MANILA, Philippines – Seventeen officials of the Manila Electric Co. (Meralco) were cleared yesterday of syndicated estafa charges involving P889 million in meter and bill deposits from the power firm’s customers after a Pasig judge found the case against them to be without legal basis.
Cleared were Manuel Lopez, Felipe Alfonso, Jesus Francisco, Arthur Defensor Jr., Gregory Domingo, Octavio Victor Espiritu, Christian Monsod, Federico Puno, Washington Sycip, Emilio Vicens, Cesar Virata, Daniel Tagaza, Rafael Andrada, Helen de Guzman, Antonio Valera, Manolo Fernando and Francisco Viray.
Since there is no finding of probable cause against the Meralco officials, there is therefore no basis to issue warrants of arrest against them, according to Judge Franco Falcon of Pasig Regional Trial Court branch 71.
Meralco spokesman Elpi Cuna said they are happy with the court’s decision “because the rule of law has been upheld.”
In his decision, Falcon said the Meralco officials cannot be charged with syndicated estafa because they are not the “syndicate” contemplated by law as being formed to perpetrate an illegal act.
The Meralco officials were elected by the stockholders for the purpose of managing a company with a legitimate objective, he added.
Under Presidential Decree 1689, for a group to be considered a “syndicate,” it must consist of five or more persons formed with the intention of carrying out the unlawful or illegal act, according to the decision.
Falcon said the elements of estafa under Article 315 of the Revised Penal Code also require that the offender receives money, goods or other personal property in trust and misappropriates or converts them to the prejudice of another party.
“To constitute estafa, the law requires that the subject money or property be received by the offenders,” read the decision.
“The subject amount of money was never received by Meralco’s officers and directors. The money represents the accrued interests on the bill and meter deposits which were paid by the customers, not to the accused, but to certain Meralco branches.”
“These deposits earn corresponding interests which may be refunded by the customer upon compliance with certain rules and conditions such as payment in good standing, termination of the service, and the return of the metering facilities in good condition,” read the decision.
Falcon said there is no evidence that the Meralco officials misappropriated or converted the money which may be due to its customers later on.
“What is clear is that Meralco and the customers are debtors and creditors, respectively, over the subject deposits and the former has civil obligation, which it does not nor did it ever deny, to refund its customers the deposits with interest according to the rules and regulations prescribed by the Energy Regulatory Commission (ERC),’” read the decision.
The case arose from a complaint filed by the National Association of Electricity Consumers for Reform (Nasecore) against the Meralco officials on May 29.