Manila, Philippines - The Commission on Elections (Comelec) stands by Commissioner Augusto Lagman who faces charges of estafa and violation of the Corporation Code.
Comelec spokesman James Jimenez yesterday said Lagman had informed the agency about the cases filed against him before the Makati City Regional Trial Court shortly after assuming office two weeks ago. “The Comelec would not be threatened by that... According to him, the cases have already been thrown out but were revived under the Arroyo administration,” he said.
“These are corporate matters. Commissioner Lagman is a man of known credibility, integrity and probity. We have to stand by our commissioner.” The charges were filed by businesswoman Nora Bitong concerning the alleged unauthorized sale of shares owned by Systems Standards Inc. (SSI) in Vinta Systems Inc. to Philippine Investment Management Inc. (Phinma) in 2007. Lagman and Bitong are co-owners of SSI.
Lagman said he could easily defend himself in the cases. “I personally believe I am not guilty,” he said.
He maintained that the conflict between him and Bitong stemmed from their “disagreement”’ over the disposition of proceeds of the sale.
“Ms. Bitong wanted her and me, as the biggest creditors, to be paid at the same time as the creditor banks, on a pro rata basis. But while she and I are creditors, we are also Board directors and the major shareholders of the company,” Lagman said.
He also said that he and the majority of directors “wanted the bank loans of SSI to be paid first and the shareholders/creditors, after, should there be a balance left from the funds.”
“We believed that that would be more moral and ethical. Not getting what she wanted, Ms Bitong filed a criminal case for estafa against us, the majority directors,” he said.
Two years ago, the Makati prosecutor had dismissed the case for lack of probable cause but was reversed by the Department of Justice (DOJ) in June 2010.
“That is one of the midnight decisions of (then DOJ Secretary Alberto) Agra...I know that this may be brought up (by my detractors) but I’m prepared to respond,” Lagman said.