The Sandiganbayan has ordered the release of sequestered assets that may still be in its or other agencies’ custody to the late Benjamin “Kokoy” Romualdez, brother of former First Lady Imelda Marcos.
In a resolution, the Sixth Division granted a motion filed by Trans Middle East (Phils.) Equities, Inc., requesting the release of sequestered shares of stock, accrued dividends, and interest in BDO Unibank, pursuant to a court order issued in March 2025.
The court also referred to a previous resolution issued on January 2, 2003, in which the Fifth Division nullified Sequestration Order No. 86-0056 dated April 15, 1986.
“However, it did not order the return of the shares to [Trans Middle East (Phils) Equities Inc]. Instead, the Fifth Division ordered that the said shares including the interests earned thereon, be deposited with the Land Bank of the Philippines escrow,” the document read.
However, Trans Middle East (Phils.) Equities later filed a motion for partial reconsideration, requesting that the plaintiff turn over the shares to them “as the rightful owner of the same.” This motion was subsequently denied by the Fifth Division.
“The Fifth Division ruled that the lifting of the sequestration over the subject shares of stock registered in TMEPEI’s name does not mean that TMEPEI may exercise unrestricted rights of ownership thereon,” it read.
“The Court has yet to determine the issue of whether the said shares constitute il-gotten wealth of the Marcoses or their cronies. Pending the determination of the issue, the shares should remain in custodia legis for the protection of the party who will eventually be declared the real owners thereof,” it added.
Trans Middle East (Phils.) Equities, Inc. brought the case to the Supreme Court via a petition for certiorari, and the High Court ruled in its favor in a July 2022 decision.
The Supreme Court held that the Sandiganbayan had “committed grave abuse of discretion when it retained the shares of stock in custodia legis.”
“Considering the nullification of the writ of sequestration and the subsequent dismissal of the complaint against TMEPEI, there was no longer basis for holding TMEPEI’s shares of stock in custodia legis,” the Sanidganbayan said.
The Sandiganbayan Sixth Division upheld the Supreme Court’s ruling, stating that the anti-graft court “can no longer retain legal custody over the subject previously sequestered assets pertaining to TMEPEI.”
It also ordered the Executive Clerk of Court, the PCGG, and other concerned parties to release any sequestered assets still under their custody.
However, the resolution did not specify the exact amount to be returned to the estate of Benjamin “Kokoy” Romualdez.