Surrendered company Independent Realty Corporation (IRC Group) today reported a 52.6% increase in net income of P47.6 million as compared to P31.19 million in 2010 income. Gross revenues increased as well from P71.84 million in 2010 to 79.4 million in 2011.

In its 2011 accomplishment report, General Manager Luis Quiogue said the positive results of operations of the corporation are products of administrative reform measures introduced by the new set of directors and officers of the IRC Group. The latter was able to cut administrative expenses by 40% from P19.65 million down to P11.97 million resulting in savings of over P7million from the previous year. He emphasized that notwithstanding the continuing challenge posed by non-paying tenants in the 18.5 hectare “Payanig sa Pasig” property, IRC group’s revenues grew by 10.5% from its 2010 operations.

For 2012, the IRC Group’s new management team will continue in its drive to sustain the growth trends in its current businesses and develop new income streams, thus ensuring its value is enhanced in preparation for its eventual privatization, the accomplishment cited.

The IRC Group was surrendered to the Philippine Government through the Presidential Commission on Good Government (PCGG) by Marcos business associate Mr. Jose Yao Campos on March 21, 1986.

The IRC Group has so far remitted to the PCGG a total amount of P531 million, the amount of which has been turn over by the Commission to the Bureau of Treasury.

The Presidential Commission on Good Government (PCGG) announced today that it has turned over to the Bureau of the Treasury the amount of PhP268.481 Million as part of recovered funds, surpassing the performance target set for the year 2011.

This performance was achieved notwithstanding the Commission’s relatively small 2011 budget of PhP93 Million.

As mandated by law, all funds recovered by the Commission shall be remitted to the Bureau of the Treasury to serve as additional funding for the implementation of the Comprehensive Agrarian Reform Program (CARP).

“The past year, our efforts were focused on trying to stem the tides of corruption, trim out the excesses, and revitalize the corporations under our Commission’s purview, so as to preserve and secure their long-term financial viability,” PCGG Chairman Andy Bautista said. “Our limited resources notwithstanding, the Commission has remained firmly in the black, with a cost to recovery ratio of nearly 1 is to 3, that is, for every peso we spend on our ill-gotten wealth recovery efforts, the approximate return to the National Treasury is three pesos.”

Chairman Bautista, likewise, bared the Commission’s 2012 target to generate PhP405.723 Million for turnover to the National Treasury, on a budget of PhP96 Million.

PRESS RELEASE; re: “PNB LITIGATION FUND” (5 December 2011)

Recent news reports have resurfaced regarding the US$40 Million fund that was set aside during the time of the late Chairperson Haydee Yorac in 2004, to cover and answer for legal fees and expenses relating to the ongoing litigation in New York and Singapore.

A close reading of these recent news reports would show that the “abuses” refer to the periods covered after the Yorac Commission and before this present PCGG came into being in October 2010. In fact, it is the new PCGG that first reported and made public (in its “100 Day Report and Plan of Action” ) the “abuses” relating to these funds. In addition, as these news reports indicate, it was the new PCGG’s “100 Day Report” that became the basis of the Commission on Audit’s observations with respect to these funds.

Time and again, the new PCGG has sought to clarify this matter in its prior statements, every single time this issue has resurfaced and been recycled and rehashed. These periodic clarifications were made, notwithstanding the fact that there have been no attempts to seek the PCGG’s comments on these matters, in the interest of fair reporting.

Contrary to previous reports, the new PCGG has always maintained open communication lines with the COA concerning these funds. In fact, in coordination with the COA, the PCGG has transmitted letters to the concerned public officials and persons who have undertaken travels or received disbursements from this fund, requesting them further to liquidate and/or explain the relevant circumstances relating to such disbursements. In addition, upon the prodding of the new PCGG, the COA has written the Philippine National Bank to obtain a complete list of transactions and disbursements made on this fund.   This is the most comprehensive effort to completely document all expenses relating to this fund.

The result of this ongoing effort will be endorsed to the Commission on Audit and the Office of the Ombudsman, for its appropriate action.

The Presidential Commission on Good Government (PCGG) welcomes the President’s announcement–in his second State of the Nation Address–of the administration’s “aim to give due compensation to the victims of Martial Law.”

“The inclusion of this important matter in the President’s legislative portfolio, hopefully, will go a long way in furthering our government’s human rights agenda,” said PCGG Commissioner Maita Chan-Gonzaga. “We trust that our lawmakers will take their cue from the President. This is a matter that transcends party lines. It’s simply about doing what’s right, because it’s about time.”

“From day one, this Commission has been clear in its support for the efforts to fully compensate the Martial Law victims—that is, through an act passed and approved by Congress,” she added.

Commissioner Gonzaga further indicated that the PCGG is looking to promote the full and adequate compensation of the Martial Law victims through a campaign targeted, primarily, at the youth “to encourage them to get informed and get involved” and to communicate to the public “the necessity of passing a law for this very urgent matter.”

“There’s no arguing that we need to do right by our people. We need to help ease the burden of those who suffered under the dictatorial regime,” said PCGG Chairman Andy Bautista. “It’s safe to say that we are all on that same page. Now, we just need to get behind our lawmakers and our President to assure them and let them hear that this, too, is what we—the Filipino people—want.”

The new Presidential Commission on Good Government (PCGG) through the Office of the Solicitor General (OSG) filed a motion with the Supreme Court on June 27, 2011, seeking to compel San Miguel Corporation (SMC) to deliver to the government PhP17.65 Billion worth of SMC shares pursuant to a final and executory Supreme Court Resolution.

PCGG contends in its motion that these sequestered shares, estimated to represent 4% of the outstanding capital stock of SMC, were unlawfully converted from common shares to treasury shares pursuant to an aborted sale in 1986.

These shares are separate and distinct from the 20% holdings being contested by the Republic and Ambassador Eduardo Cojuangco.

History

On March 26, 1986, one month after the EDSA People Power Revolution, the Coconut Industry Fund Holding Companies through the United Coconut Planters Bank (the “UCPB Group”) which owned 31% of the total stock of SMC, sought to sell 33,133,266 SMC shares to Andres Soriano III, Neptunia Corporation Limited, and Anscor-Hagedorn Securities, Inc. (the “SMC Group”) for a total purchase price of PhP3,313,326,600.00 (at PhP100 per share) payable in 4 installments.  These shares are generally referred to as the “CIIF Block.” (These shares, by 1989, had increased from 33,133,266 shares to 175, 274,960 shares owing to the declaration and issuance of stock dividends.)

Shortly after the first installment of PhP500 Million was paid by the SMC Group, the PCGG sequestered the CIIF Block of shares. As a consequence of the sequestration, the SMC Group withheld further payments and the shares went into litigation.

In 1990, the SMC and UCPB Groups entered into a compromise agreement where they agreed to treat the initial downpayment of PhP500 Million as full payment for a block of 5 million shares. The 5 million shares had, by then, increased to 26,450,000 shares as a result of the issuance of stock dividends.

The SMC and UCPB Groups filed a petition with the Sandiganbayan for the approval of their compromise agreement. The OSG opposed the compromise agreement on the ground that the compromise involved coconut levy funds—which are prima facie public funds in character, and therefore, beyond the disposition of private individuals. The Sandiganbayan did not approve the compromise agreement.

In a series of Resolutions dated July 23, 1991, October 25, 1991 and March 18, 1992, the Sandiganbayan ordered SMC to deliver to PCGG the 26,450,000 shares, including all cash and stock dividends which had accrued to said shares. These Sandiganbayan resolutions became final and executory after the Supreme Court dismissed the petition of SMC on September 14, 2000 and affirmed the said rulings.

In September 2003, the PCCG, through then Chairperson Haydee Yorac, sent a letter to SMC demanding compliance with the Supreme Court and Sandiganbayan resolutions directing the delivery of the shares to PCGG, as well as the cash and stock dividends that would have accrued had the shares not been converted to treasury shares. SMC refused to comply with the Yorac demand.

On the basis of SMC’s refusal to comply with a lawful, final and executory ruling of the court, the PCGG and OSG filed a motion with the Supreme Court to compel delivery of said shares to the government.

Taking into consideration stock and cash dividends issued on other shares, and at the present publicly traded rate of Php120 per share, the subject SMC shares is estimated to be worth PhP17.65 Billion. (This estimate does not factor in the cash dividends that would have been owing to the Republic, if the shares were not converted into treasury shares.)

“We are merely seeking to implement a final and executory Decision of the Supreme Court and the Sandiganbayan, thus we are confident of obtaining affirmative relief,” PCGG Chairman Andres Bautista said. “In doing so, we are upholding the rule of law and protecting the integrity of our court processes. The Court decided this matter a long time ago. It’s about time that the Republic gets back what rightfully belongs to it—in trust for the Filipino coconut farmer.”

[The following official statement is being issued, despite the non-receipt of the Supreme Court’s resolution dismissing the Presidential Commission on Good Government’s Motion for Reconsideration in the case of Republic of the Philippines v. Sandiganbayan, Eduardo M. Cojuangco, et al.]

The new PCGG learned from media reports that the Supreme Court has denied the motion for reconsideration filed by the Office of the Solicitor General. This is another setback for the Republic’s efforts to recover the coco levy funds and to restore them to the hands of the Filipino coconut farmers, from whose labors and toils these funds were taken.

As the Commission awaits the receipt of the official copy of the Supreme Court’s resolution, it will study the best possible course of action in order to secure for our coconut farmers the justice that they truly deserve.

[PCGG] 21 june 2011- Press Release – PCGG seeks recovery of PhP4.2B property, files adverse claim

The new Presidential Commission on Good Government (PCGG) took the crucial first step in contesting a grossly disadvantageous sale entered into by the previous Commission under the Arroyo Administration.

The new PCGG today filed an affidavit of adverse claim, in an effort to prevent the transfer of a 12-hectare property located along the C-5 Road in Pasig City worth at least PhP4.3 Billion pesos—which was sold for less than PhP1 Billion in May 2010. The property was sold to Consolidated Property Development Corporation, a member-corporation of SM Development Corporation.

“The transaction is evidently fraudulent and the implementing contracts grossly disadvantageous to the government,” stated the Commissioner-in-Charge of the PCGG’s Legal Department, Gerard A. Mosquera, in the affidavit of adverse claim filed with the Register of Deeds for Pasig City.

PCGG Chairman Andres Bautista called the deal, “another midnight transaction initiated, negotiated, and executed during the final eight months of the previous administration.”

The loss to the government as a result of the transaction is conservatively estimated at PhP3.4 Billion pesos.

History

The property was originally leased by GSIS-subsidiary Meat Packing Corporation of the Philippines (MPCP) to Philippine Integrated Meat Corporation (PIMECO) in 1975 under a lease-purchase agreement. In 2009, the period of the lease ended, and PIMECO’s right to purchase the property matured.

The Republic (through PCGG) owns thirty percent (30%) of PIMECO. (The latter owns the right to purchase the subject property.) The remaining 70% of PIMECO’s capital stock was sequestered and is being claimed by the Republic in an ill-gotten wealth case pending before the Sandiganbayan docketed as Civil Case No. 0024. In sum, the PCGG maintains the legal position that the government owns 100% of PIMECO.

Anomalous Transaction

Former officials of the PCGG and the Office of the Solicitor General, in conspiracy with Peter Sabido, son of Marcos crony Roberto Sabido, executed a Memorandum of Agreement whereby the PCGG waived all of its rights and interests to the property for approximately PhP100 Million (in favor of the SM Group). For his part, former GSIS President and General Manager Winston Garcia facilitated the transfer of the property to the SM Group for PhP1.1B billion pesos: PhP300M of which was paid by GSIS to the government as transfer tax. This arrangement left less than PhP900M as net compensation, received by both PCGG and GSIS for the property (whose value is more than quadruple that price).

Legal Action

The new PCGG and GSIS management is seeking to recover the multi-billion peso property on the contention that the transfer from GSIS to the SM Group (through PIMECO) and the waiver by the PCGG of the Republic’s rights and interests over the property was fraudulently effected and obtained, with the connivance of previous officials of the PCGG and GSIS.

PCGG and GSIS intend to file a motion with the Sandiganbayan to nullify the compromise agreement entered into by PCGG and the SM Group, on the grounds of fraud and that the contract was grossly disadvantageous to the government. In the meantime, its adverse claim will be annotated at the back of the certificates of title of the property and serve as notice of the government’s claim and intent to recover the said property.

“No stone should be left unturned,” PCGG Chairman Andy Bautista started, in explaining the necessity of President Aquino’s recent issuance, Executive Order No. 42. “The fact that there continue to be an overwhelming number of appointees from the Arroyo administration occupying board seats in our sequestered and surrendered corporations could have easily gone unnoticed.”

Malacañang, on Monday, issued EO 42 granting PCGG provisional authority to replace up to two nominee-directors currently holding positions in such capacity in any of the corporations sequestered by or surrendered to the Commission.

As early as 2001, in a letter addressed to then Pres. Arroyo, the late PCGG Chairperson Haydee B. Yorac reiterated the Commission’s concerns that there have been instances when some nominee-directors acted in clear defiance of the Commission’s policies and the clear directives of the Office of the President. It appears, however, that the Arroyo Administration did not act positively on the PCGG’s proposal.

“We welcome the President’s directive, being a necessary adjunct to our task of monitoring and preventing the dissipation of these assets under our Commission’s care,” Bautista said. “As we have observed from past practice, there is no reporting line between these nominee-directors who enjoy the perks, but assume and carry very little responsibility. We will see to it that the instructions of the President are faithfully executed. Replacing the old nominee-directors with persons who will act to protect the people’s interests is just the beginning. We need to make sure that these people are doing their jobs properly,” Chairman Bautista added.

EO 42 requires the PCGG to furnish the President, through the Executive Secretary, with a list of temporary replacements. These temporary replacements are, in turn, required to submit to the PCGG monthly reports or as often as may be required, on the affairs, developments, and transactions affecting the respective corporations.

CLARIFICATION
Philippine Daily Inquirer News Item (18 April 2011)

re: Marcos victims decry delisting from suit (by Penelope Endozo)

BACKGROUND:
In today’s issue of the Philippine Daily Inquirer (18 April 2011, Monday, Vol. 26, No. 131), p. A2, an article entitled, Marcos victims decry delisting from suit, written by Ms. Penelope Endozo, made reference to the following statements of Atty. Rodrigo Domingo:

[Atty. Domingo] denied any irregularity and said that the lawyers had been transparent in their distribution of checks, observed by representatives from the Commission on Human Rights and the Presidential Commission on Good Government. (par. 8, sub-heading File claims twice) [Emphasis added]

DISCUSSION:
At the onset, it bears clarifying that the Commission represents the interests of the Republic of the Philippines and the Filipino people–which includes all of those that were victimized and oppressed by the Marcos regime. In this regard, the Commission has consistently maintained its position that the monies subject of the litigation in New York and Singapore, i.e. Marcos ill-gotten wealth, rightly belong to the Filipino people. Some of these monies will go to the HRVVs–and rightly so, for the sooner it gets to them, the better.

Contrary to the representations made in the above-quoted report, there were no representatives from the Presidential Commission on Good Government present during any of the distribution of checks made by Messrs. Domingo and Swift. As such, it goes without saying that the Commission is in no position to comment on or attest to the “regularity,” “transparency,” or any aspect of the distributions made by Messrs. Domingo and Swift.

The Commission recognizes that human rights abuses and atrocities were prevalent during the Marcos regime. Nearly three decades have passed, but none of the HRVVs have ever received full and adequate compensation for the loss, trauma, violence, and damage that they suffered.

The Commission is fully supportive of genuine efforts to fully and adequately compensate all the human rights violations victims of the Marcos regime.

The Presidential Commission on Good Government (PCGG), in a statement released today, said that it would seek reconsideration of the decision of the Supreme Court handed down at its summer session in Baguio City awarding ownership and control of 20% of SMC shares to Mr. Eduardo “Danding” Cojuangco.

“We have not yet received an official copy of the decision. This is important, as it is only then that our fifteen-day period to file a Motion for Reconsideration shall begin to toll. The voting record of 7-4 (seven justices in favor, four justices dissenting) is an indication that the matter is not fully settled. Until then, we will study the matter thoroughly, with a view towards seeking the reconsideration of the decision,” PCGG Chairman Andres Bautista said.

The Republic filed the case against Mr. Cojuangco on 31 July 1987, contending that Mr. Cojuangco could not have acquired the disputed shares if not for his close association with former President Ferdinand Marcos and in violation of his fiduciary duties over the coconut levy funds, which had earlier been declared as prima facie public in character.