THE Sandiganbayan Second Division has granted the government’s motion to declare in default defendants in Civil Case No. 0182 concerning the disputed majority shares in Domestic Satellite Philippines Inc. (Domsat).
In an 11-page resolution dated May 30, 2022, the anti-graft court said that eight of 10 defendants in the case have lost their standing in court for failure to submit their respective answers to the government’s petition despite having been accorded ample time to do so.
The defendants are Investa Corporation, Rosol International Inc., MLI Realty and Development Inc., Ignacio Debuque Jr., Rodrigo Silverio, Cenon Cervantes Jr., Luz Yap, and Leonardo Godinez.
Based on court records, only defendants Nilo Peña and the estate of Pompeyo Nolasco filed their answers.
Civil Case No. 182 was filed by the Presidential Commission on Good Government (PCGG) on March 3, 1998 asking the Sandiganbayan to nullify the management contract between Domsat and Investa in 1989.
Government lawyers claimed the payment scheme to Investa giving it 10,000 shares worth P1 million per semester effectively diluted the PCGG’s stake in Domsat from more than 50 percent to just 16 percent as of 1998.
The commission said those who approved the contract were members of the new Board of Directors, who were nominees of alleged Marcos cronies Roberto Benedicto, Jose Africa, and Manuel Nieto.
In declaring the defendants in default, they noted that notifications were duly served to them by legal processes including through publication and substituted service of alias summons.
“A defendant declared in default loses his or her standing in court. He or she is deprived of the right to take part in the trial and forfeits his or her rights as a party litigant, has no right to present evidence…, and has no right to control proceedings or cross-examine witnesses,” the Sandiganbayan said.
However, it clarified that though held in default, the eight defendants would still be notified of subsequent hearings and other proceedings while the plaintiff (Republic of the Philippines) must still present evidence to support its case.
