“The Judiciary... is supposed to be the court of last resort, the Supreme Court, in particular. But if you look at their decisions, in some cases they’ve changed decisions five times, in other cases they’ve made their decisions even before getting their files from the lower courts,” Finance Secretary Cesar V. Purisima said at the inaugural meeting of the Management Association of the Philippines on Monday.
Businesses can enjoy equal opportunities when courts are fair and just. Cases should be decided based purely on merit and not “contacts,” he said.
“The government itself is stuck in the courts,” the Finance chief said.
Mr. Purisima then identified the controversy surrounding the Nonoc Mining Industrial Corp. Nonoc was sold to Philnico Industrial Corp. in 1996 for $263.8 million. However, the company has only paid $1.25 million since then, defaulting on its privatization agreement with the government.
The deal was renegotiated after Philnico found a financing partner, but the mining firm has still failed to meet its amortization requirements.
In 2003, Philnico filed a complaint preventing the government from seeking remedies under the agreement. The case has been stuck in the Makati and Surigao Regional Trial Courts (RTC) since then.
“In the meantime, they operate the mine and up to this date they owe us $300 million plus... This is a clear case and just one of the many examples why we’re stuck in court,” Mr. Purisima said.
“The [Philippine Export-Import Credit Agency] guaranteed their debt. They did not even pay their guaranty fee, and they defaulted. We’ve been paying their debt to their creditors. They have us stuck in the Quezon RTC for three years already and we cannot move,” he continued.
The government’s cases filed weekly against tax evaders and smugglers are also progressing slowly in the Judiciary. These involve billions of pesos in possible government revenues, Mr. Purisima added.
The Aquino administration has been at odds with the Judiciary, especially the Supreme Court, culminating with the ongoing impeachment trial of Chief Justice Renato C. Corona.
Mr. Corona has been accused of betrayal of public trust, non-disclosure of his Statement of Assets, Liabilities and Net Worth, and graft and corruption.
The case continues in the Senate. -- Diane Claire J. Jiao
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