SC orders Cebu governor to settle bank debt

MANILA, Philippines — The Supreme Court (SC) has ordered Cebu Gov. Gwendolyn Garcia to settle her debt to a foreign bank as it denied her petition to block the order for her to pay.

In a 12-page decision promulgated in December last year, the SC Second Division directed a Makati trial court to execute its August 2012 resolution, ordering Garcia to pay Hongkong and Shanghai Banking Corp. (HSBC) $700,000 in damages and 12 percent in legal interest from July 2000 as well as P404,560.50 in legal costs.

The SC order stemmed from Garcia’s move questiong the alias writ of execution issued in 2018.

Garcia said the order to collect the debt was issued without giving her a chance to oppose it.

She said the writ was improperly served because it should have been forwarded to her business firm GGC Enterprises.

In denying the petition, the SC said Garcia failed to raise any fact or circumstance that could justify the quashal of the writ.

“Garcia can point to no specific error in the amount under the alias writ issued by the trial court. She did not even claim that the legal and accumulated interests were improperly calculated, and merely objects to the ‘staggering amount,’” the ruling read.

The high court also dismissed Garcia’s claim that the alias writ of execution was not properly served to her.

It said the sheriff made several attempts to personally serve the writ in her office before leaving it with an authorized personnel.

The high tribunal said it has been more than 10 years since the 2012 resolution against Garcia became final and executory.

It said because of Garcia’s “dilatory petitions,” the five-year period of the alias writ of execution issued in 2019 has lapsed.

The case dates back to 1996, when Garcia took out a loan amounting to $900,000 from the HSBC to purchase a light transit barge for her company GGC Enterprises.

Garcia and the GGC Enterprises failed to pay the bank, prompting the HSBC to file a complaint.

In 2001, a trial court ruled in the bank’s favor and ordered Garcia and her husband to pay HSBC damages and the actual cost of the suit.

Garcia appealed the decision, but the Court of Appeals upheld the ruling, although it reduced the amounts to be paid.

The SC, in a resolution issued in August 2012, affirmed the ruling with some modifications in the amounts.

The Makati trial court issued a writ of execution and ordered the sheriff to collect the amounts from Garcia and her husband.

In February 2018, the HSBC sought for an alias writ of execution after Garcia failed to settle her debt.