The Sandiganbayan has recently dismissed the multiple counts of graft charges filed by the Office of the Ombudsman against former top executives of Petron Corp. in connection with the tax-credit scam in the 1990s.
In two separate resolutions released on March 2, the Sandiganbayan Fourth Division granted the motion to dismiss filed by former Petron President Monico Jacob, Vice President and General Manager Celso Legarda, Vice President for Refinery Apolinario Reyes and Senior Marketing Executive Rafael Diaz Jr.
They were charged over the “questionable” transfer of P700.742 million worth of tax-credit certificates (TCCs) to the oil company.
Also, the Sandiganbayan dismissed the cases filed against another Petron executive, Reynaldo V. Campos, due to his death on January 20, 2013.
According to the court, the charges against the Petron officials were dismissed on the ground of re judicata, which bars relitigating issues that have been resolved.
However, the antigraft court said the cases filed against their other coaccused—Finance Undersecretary Antonio P. Belicena and One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center Deputy Director Uldarico Andutan Jr.—are still pending before the court.
In their motion to dismiss, the Petron executives cited the 2010 Supreme Court (SC) ruling on Pacifico Cruz of Pilipinas Shell v. Sandiganbayan involving P131.2 million worth of TCCs.
The TCCs were allegedly issued illegally by the Department of Finance’s One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center to Pilipinas Shell Petroleum Corp.
The SC, in the ruling, ordered the antigraft court to dismiss the charges against Shell executives, on the grounds of “transferee in good faith and for value of the TCCs”.
A TCC is issued to an eligible business entity, which makes use of imported or local raw materials to manufacture new products for export abroad. The court said since the business of Pilipinas Shell and Petron Corp. is similar in nature, the Pilipinas Shell ruling should also apply to Petron.
“Petron, represented by accused-movant, was found not to be a party to the fraudulent issuance and assignment of the TCCs, and was, therefore, considered as a transferee in good faith and for value,” the Sandiganbayan said.