MANILA – The Sandiganbayan has affirmed the dismissal of the cases against two officials named in alleged anomalous transactions involving shares of the sequestered corporation, Domestic Satellite Phils., Inc. (Domsat).
In a resolution dated Nov. 4, the anti-graft court’s 2nd Division upheld its July 18 ruling dismissing the cases against Investa Corp. director Nilo Peña and the estate of Domsat director Pompeyo Nolasco.
In its ruling, the Sandiganbayan stated, “mere allegations, which are unsubstantiated by evidence, are not equivalent to proof.”
“Even if it were true that the Republic’s shares in Domsat were diluted because of the questioned transactions, plaintiffs (government) failed to show proof that the dilution resulted from acts or omissions that are illicit, malicious, or forbidden by law or government regulation,” the court said.
The Presidential Commission on Good Government (PCGG), in its original suit filed in 1989, claimed that Peña and Nolasco, along with others, conspired and dissipated the Republic’s share in Domsat.
The petition sought to nullify the management contract between Domsat and Investa Corp.
The PCGG argued that the payment scheme to Investa, as stipulated in the contract, amounted to 10,000 shares worth P1 million per semester. It also claimed that the contract effectively reduced the government’s stake in Domsat from more than 50 percent to just 16 percent as of 1998.
The Sandiganbayan stated, “(I)t cannot be concluded that the defendants Peña and the estate of Nolasco impliedly admitted that they are guilty of bad faith in the performance of the questioned transactions. Since bad faith must be proved by clear and convincing evidence and not by mere conjecture or speculation, evidentiary substantiation of the allegations… is required.” (PNA)
