Sandigan OKs deal between PCGG and Marcos Sr, Imelda associate

The Sandiganbayan has approved a compromise deal between the government and an associate of the late President Ferdinand Marcos Sr. and his wife Imelda.

The deal returns alleged ill-gotten land and condominium properties, among others, to the government and imposed at least P12.6 million in additional expenses for the government due to unpaid dues prior to the return.

The decision was stated in an eight-page Sandiganbayan Resolution on the P276-million Civil Case 0006 dated November 19, which stemmed from the Joint Omnibus Motion filed by the state-run Presidential Commission on Good Government (PCGG) and the heirs of Marcos couple associate Roman Cruz Jr. asking the anti-graft court to approve the compromise agreement.

Civil Case 0006 alleges that Cruz and the Marcos couple illegally acquired public assets and invested them in several institutions in the Philippines and overseas, with Cruz allegedly purchasing, in connivance with the Marcoses, assets whose values are disproportionate to their legal income. 

The approved compromise agreement returns the following properties to the Philippine government:

• two units in Europa Condominium Villas, Legarda Road, Camp Sioco, Baguio City described and covered by Unit No. 553 and Unit No. 554
• two parcels of land in Leonard Wood Road, Bgy. Outlook Drive, Pacdal, Baguio City
• a parcel of land located at Golden Hills Subdivision, Bgy. San Roque, Antipolo City
• a parcel of land located at Snra. De la Paz Subdivision, Bgy. Sta. Cruz, Antipolo City
• Shares of Stocks in PLDT represented by Certificates of Stock nos. 39442 and 39443
• escrow account with the Bureau of the Treasury held on behalf of PCGG in trust for Europa Condominium in the amount of P1.10 million as of August 31, 2024

The same agreement states that the PCGG "fully, forever, and absolutely waives whatever claims, rights, participation, and interest that it may have in Unit 9-A, Urdaneta Apartment located at Urdaneta Village, Makati City."

"After a close scrutiny of the provisions mentioned above, the Court finds them not contrary to law, morals, or public policy. The Court then deems it proper to approve the Compromise Agreement and to grant the Joint Omnibus Motion," the Sandiganbayan said.

"Wherefore, in view of the foregoing, the Joint Omnibus Motion filed by the Republic of the Philippines, represented by the PCGG and the defendants Heirs of Roman A. Cruz, Jr. dated October 25, 2024, is hereby granted," it added.

Relevant government agencies and offices are directed to transfer the titles of the real and personal properties to the Republic of the Philippines based on the compromise agreement. 

"The instant case is hereby dismissed as against the defendants Heirs of Roman A. Cruz, Jr," the Sandiganbayan said.

The PCGG and Cruz's heirs filed their Joint Omnibus Motion seeking court's approval on the compromise agreement on October 25 this year, after the Sandiganbayan junked Civil Case 0006 due to inordinate delay. 

According to the Sandiganbayan's November 19 resolution, the PCGG and Cruz's heirs have been negotiating a compromise agreement since 2018, and that the Department of Justice (DOJ) already approved it in 2021 before it reached the anti-graft court.

Government expenses

The properties and assets returned to the government, however, would mean additional government expenses since the compromise agreement provides that the PCGG will be responsible "for all acts necessary to restore the returned assets to a usable or marketable state, including, where necessary, the reconstitution of titles."

The same compromise deal also states that the total PNB Escrow Account, which is valued at P1.10 million including interest and dividends as of August 31, 2024, will cover for the following expenses:

• unpaid taxes that may be due from properties to be surrendered to the Republic through the PCGG in the estimated amount of P2.2 million
• unpaid condominium dues (currently estimated in the amount of P5.1 million)
• reimbursement to the PCGG for the P5.3 million it paid for the redemption of Europa Condominium

This means that the current amount in PNB Escrow Account is insufficient to cover for the P12.4 million worth of dues.

Under the compromise agreement, if the PNB Escrow Account is insufficient to cover the expenses, the PCGG should pay for the outstanding expenses.

However, if there will be any remainder in the PNB Escrow Account after the expenses have been satisfied, it will be turned over to the heirs of Cruz for litigation and other related expenses.

All other taxes and expenses that may be incurred in the process of transferring the Settlement Assets in the name of the government will also be paid for by the PCGG, according to the Sandiganbayan. —KBK, GMA Integrated News