SC affirms Ombudsman dismissal of graft case versus DBP, Pioneer Glass execs
The Supreme Court (SC) has upheld the Ombudsman’s decision not to press graft charges against former officials of the Development Bank of the Philippines (DBP) and executives of Pioneer Glass Manufacturing Corporation in connection with the alleged grant of multimillion-peso behest loans during the Marcos regime.
In a recent 22-page decision, the SC 3rd Division denied the Presidential Commission on Good Government’s (PCGG) petition to overturn the May 16, 2008 ruling of the Ombudsman.
The SC agreed with the Ombudsman in not giving weight to PCGG’s claims that the loans were undercollateralized and grossly disadvantageous to the government.
It noted that the DBP’s total exposure of P63.2 million was sufficiently secured by personal and real properties worth P46.82 million, and assigned sales contracts totaling P13.41 million.
The DBP loans were also secured by the assignment of Luis Hofilefia, Sr.’s mining shares, as well as personal undertakings by members of the Hofilefia and Yaptinchay families and other Pioneer Glass stockholders.
“The records corroborate the assertions of respondent bank officials and support the findings of public respondent that the release of loans to Pioneer Glass was preceded by a careful study and evaluation of the loan application,” read the decision penned by Associate Justice Marvic Leonen.
“Clearly, the loans were suitably secured when they were taken out,” it added.