, held that the uncontroverted facts clearly show that governing law in the case at bar was EO 132, issued on December 27, 1937, and not AO No. 50. Among others, EO 132 provides that: “The Director of the Bureau of Public Works, City or District Engineer or other officials concerned shall make the necessary negotiations with owner of the property needed for public use with a view to having it donated, or sold to the government at not to exceed the assessed valuation prior of the investigation and survey of the project.” In this case, the government, through the Toll Regulatory Board (TRB), has negotiated with AMVEL.

The Ombudsman concluded that “A perusal of the guidelines as well as the documentary evidence on the transaction reveals that respondents complied with the prescribed procedure in determining a fair and reasonable valuation of the properties in question….There is no evidence that public respondents benefited/profited or had taken shares with private respondents in the transaction…Considering that the crimes imputed against the respondents were not shown to exist, conspiracy could not likewise be appreciated. It is a well settled rule that conspiracy must be proven as clearly as the commission of the offense itself.” (GR No. 154117, Francisco, Jr. v. Desierto, October 2, 2009)

 

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