By Perfecto Raymundo
MANILA, (PNA) — The Court of Appeals has stopped the release of P3.2 billion funds of Stradcom Corporation held in escrow at the Land Bank of the Philippines.
In a resolution promulgated on Sept. 27, 2013, the CA’s 6th Division said they believe that there is an extreme urgency to protect Stradcom represented by petitioner Bonifacio Sumbilla “from suffering grave injustice and injury, and is furthermore compelled to grant the TRO [temporary restraining order] to preserve the status quo binding the parties in this case.”
The 60-day TRO enjoins the Land Transportation Office, Land Bank and Stradcom represented by Cezar Quiambao from implementing the Quezon City Regional Trial Court Branch 90 ruling dated Aug. 5, 2013 denying a motion to stop the release of the escrowed fund without court approval.
In his petition to the CA, Sumbilla said the RTC “abandoned its judicial duty” to implement the final and executory ruling of the Supreme Court.
The SC in its Aug. 23, 2011 ruling, said the dispute between Quiambao and Sumbilla’s group should be resolved in an interpleader case and the funds will remain in escrow while the issue is being resolved.
The SC also ordered the transfer of the interpleader case from Quezon City RTC Branch 222 to a special commercial court.
However, Sumbilla said while the fund is in escrow, the government, through Transportation and Communications Secretary Joseph Emilio Abaya, allegedly acting upon the approval of Executive Secretary Paquito Ochoa, Jr. managed to convince the Land Transportation Office, through Asec. Virginia Torres, to have the Land Bank release P1 billion from the escrowed fund to pay for Stradcom’s liabilities to the Bureau of Internal Revenue, other banks and creditors.
“It is disturbing that even with the standing order for the LTO to deposit the escrowed billions, still a large chunk of this reserved amount was readily and easily released, and worse, as alleged by petitioner (Sumbilla), did not redound to the benefit of Stradcom,” the CA said.
The CA added if no TRO is issued, the remaining funds could also be prematurely disbursed.
Stradcom was the information technology service provider of the LTO via build-own-operate agreement.
The CA also ordered Sumbilla to post a P5-million bond to answer for whatever damages Stradcom, represented by Quiambao may incur in relation to the TRO.
Concurring with the ruling were Associate Justices Hakim Abdulwahid and Edwin Sorongon.