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Monday, March 24, 2008

 

Lawmaker urges judge
to inhibit self from case

Rep. Padilla noted that the Appeals Court stopped Judge Austria from ­­enforcing questionable decision

By Sammy Martin, Correspondent

A veteran lawmaker over the weekend urged a controversial Batangas City Regional Trial Court judge to inhibit herself from the rehabilitation case of Steel Corporation of the Philippines (SCP) even as he noted that the Court of Appeals has already stopped the judge from enforcing a management committee to act on the complaints of the steel company.

Nueva Vizcaya Rep. Carlos Padilla Jr.. said Judge Maria Cecilia Austria of Branch 2 of the Batangas Regional Trial Court should now seriously consider inhibiting from the rehabilitation case even as an associate justice in the Court of Appeals had already inhibited himself in response to a petition by lawyers of SCP.

Padilla had earlier delivered a privilege speech accusing Judge Austria of conspiring with two commercial banks to take over SCP by ordering its rehabilitation and immediately appointing a receiver in the person of lawyer Santiago Gabionza, who in turn appointed a financial adviser.

“Its about time that Judge Austria seriously considered inhibiting herself from further handling the SCP rehabilitation case since it was her highly questionable decision that started the controversy that forced SCP officials to file strings of cases against her before the Ombudsman, the Court of Appeals and Office of the Court Administrator,” Padilla said.

Padilla pointed out that CA Associate Justice Sixto Marella Jr. has already inhibited himself from the SCP petitions pending in his division to clear the air from perceptions that his handling of the case tend to favor the creditor-banks which filed the rehabilitation case.

In a memorandum to Justice Mario Guarina III, chairman of the CA’s 16th  Division dated March 7, Marella granted the petition of SCP for him to inhibit from the
cases against respondent Judge Austria whose decision to place SCP under rehabilitation is being contested by the steel company.

SCP filed the motion for voluntary inhibition against Marella based on the belief that “there may have been a deliberate attempt on the part of certain persons to direct all cases regarding the rehabilitation of Steel Corp to the chambers of Justice Marella.”

SCP’s motion was further fueled by Marella’s denial of the company’s
application for temporary restraining order on December 10, 2007 which paved the way for the implementation of thE highly-questionable rehabilitation plan as contained in the decision by Judge Austria of the Batangas City RTC.

Earlier, Associate Justice Apolinario Bruselas Jr. granted a 60-day temporary restraining order that stopped controversial Judge Austria from implementing her order allowing creditors of SCP to take over the operations of the company through a management committee. 

Judge Austria, Banco de Oro-Equitable PCI Bank and the court-appointed receiver Lawyer Santiago Gabionza were ordered  “to desist from pursuing the constitution of a management committee and require to file within 10 days from notice their comment to the petition” filed by SCP.

Padilla also questioned the timing of Judge Austria ’s acquisition of two new cars which he discovered to have been acquired sometime in May, 2007 saying that this was about the time when the Batangas City judge was already mulling on handling over the majority ownership and management control of SCP to its creditor-bank, particularly Banco De Oro.

Padilla, who started the expose on the now raging ZTE-NBN broadband deal controversy, was referring to her acquisition of two brand-new luxury cars, a Toyota Camry with plate number VEE 548 and a red and white-striped Mini Cooper with plate number NMD 272.

Previously, SCP filed criminal and administrative cases against Judge Austria at  the Ombudsman and the Office of the Court Administrator for alleged “bias, incompetence and evident partiality” when she decided to place SCP under rehabilitation, appointed an unqualified and conflicted receiver, and mandated a baseless debt-to-equity conversion that allowed the forcible transfer of the majority ownership and management of SCP to the creditor banks.

   

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Severino O. Frayna Jr., Benjie Dela Rosa
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