The Sandiganbayan has dismissed a 1987 civil case filed against the late former President Ferdinand E. Marcos, his wife Imelda, and several so-called “cronies” for failure of the government to prove that they accumulated ill-gotten wealth through the use of dummy corporations.
With the dismissal of the complaint, the anti-graft court denied the pleas of the then Presidential Commission on Good Government (PCGG) to return the alleged unlawfully-acquired properties, and the payment of P50 billion in damages and P1 billion in legal expenses.
The decision stated that there was no "competent evidence" to prove who were the close associates of Marcos and how they all amassed assets and properties that would be rightly considered as ill-gotten wealth.
"In view of the foregoing, this case for reversion, reconveyance, and accounting against defendants Peter A. Sabido, Luis A. Yulo, Nicolas Dehesa, Ferdinand E. Marcos, Rafael Sison, and Don M. Ferry, is dismissed for failure of the plaintiff to prove by preponderance of evidence the material allegations contained in the amended complaint," the decision promulgated on Feb. 21, 2023 stated.
"Accordingly, the sequestration of herein defendant corporation, Lianga Bay Logging Co., and Yulo King Ranch, is hereby declared lifted," it said.
The 1987 case – denominate as Civil Case No. 0024 -- involved the Marcos couple and their so-called “cronies” Robert S. Benedicto, Luis A. Yulo, Nicolas Dehesa, Jose R. Tengco Jr., Rafael Sison, Cesar Zalamea, and Don M. Ferry, as well as the companies Lianga Bay Logging Co., Inc. (LBLCI), Phil. Integrated Meat Corporation, Yulo King Ranch (YKR) Corporation, and PIMECO Marketing Corporation.
The PCGG claimed that the alleged ill-gotten wealth was amassed through shares of stocks in PIMECO, LBLCI, and YKR, since these were reportedly dummy corporations held by Yulo in beneficial trust for Marcos.
In its decision, the Sandiganbayan said there was no evidence presented by the PCGG that would show how Marcos had any hand in YKR, LBLCI, and all other corporations listed in the complaint.
The PCGG's case hinged on the testimony of Rolando Gapud, then financial advisor of the former president, who said that the companies were indeed held by Yulo for Marcos. However, Gapud failed to take the witness stand, therefore making his affidavits "hearsay evidence," the court said.
"The totality of evidence against above-named defendants failed to show the alleged schemes and strategies employed by herein defendants to hide supposed ill-gotten wealth," the court stressed.
"Furthermore, there was no evidence presented establishing the relation of trust or close association of the defendants to the former President or any member of his family. Hence, the evidence presented was not sufficient to prove the plaintiff's allegation that the subject properties were ill-gotten," it added.
Associate Justice Maria Theresa V. Mendoza-Arcega wrote the decision with the concurrence of Fifth Division Chairperson Rafael R. Lagos and Associate Justice Maryann E. Corpus Mañalac.