Defense: 2 condos declared in SALN

MANILA, Philippines - Two condominium units of Chief Justice Renato Corona in Taguig City were in his statement of assets, liabilities and net worth (SALN) in 2010 and were never concealed, contrary to claims by prosecutors in his impeachment trial, his lawyers said, citing testimony from the city’s assessor yesterday.

The defense panel presented yesterday Robert Villaluz, officer-in-charge of the Taguig City Assessor’s Office, to prove Corona’s ownership of two of the five properties he listed in his 2010 SALN.

Villaluz testified that Corona paid the required taxes for two condominium units at the Bonifacio Ridge and Bellagio One in Taguig City.

Also yesterday – Day 30 of the impeachment trial – the defense team presented the Quezon City assessor to attest to the accuracy of Corona’s real property entries in his SALN.

The defense camp also presented a tax declaration for a McKinley property in the name of Corona’s daughter Ma. Charina to prove that the Chief Justice is not its owner.

Sen. Panfilo Lacson sought an explanation for the Chief Justice’s leaving the space for acquisition costs in his SALN blank.

Lacson noted that the P18.438 million in total assets actually represented the current fair market values of the properties.

“I would like to hear an explanation on the discrepancy under the acquisition cost,” Lacson said.

Lead defense counsel Serafin Cuevas said the defense “will definitely deal with it when our turn comes in the presentation of evidence.”

Lacson rebuffed Cuevas’ assertion that a clerical oversight by a secretary or a representative in the preparation of SALN may explain some inaccuracies.

Lacson argued that since Corona had sworn to the truthfulness of his SALN, he should have taken full responsibility.

“If it was merely inadvertence or negligence, I do not know how the impeachment court can come in,” Cuevas said.

“If in the preparation of SALN the public official relied on the valuation made by an official of government, he must be in good faith. No presumption of irregularity,” Cuevas said.

But Senate President and impeachment court presiding officer Juan Ponce Enrile said Cuevas’ explanation may only apply to “ordinary cases.”

“This is an impeachment case… In ordinary cases, that (presumption) is correct… but this is an impeachment case,” he said.

Enrile reiterated that under the Constitution, a public official is mandated to declare and swear on the truthfulness of his assets, liabilities and net worth.

“The law says you have to declare under oath your assets, liabilities and net worth. What’s your net worth or what’s a corporation’s net worth? It’s based on assets minus liabilities,” Enrile said.

He cited as an example a property with an assessed value of P1 million, and acquired for P100 million.

“You did not steal the difference between P1 million and P100 million; if indeed you committed corruption, it is only limited to P1 million,” Enrile explained. “So that is why it is also important to determine the acquisition cost here.”

Defense lawyer Dennis Manalo said, “We will prove through these witness that the assessed values are based on the values approved by the city assessor’s office of Taguig… and for the purpose of proving that there is basis for the non inclusion of the McKinley property of CJ Corona.”

On the basis of the subpoena issued by the court, Villaluz also presented tax declarations filed by the Chief Justice in connection with the two properties.

“These documents will indicate the market value of the property as determined by the City Assessor of Taguig, the Bonifacio Ridge condominium which is property number 4 I the SALN of CJ Corona as of Dec. 31, 2010,” Manalo explained.

Villaruz said the fair market value of the Bonifacio Ridge unit is P2,369,980 and its assessed value is P1,421,990.

The Bellagio had a fair market value of P5,827,200 and its assessed value is P3,496,320. The three parking lots attached to each property has a fair market value of P240,000 and an assessed value of P144,000.

A quick look at Corona’s SALN reflected the same values under the columns for “assessed value” and “current fair value,” except that the current fair value for the Bellagio unit was pegged at P6.8 million.

Villaruz explained that the fair market value is based on the point of sale between seller and buyer.

The assessed value, on the other hand, is the taxable value based on a schedule prepared by the local government.

The prosecution claimed that these were different from the purchase and actual prices of the units.

‘Current and fair value’

During cross examination, private prosecutor Jose Benjamin Panganiban pointed to provisions (Sections 202 and 203) under the Local Government Code which mandate a real property owner to issue a sworn statement on the “current and fair value” of his property.

The prosecution wanted to establish that Corona apparently did not comply with these provisions. But Sen. Aquilino Pimentel III said another section (204) allows the city assessor to take the initiative once the owner fails to do so.

Amid the questions on which values should be followed by a government official in the his SALN declaration, Enrile explained that the only thing material in the trial is whether certain properties were included or excluded by Corona in his SALN.

“The only thing material here is, did the Chief Justice include these properties in his SALN? Was he remiss in his duty including some of his properties in his SALN? That’s all we have to deal with in Article 2, if he did not, we go back to the Constitution,” Enrile explained.

The Constitution states that “a ‘public official shall upon assumption of office… submit a declaration of his assets, liabilities and net worth.’ Did he comply with this faithfully? Or if he did not… when you state under oath, you must be factual and truthful,” Enrile added.

“Let us not waste our time discussing values,” he said.

Prior to this, Enrile asked Villaluz whether tax declaration should be higher or lower than the acquisition cost.

Villaruz explained that the market value reflected in the tax declaration is lower than the acquisition cost. “We conduct general (assessment) every three years. The market value three years ago is different from the value today,” he said.

Enrile, also a tax expert, explained that there are varying definitions of “fair market value” used by lawyers and the one used for tax purposes.

“Our definition of fair market value is that it is the value that a willing seller would price his property and offer it to a willing buyer. But it’s different from the fair market value that you’re talking about because it’s based on your subjective evaluation of the condo unit in order to determine the assessed value,” Enrile told Villaluz.

“(Our) Value is used for taxation purposes,” Villaluz said.

“Is it correct to say that the assessed value is always lower than the fair market value determined by the assessor,” Enrile asked, to which Villaruz said “Yes.”

Enrile also reiterated that Article 11 of the Constitution deals with culpability, graft and corruption.

“When you talk of graft you are not talking of incremental values, not …acquisition costs compared to tax payments and income and other income in connection with your acquisition,” Enrile noted later in the trial.

Quezon City assessor’s office OIC Rodolfo Ordanes, for his part, said Corona and his wife have eight properties in the city with tax declarations.

Meanwhile, Senator-judges Francis Escudero and Ralph Recto said Corona may not be convicted on the basis of missing entries and errors in his SALN.

Recto said there is no law which mandates state workers to fill up everything in the SALN form.

“As of Dec. 31, I don’t know the current fair market value of the townhouse I’m living in, who will I ask, my neighbor who sold his property on the date near Dec. 31? …Unless the law clarifies, for me it’s logical to have a basis,” Escudero pointed out.

Sen. Vicente Sotto III and Enrile said the Civil Service Commission (CSC) should modify its “defective” SALN form, which they said creates confusion among state workers.

“Hopefully what is transpiring is being monitored by CSC because it is their SALN form that is somewhat confusing, defective. Hopefully they will listen to the Senate committee on Civil Service chaired by Sen. (Antonio) Trillanes,” Sotto said. Helen Flores, Jose Rodel Clapano