The Court of Appeals (CA) issued a Temporary Restraining Order (TRO) preventing the government from using Stradcom’s P3 billion escrowed fund.
Stradcom Corp, the Land Transportation Office’s (LTO) exclusive IT system provider, has a long-standing internal dispute on who rightfully owns the company.
In an 8-page resolution penned by Associate Justice Marlene Gonzales-Sison, the CA sixth division issued a 60-day TRO prohibiting the implementation of an August 5 order of Quezon City Regional Trial Court (RTC) refusing the appeal of Stradcom Corp, represented by Bonifacio Sumbilla to prevent the release of funds without the t court’s authority.
Concurring with the ruling are Associate Justice Hakim Abdul wahid and Associate Justice Edwin Sorongon.
Stradcom’s Bonifacio Sumbilla and Cezar Quiambao have been on prolonged disagreement over management and ownership.
In 2011, QC RTC upheld LTO chief Virgina Torres’ decision to deny Stradcom payments totaling P1.2 billion and to put the IT company’s fund in an escrow account in Landbank of the Philippines.
Sumbilla claimed that the Department of Transportation and Communication (DOTC) through Secretary Emilio Abaya persuaded the LTO chief to release P1 billion to pay Stradcom liabilities despite court orders putting Stradcom’s money on an escrowed fund.
Sumbilla said that Stradcom paid liabilities to Bureau of Internal revenue (BIR), banks and creditors, working capital and trade payables which in turn, caused Landbank to release money from escrowed funds.
In the TRO issued by CA, respondents RTC, Land Transportation Office (LTO), represented by Asec. Virginia Torres, Stradcom’s Quiambao group, and the Land Bank of the Philippines are ordered to explain why the court’s preliminary injunction should not be favoring Sumbilla group.
Jorge F. Zamora