Sandiganbayan moves to seize 16 real properties of Zaldy Co

The Sandiganbayan has ordered the seizure of at least 16 properties belonging to former House appropriations panel chairperson Zaldy Co of the Ako Bicol party-list, who faces graft charges related to an allegedly substandard flood control project in Oriental Mindoro.

The move aims to secure potential payment of P215 million in civil liability should Co be convicted of the charges.

The order came after the court granted the government prosecutors’ Ex-Parte Motion for Issuance of Writ of Preliminary Attachment against Co and his wife, Mylene, covering the 16 real estate properties.

The 16 properties covered by the seizure order include:

• Seven land properties (lots / house and lot)

1. 1,212 sq m — Makati City
2. 776 sq m — Pasig City
3. 300 sq m — Quezon City
4. 150 sq m — Lipa City, Batangas
5. 125 sq m — Quezon City
6. 100 sq m — Makati City
7. 66 sq m — Quezon City

• Five condominium units

1. 276 sq m — Pasig City
2. 132 sq m unit with two parking slots — Makati City
3. 109 sq m — Pasig City
4. 70.869 sq m unit with 12.50 sq m parking — Pasig City
5. 73.89 sq m — Makati City

• Four condominium parking slots in Pasig City with an area of 12.50 sq m each

In its order, the court explained that the seizure is authorized under Rule 127 of the Rules of Court on Provisional Remedies in Criminal Cases, which allows the government, as the offended party, to attach the property of the accused as security for any judgment that may be recovered.

The court said the rule applies when the criminal action involves money or property embezzled, fraudulently misapplied, or converted by a public officer, corporate officer, attorney, broker, agent, or any person in a fiduciary capacity, or for a willful violation of duty.

“We grant the prosecution’s motion. The present case squarely falls within the ambit of Section 2(b), Rule 127, as it is predicated on a claim involving public funds allegedly embezzled, fraudulently misapplied, or converted by the accused Department of Public Works and Highways officers in conspiracy with the accused Co,” the Sandiganbayan said.

The Sandiganbayan noted that a common requirement for issuing a writ of preliminary attachment under Rules 57 and 127 is the presence of fraud "due to subsequent actions showing intent to defraud creditors by absconding from the Philippines or by concealing, removing, or disposing of property." 

"Such fraud is inherent in a violation of Section 3(e) of RA No. 3019, the Anti-Graft and Corrupt Practices Act, when evident bad faith is alleged, as in the present case,” the court said.

The Sandiganbayan also noted that the Affidavit of Merit submitted by the Ombudsman’s office details the alleged fraudulent scheme on the flood control project.

It states that the accused public officers supposedly conspired to certify supporting documents as accurate despite gross discrepancies in the steel sheet piles, which measured only 3 meters instead of the required 12 meters.

Sunwest, Inc., which accused Co helped set up and benefit from, had no legal right to the P215 million it received, and all the documents used to claim the money were fake and part of a scheme to deceive, the court said.

The Sandiganbayan further noted that the prosecution confirmed in its Affidavit of Merit that there is no other sufficient security for the claim.

“Unless his properties are immediately attached, the State may be unable to satisfy any future judgment, as accused Co may easily alienate or conceal his remaining assets in the Philippines,” the court said.

"Let a Writ of Preliminary Attachment issue against accused (Co), requiring the Sheriff of this court to attach so much of his property in the Philippines...as may be sufficient to satisfy the applicant's demand, in an amount not exceeding P215 million,” it added.

Sought for comment, Co’s counsel Ruy Rondain said he and his legal team are ready to avail themselves of remedies following the court ruling.

“I haven’t read it [yet], but we will take our remedies in due course,” he said.—MCG, GMA Integrated News