In a 27-page decision penned by Associate Justice Angelina Sandoval-Gutierrez, the Supreme Court’s Third Division dismissed the two consolidated petitions for certiorari of the PCGG which is questioning the resolution dated Dec. 20, 1999 which denied separate petitions of the Mid-Pasig Land Development Corp. and the Independent Realty Corp.’s motion to vacate the Sandiganbayan’s order dated June 8, 1998 which approved the compromise agreement entered into by PCGG commissioner Hermilo Rosal with Ilusorio involving the 5,400 shares of stocks of POTC.
The PCGG had claimed that Ilusorio’s 5,400 POTC shares which were in the names of Mid-Pasig Land Development Corp. and the Independent Realty Corp. were part of the Marcos ill-gotten wealth.
To save himself from a protracted trial, Ilusorio chose to enter into an out-of-court settlement.
The Sandiganbayan later agreed to allow Ilusorio to keep 673 shares provided he forfeits 4,727 shares in favor of the government.
In exchange to this, all criminal charges against Ilusorio in connection with the POTC would be dropped.
The Sandiganbayan approved the deal, setting aside the opposition of the Mid-Pasig Land Development Corp. and the Independent Realty Corp., which it said failed to raise their objections in time.
The 5,400 shares of stocks, according to Ilusorio, that were the subject of the agreement were the shares which were seized from him by Mrs. Marcos and were transferred to the Mid-Pasig Land Development Corp. and Independent Realty Corp., both owned by Marcos crony Jose Y. Campos and used to hold the Philippine Overseas Telecommuncations Corp.’s shares.
In ruling in favor of the compromise agreement between Rosal and Ilusorio, the High Court said the deal involving Ilusorio’s 5,400 shares in POTC should be complied with in accordance with its terms.
"Their settlement was motivated by their desire to avoid a costly and protracted litigation...to benefit the Filipino people through an efficient and economical telecommunications system and in order that they be able to freely use their respective properties, assets and other interests in the peaceful and normal pursuit of their legitimate endeavors," the High Court said.
The High Court ruled that since the agreement has the seal of the Sandiganbayan, it is consolidated as the law between the parties.
"With the imprimatur of no less than former president Fidel Ramos and the approval of the Sandiganbayan, the compromise agreement must be accorded utmost respect. Such amicable settlement is not only allowed but even encouraged," the High Court said.
POTC president Victor Africa said the decision of the Supreme Court laid to rest the issue on the amount of shares of government has in POTC.
The government owns 35 percent of POTC.
"This should also encourage the government nominees in the boards of the two companies to work with the incumbent board and management of POTC and Philcomsat to decide the future of the two companies," Africa said.