SC: CA ruling on Meralco stays

MANILA, Philippines – The battle for majority control of the board of the Manila Electric Co. (Meralco) is far from over as the decision rendered by dismissed Court of Appeals (CA) Justice Vicente Roxas remains in effect while it is on appeal before the Supreme Court.

SC spokesman Midas Marquez said the CA ruling on the Meralco board election row stays unless the high tribunal, acting on the review of the case, decides otherwise.

Roxas wrote the CA decision on July 8, saying the Securities and Exchange Commission (SEC) had no jurisdiction to intervene in any intra-corporate dispute that involves the Government Service Insurance System (GSIS) and Meralco.

The GSIS urged the SEC to restrain Meralco from holding its annual stockholders’ meeting, in the attempt to prevent the Lopez group from retaining control of the board.

The GSIS, through the Office of the Solicitor General (OSG), filed a petition with the SC questioning the validity of the CA ruling over the case.

Marquez said the CA decision would stay unless the SC finds reasonable ground to overturn the ruling.

“The merits of the case are on appeal. Unless (the ruling) is overturned by the Court, it is      valid,” Marquez said.

He said the SC is giving the issue priority, but revealed the case is not yet ripe for decision since the Court is still waiting for the parties to complete their pleadings.

Marquez said the recommendations made by the panel of three retired SC justices on the CA’s handling of the Meralco case would be included in the records.

He said the panel recommendations would be taken into consideration by the high court in determining whether the CA ruling should be upheld. 

The panel composed of retired SC justices Carolina Griño-Aquino, Flerida Ruth Romero and Romeo Callejo conducted an almost month-long fact-finding hearing on the alleged irregularities in the CA’s handling of the Meralco case. The panel’s findings were then submitted to Chief Justice Reynato Puno.

Taking note of the recommendations, the SC dismissed Roxas for his questionable handling of the Meralco case, which “demonstrates his (Roxas’) undue interest.”

The SC said Roxas began drafting his decision even before the parties had completed their pleadings, which indicated a “rush to judgment.”

The SC also meted out sanctions on other CA justices who, according to the investigating panel, have committed irregularities and improprieties in handling the Meralco case.

Admonished and reprimanded by the SC were CA Presiding Justice Conrado Vasquez Jr., Associate Justices Myrna Dimaranan Vidal and Bienvenido Reyes.

The SC suspended CA Associate Justice Jose Sabio, the “whistleblower” in the controversy, for two months.

Plugging the leaks

Marquez said the SC decision to dismiss Roxas and sanction the other CA magistrates was a step toward restoring public trust in the judiciary.

Marquez said the SC had prioritized the allegations of bribery in the case in an effort to show its resolve in addressing corruption and impropriety in the judiciary.

He said the SC is now reviewing the system in order to identify areas of weaknesses and protect court officials and members of the judiciary from undue influence.

“We are coming out with certain remedies or measures to shield, or to make it difficult for anyone who would like to influence the decision of the court. We will be putting up institutional measures to make it hard to penetrate and influence the decisions of the courts,” Marquez said.

SC Associate Justice Leonardo Quisumbing said the decision on the CA mess virtually “removed a thorn” from the appellate court.

“As far as I am concerned, one thorn removed. Because it is not good to have a controversy hanging over their (CA justices) heads,” he said.

Quisumbing added the SC would separately decide on the appeals filed by the GSIS and the OSG questioning the Roxas decision.

He said the SC decision on how the CA justices handled the Meralco case is an entirely different matter.

“Those are cases on the merits (GSIS and OSG appeals), those are not cases on the behavior of the members of the Court of Appeals. They have to be taken up separately,” he said. 

Malacañang also agreed the SC decision on the CA mess is a right move to restore faith in the country’s judicial system.

Press Secretary Jesus Dureza said the controversy at the CA was properly handled by the judiciary’s internal and self-correcting mechanisms.

“I’m sure that the process within the Court of Appeals and within the judiciary will go a long way in strengthening the faith of the public in the administration of justice in this country,” Dureza said.

Dureza noted that the parties affected by the ruling would likely seek some form of relief, which would be handled by the internal processes of the judiciary.

“They are still entitled to relief from that ruling. There is still a possibility that those who have been the object of this investigation and the penalties provided, (will have) opportunity to pursue the next steps, so we will leave that to them,” he said.

One of the individuals involved in the case was Presidential Commission on Good Government chairman Camilo Sabio, elder brother of CA justice Jose Sabio.

Though not a member of the judiciary, Camilo is a member of the Bar and subject to the code of conduct of lawyers.

The SC has referred the case of the PCGG chairman to the Office of the Bar Confidant for appropriate action.

It was unclear what sanctions would be imposed on Sabio for his involvement in the controversy, but he could be disbarred at the very least.

Considering that Sabio, as PCGG chairman, is under the jurisdiction of the executive branch, any case lodged against him would eventually be handled through an internal process involving the so-called Committee of Peers.

The PCGG chief, however, refused to comment on the suspension of his younger brother by the SC.

Lifestyle check proposed

On the other hand, the Department of Justice (DOJ) is also forming a panel to investigate the younger Sabio on his claims that he was offered a P10-million bribe by businessman Francis de Borja to relinquish chairmanship of the CA division handling the Meralco case.

Justice Secretary Raul Gonzalez said the panel would summon Sabio and De Borja for the probe.

According to Gonzalez, the DOJ had anticipated that the SC would refer to them the bribery allegations made by Sabio.

Gonzalez also called on Chief Justice Reynato Puno to order a “lifestyle check” on the CA justices.

While the Supreme Court was able to restore confidence in the judiciary with its order to dismiss a justice of the appellate court and sanction four other magistrates, Gonzalez said the move should go further against “hoodlums in robes.”

“The SC decision on the CA bribery case is already a good step because at least some sacred cows were disciplined,” he said.

Lawmakers also called on the SC to do the lifestyle check on CA magistrates.

“If they (SC justices) really want to cleanse the CA, I propose that all CA justices should be subjected to lifestyle check, whether there is accusation of bribery or not,” Manila Rep. Bienvenido Abante suggested.

Romblon Rep. Eleandro Jesus Madrona, chairman of the House ethics committee, supported the proposal of the lifestyle check, and added that it should include judges of lower courts all over the country.

Sen. Alan Peter Cayetano said the SC did a very good job in coming out with the immediate decision to suspend and admonish the CA justices involved in the controversy.

“Investigation was fast and transparent. SC discussed and came out with a decision right away with appropriate penalties. The judiciary showed the executive and legislature how to address graft speedily from within its ranks,” Cayetano said.

Sen. Miriam Defensor-Santiago, for her part, called on the three CA justices to resign immediately.

She agreed with the DOJ in investigating De Borja for attempted bribery and perjury.

Santiago also called for the abolition of the Judicial and Bar Council and the formation of a new charter.

“All these shady justices were recommended by the Judicial and Bar Council. In the ultimate analysis, it is the JBC that is one of the causes of corruption in the judiciary,” she said.

Senators Juan Ponce Enrile and Francis Pangilinan, for their part, called for the disbarment of Roxas.

Enrile had accused Roxas of being partisan in a privilege speech, calling the sacked CA magistrate a member of the “Forty Thieves” in the judiciary.

“I think he (Roxas) deserves to be booted out of the judiciary. In fact, he should be disbarred,” Enrile said.

Enrile also welcomed the SC’s move to reprimand Sabio because that will be reflected in his record.

Sen. Richard Gordon welcomed the SC decision to dismiss Roxas and suspend Sabio.

“In these times when amorality and apathy seem to prevail in our society, the highest court of the land has demonstrated that it will never tolerate corruption within its ranks,” Gordon said. –With Delon Porcalla, Aurea Calica, Christina Mendez, Jose Rodel Clapano, Rhodina Villanueva