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[G.R. No. 138598.� December 14, 2004]
ASSET PRIVATIZATION vs. SANDIGANBAYAN
EN BANC
Gentlemen:
Quoted hereunder, for your information, is a resolution of this Court dated DEC 14 2004.
GR No. 138598 (ASSET PRIVATIZATION TRUST vs. HON. SANDIGANBAYAN et al.)
Before the Court are COA's 30 May 2004 Compliance, private respondent's 7 June 2004 Motion to Fix PJI's Obligation to PMO x x x, petitioner's 16 June 2004 Comment, COA's 26 June 2004 Compliance, private respondent's 5 July 2004 Comment, OSG's 8 July 2004 Motion for Leave to File Comment and OSG's 28 June 2004 Comment.
Per the Court's 24
February 2004 Resolution, COA recomputed PJI's obligations to be P60,428,390.42.
Private respondent, on the other hand, argued that the unpaid balance should
only be P74,894.73 for Industrial Loan C-IX plus P1,195,440.58
for the "Additional Obligations" for a total of P1,270,335.31.
The variance in
computation stems from 1) a difference in the manner of applying the
"resulting overpayment" -- of the Advances on Guaranteed Loans
(Schedule A) and the Industrial Loan Foreign Currency (Schedule B) -- totaling P56,500,105.04
and 2) computation of penalties and interests on the additional obligations.
COA did not apply the P56,500,105.04 simultaneously to Industrial
Loan C-IX (Schedule C) on the dates the payments were remitted. Reasoning that
the overpayment on the two loans merely resulted from using -- in the
recomputation -- the reduced rates required by the Court, COA concluded that
"there was no actual overpayment" on the Advances on Guaranteed Loans
and the Industrial Loan Foreign Currency. Hence, it continued computing
interests on the principal -- unreduced by the payments which are free for
application to this principal loan -- of Industrial Loan C-IX.
The Commission claims
that instead of merely computing mechanically, it acted "to determine a
fair settlement of PJI's obligations to APT/PMO." Thus, it came up with
the unpaid balance of P60,428,390.42 as a result of the following
computation:
���� Net Outstanding Obligations / |
||
����������� Particulars |
��������������� (Overpayment) |
|
����������� US$ |
������������� PhP |
|
Advances on Guaranteed Loans |
������� 974,686.11 |
�������� 53,458,609.08 |
$1,121,210.59 |
||
Industrial Loan Foreign Currency CB#1 |
��������� 55,454.19 |
���������� 3,041,495.96 |
$ 121,456.08 |
||
Industrial Loan FC Consortium |
���� 1,524,942.13 |
������� 83,638,501.00 [1] cralaw |
IX� $1,385,064.96 |
||
Advances on Loans |
������� 35,251,910.06 [2] cralaw |
|
Unpaid Guarantee Fees |
���� ��������387,324.34 |
|
Uncollected Fees |
������������������� 384.04 |
|
Total |
������� 62,778,014.40 |
|
Less: Unapplied Payments |
��������� 2,349,623.98 |
|
Net Outstanding Obligations [of PJI] |
������� 60,428,390.42 |
COA's concern for a legally fair settlement is not lost on the Court. But the Commission's mandate in this case is to make impartial computations based on the Court's Resolution of 24 February 2004. By injecting its own opinion on what is a legal and fair settlement under the circumstances instead of just computing as directed, the COA has ventured beyond its mandate and submitted a partly opinionated rather than totally impartial computation.
Private respondent correctly pointed out the following as regards the computation on the balance of Industrial Loan C-IX (Schedule C):
"x� x� x� [T]he above-stated
overpayments of
P56,500,105.04 should have been applied
simultaneously to the said third loan, which is shown by COA to have an unpaid
balance in the amount of $1,031,063.77, or
P56,550,754.59.
In applying these overpayments to the third loan, there remains a minimal
unpaid balance of only
P74,894.73, including interests of 10.5%,
as shown below:
Industrial Loan FC Consortium IX |
���������������� 56,550,754.59 |
Less: Overpayments on - |
|
Advances on Guaranteed Loans |
��������������� 53,458,609.08) |
Industrial Loan FC CB#1 |
����� ��������(3,041,495.96) |
Balance |
����������������������� 50,649.55 |
Add: Interest at 10.5% p.a. x 4yrs and |
|
204 days (Aug. 22, 1998, the date of last |
|
Payment by PJI, March 13, 2003) |
���������� �������������24,245.18 |
|
����������� vvvvvvvvvvvvv
Having said the foregoing, we nonetheless sustain a part of COA's recomputation. In addition to the balance of the third loan as set forth above, COA has shown that PJI still has the following outstanding obligations:
Advances on Loans |
��� |
Unpaid Guarantee Fees |
���������� 387,324.34 |
Uncollected Fees |
����������������� 384.04 |
Subtotal |
��� |
Less:�� Unapplied Payments |
������� 2,349,623.98 |
Total |
��� |
Private respondent's computation of the said additional obligations is not acceptable. As correctly pointed out by CO A, "[private respondent] simply deducted the accumulated payments on the three (3) obligations from the principal amounts. This is erroneous because the payments were not made on the same dates but were made between August 1, 1986 up to August 1, 1998 x x x . Thus, in between payments, the principal obligations incurred additional interest and penalty charges x x x."
Summing up the
Industrial Loan FC Consortium IX balance of P74,894.73 plus the
additional obligations balance of P33,289,994.46, PJI's total net
outstanding obligation amounts to P33,364,889.19. As pointed out in our
25 November 2003 Resolution, this amount is in accordance with Article 1229 of
the Civil Code, which mandates courts to reduce penalties that are
"iniquitous and unconscionable." It is worth reiterating that of the
original aggregate loan of US$2,627,731.63 -- or P144,123,196.71, if
converted using the rate of 54.847
[3]
cralaw
-- PJI has already paid P376,125,916.64, which is more than double the
principal loans. The government has already recovered in full the principal
amount of the loans and more. What the OSG and the COA now claim is nothing
more than unconscionable gains at the expense of the borrower.
More significantly,
PJI -- while under petitioner's management -- has continuously been sustaining
gargantuan losses
[4]
cralaw
from 1997 to 2001. As a result, the company has been operating with a capital
deficiency and by all indications is becoming another burden to the government.
Thus, the payment by private respondent of this recomputed amount of P33,364,889.19
will not only finally settle this contentious litigation but will also free the
State of a looming financial loss and cash burden.
WHEREFORE,
private respondent and/or her representatives are DIRECTED to PAY
P33,364,889.19 to APT/PMO. Upon full delivery of this amount: 1) the
Deed of Chattel Mortgage executed by PJI in favor of DBP, the Deed of
Assignment of Voting Shares dated June 17, 1977, and the Supplement to the Deed
of Assignment, dated January 16, 1979 are automatically cancelled, and 2)
APT/PMO is DIRECTED to immediately turn over management and control of
PJI to private respondent and/or her representatives and/or the other
stockholders of record of PJI.
The OSG's repetitive arguments (contained in its 28 June 2004 Comment) impugning this Court's 24 February 2004 Resolution and praying for the affirmation of COA's 13 March 2003 computations are treated as a second motion for reconsideration, and thereafter DENIED for being prohibited by the Rules.
This Resolution is immediately executory.
Very truly yours,
(Sgd.) LUZVIMINDA D. PUNO
Clerk of Court
Endnotes:
[1] cralaw ��������� Particulars�������������������������������������������������������� Amount
����������������������������������������������������������� ������ US$���������������������� ������� Php
Principal����������������������������������������������� 1,031,063.77���������������� 56,550,754.59
Regular Interest������������������������������������������������ 0.00���������������������������� �� 0.00
Service Fees���������������������������������������������������� 0.00���������������������������� �� 0.00
Additional Interest��������������������������������� �� 493,878.36���� ������������ 27,087,746.41
Penalty Charges����������������������������������������������� 0.00���������������� �� 0.00
Outstanding Obligations������������������������ 1,524,942.13���������������� 83,638,501.00
[2] cralaw Particulars������������������������������������������������������������������ Amount (PhP)
Principal����������������������������������������������������������������������� �������� 10,526,857.61
Additional Interest��������������������������������������������������������� �������� 20,717,617.20
Penalty Charges����������������������������������������������������������� ���������� 4,007,435.25
Outstanding Obligations������������������������������������������������ �������� 35,251,910.06
[3] cralaw The rate used by PMO in its Statement of Account on March 13, 2003. If the exchange rate is to be based on the sum paid by DBP when the dollar loans matured, the peso value would be much less. Thus, the government is actually recovering much more than double the principal loans.
[4] cralaw
P58,870,266 in 1997;P50,563,841 in 1998;P170,433,876 in 1999;P149,537,988 in 2000; andP152,549,043 in 2001. There are no financial reports in the records for the years after 2001.
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