THIRD DIVISION
[G.R. No. 227355. September 4, 2019.]
REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT [PCGG], petitioner, vs.THE HONORABLE FIFTH DIVISION-SANDIGANBAYAN, PETER A. SABIDO, AND PHILIPPINE INTEGRATED MEAT CORPORATION [PIMECO], respondents.
NOTICE
Sirs/Mesdames :
Please take notice that the Court, Third Division, issued a Resolution datedSeptember 4, 2019, which reads as follows:
"G.R. No. 227355 (Republic of the Philippines, represented by the Presidential Commission on Good Government [PCGG] v. The Honorable Fifth Division-Sandiganbayan, Peter A. Sabido, and Philippine Integrated Meat Corporation [PIMECO]). — The parties in this case, namely: petitioner Republic of the Philippines, represented by the Presidential Commission on Good Government (PCGG), through the Office of the Solicitor General (OSG); and respondent Philippine Integrated Meat Corporation (PIMECO), represented by its President, Atty. Christine Base, through counsel, have separately filed a Manifestation and Motion, dated February 18, 2019 1 and February 21, 2019, 2 respectively, praying that the present petition for certiorari be dismissed and that the case be considered closed and terminated in view of the SETTLEMENT AGREEMENT entered into by them on February 18, 2019, which is quoted hereunder:
SETTLEMENT AGREEMENT
This SETTLEMENT AGREEMENT executed by and between:
REPUBLIC OF THE PHILIPPINES, through the PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), represented herein by Acting Chairman REYNOLD S. MUNSAYAC, with office address at IRC Building, No. 82 EDSA, Mandaluyong City;
- and -
PHILIPPINE INTEGRATED MEAT CORPORATION (PIMECO), represented herein by its President, Atty. CHRISTINE BASE, with office address at Block 11, Lot 23, EPH-1, Western Bicutan, Taguig City;
WITNESSETH: THAT —
Recitals:
I. In 1987, the Republic of the Philippines, through the PCGG, filed a complaint for reconveyance, reversion, accounting and damages against several individuals and corporations, including PIMECO and Peter Sabido. The case was filed with the Sandiganbayan and docketed therein as Civil Case No. 0024.
PIMECO was impleaded in Civil Case No. 0024 essentially on an allegation that its President, Peter Sabido, obtained loans in its favor from the Government Service Insurance System (GSIS). More specifically, the Republic of the Philippines questioned the Lease Purchase Agreement (LPA) and the Supplementary and Loan Agreement (SLA) that PIMECO entered into with Meat Packing Corporation of the Philippines (MPCP), a wholly-owned subsidiary of GSIS, covering the properties situated in Pasig City, with a stipulated rental-purchase price of around P93.7 Million (Subject Properties).
The validity of the LPA and SLA and PIMECO's right to purchase the Subject Properties, however, were later upheld by the Sandiganbayan in a Resolution dated 16 December 2008.
II. MPCP-GSIS questioned the Resolution before the Supreme Court in a Petition for Certiorari docketed as G.R. No. 186449, but during its pendency, the relevant parties to Civil Case No. 0024 entered into a compromise.
This compromise is embodied in the following agreements:
a) Memorandum of Agreement (PCGG MOA), executed on 11 December 2009, by and among the PCGG, Peter A. Sabido, PIMECO, and Consolidated Prime Development Corporation (CPDC).
Under the PCGG MOA, the PCGG facilitated the conveyance of IRC's 30% shareholdings in PIMECO in favor of CPDC, waived the government's claims to 70% of PIMECO's capital stock in favor of CPDC, and caused the lifting of sequestration and provisional takeover of PIMECO and its properties, including the right to purchase the Subject Properties under the LPA and SLA. Also, by way of the same PCGG MOA, CPDC acquired ownership and control of PIMECO and all its properties including the right to purchase the Subject Properties. In turn, PCGG received a total of PhP100 Million as consideration;
b) Memorandum of Agreement (GSIS MOA), executed on 18 and 21 December 2009, by and among GSIS, MPCP, CPDC, and PIMECO.
The GSIS MOA provided for the following: (a) acquisition of the Subject Properties by PIMECO and CPDC from MPCP-GSIS; (b) the payment of PhP100 Million by CPDC to MPCP-GSIS pursuant to the purchase clause under the LPA and SLA; and (c) the payment by CPDC to GSIS of the amount of Php1 Billion in the concept of indemnity for opportunity losses suffered on account of the property being immobilized and rendered unproductive over the previous years; and
c) Deed of Absolute Sale to implement the compromise agreement, executed on 19 May 2010, by and between MPCP and PIMECO. In the Deed of Absolute Sale, the Subject Properties were conveyed to PIMECO for a total consideration of PhP1.1 Billion, of which amount, PhP100 Million was paid to MPCP-GSIS as consideration for the Subject Properties, and the amount of PhP1 Billion paid to GSIS as indemnification for opportunity losses.
The compromise was approved by the Sandiganbayan in Civil Case No. 0024 in a Resolution dated 24 March 2010.
III. On the basis of the compromise, Sabido and PIMECO later informed the Supreme Court in G.R. No. 186499, that the parties had amicably settled their dispute. The Supreme Court took note of their Manifestation and issued a Resolution dated 16 June 2010 declaring G.R. No. 186449 closed and terminated.
The Supreme Court's Resolution in G.R. No. 186449 has since become final, with no appeals filed by any of the parties.
IV. Years later, the PCGG filed with the Sandiganbayan an Omnibus Motion dated 21 September 2015 claiming that the compromise was void as the PCGG itself, despite being ably assisted by the Office of the Solicitor General, failed to comply with government regulations.
After an exchange of pleadings, the Sandiganbayan, in a Resolution dated 12 April 2016 denied petitioner's Omnibus Motion.
The Republic of the Philippines filed a Motion for Reconsideration dated 10 May 2016, which the Sandiganbayan denied in a Resolution dated 09 August 2016.
V. The Republic of the Philippines then filed a Petition for Certiorari dated 14 October 2016 with the Supreme Court (G.R. No. 227355) [the present case].
On 2 March 2017, PIMECO filed its Comment to the Petition. Sabido also filed his Comment dated 24 February 2017. Subsequently, the Republic of the Philippines filed its Consolidated Reply dated July 2017. Thereafter, Sabido filed a Rejoinder dated 1 August 2017.
VI. On 04 September 2018, PIMECO, through its counsel, wrote to PCGG expressing its willingness to explore the possibility of settlement of G.R. No. 227355 for the mutual benefit of the parties.
VII. Subsequently, discussions were held between PIMECO and PCGG to amicabl[y] settle the remaining dispute for the mutual benefit of the parties.
VIII. Both the Office of the President and the Office of the Solicitor General were consulted and provided a copy of this Settlement Agreement and both offices did not object to the same, citing PCGG's policy decision and discretion to better determine the propriety of the settlement.
NOW, THEREFORE, for and in consideration of the foregoing premises and the terms and conditions hereinafter set forth, the parties hereto agree as follows:
1. Reaffirmance of the Compromise. — The parties reaffirm the compromise concluded by them, as embodied in the PCGG MOA executed on 11 December 2009 and the GSIS MOA executed on 18 and 21 December 2009. The Republic of the Philippines withdraws and abandons its objections to, and contentions against, the compromise as raised in its Omnibus Motion dated 21 September 2015 and its Motion for Reconsideration dated 10 May 2016 before the Sandiganbayan in Civil Case No. 0024, and in its Petition for Certiorari before the Supreme Court in G.R. No. 227355.
2. Additional Consideration. — In consideration for its withdrawal and abandonment of its objections to, and contentions against, the compromise concluded in 2009, as provided in the immediately preceding paragraph, and as additional consideration to that provided in the PCGG MOA executed on 11 December 2009, PIMECO shall deliver to the Republic of the Philippines, through the PCGG, in the manner herein provided, the sum of ONE HUNDRED MILLION PESOS (P100,000,000.00), in Philippine Currency. This additional consideration is a "compromise amount" being the consequence of a dismissal of the present case between the parties and is not regarded as consideration in exchange for any government asset and/or property.
3. Dismissal of the Case. — The parties shall, within fifteen (15) days from the execution of this Settlement Agreement, file with the Supreme Court in G.R. No. 227355 their Manifestation informing the Court that the parties had amicably settled their dispute and praying for the dismissal and termination of the case.
4. Delivery of the Additional Consideration. — PIMECO shall deliver the compromise amount of ONE HUNDRED MILLION PESOS (P100,000,000.00) to the Republic of the Philippines, through the PCGG, within ten (10) days from receipt of the Decision/Resolution of the Supreme Court in G.R. No. 227355 dismissing the case, or, within ten (10) days from notice of PCGG, relayed in writing to PIMECO, that such Decision/Resolution of dismissal was already issued by the Supreme Court.
In case of breach of PIMECO or the non-payment of the Additional Consideration within the period stipulated, this Settlement Agreement is deemed void and the Republic of the Philippines' causes of action and claims in connection with the transactions subject of the pending case are deemed reinstated.
Upon the other hand, upon receipt of the Additional Consideration mentioned herein, the Republic of the Philippines already concludes with finality the dismissal of any and all of its claims on the transactions subject of the present case and is precluded from filing any other action, case, complaint, and/or pleading, against any party, in connection with the same.
IN WITNESS WHEREOF, the parties hereto have signed this Settlement Agreement this 18th day of February 2019 in Pasig City, Philippines.
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REPUBLIC OF THE PHILIPPINES, through the PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG) |
PHILIPPINE INTEGRATED MEAT CORPORATION (PIMECO) |
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By: |
By: |
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(signed)REYNOLD S. MUNSAYACActing Chairman |
(signed)CHRISTINE BASEPresident |
WITNESSES
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(signed) |
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CERTIFICATION
The foregoing Settlement Agreement was reached by the parties after discussions held between Commissioners of PCGG and representatives of PIMECO on September 11, 2018 and October 18, 2018 and consultations with their respective counsel[s].
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(signed)REYNOLD S. MUNSAYACActing Chairman |
(signed)CHRISTINE BASEPresident, PIMECO |
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
BEFORE ME, a Notary Public, for and in the above-jurisdiction, on 18th day of February 2019, personally appeared:
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Names |
IDs |
Date & Place |
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REYNOLD S. MUNSAYAC |
PCGG Employee No. 16-1153-K0476 |
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Driver's License No. N02-05-521086 |
Expiry Date — 11/04/2021 |
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CHRISTINE BASE |
PRC ID |
Valid until |
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IBP Lifetime Member No. 08661 |
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all known to me to be the same persons who executed the foregoing "SETTLEMENT AGREEMENT," consisting of six (6) pages including this page whereon this acknowledgment is written, signed by the parties, and they acknowledged to me that they executed the same as their own free and voluntary act and deed and that of the entities they respectively represent.
WITNESS MY HAND AND NOTARIAL SEAL on the date and at the place first above-written.
xxx xxx xxx
Republic of the Philippines)
SECRETARY'S CERTIFICATE
I, FRANCIS B. JOVES, Filipino, of legal age, with business and postal address at Presidential Commission on Good Government (the "Commission"), IRC Building, No. 82 EDSA, Mandaluyong City, Metro Manila, after having been duly sworn in accordance with law, hereby depose and state, that:
1. I am the Commission Secretary of the Commission;
2. The Commission, during its en banc meeting held today, 14 February 2019, wherein a quorum was present, passed and approved the following Resolution:
"NOW, THEREFORE, be it RESOLVED, as it is hereby RESOLVED, that the Commission hereby accepts the proposed PIMECO Settlement Agreement and decides to enter into said compromise instrument;
RESOLVED, FURTHER, that Acting Chairperson Reynold S. Munsayac is hereby authorized by the Commission to sign the subject Settlement Agreement and all other documents related thereto to ensure the execution and implementation of this Commission Resolution;
xxx xxx xxx."
3. The foregoing Resolution has not been revoked or modified.
IN WITNESS WHEREOF, I have hereunto set forth my hand this February 14, 2019 in the City of Mandaluyong, Philippines.
(signed)FRANCIS B. JOVESCommission Secretary 3
Finding the afore-quoted Settlement Agreement not contrary to law, morals, good customs and public policy, and appears to be freely executed by the parties, with the assistance of their respective counsels, the Court finds no reason not to grant the prayer of the parties and to bestow judicial approval upon their Settlement Agreement.
WHEREFORE, the Manifestation and Motion, separately filed by the parties are GRANTED and the instant Petition is DISMISSED. The SETTLEMENT AGREEMENT submitted by the parties is NOTED and APPROVED. Accordingly, the parties are hereby ENJOINED to strictly abide by its terms and conditions and faithfully comply with their corresponding obligations. No pronouncement as to costs.
SO ORDERED."
Very truly yours,
(SGD.) MISAEL DOMINGO C. BATTUNG IIIDeputy Division Clerk of Court
Footnotes
1.Rollo, pp. 546-550.
2.Id. at 541-543.
3.Id. at 551-557.