Don’t give preneed firms refuge from victims, Palace appeals to courts

MANILA, Philippines — Malacañang appealed Thursday to courts handling cases against troubled pre-need firm Legacy not to let themselves be used to deny victims the compensation due them. Press Secretary Cerge Remonde made the call a day after Justice Secretary Raul Gonzalez admitted loopholes in the law prevent victims from getting their money back. "Diyan makikita ang determination ng pamahalaan to go after them. Nananawagan tayo sa hukuman they should not let themselves be used as refuge for scoundrels (Here we will see our determination to go after them. But we ask the courts to not let themselves be used as refuges for scoundrels)," Remonde said in an interview on dzXL radio. On Tuesday, President Arroyo ordered government to help victims of troubled pre-need firms get their money back. But Gonzalez said Wednesday his department cannot fully perform the task because of “loopholes in the law." Gonzalez cited the law on receivership, which even condominium developers have resorted to when they get into financial trouble. With the firms going into receivership, buyers are left in the lurch, he said. He also said they have been exploring other options, all of which he said will take time. One such option is to resort to attachment in criminal cases, but he said these proceedings take time, and the offenders may transfer their assets to dummy firms. "These are the things we are trying to refine. We have to resort to certain situations. We have to devise ways and means maproteksyunan ang planholders (to protect the planholders)," Gonzalez said. He also noted government can never take property without due process, as the sheriff wouldn’t follow orders without the proper bonds. - GMANews.TV