FIVE private defendants in graft charges involving alleged fraudulent transfer of tax credit certificates (TCC) worth P166.31 million have been acquitted by the Sandiganbayan.
Citing insufficiency of evidence presented by the prosecution, the Sandiganbayan Fourth Division said it was left with no other choice but to dismiss the cases by granting separate demurrers to evidence filed by the five executives of textile companies.
Acquitted were Antonio Roman Sr. and Marialen Corpuz of Filipinas Synthetic Fiber Corp (Filsyn); Regina Gonzales of Southern Textile Mills Inc. and Southern Dae Yeong Corp.; Tan Dy Lee of Monti Textile Manufacturing Corp.; and Esteban Castillo of Solid Development Corp.
In its 40-page resolution dated October 12, 2022, the anti-graft court said prosecutors failed to establish that the private defendants acted in concert with officials of the Department of Finance—One-Stop Shop Tax Credit and Duty Drawback Center (DOF-Center) to defraud the government.
“This Court is compelled to reject the theory of conspiracy sans positive and conclusive evidence that accused-movants’ separate acts of signing deeds of assignment were performed in pursuance or in furtherance of an unlawful common design,” the Sandiganbayan declared.
The ruling was penned by Associate Justice Lorifel Lacap Pahimna, with Associate Justices Michael Frederick L. Musngi and Bayani H. Jacinto concurring.
Based on the information filed in 2010, the Office of the Ombudsman said it found evidence of irregularities in the transfer of the TCCs to Petron Corp. through deeds of assignment.
Prosecutors said Petron was able to claim the value of the TCCs as tax exemption even if it was not a supplier of domestic capital equipment or raw materials.
In a November 17, 2010 decision, however, the Supreme Court absolved Petron Corp. officials, declaring the oil giant a transferee in good faith as it received the TCCs by delivering petroleum products to the textile companies.
However, the cases still went to trial as the SC made no pronouncements regarding the absence of fraud on the part of the textile firm executives and DOT-Center officials Antonio Belicena and Uldarico Andutan.
In throwing out the government’s cases, the Sandiganbayan noted that the prosecution failed to present witnesses who had direct personal knowledge on the complaint-affidavit and the fact-finding investigation report.
“The documentary exhibits offered by the prosecution have no probative or evidentiary value insofar as proving the offense charged. Jurisprudence dictates that an affidavit is classified as hearsay evidence if not properly authenticated and identified by the affiant,” the court pointed out.
