SC denies perpetuation of testimony in ill-gotten wealth case

The Supreme Court has reversed a decision allowing the perpetuation of the testimony of Juliette Gomez Romualdez, the mother of House Speaker Martin Romualdez, in connection with an ill-gotten wealth case.

In a decision written by Associate Justice Rodil Zalameda, the SC First Division reversed and set aside the September 2019 decision and the December 2019 resolution of the Court of Appeals (CA).

The CA had affirmed the order of the Makati Regional Trial Court (RTC) Branch 137 that granted the First Philippine Holdings Corporation's (FPHC) petition to perpetuate Juliette Romualdez’s testimony.

"Since [Benjamin] Romualdez is cleared of any connection with TMEE, petitioner, his widow, should not be unfairly used as bait for FPHC's unwarranted fishing expedition against TMEE and other individuals," the SC said.

It also said that the order of the Makati RTC was "vacated and set aside."

The decision was promulgated in July but released only recently.

According to the Court, FPHC was the former owner of 6,299,177 shares in the Philippine Commercial and Industrial Bank (PCIB shares). FPHC then sold the PCIB shares to Trans Middle East Equities Inc. (TMEE).

In 1986, the Presidential Commission on Good Government (PCGG) sequestered the said PCIB shares, as these were allegedly the ill-gotten wealth of Benjamin Romualdez, Juliette’s husband. 

After a complaint for reconveyance, reversion, accounting, restitution, and damages was filed against Romualdez and her husband before the Sandiganbayan, the FPHC filed a motion for the sale of the shares to TMEE to be annulled and returned to the FPHC.

The FPHC's motion alleged that its dummy board illegally sold the PCIB shares to TMEE.

The Sandiganbayan dismissed the complaint on the grounds of prescription. It became final in 2009.

This led the FPHC to file a second complaint, where it tweaked the complaint and argued that if the PCIB shares are found to be ill-gotten wealth, the PCGG has an obligation to return them to the FPHC.

The Sandiganbayan also dismissed the complaint on the ground that the cause of action was similar to that in the first complaint-in-intervention.

Following this, the FPHC filed a petition for certiorari before the SC as well as a petition before a Makati court to perpetuate Juliette Romualdez’s testimony, citing her old age and condition.

The Makati court then granted the petition and dismissed her motion for reconsideration of the order.

The appellate court then allowed the execution of the Makati court’s order for the perpetuation of her testimony while the FPHC’s petition for certiorari was pending before the SC.

In its ruling, the SC said the CA committed a grave abuse of discretion in ordering the execution of the order while Juliette Romualdez’s appeal was pending.

"The Court finds that the CA haphazardly allowed the execution pending appeal on a myopic reading of the facts that are heavily, albeit unduly, skewed in favor of FPHC," it said.

Further, the Court said that at the time the FPHC filed its motion, the petition no longer had a factual and legal basis because the Sandiganbayan had already dismissed the complaint for the failure of the PCGG to prove that TMEE was part of the alleged ill-gotten wealth of Benjamin Romualdez.

The Court also said that the FPHC’s petition to perpetuate the testimony lacked basis.

"To stress, the PCIB shares are registered in the name of TMEE. There is no showing, though, that petitioner is part of TMEE," the SC said.

"What is clear, therefore, is that petitioner's only connection to the PCIB shares is her relationship with her late husband, Benjamin, the alleged beneficial owner of said shares. However, FPHC failed to allege sufficient cause for the perpetuation of petitioner's testimony," it added.

The SC further said that the FPHC's position that the PCIB shares are ill-gotten wealth has no factual basis as there is no link between TMEE and Benjamin Romualdez. —VBL, GMA Integrated News