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Monday, February 04, 2008

 

EXCLUSIVE

CA allows govt to go after P1B
paid for poll automation

By Jomar Canlas, Reporter

The Court of Appeals paved the way for government to pursue its billion-peso claim against the company that sold poll-automation equipment to the Commission on Elections (Comelec).

In a 10-page decision penned by Associate Justice Japar Dimaampao, the appellate court’s 16th Division reversed the findings of Judge Winlove Dumayas of Branch 59 of the Makati Regional Trial Court for grave abuse of discretion amounting to lack or excess of jurisdiction, when he denied the government’s petition for a writ of attachment to claim the amount paid to Mega Pacific E-Solutions.

In the appellate court ruling, government now has a chance to recover the P1.05 billion it paid, through the Co­melec, for the purchase of 1,991 automated counting machines.

Dimaampao said the court found merit in the petition of the Office of the Solicitor General in view of the fraud committed by Mega Pacific and of the fact that Comelec allowed an unqualified corporation—the Mega Pacific Consortium—to participate in the poll-automation project.

The respondents in the case are Mega Pacific incorporators Willy Yu, Bonnie Yu, Enrique Tansipek, Rosita Tansipek, Pedro Tan, Johnson Fong, Bernard Fong and Lauriano Barrios.

The Court of Appeals also chided the Makati court for denying the plea of the government for a writ of attachment and ignoring the documents, which would be used against the Comelec and Mega Pacific. This would include the fact that company was incorporated only on February 27, 2003, or 11 days prior to the bidding.

”In an attempt to disguise its ineligibility, private respondent MPEI participated in the bidding as lead company of a putative consortium known as Mega Pacific Consortium, and submitted the incorporation papers and financial statements of the members of the consortium … and no proof of the joint venture agreement, consortium agreement, memorandum of agreement, or business plan executed among the members of the purported consortium was ever submitted to Comelec,” the ruling stated.

To the Court of the Appeals, there were glaring indications “of fraud that entitled petitioner [Philippine government] to a writ of preliminary attachment.”

With this, the appellate court ruled that the grave abuse of discretion committed by the Comelec should not make the Filipino people suffer further, the court said.
The Court of Appeals stressed that the Supreme Court itself ruled that fraud was committed “as it decisively declared that Comelec’s acts of awarding the automation contract to Mega Pacific Consortium, an entity that did not participate in the bidding; and signing the actual automation contract with private respondents MPES, a company that joined the bidding but had not met the eligibility requirements were downright illegal, imprudent and hasty.”

Dimaampao also noted that the government should be given a chance to “pierce the veil” of Mega Pacific to prevent it from repeating what they had done.

Unlike other petitioners, no bond was required from the government for the damages that the company may sustain because of the attachment, since the “Republic of the Philippines need not give this security as it is presumed to be always solvent and able to meet its obligations,” the appellate court said.

Other Magistrates who concurred in the ruling are Justices Mario Guarina and Sixto Marella Jr.

   

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