VS. THE HONORABLE SANDIGANBAYAN, THE PRESIDENTIAL COMMISSION ON GOOD

Ruling

WHEREFORE, the turn-over to the GSIS of the said property should be done forthwith upon compliance with these conditions, to be implemented by the Operations and Legal Departments: (a) joint PCGG-COA audit; (b) approval by the Sandiganbayan; and (c) execution of a Memorandum of Agreement to contain these stipulations, among others: (a) that the shares of Peter Sabido in PIMECO are subject to the Sandiganbayan case; (b) that any disposition or transfer by the GSIS of said property or any part thereof shall be with the conformity of the PCGG; and (c) that this Memorandum be annotated on the title of the property. [7] Meanwhile, PCGG instituted with the Sandiganbayan on July 29, 1987 a complaint for reconveyance, reversion, accounting, restitution and damages, docketed as Civil Case No. 0024, entitled, "Republic of the Philippines, Plaintiff versus Peter Sabido, et al., Defendants." [8] The complaint alleged, in pertinent part, that Peter Sabido obtained, under favored and very liberal terms, huge loans from the GSIS in favor of PIMECO, among other corporations, which was beneficially held and controlled by defendants Peter Sabido, Roberto S. Benedicto and Luis D. Yulo; and that PIMECO was granted the monopoly to supply meat products in the Greater Manila Area. Defendant Peter Sabido filed his answer, [9] alleging that the acts, deeds, transactions and contracts referred to in the complaint were negotiated and/or executed by his father, the late Roberto M. Sabido, and not by him; and that, far from being illegal, the acts performed or committed by the late Roberto M. Sabido as a corporate officer of PIMECO were done in good faith, to the best of his ability and in accordance with law, and whatever income he received as an officer of PIMECO and whatever assets or properties he acquired during his lifetime were the fruits of his dedication to his profession, hard work, and honest labor. On April 28, 1989, defendant Sabido filed with the Sandiganbayan an Urgent Manifestation and Motion, [10] to the effect that he has come across newspaper reports stating that PCGG intends to turn over the management, control and possession of PIMECO to the GSIS and MPCP. Sabido also learned from a reliable source that the PCGG has passed a resolution to implement the said turnover. Hence, Sabido argued that inasmuch as PIMECO was a sequestered asset, the projected turnover must be approved by the Sandiganbayan. He prayed that PCGG be required to admit or deny these matters. The Sandiganbayan, in a Resolution dated May 4, 1989, [11] ordered the PCGG to submit its comment as to the veracity of the alleged turnover of the management, control and possession of PIMECO to the GSIS or MPCP, and if true, to furnish movant Sabido a copy of the PCGG resolution approving the same. Meanwhile, on May 20, 1989, Sabido filed an Urgent Manifestation and Motion, [12] alleging that, according to newspaper accounts, PCGG had in fact already turned over the management and operation of PIM