Lawyer a no-show at hearing; ex-DBP chief declared in default

Former Development Bank of the Philippines (DBP) chairman Cesar Zalamea was declared in default by the Sandiganbayan in the pre-trial conference of the P52-billion behest loan case against him after one of his lawyers failed to show up due to sore eyes.

 In the pre-trial conference, neither Zalamea nor his counsels from the De Castro and Cagampang Law Offices, showed up in court and no prior explanation was submitted regarding their absence.

In asking the court to reconsider the default order, Zalamea’s lawyer Anselmo Marqueda said he had very irritating, watery and reddish eyes, which were later found to be sore eyes.

“The undersigned counsel begs to apologize for his failure to appear during the pre-trial conference due to a contagious disease or virus that affected both his eyes a day before the scheduled conference,” he said.

Marqueda said Zalamea’s other lawyer was not able to attend the pre-trial because he was in Mindanao for another function.

On the absence of Zalamea, Marqueda said his client was not expected to show up because he had executed a special power of attorney in favor of his counsel, he added.

Marqueda said Zalamea has “good and valid defenses” that he can present during trial if only the Sandiganbayan will lift its default order.

Due to this failure, Zalamea will be barred by the court from presenting his evidence during trial or even commenting on the evidence to be presented by the Presidential Commission on Good Government (PCGG) in court.

Zalamea was accused of conspiring with the late President Ferdinand Marcos, former first lady Imelda Marcos, and seven other co-defendants to secure behest loans and other financial favors from the government financial institutions for companies of alleged Marcos associates.

Government lawyers found out that a company, Phil-Asia Food Industries Co. of alleged Marcos associate Peter Sabido obtained $52.78 million in questionable loans from DBP between December 1979 and January 1982.

Another firm of Sabido, Philippine Integrated Meat Co. was also extended a P93.7-million credit line on Nov. 2, 1973 through the Meat Packing Corp. of the Philippines, a wholly-owned subsidiary of the Government Service Insurance System.

By this transaction, Pimeco then acquired the meat processing plant complex of Delta Manufacturing Corp., although it only had a paid-up capital of P500,000.

Pimeco’s acquisition of the meat processing plant complex, which was earlier foreclosed by GSIS, was made payable in 28 years.

The loan was also interest-free, court records showed.    — Sandy Araneta