Government loses ‘pork,’ coco levy cases

Yearender

MANILA, Philippines —  The year 2024 saw the conclusion of some of the biggest cases filed before the Sandiganbayan, including the decade-old plunder charges over the pork barrel scam and the 37-year-old wealth forfeiture complaints against the late strongman Ferdinand Marcos Sr. and his wife, former first lady Imelda Marcos, which stemmed from the alleged misuse of the coco levy funds during martial law.

It was not, however, the conclusion that government prosecutors were hoping for.

On Jan. 19, 2024, the anti-graft court’s Fifth Division acquitted Sen. Jinggoy Estrada of plunder in connection with the alleged misuse of his Priority Development Assistance Fund (PDAF) from 2004 to 2012.

Businesswoman Janet Lim-Napoles, the alleged brains of the pork barrel scam, was also acquitted.

The Sandiganbayan said ombudsman prosecutors failed to present sufficient evidence to prove that Estrada and Napoles benefited from the senator’s PDAF worth at least P50 million, the threshold amount of illegally amassed fund for the crime to be considered as plunder.

The Fifth Division, however, convicted Estrada of one count of direct bribery and two counts of indirect bribery.

Napoles was convicted of five counts of corruption of public officials in relation to direct bribery and two counts of corruption of public officials in relation to indirect bribery.

The court said the prosecution established that Estrada received P1 million in bribe money, making him liable for direct bribery and that he received P1.5 million and P4.2 million from Napoles through Ruby Tuason, who has since turned whistle-blower, making him liable for indirect bribery.

Estrada was sentenced to up to 16 years in prison and ordered to pay a fine of P3 million. He was also meted the accessory penalties of suspension from public office and perpetual disqualification from the right to vote.

Napoles was sentenced to up to 62 years in prison and fined P29.625 million.

Fast-forward to August, however, the Fifth Division flip-flopped and granted Estrada’s motion for reconsideration, clearing him of direct and indirect bribery.

The court reversed its earlier position and instead gave weight to the senator’s argument that neither of the documentary evidence nor the witnesses presented by the prosecution can conclusively prove that the supposed bribe money handed by primary state witness Benhur Luy to Estrada’s then chief of staff Pauline Labayen, was transmitted to the senator.

Ombudsman prosecutors suffered another blow in October because after a decade of trial, none was held liable in connection with the alleged misuse of millions of pesos in pork barrel of former senator, now presidential legal counsel Juan Ponce Enrile.

Just like in the plunder case of Estrada, the anti-graft court’s Special Third Division, in acquitting Enrile, his former chief of staff Gigi Reyes and Napoles, said the prosecution failed to prove that public funds amounting to least P50 million had been illegally amassed by the former senator.

The court said no documentary evidence or witnesses was presented by the prosecution to prove that Enrile or Reyes, personally received commissions or kickbacks from Napoles.

Enrile and Estrada were among the three senators charged with plunder during the administration of the late former president Benigno Aquino III over the pork barrel scam.

In 2018, the Sandiganbayan First Division acquitted senator Ramon Revilla Jr. for lack of evidence.

The anti-graft court convicted Revilla’s former aide Richard Cambe and Napoles for plunder. They were sentenced to up to 40 years in prison.

Cambe died of a stroke at the New Bilibid Prison in Muntinlupa City in 2021 while serving his sentence.

Napoles is being held at the Correctional Institution for Women in Mandaluyong. She is still facing multiple criminal cases as co-accused of other former and incumbent officials in connection with the pork barrel scam.

Coco levy cases

The year 2024 also ended with the dismissal of all the eight civil forfeiture cases filed against the Marcos spouses, Enrile and the alleged cronies of the late dictator in connection with the supposed misuse of the Coconut Industry Investment Fund (CIIF), also known as the coco levy funds, during martial law.

In a 42-page decision promulgated on Dec. 12, 2024, the court’s Second Division granted the respective motions of the Marcos spouses and Enrile, praying for the dismissal of their cases on the ground of inordinate delay in the proceedings.

Also granted were similar motions filed by businessmen Jesus Pineda and Cesar Zalamea, the heirs of the late congresswoman Maria Clara Lobregat and several other defendants.

The Second Division agreed with the Marcos spouses and the other defendants’ argument that the pendency of the cases for more than 30 years is already considered oppressive and violative of their constitutional right to speedy disposition of cases.

The court said the defendants, including the Marcos spouses, were similarly situated with the late businessman Eduardo “Danding” Cojuangco Jr. whose cases were dismissed on the ground of “inordinate delay” in the proceedings.

Specifically dismissed by the court were six forfeiture cases docketed as Civil Case Nos. 0033-B, 0033-C, 0033-D, 0033-E, 0033-G and 0033-H.

Based on the Presidential Commission on Good Government (PCGG)’s yearend report in 2020, Civil Case No. 0033-B sought to recover government claims amounting P270 million; 0033-C (P998 million); 0033-D (P1.87 billion); 0033-E (no amount mentioned); 0033-G (P206.6 million); and 0033-H (P673.34 million).

This development marked the dismissal of all the eight coco levy cases lodged against the Marcos spouses, which have been pending at the Sandiganbayan since 1987.

On Dec. 6, 2024, the Second Division dismissed Civil Case Nos. 0033-A and 0033-F, following a manifestation from the PCGG that it would no longer pursue its claims of actual, moral, temperate, nominal and exemplary damages against the Marcos spouses, Enrile and several other defendants, “as the Republic already recovered majority of the properties subject of the said cases.”

Civil Case No. 0033-A stemmed from the allegedly anomalous purchase by the Philippine Coconut Authority of 72 percent outstanding capital stocks of the of First United Bank, later renamed United Coconut Planters Bank, for P85.733 million using the coco levy funds.

Civil Case No. 0033-F, meanwhile, stemmed from Cojuangco’s purchase of 33,000,000 shares of stock of San Miguel Corp. allegedly using the coco levy funds.

The PCGG said the shares were purchased through six companies known as the CIIF Oil Mills Group (OMG) and 14 CIIF holdings companies.

In 2004, the Sandiganbayan Second Division ruled that at least P83-billion in assets acquired through the CIIF must be turned over to the government for the benefit of coconut farmers.

The Supreme Court (SC) affirmed the Second Division’s ruling in a landmark decision on Jan. 24, 2012.

In its decision, the High Tribunal declared that CIIF is a “public fund.” The firms created through CIIF, including all their assets, must be reconveyed to the government.

However, despite the SC’s decision upholding award of coco levy assets in favor of the government, several firms are still contesting their forfeiture cases before the Sandiganbayan.

Apart from the coco levy cases, there are still about a dozen civil forfeiture cases pending at the Sandiganbayan against the Marcos spouses and their alleged cronies in connection with the supposed illegal amassing of wealth.