The anti-graft court’s fifth division found NLRC-Region 11 labor arbiter Newton Sancho and NLRC sheriff Fulgencio Lavarez guilty of illegal confiscation and disposal of P115.99 million worth of properties belonging to the Asset Privatization Trust (APT).
In a March 23 decision, the Sandiganbayan also ordered Sancho and Lavarez to jointly pay the government the full amount commensurate to the assets lost by APT.
However, the Sandiganbayan acquitted private defendants Roger Cabesas and Benelito Ramirez.
Meanwhile, the case against private defendant Jerry Liong was archived as he remains at large.
In 1992, the APT made an extrajudicial foreclosure of the properties of North Davao Mining Corp. (NDMC) due to unsettled loans.
On Nov. 29, 1993, the NLRC’s fifth division ordered the NDMC to pay its workers P3.57 million in back wages and separation pay.
Because of this, Sancho issued a writ of execution directing Lavarez to enforce the NLRC ruling and collect the P3.57 million for the workers, but the sheriff was barred entry.
Lavarez later recommended that Sancho issue a "break open order" to force the collection.
On Sept. 5, 1994, the APT filed a notice of its claim on the NDMC assets and moved for the suspension of the writ of execution, which Sancho granted through a resolution.
But before the hearings on the APT claim could start, Sancho issued the "break open order" on Sept. 16, 1994 which Lavarez used to forcibly enter the NDMC compound in Amacan, Maco, Compostela Valley.
The levied NMDC properties were then sold to Liong, Cabesas, and Ramirez.
"The status quo agreement between the APT, Sancho and Lavarez were more than enough factors to deter the two accused public officers… yet they were unstoppable and paid no heed. Levying on properties to the extent of P115,988,853 fell way beyond the scope of the writ. The acts of accused Sancho and Lavarez can certainly be regarded as being tainted with bad faith," the Sandiganbayan said.