Former Lehman exec denies getting arrest, hold departure orders over Triple V suit

MANILA, Philippines – A former executive of Lehman Brothers-South East Asia denied yesterday that there were standing arrest warrants and hold departure orders issued by a Mandaluyong City regional trial court against him and several other active officials of the international investment firm in connection with a court suit filed against them by businessman Victor “Vic-Vic” Villavicencio of the Triple V restaurant firm.

Carlos Manalac, former Lehman Brothers managing director for Asia, said that the Department of Justice (DOJ) recently reversed a resolution of the Mandaluyong City prosecutor’s office approving the filing of charges of violation of the Anti-Dummy Law of the country against him and other Lehman Brothers executives.

Manalac said that in his Sept. 11 resolution, DOJ Secretary Raul Gonzalez granted the petition for review he and several other Lehman Brothers executives – Norman Macasaet, Edilberto Castaneda, and Ana Maria Katigbak – filed before the justice department.

“There has never been an arrest warrant issued against me or the others,” Manalac said.

“The DOJ ruling said that it (Triple V suit against Lehman) was groundless and without merit,” Manalac said.

In a 22-page DOJ ruling, which Manalac provided The STAR, Gonzalez reversed the April 8 resolution of the Mandaluyong City prosecutor’s office that recommended the indictment of Manalac and other Lehman Brothers executives.

“The Office of the Mandaluyong City Prosecutor is hereby directed to cause the withdrawal of the information, if any has been filed, against respondents Philippine Investment One (SPV-AMC) Inc., Norman H.Macasaet, Carlos Manalac, Michael C. Rabonza, Edilberto T. Castaneda, Ana Maria Katigbak, Teresita Asuncion M. Lacandula, Jason Brian Denis Dunn, Jonathan H. Epstein, John Does and Jane Does (acting for and in behalf of Lehman Brothers South East Asia Pte Ltd) and to report on the action taken hereon within ten days from receipt hereof,” Gonzalez ordered.

Manalac pointed out that since their indictment has been ordered reversed, the case cannot go on to the regional trial court and a judge cannot issue arrest warrants and hold departure orders against them.

He said that the case filed against them by Villavicencio mainly involved real estate property in Mandaluyong City situated at the corner of Shaw Blvd. and Mariano Yulo Street that their affiliate SPAV-AMC had bought from Equitable Bank.

Manalac explained that Equitable Bank had foreclosed the property that was used as collateral by Villavicencio for a loan he took out from the said local bank in the 1990s.

Manalac said that Villavicencio was apparently going after them in a bid to repossess the property.

However, he stressed that SPAV-AMC had legally bought the property among a portfolio of assets they acquired under the Special Purpose Asset Vehicle Law.

“This particular deal was approved by the Philippine SEC (Securities and Exchange Commission) and the Bangko Sentral ng Pilipinas, the BSP,” Manalac said.

“That is just one property out of a portfolio (we bought),” Manalac said.

“Because foreign investor kami, we’re very careful of that,” he said.

Villavicencio, however, was trying to buy it back from them.

“(But) the price he gave was well below market value,” Manalac said. – Rainier Allan Ronda