Professional Documents
Culture Documents
DEPARTMENT OF JUSTICE
MANILA
FRANCISCO I. CHAVEZ,
Complainant,
COUNTER-AFFIDAVIT
1
allegedly dishonored and discredited his "unsullied
General".
the private practice of law. For more than thirty (30) years,
n-
--u CVCLAW has enjoyed a solid reputation for excellence,
first place.
2
considering the background between complainant Chavez and
Villaraza.
3
certain Melchor Chavez, a namesake who was also a
Senate seat).
4
6.5.1. Naturally, in support of the
Complaint-Affidavit itself. It is a
3
Annex "C" of the Complaint-Affidavit.
At p. 17 of the Complaint-Affidavit.
5
defective for being plagued with
in a psychology class.
following reasons:
6
9. The foregoing rules on venue in libel extend even
Penal Code:
7
filed. In this case, the MTC of Echague, over
which respondent presides, is not a municipal
trial court of the city or of the capital of the
province and, therefore, has no jurisdiction to
conduct the preliminary investigation of Criminal
Case No. 5807. This is a matter which respondent,
as presiding judge, ought to know. In Dumo v.
Perez this Court said that although judges cannot
be held to account or answer criminally, civilly
or administratively for every erroneous judgment
or decision rendered by him in good faith, it is
imperative that they should have basic knowledge
of the law. The jurisdiction of the court over
which one presides is such basic matter. To be
able to render justice and to maintain public
confidence in the legal system, judges must keep
abreast of the laws and jurisprudence. Rule 1.01,
Canon 1 of the Code of Judicial Conduct provides
that judges must be the embodiment of competence,
integrity and independence. Obviously, they cannot
live up to this expectation if they act in a case
wi thout jurisdiction through ignorance." (At p.
31; emphasis and underscoring supplied)
to the fact that his libel complaint did not reflect the
Co correct venue, thus resulting in the dismissal of his case.
5
Please also see the attached 12 February 2007 article written by
Victor C. Agustin entitled, "BC gives Chavez crasb. lesson" f attached
as Annex "2 11
8
province or city where the libelous article is
printed and first published.
x x x
6
Par. 1 at p. 1 of the Complaint-Affidavit.
9
13.2. Even complainant Chavez admitted that
("OCP Makati"), and not with the Honorable Office, which has
10
proper procedure would have been for him to file
9
clearly indicative of arbitrariness or prejudice.
9
cf. Barnes vs. Reyes, 598 SeRA 107 (2009).
10 Part IV (II) (H) thereof in relation to Department Order No. 54 dated
20 February 1992.
11 Part II, paragraph 4 of DOJ Circular No. 62, series of 2000.
11
whether the Makati City Prosecutor should inhibit himself
respondents".
12
designated by the Honorable Secretary of Justice to take
instant case.
guilty thereof.
n"
_U II. The Co~~aint-Aidavit Should
Dismissed For Evident Lack
Be
Of
Probable Cause.
Complaint-Affidavit is warranted.
13
article, which contained indiscriminate libelous statements
Influence-peddling
Not a squeak
14
'Why are they making noise now? They are
positioning themselves for the incoming
administration?' he added.
Appointments
r:
, >
'So, what if they belong to The Firm? I will
be firmer,' he added.
'~)
Channel 27.
13 A copy of the full text of the PDI article of 18 May 2010 as published
in the POI is attached as Annex "3".
15
23.1. During the course of his interview on
16
25. As a result of the foregoing unprovoked, unfounded
17
put some sense into his bizarre and irrational
fixation with The Firm', he said.
Eyeing DOJ
18
28. Libel is defined as a public and malicious
d. Existence of malice. 17
19
32. For clarity, the portion of the subj ect statement
follows 1 9 :
of himself and not from the subj ect statement. The same thus
20
35. Being mere innuendo, the subj ect statement cannot
innuendos.
for libel.
21
38. Complainant Chavez's claims should be simply
Phi~s., Inc., 396 SCRA 210 (2003), the Supreme Court defined
22
this jurisdiction, it is accepted doctrine that a man's
23
42.2. Complainant Chavez is also famous for
the Senate. 29
24
42.4. Indeed, complainant Chavez is reputed
25
What should be done is to
investigate Frank Chavez for dereliction
of duty, incompetence, ignorance of the
law, etc. This may not be difficult.
After all, as my favorite columnist often
described Frank Chavez, 'He is a bright
lawyer whose spotless record is
unblemished by a single victory.'
case: 32
31
A copy of the sald letter which appeared on the 07 July 1999 issue of
the Manila Standard is attached as Annex "B".
32 Please also see the attached 12 February 2007 article written by
Victor C. Agustin entitled, "Be gives Chavez crash lesson", Annex "2"
hereof.
26
42.7. Complainant Chavez's track record as
Chavez. 3 4
33 "The better Locsin takes on the Tius", COCKTALES, Reading Between the
(Head) Lines, by Victor C. Agustin, published on 19 February 2010.
[Available online: http://cocktales . ph/?cat~3&paged=4 (last accessed:
02 June 2010)]
34 At p. 10 of the Albano privilege speech, Annex "6" hereof.
35 At p. 10 of the Albano privilege speech, Annex n6" hereof.
27
Mercedes Benz in the embarrassingly
in an unaccounted amount of
P445, 800.00. 37
model vehicles. 38
36
At p. 10 of the Albano privilege speech, Annex \\6 11 hereof.
37
At p. 11 of the Albano privilege speech, Annex "6" hereof.
38
At p. 12 of the Albano privilege speech, Annex "6" hereof.
39
At pp. 4 - 5 of the Albano privilege speech, Annex "6" hereof.
28
running in the 1992 senatorial race,40 which he
characteristically lost.
service. 43
29
government despite the obvious conflict of
known not only for his antics and poor track record, but more
30
45. All told, the subj ect statement is not defamatory
31
1. Being A Fair Comment On
A Matter Of Public
Interest, The Subject
statement Constitutes
Qualifiedly Privileged
Communication.
communication.
32
The exceptions provided in Article 354 are
also known as qualifiedly privileged
communications. The enumeration under said article
is, however, not an exclusive list of qualifiedly
privileged communications since fair commentaries
on matters of public interest are likewise
privileged. x x x" (At pp , 709-710; emphasis and
underscoring supplied)
33
52. In this case, complainant Chavez claims that the
will be firmer". 50
34
55. Thus, even if it were to be considered that the
necessarily be dismissed.
public opinion.
35
58. The rationale for such standard when public figures
Representatives.
36
admi tted that he is already "sika t:" or famous. From the
"F. Chavez:
37
"We close this ponencia with the following
oft-quoted excerpts from an old but still very much
applicable holding of the Court on how public men
should deport themselves in the face of criticism:
38
65. To set the record straight, however, none of the
vilifying assertions.
figures:
39
67. Similarly, in Sazon vs. Court o Appea~s, 255 SCRA
692 (1996), the Supreme Court held that when the remarks and
government.
40
70. In the Complaint-Affidavit, complainant Chavez
music-recording endeavors. 55
Affidavi t. 57
53 At p. 6.
5. At p , 8.
55 At p , 15.
5' P1 ease see p , 1 of the full transcript of the program Punta Par Punta,
Annex "13" hereof, where complainant Chavez stated that he occupied the
position of Solicitor General from 16 March 1987 up to 06 February 1992.
57
Un2ted Church Board vs. Sebastian, 159 SCRA 446 (1988); Zaldivar vs.
Gonzales, 160 SCRA 843 (1988); Republic vs. Court of Appeals, 182 SCRA
290 (1990); Metropolitan Traffic Command West Traffic District VB.
Gonong, 187 SCRA 433 (1990); Kimberly Independent Labor Union ve ,
Drilon, 185 SCRA 191 (1990).
41
72.1. For instance, in Za~divar vs. Gonza~es,
Ombudsman.
track record.
42
Chavez failed to defend former Minister of Labor
58 Beltran vs. Executive Secretary, 167 SCRA 393 (1988); People vs.
Inting, 187 SCRA 789 (1990); Chavez vs. Sandiganbayan, 193 SCRA 282
(1991); Silverio vs. Court of Appeals, 195 SCRA 760 (1991).
43
Supervisor involving election offenses have to be
44
pursuant to Article II I, Section 6 of the
complainant Chavez can fairly claim credit for all the cases
45
the public in general.~
x x x
60 At pp. 7 and 26 of the Albano privilege speech, Annex "6" hereof; "The
better Locsin takes on the Tius l1 , COCKTALES 1 Reading Between the
(Head) Lines, by Victor C. Agustin, published on 19 February 2010.
[Available online: http://cocktales . ph/?cat=3&paged=4 (last accessed:
02 June 2010)].
51 04 February 1992 issue of the Philippine Times Journal, quoted at p.
of the Albano privilege speech, Annex "6" hereof; "The better Locsin
takes on the Tius", COCKTALES, Reading Between the (Head) Lines, by
Victor C. Agustin, published on 19 February 2010. [Available online:
http://cocktales.ph/?cat=3&paged-4 (last accessed: 02 June 2010)J.
62
cf. a reader's letter which appeared on the 07 July 1999 issue of the
Manila Standard, Annex "8" hereof.
46
information hardly falls within any realm of
privacy complainant could invoke, since the
pendency of these criminal charges are actually
matters of public record." (At p. 219 and 223;
emphasis and underscoring supplied)
dismissed:
that the subj ect statement was published with good motives
47
80. As previously pointed out, the publication of the
imputations of wrongdoing. 63
"Self-defense is man's In a
inborn right.
i>
,( \ physical assault retaliation becomes unlawful
'--0
after the attack has ceased, because there would
be no further harm to repel. But that is not the
case when it is aimed at a person's good name.
Once the aspersion is cast its sting clings and
the one thus defamed may avail himself of all
necessary means to shake it off. He may hit back
with another libel which, if adequate, will be
justified.
x x x
48
For all the foregoing, we find that the libel
in question is justified and appellant is,
therefore, acquitted with costs de officio."
(Emphasis and underscoring supplied)
Court affirmed the ruling of the trial court which held that
49
had absolutely no motive to libel Atty.
Ruiz who, by the way, cast the first
stone. ' (Amended Record on Appeal,
pp. 10-11)
50
by victory, but even took his side by emphasizing that such
51
"The main function of a government prosecutor
during his conduct of preliminary investigation is
to determine the existence of probable cause and to
file the corresponding information should he find
it to be so. The purpose of a preliminary
investigation is to secure the innocent against
hasty, malicious and oppressive prosecution, and to
protect him from an open and public accusation of
crime, from the trouble, expense and anxiety of a
public trial, and also to protect the state from
useless and expensive trials. A preliminary
investigation serves not only the purposes of the
State. More important, it is a part of the
guarantees of freedom and fair play which are
birthrights of all who live in this country. It is,
therefore, imperative upon the fiscal to relieve
the accused from the pain of going through a trial
once it is ascertained that no probable cause
exists to form a sufficient belief as to the guilt
of the accused." (Emphasis and underscoring
supplied)
herein. 65
65 R.R. Pare d es VS. Calilung, supra; Col1antes VS. Marcelo, 530 seRA 142,
156 - 157 (2007).
52
SUBSCRIBED AND SWORN to before me this 16 t h day of June
2010 in the City of Manila, Metro Manila.
~~ ue.tJ!.L...f)-
T~ODORE M. VILLANUEVA
Senior State Prosecutor
CERTIFICATION
~~~~
Senior State Prosecutor
Counte.r;-RRA dated 16June2010 [FIN]
e RER nefs
53
"Francisco I. Chavez vs. Al.ejandro Al.xonso E. Navarro, et a1.."
I.S. No. XVI-INV-10E-00143, Department of Justice, Manila
INDEX OF ANNEXES
l~~~][=--~~~==-~~~___~--=_~~~=-~~=: =-=-~~~J
"1" Affidavit
Fernandez
dated 11 June 2010 of
_
Atty. Victor c.
1
REPUBLIC OF THE PHILIPPINES)
ANNEX." i
MAKATI CITY, METRO MANILA ) S. S.
AFFIDAVIT
1
1. 5. I joined the government in 03 March
2003 where I served as the Deputy Ombudsman for
Luzon with the Office of the Ombudsman until 03
March 2010.
o television
CVCLaw as
and radio,
"influence-peddlers"
maliciously labeling
and portraying
partners
them to be
of
2
3.2. Frank, as we all knew him then, was a
dirt-poor ~probinsyano" from Negros Occidental.
At the time, he was dorming at the cheapest on-
campus dormitory called Narra. He was wallowing
in abject poverty and looked the part. Frank
constantly whined about the abject poverty of his
family in Negros. While there is nothing wrong
with being poor and in fact a nobility in rising
from poverty, what disgusted me was that he was
blaming his family for his sorry state and wanted
to disown them. In fact, instead of being proud
of his roots, he repeatedly told brods in law
school, including me, that he would never forgive
3
3.5. As the Grand Archon of Sigma Rho, I
took it upon myself to approach some of the more
privileged members of the fraternity, in
particular, Villaraza and the late Victor R.
Sumulong ("Sumulong"). I asked them if they were
willing to contribute money to support Frank in
his remaining semesters in the UP College of Law.
I even told Villaraza and Sumulong that it would
be worth helping Frank because he was doing well
academically.
4
3. 9. Further, the Sigma Rho even funded the
campaign of Frank when he ran for a position in
the student council.
5
that he did not even acknowledge that he is a
member of the Sigma Rho or that his brods were
responsible for putting him to law school. To me,
it is clear that Frank uses his membership in the
Sigma Rho only when it suits him much like what
he did to survive his days at the law school, and
conveniently dumps the fraternity when it will
not be to his own self-interest.
6
,
,1 .. '
ATTYki/h Affiant
c)
7
ANNEX~Ht"
ANNEX" ,
7 -
'litudzy.May 18,::1:010 5sectro~ I Vol.:ZS I oI'{CI. rn
** PI8
'x'':'Sol,Gen tags
'E, of the Judicial and Bar Council.
. He also Said that CciIz andMarcelo could not
,"The ,Fl'rm' I'Il , Preseilc tliemseIties
deliverance"in as "crusaders or apostles
the controversyoverthe of '.
appoint-
ment of ,Chief Justice RenaIO Corona because
:,~.,r'I'Ve, vs new C'T ~
:they ':Nf[re'rilnking members
ministra1iehwhenitwas ofbyscandals.
rocked the Arroyo ad-
But a line has to be drawn when the libel extends to private individuals and
firms. Atty. Chavez crossed that line. The Law Firm of Villaraza Cruz Marcelo
and Angangco is first and foremost a professional law partnership. In its thirty
years of existence, it has dedicated itself to the purely professional aspects of law
practice and has built an enviable reputation, even among its peers in the industry,
for competence. The involvement of some of its Partners in public service is
something the Firm is justifiably proud of but this does not detract from the core
mission of the Firm to provide its clients with prompt, quality service.
There is thus no excuse for Atty. Chavez's bitter tirades against the Firm.
No good and justifiable motives can possibly be behind this; only professional
jealousy or perhaps an eye towards the DOJ post, or both can put some sense into
his bizarre and irrational fixation with the Firm. If so, he is better off sending his
resume to the president-elect's search committee, so that it may stand side by side
with those Partners in the Firm he deludes himself to be equal with. His resume
should include, for proper perspective, his record as Solicitor General, which has
been unkindly called "unblemished" by those in the know.
ANNEX ,,~.
AN~S
DIRECTOR :m:
IC.EG. RECORDS it ARCH/Vee .v'
.!l\!1~~ ._ .. __ . _
> ,
RESOLUTION DIRECTING THE COMMIITEE ON Senator Enrile. Mr. President, I would like to ask the
BANKS, FINANCIAL INSTITUTIONS AND permission of the Chamber to speak on a mailer of personal and
CURRENCIES, IN AID OF LEGISLATION, TO collective privilege.
INQUIRE AND LOOK INTO COLLATERAL
FREE CREDIT FACILITIES TO SMALL FARM I was a lawyer of Tabacalera some years back, and I
ERS AND SMALL ENTREPRENEURS IN THE participated in the conclusion of the sale of Hacienda Luisita to
COUNTRYSIDE. the Cojuangco family sometime in the late 1950's. And so, today,
the Hacienda Luisita is placed under the purview of the Land
Introduced by Senator Romulo. Reform Program of the Republic under the laws that we have
adopted in this Chamber, as well as under the issuances of the
The President. Referred to the Committees on Banks, President. So many people have been asking me why I have been
.recommending its approval in consolidation with Senate Bill Senator Guingona. Mr.. President, we were scheduled to
Nos. 190,481,1041 and 1060. have the occasion to deliver a speech during the Privilege Hour. I
wanted to make it brief so that we could accommodate the estates and sold to the insular government only those lands not
distinguished Gentleman. I am just wondering whether this conducive to farming.
personal privilege will eat up the Privilege Hour.
This was the situation in the early 1900's.
Senator Enrile. Mr. President, the matter of personal
privilege has precedence over all other businesses of the Chamber. Since then, other grandiose attempts have been made to
This will not eat up the time allotted for the Privilege Hour. This address the agrarian problem.
is a matter of personal privilege of a Member of the Chamber to
speak on a matter that involves him. And >;0, I am claiming the In the early 1960's, we had the Macapagal Code of Agrarian
privilege. Reforms (R. A. 3844). In the early 1970's, we had the Marcos
handwritten decree, P. D. No. 27, and last year came R.A. No.
Mr. President, I have not abused the time of this Chamber. In 6657, the Comprehensive Agrarian Land Reform Law or CARL ..
fact, the Record will show that this is my first, or, maybe, the
second time to speak on the Floor since we started our session CARL, which envisioned a comprehensive land reform
aftl<lj the last recess. program (CARP), once more raised the expectations of our people.
The President. The Chair has already decided to recognize CARP is supposed to be the centerpiece of the Aquino
the Minority Floor Leader on a question of personal privilege. administration's social justice program.
Senator Enrile. Thank you, Mr. President This weekend, Mr. President, we will celebrate the first
anniversary of CARL. Much to our disappointment, however,
Senator Guingona. Without eating up into the Privilege there is not much cause for celebration.
Hour, Mr. President
Recent developments do not augur well for the success of the
The President. Without encroaching. program. CARP, in fact, in my humble opinion, is in extreme
danger of collapsing and failing.
Senator Enrile. Mr. President, the revolutions and other
forms of turmoil which have shaken our country, invariably have The program has been sabotaged, not by the insurgents, not
been rooted in agrarian unrest, by other so-called enemies of the State, but by the very people in
the Aquino administration entrusted with its implementation.
The major armed uprisings and rebellions during the Spanish
colonial period resulted from peasant discontent. Spanish The Garchitorena scam, now the focus of national outrage,
colonization, writes one of our historians, deprived Filipinos of may yet be the tip of the iceberg. Other similar transactions in
their ancestral lands and reduced more and more of them to the ollier parts of the nation have been reported. Only this morning,
status of tenants or leaseholders, subject to the exploitation and two were, at least, mentioned: one, in Salvador Benedicto town in
physical abuse of landowners. Negros Occidental; and another one, in Nueva Ecija. involving
not just a few thousand pesos, but multi-hundred million pesos.
The establishment of the feudal institutions ofthe encomienda
and the hacienda, particularly the friar lands, were yokes that On the Garchitorena scam, I have publicly offered to
burdened our forebears through the centuries. prosecute personally or through the Nacionalista Party the case
against those involved if President Aquino is not willing to do so.
When the Americans started to consolidate their rule of the The records so far available would suggest to me that a frustrated
Philippines at the turn of the century, they were confronted by the crime has been committed. At least, some of the public officials
clamor of the people for the breakup of haciendas, especially the involved can be charged with violation of R. A. No. 3019, the
friar estates, and their redistribution among those who tilled the Anti-Graft and Corrupt Practices Act, under Section 3,
land. subparagraphs E and G. And if collusion or conspiracy is proved,
the public officials and the private entities and persons involved
So the Americans adopted as a policy of attraction the could all be prosecuted since in a transaction attended by
purchase of some of these friar lands and their redistribution conspiracy, the act of one is the act of all.
among the tillers.
While the Garchitorena scam has for weeks now held the
The program met stiff resistance from the landowners. spotlight, another transaction under CARP has been gradually
Understandably, they made sure they held to the choice landed coming into focus. Unlike theGarchitorena scam which exploded
into newspaper headlines, this other CARP trnnsaction emerged even if voting, is a meaningless exercise because the 66 21
in trickles of published information. percent virtuallyowns thecorporation and the land and the asset
belonging to the corporation.
This is the Hacienda Luisita stock distributionscheme.
Thus, the Cojuangcos, having absolute control of th'
Last May 16, an editorial in the Philippine Daily Inquirer corporation- to which Hacienda Luisita was transferred- wi!
hailed the Hacienda Luisita Stock Distribution as an innovative continueto own that land, to manage it and operate the haciendi
land reform approach and a model worth emulating. for as long as they retain that absolute control of this 66.7 percen
of the voting stock of the corporation.
But on the same paper,Mr. President, tucked in the letters to
the Editor comer, a letter from the Pambansang Pederasyon ng Last June 3, the Philippine Daily Inquirer carried a paid
KababaihangMagbubukiddenouncedthescheme,anddenounced advertisement titled: "What Makes the Difference Between
it quite validly. GarchitorenaandLuisita? And the same advertisement answered
that question by resoundingly saying: "Nothing,"
It assailed theHaciendaLuisita deal on two grounds.namely:
For indeed,Mr. President, there is no difference. The injuries
One, that it violated the "Land to the Tiller" priociple; are inflicted by the very beneficiaries so-called of these two land
schemes.
And second, that under the Stock Distribution Scheme, the
landowners tend to undervalue the land and then overvalue what The Ad, purportedly by the Kilusang Magbubukid Ng
they have invested to develop the land. Pilipinas, claims the Garchitorena land scam involves a case of
overpricing1,889hectaresof cogonal land at P33,I92 per hectare
So, unlike in the case of Garchitorena where the land was whenits actual price is only P5,OOO per hectare, or a loss ofP53.3
overvalued, the case of the land in Hacienda Luisita was to million of taxpayers' money. The advertisement adds that the
undervalue that land in order to precisely control and prejudice HaciendaLuisitastock transferscheme undervalues,this time it is
the farmers-beneficiaries who are sought to be charitablygiven a the reverse, 6,000 hectares of prodnctive and developed sugar
share of their land. landin order to correspondinglyundervaluethe shares of stocks to
be trnnsferred to, and owned by the farmers, the farm workers,
Also last May 16, the Manila Chronicle reported that the TheAd insiststhat theCojuangco Estate is priced at only P33,OOO
familyof PresidentAquinocouldgeneratemore thanP250million per hectare whenit actuallyfetches a price of as much asP60,OOO
in revenues once the Cojuangcos of Tarlac - belonging to the per hectare, with 'Ib,e farm workers losing a grant total of PI62
side of Mrs. Corazon C. Aquino - sell the vast haciendato farm million which otherwise would have been included as a part of
tenants under the Comprehensive Agrarian Reform Program. their equity participation in the holding corporation 'to give them
at least a decent and respectable voice in that corporation.
In its May 29 to May 30 edition, the We Forum carried the
headline: "Cojuangcos' Land Refor-m. Masterpiece of LastJune6, The Manila Chronicle reported theassessmentof
Deception." the Congressfor People's Agrarian Reform, an association of 12
nationalpeasantorganizations,thatCARP has failed bothas a law
Inside the paper were three articles titled, respectively: One, and as a program.
"Agrarian Reform, Cojuangco Style;" the second headline was
titled: "Luisita Stock-Transfer Scheme, Insult to Peasants," and The group cited both the Garchitorena land scam and the
the third article was titled: "Cory's Hacienda. Paper, Not Land." HaciendaLuisitastockdistributionscheme as proofs of thefailure
of CARP. '
The We Forum charged that under the Cojuangco Stock
Dislribution, the 7000 farm workers will get a maximumof only The group claimed that in the case of Hacienda Luisita, not
33.2965 percent or to round it up, 33.3 percentof theoutstanding only were thefarm workerscheated of their right to own the land;
capital stock, with the Cojuangcos retaining ownershipof 66.704 theywere also made to think that the gesture of stock-sharingwas
percent, or to round it up, 66.7 percent or roughly two-thirds of an act of charity that they deserve on the part of the Hacienda
the Hacienda Luisita Incorporated outstandingcapital stock. Luisita owners, the Cojuangco family.
!vir. President, you and I, having a little knowledge of The increasing adversepublic reaction to the HaciendaLuisita
Corporation Law and the Dynamics of CorporatePolitics, would stockdislributionschemeis veryserious, Mr. President Since the
tell us that 33 1/3 percent of the capital stock of a corporation, scheme was carried out in accordance with Section 31 of CARP,
1465
col!RTIFIED TRUE COP I
~~
ANTONIA P. BARROS
v,mECTOR .m:
1I.t1li(l.IlECOIlDS &0 ARCHlVS9 8\/,
On Hacienda Luisita RECORD OF THE SENATE Vol. IV, No. 143
this development should provoke this Chamber to look into the That the lots comprising the Hacienda Luisita shall be
matter in order to find out whether there is a need to plug the subdivided by the applicant-corporation and sold at cost to
loopholes in the law; for otherwise, the effort of this Congress, the tenants, should there be any, and whenever conditions
specially of this Chamber, to bring about a Comprehensive Land should exist warranting such action under the provisions of
the Land Tenure Act; Hacienda Luisita was subsequently
Reform Program for the needy Filipinos in the rural areas will be
purchased by the Tarlac Development Corporation or
brought to naught.
TADECO controlled and managed by Mr. Jose Cojuangco,
Sr. and his childrenfor the price of P3,988,tJOO.
To get a total picture of the Hacienda Luisita story, Mr.
President, we should recall how Hacienda Luisita wasacquired On May 8, 1980, the Marcos administration instituted a
from its former Spanish owners, the Compaiiia General de complaint before the Manila Court of First Instance for specific
Tabacos de Filipinos or Tabacalera for short. The litigation performance to compel the Tarlac Development Corporation and
instituted against the Cojuangcos over the Hacienda during the the heirs of the late Jose Cojuangco, Sr. to comply with the
Marcos administration, the dismissal of the case during the Aquino condition in the Central Bank Monetary Board and the GSIS
administration, and its eventual placement under CARP. Board Resolutions in 1957 and 1958 when Cojuangco obtained
the dollar loan from the Manufacturers Trust Company of New
Mr. President, these are the four stages of this entire sordid York and the loan from the GSIS. One of the defendants in that
transaction that will bring to focus the deception that was foisted case was the incumbent President of the Republic.
upon the nation in connection with this transaction.
1466
A~OS
DiRECTOR :m:
ma. RECORDS" ARCHIVES $'1
.J L. Ii i
Thursday, June 8, 1989 RECORD OF THE SENATE On HaciendaLuisita
This is something that I could not understand because the of a plan for such stock distribution, and its initial
Solicitor General is supposed to be the lawyer for the Republic of implemen tation, shall be deemed compliance with the land
the Philippines, the principal party there that won the case, and yet distribution requirements of the CARP.
it asked for the suspension in the proceedings in the Court of
Appeals. This section was later substantially incorporated in Section
31 ofRA No. 6657, the Comprehensive Agrarian Reform Law..
In his motion, the Solicitor General further moved that it
would be appropriate at that stage to inquire of the Central Bank, On May 18, 1988, the Court of Appeals dismissed the case,
the GSIS, and the Department of Agrarian Reform whether, as the not the appeal of the appellant Cojuangco Family, but the entire
agencies concerned, in the case, they were still interested in case was dismissed by the Court of Appeals. The Court of
prosecuting the appeal, or alternatively, whether it would be Appeals dismissed the case on appeal without prejudice to be
preferable to have the case dismissed so that Hacienda Luisita can revived if any of the conditions embodied in the letter dated April
be subjected to agrarian reform. 8, 1988 ofthe Secretary of Agrarian Reform were not met. These
conditions were:
The Solicitor General, Mr. Frank Chavez, claimed he was
making his motion in view of the recent adoption of the I. Should TADECO fail to obtain approval of the stock
Comprehensive Land Reform Program and President Aquino's distribution plan for failure to comply with all the requirements
recent public commitment to bring Hacienda Luisita under that for corporate landowners set forth in the guidelines issued by the
program. Presidential Agrarian Reform Council (PARC); or
o On February 4, 1988, the Court of Appeals ordered the
suspension of the proceedings and required the three agencies
2. If such stock distribution plan is approved by PARC, but
TADECO fails to initially implement it.
concerned, meaning, the Central Bank, the GSIS, and the
Department of Agrarian Reform, to submit their comments. Based on this chronological narration of the litigation over
Hacienda Luisita and its eventual inclusion under the CARP
All three agencies expressed lack of interest in prosecuting Program, I would like to make these observations and pose these
the appeal and offered no objection to a dismissal of the case. questions, Mr. President:
In his comment, DAR Secretary Philip Juico, who is no"! One, why did Mrs. Aquino, a party in the case on appeal, not
involved in the Garchitorena land scam, said his department allow the regular judicial process to take care of the Cojuangcos'
found no legal impediment and was giving due course to the appeal? Why did she and other members of her family, through
intention of TADECO to apply for coverage under Section 10 of their lawyers, choose instead the alternative course of action of
Executive Order No. 229. Executive Order No. 229 was issued by Solicitor General Frank Chavez in dismissing not the appeal but
the incumbent President, Mrs. Corazon C. Aquino, a party-litigant the entire case of the Republic of the Philippines for the benefit of
in the case pending in the Court of Appeals which was later the beneficiary farmers in Hacienda Luisita?
collaborators of the presidency of Mrs. Aquino. Mr. Jobo farmers. In fact, the draft of the memorandum of agreement
Fernandez of the Central Bank was appointed under the Aquino supposedly to be signed between the farmers, Hacienda Luisita,
government as Central Bank Governor. But, over and beyond Incorporated, and Tarlac Development Corporation makes a
that, Mr. President, Jose B. Fernandez, otherwise known as "Jobo", provision that this stock scheme will become finally effective
used to be an employee of the same family that bought this only after the lapse of 30 years. Thirty years, whereas, they made
property when the division of the Bank of Commerce, owned and it appear that they are giving Pl18 million worth of shares to the
controlled by the Cojuangco family, was managed by the family farmers. That is not so if they have followed this draft of the
of President Aquino. In fact, if my recollection is correct, Mr. document that I have, because it says here that every year within
Jobo Fernandez was a Vice-President of the Bank of Commerce a period of30 years only one-thirtieth of the entire amount allotted
when this transaction took place sometime in 1957 and 1958, and to the Hacienda Luisita Land would be allocated to the farmer-
I was the lawyer of Tabacalera in this transaction at that time. beneficiaries; which is, in effect, Mr. President, an implied
amendment ofthe enactment of this Congress where we limited-to
GSIS President and General Manager Feliciano Belmonte, ten years the right of a corporate landowner to enjoy the land. And
Jr. of Stockton fame, was an appointee of Mrs. Aquino, and that not only that, the 3 percent share of the beneficiaries out of the
Secretary Philip Juico, presently on leave due to the Garchitorena gross production of Hacienda Luisita was converted into a cash
land scam, is a favorite Cabinet member in the Aquino dividend, or a bonus for these hapless farmer-beneficiaries.
administration and an appointee of the incumbent President.
Mr. President, I was not born yesterday. All my life, I have
Number Two. Executive Order No. 229, issued by Mrs. been a corporate man; I challenge the lawyers ofPresidentAquino
() Aquino five days before the reopening of Congress, was obviously and President Aquino, herself, to tell the public that these farmers
have any say in Hacienda Luisita, other than this consuelo debobo
designed to insure compliance with the conditions set forth in the
Court of Appeals' dismissal of the case. Under E.O. No. 229, of having to elect one-third of the board ofdirectors of that
Mrs. Aquino herself presides over the Presidential Agrarian corporate holder of Hacienda Luisita.
Reform Council in approving the plan of stock distribution. The
question is: Did she participate in approving such stock distribution Even way back in 1958, the Cojuangcos already indicated
plan of the Cojuangcos? If she did, should she not have inhibited their tenacity to maintain their dominant hold on the estate known
herselfifonly outof delicadezat If she did not, who presided over as Hacienda Luisita. The amendment of the original GSIS
PARC when, in fact, she was, by her own edict and decree, the Resolution of the Cojuangco loan supports my contention. GSIS
Chairwoman of that Body? Resolution No. 3202, dated November 27, 1957 shows that, and I
quote:
In my humble study of this case, Mr. President,' my
impression, to use the words of the Solicitor General, has That the lots comprising the HaciendaLuisita shall be
increasingly been reinforced, that the whole proceedings subdivided among the tenants who shallpay thecost thereof
constituted a zarzuela or moro-moro, starring some of the under reasonable terms andconditions.
President's men and, maybe, even the President herself. If,
indeed, Mr. Marcos and his cosubalterns conspired in proceeding GSIS Resolution No. 356, dated February 5, 1958, amended
against the Cojuangcos out of political vendetta, as Mr. Chavez the preceding resolution by restating the condition to read, and I
implied in his motion, the suspicion also arises that the Aquino quote again:
administration, this administration, did the same in order to have
Thatthe lots comprising the Hacienda Luisitashall be
the case dismissed, as in fact, it was dismissed, not to prejudice subdivided by the applicant-corporation and sold to the
Mr. Marcos, the political enemy of this administration, but to tenants, should there be any. and whenever conditions should
prejudice the farm workers and the various tillers of Hacienda exist warranting such actionundertheprovisionsof theLand
Luisita which we sought to benefit under the Land Reform Tenure Act.
Program.
I can see, Mr. President, that at the time this transaction took
These developments, Mr. President, indicate to this humble place there were tenants in Hacienda Luisita. I was the lawyer of
Representation that the Cojuangcos, taking undue advantage of Hacienda Luisita, I used to sleep in that hacienda whenever 1 go
the awesome powers of the presidency, make sure that Hacienda there to handle cases for them. In fact, I prosecuted the murder of
Luisita was not subdivided among the farm tenants; and through a Ramon Ortiz, the overseer ofHacienda Luisita who died in Barrio
midnight decree of the President allowed its placement under a San Sebastian. Inside that hacienda there were seven barangays
new land reform scheme which would perpetuate their absolute then.
control and ownership of Hacienda Luisita to the prejudice of the ';1!!/fT'FlEl> TRUE COP.!
1468 AN~S
DiRECTOR ]I[
"-EG. RECORDS" ARCHIVES sw.
The Hacienda Luisita case. Mr. President, raises a lot of The coconutlevy was started in 1972. It generated more than
questions that need to be answered. Since the President of the P9 billion. It was suspended in 1980 after havirig undergone
Republic herself is involved, as I am sure she is involvedin this several amendments from the Consumers Stabilization Fund.
case, the credibility of the government in implementing the There was the Coconut Industrial Investment Fund amounting to
Comprehensive Agrarian Reform Program is at stake. Already over P2 billion. Then, there was the CIDF or the Coconut.
the Garchitorena land scandal has dealt a serious blow to CARP. InvestmentDevelopment Fund which was over P1.4 billion, and
If the questions raised in the Hacienda Luisita case are not it branched out into several subsidiaries; but. the sum total of the
sufficientlyand credibly answered, I am afraid that the case may fundsgenerated from 1972to 1982was more thanP9 billion, Mr.
just deliver thefatal blow to the ComprehensiveAgrarianReform President.
Program. To prevent this ominous disaster, I thereforecall on the
Senate President and the distinguishedMembersof this Senate to They suspended in 1980, changed to supposedly export
undertake the necessary inquiry to look into all aspects of the subsidy; but, actually, passed on to the farmers, and under the
Hacienda Luisita transaction in order to arrive at a possible same procedure the exaction continued until a Cabinet decision
remedial legislation that will henceforth correct the deficiencies suspended the imposition of the levies.
that we are now encountering.
Mr. President, these funds are supposed to be trust funds.
Thank you, Mr. President. They are special exactions for special purposes. And, yet, under
the procedure, when a coconut miller or trader purchases copra,
Senator Alvarez. Mr. President.
let us say, for Pl00 per kilogram of copra, he pays to the farmer
( i
<: The Presiding Officer [Senator Gonzales], The Senator only P85 and is supposedto remit the pi 5 representing the levy to
from Isabela is recognized. May the Chair know his pleasure? thePhilippineCoconutAuthority, and through the years, thereby
generating more than P9 billion. But we have on record, Mr.
MOTION OF SENATOR ALVAREZ President, 29 corporations which have not remitted, which have
(Referral of Enrile Question of Privilege had late remittances,and inadequate remittances, totalling more
to the Agrarian Reform Committee) thanPI billion. Many of these corporations, Mr. President, were
funded by the coconut levy themselves; acquiring coconut mills,
Senator Alvarez. Mr. President. with the indulgenceof the acquiring processing plants, establishing their own businesses,
Chair, may I move that the speech of the distinguishedGentleman and, afterwards,not remitting thelevies exacted from the farmers.
from Cagayau Valley be referred to the Committee on Agrarian This is a very serious thing because it comprises, as we said, trust
Reform for thorough inquiry in order to validate his observation funds, and, therefore, there is a criminal aspect involved in this
and to help the Chamber in arriving atthe conclusions which he nonremittance of levy revenues. Because of this, Mr. President,
profers to this Body. the government has been deprived of more than PI billion. If
nothing is done about it, then the government's coconut program
Senator Enrile. Thankyou. will continue to suffer.
The Presiding Officer [Senator Gonzales]. Is there any As a matter of fact. there has been an authority in the Senate
commenton the motion? [Silence] Is thereany objectionthereto? SubsidyBill to utilizepart of thecoconutlevy. But, as I understand
[Silence] The Chair hears none; the motion is approved, and the it, there is only P32 million left, and this is partiy in the Unicorn.
speech of the Minority Floor Leader is referred to the Committee We cannot determine because the coconut levy today is partiy in
on Agrarian Reform for appropriate action. assets, partly sequestered, and partiy in liquid cash; but the fact
Senator Mercado. Mr. President, also on a mailer of remains, Mr. President, that as of December of 1988, there is an
privilege, I ask that we recognize Senator Gningona. outstandingobligation on the part of the 29 corporations to remit
more than PI billion. Because of this, the government is thereby
The Presiding Officer [Senator Gonzales]. The President prejudiced to that extent.
Pro Tempore, Senator Teofisto T. Guingona, Jr., is recognized.
MOTION OF SENATOR GUINGONA
PRIVILEGE SPEECH OF SENATOR GUINGONA (Referral of Guingona Privilege Speech to the
(On Coconut Levy) Committee on Public Accountability)
Senator Guingona. Thank you, Mr. President In view of the foregoing, Mr. President, I ask that a more
thoroughinvestigation be conducted into thismailer which is very
Distinguished Colleagues, I would like to concentrateon the vital to thecoconutindustry,very vital to the farmers, very vital to
coconut levy, Mr. President. the nation, and there is need to pinpont the responsibility and
1469
,;SRTfFIEI> TRUE COP}
~l!~
ANJON/A P. BARROS
DiRECTOR :m:
r.EG, RECORDS" ARCIHVES fttl,
"' BRAG I (.~,,":I.
WEDNESDAY, FEBRUARY 5, 19
OPENING OF SESSION
NATIONAL ANTHEM
)
PRAYER
(~)
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House of Representatives
LegisLtLivt [nc;hiYeS Service .
,CERTIFIED TRUE COPY,
,.
REFERENCE Of BUSINESS
()
( The
Secr,,,tarv read the fo.llcJw.ina Ne"'isaqes 'from tNe
Send t:e:!1' nrid Commi t tee Reportzss; . whi 1 e
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Speaker Pro' Tempore mecie the cCJrrE:"sfJondinc: refei'"-enCf2';::;' .. )
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Febv"uary 5, 1992. 4::J.!j p .. fI\ ..
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advancement.
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processes.
I e~pect li~S I igllt cO CJ. ilig Lo l::IIEIiI 'i:dlJ bel icy..... ill Llle
Il.wbi 1 i ly 0 i U II::.' i\ I Lei Iliull~ rrra t err OLlzt::' Li IEIii .. But bile
Had lit:: IluL arrrrorrrrtreti lie "'j8::l- i Lilli/illY lUI L1le Sella Le,
Utefi lJo;le' can dismiss. hi::s ou.i:::Eiul=st D;gainst t1rs. M:;'FCBS .:tAd
basliEr .. BuL liE did dlid Ids orflL.E .wa~ i::'. Cdllv1:lliellL L(::)o 1
() ~lle nat cos bidS ~
CO t
bo 1 selIIS
I' bid
... fUI
full mEdia
,_0 v EJ age 5uH:.\. ck so 0 f UI lab:~u51leJ 91 mllds tailJ 1119 fo, Llle sake '0 f
I" .
-\..../ charge ElM
th~ ledge of EOIILeli'lpi:: fel violaLiilg Ule lole or' :=n..iD judice ..
too iIh:Ed i 9 I I
.:U'C: hE], pI 2''';:; to ee'reJ"ls ':hem;:;e h'e;:? t~hs Iisul eJ <ila'i1b 1- hi~
['(Inn,,<=:
A) -r.
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trust on an official this abusive? And what political group
I
.Hause of ReptcSenlailves
o
'.~:
DOMINGO FEBRUARY 5, -1992 4:25P.I~. '
IiTirante Kid ll
ChaVez is d,ea,d serious -- he is sel.. . ious in
Each ,,'as
'ITirante Kid ll
doan ka na lang sa 'rac~~ra~k~'
~
RTIFIED TRUE COpy
" ~" irm~,H.'pangilinan'
at : . fJlme:--.,.. _
of dwty for ~ithdrawing as counsel 01 th~ , PC G. ' , -
o to
While ackno"Jledging tile right of, tile
C o ff i c i a.I
Gene'"al
in' a
.-, p'roper decorUm woUld dictate tha't they, Chavez and the oss
U distinguish between the institution wHich, from the vefj
() {i nn i Q
,,
." Dot'll1II60 - 1 FEBRUARY 5, 1992
.. 4 :25P .11
remained" ....
House of Representatives
Legislative' Archives Service
. i~~RTIFIED TRUE COpy
?If'l'l r da 0 H. Pangilinan
o . e: . .me: -,.._-,-__
o
...
..
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SANTOS 1
2 05-:92 .4'30 p.m.
House of Representatlve,
loSis!.!,,,. Ar.hi-'e, Ser.;ee
The .Speaker. Pro Tempore
,- . t1R.. ALBANO
was i t ethical that he remained
in
1987. 'Can he, then, dare claim the-.t like Caesar'. wi fs hC? _ _~__
-. In 1987,
taking advantage of his pOSition,
delivery, M
without paying for the cost 'of the car since owner~hip
remains in the name of the government.
1 nOOGia
,/. .,
SANTOS 1 2-05-9:;2 4: :~O p , rn,
We must al~o ask, Mr~ Cha~ez, who ,has been most vocal
in condemning the alleged. ostentatioLls lifestyle and
riches bfthe Marcoses ehs
House of Representatives
Legislative Arcbives, Q@i'l'ie.e
_~PERTIFIEQ2'RUE COpy
----------..,-----..,-----:If,WtY %,ttj~': Pangilinan
2 ') () 0 [) ~ 1
ip Ledesma 1 2-05-92 4:.35 p vm ,
House of Repl'e;sentatives
.Legislative Archives Service
(PO Th. S~eaker Pro Tempore) .'l?RTIFIED TRUE COpy
. ri: ~Director Edr ? H, Pangilinan
art:~
MR. ALRANO. ~ and ri~hes of the Marcoses,
o .'
.Time: .
how
. ,.
'. Genel'":.al ,
'model vehicles?"
1
') 00 0 12 .
'. ,
L,edesm,'" 1
to our- people the r-eal issues and the raw I~ealit,ies that
threaten , '
the' very sLlr-viv2:\l of our-.nation, so that they ma.
inter iigently, ,and feal~lessly scrutinize the' fitness of
in gover-nmen t" .
seek.
. d e cssncy 91ld courage to st~nd on' our- own. records' of. service
'0 people.
1"11" . ALBANO. ... that they will not believe that thii
is a .mC?ro-moro ..
MR. ALBANO. 'That is' what he has stated and the reason
3
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,:;. . t:, what could haJe' beer)'" the source or the
I:II:;~" ALBf~HD"
th(~~I"H~ i.~::. .rro iI1()n,~y~, but J.tJhf:~n .tl)(~~I--(-:~ :i.~::. C)V({':'f~~I:)i~:i.r.::Ln(.:J!, .thf2.I'-E'~ j.~;
...
can t h<::.;> (;)~n t.l f.o~m~:\I'111
. .
Oi
r
less t~].]., us :i.f tli~ irlformat{on ,is aCCuF~te Q0. rel'fable
ALBNICJ ..
,
Ombucl'?~mG\n
{J,,1:i.'th. If'H;d,I'' ~r\~"fIia:~,:i,tf.~~:; {~uid' u zas, v.JE-~n'l: down, arid 1'){:H':'~':ni~~:H~)(j t:lj(,~
I1t 'this .iuric t ure , the Speaker Pro Tempore "reI inq~tished
the Chair to the H6noraL.,le Orlando B. Fua ;
---
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' , CERTIFIED TRUE COpy
,r
r. ...J)irf,ctor .Edg
~.,
do H. angilinan
,'1me: -'0'.~---,.
noaOl?
OUISMUNDO - 1
Webb has' paid Chavez fot- his talents in trlat sho",. But
o of
are
the ciou b t; , especially as regards the
from.
Speaker.
o5)ection?
that now ; f .. r"le go around', r~e are ""0 ashamed tho.t this J.S no
Spea~;er is a well known la~"1yer !I who J.S really stJ.ff :in 1ar"'.
And" may I ~.now what he Hould say on the claim that 1.f you
,
at-e a finder of hidden treasure !I" ~/OU are supposed to
surrender part of that. hidden treasure to the government,
I"ead r.n the papers J.S that he sa~1 alleged staShed hJ.dden
CJAguilar - 1 2-05--92 4 = 50 p .. rn ..
not.
I"IR. BORJ P,L " Mr .. Speak~r, the other day, when the
whale away at Mr. [Gillegel Ong and instead file the needed
is given the" true facts, she woWld not commit the error of
I"IR. BORJ AL .
Sol ic.i tor G.eller-al fOf~ a memorandum receip.f and claimed that
to the government when you do not ~ay 'the actual cost ,of
proceeded.against?
1.Ilves 1:1.gation"
House of Representatives
Leaislative Archives Service
IACERTIFIED
fV* ;;-
TRUE COpy
p .... ,
(~-',
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"-'
, .
2/05/92 Hrouse of Represenl1rrtvdC,
L1. c::.!;
~ rn,
Legislative Archives Service
ERTIFIED TRUE COpy
(PO -. 1'1F~. FUA)
MR. BOF,JAL. .
b
7 ~r 'or Ed ? H. Pangilinan
2 ~\rd'i
in the area of singing and I think the
' Iirne: _
. .7 ayNal key.
Para~aque is recOgnized.
1. '1 () 0 0 :; 4
, .
ansula--l :':~/05/92 4::55 p"m"
challenged him that for the last five years he has not
yet filed a single case against the Marcosesu Ell t; IlJ hen he
filing cases"
MF:" "JEBB" When was this exactly? Would you say about
a year ago, six months ago -- the first case that he filed
was announced that Mrs" Marcos was about to' come" This
So approximately"""
MF:. "',LBANO.
-Ii J. ed
o f r-om Par-anaque =
kawawa si Chavezn
,pera salamat po. But anyway~ .Mrn Speaker, thank you very
House of n.presentatives
Than k )/ClIJ.
Legislative Archives Service
,{:9ERTIFIED TRUE COpy'
ie:~t~mft~angiJjnan
I I,'
ansL\1~'1-1 2/05/92
IsalJe1a I th,ink h'=;;1.s taken hi.s Sf.';:'E\t= But anyt'\IElY, I,"" hat is
Speaker" .
Isabela.
House of Representatives
Legislative Archives Service
i
CERTIFmD TRUE COPY
"- ~il'~ctor Ed do H. angilinan
,tl, -rL4L'-A-I<'I+~
'co.:1:1 (.:~ c:ti, v\"{~ I)]"i Y:i.le(_:,~ "f rom t he .G(~~r,\ t. ].'~-...'(n~;\Il, ""''",".)iO
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"1',;;eTi.ng
Fe~d .on,'the front page of a major
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I1I<:\n City
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ilOOO?8
.5 II 00 ; P "mi.'se of Representatives
. . Legislative Archives Service
. . ~ERTIF!ED TRUE COpy
. '. ~iretl"" ~H. Pangilinan
. "C(:q .t~~tJ;'.:J;'s::;_ _-
there any obj ect'ion to the motion? (Si 1 ence) The' Chair
II 10.\
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-tllat I" joilled this 110110rable a~d aug~~~t bOdy, Your Honor"
of
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any d1~qtja.l1f1cat~on pl~ocee~1ngs..
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J~~ad~' '1
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Adjou,,-nment Session ,Feb,,-ual"y 8 of instead
of Febn.lary6" 1992 tal 11ay '2'4, '1992"
'I " ' \,jfth
!\'Iay I tniJVt-;: -tha of' th(0 j..!C)U ~5('2 of l=(ePl'(?~:;~n ta t :i. V(~~-:ij. . con c:u'!': :i. n
{":\i"I.:(~~rnOOIT tl.,l(~~ tl.J:I..I.1 I"B:\V(~';- our ~5(~-::J.-::;:I.c,n -:i~ t.au~t:l.n(J TiJUI" o. ..ctock ..an
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the a:rtel"'nOC)l!" (.~nd on Fl".:i.d;,~y~ rno.rnIn q l-'JI"J(~~n. WE" ('\J"il1 ad.:ioLlI'n
'I
sine die, . Ol.ir-- session ~Jill begin at ten D' cl o ck in the-
'-1'16.1"1') :i.n.9. II
THE 1:"I~Ef:; I D I i'IG OFF I CEF, .~ f"ll'" " '. Ti'}('~ C~haj.v. nC)tf::'~:i
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o
. Honse of Representatives .
Legisiative Archives Service
. ~ERTIFrED TRUE COpy .
'., -firWp Edgar .II pangiJinail.
frae. A Jme:' , .'
REGODON 1 02-05-92 5:05 P.M.
---;-----c----=-====
the motion is approved.
~---~--~----'-,---
CONSIDERA'l'I,bR OF CONFEIlli'NCE COMMITTEE REPORT
\.. ~
., .J begin
.Q.
, - "
eporto, on
= - , H.-1-eGI';':---
COlI ;-ex 8l.!.ce COlhmi L LGC' Rc:PC'Jl t. ~ nia~ I tliove 'that "'oTe now approve
--------------------~,----'----'
1 'j (i 0 p') ~
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, .. REGODON 1 02 05 92 House 01 g;.q,ffiiieli1lti~s
apPlooved.
CONSIDERATION 'OF CONFERENCE CO~1MITTEE REPORT
ON H.B. NO. 35148'AND S.B. NO. 240
provisions or Sena~e BlI! Nu. 240 and IlvU5i'> Dill No. 351'l6"
obj eotion 'from tjle floor? (Silence) There being none; the'
I so move , Hr _ bpeaker.
,MR. WEBB.
Youth
As
and Sports I)evelopJllE;>nt,
. , lei ~o gpoDSOr the Conference
and
behind the COllllllon cause 'and make the most out of it.
during the 16th SEA Games in spite of these two bills. And
certainly,
Bouse or Representatrves
~~o;~rn",.,_
---:-:---'------~~----:~------- ,----
will be enacted
H. Pangilinan
Tlme:_----
into
la.l,.J l?Y t:.hE.\ Pn~sident:< .then I arn positive that ~'Ile sh2-.11
garner not just. more 901d medals' in the next SEA Gam~s to
be ..
O t~
place"
''-''
1
r', ,..
n00036
."/" .
>
l"abl ig,::Hi - .1
a.ny
Senate 8ill No~ 193~ and House 8ill Nou 33904 b6th '~f which
an II''iteg~~a.ted t"lindanao.
objEH:tion to t.he mc)ti"on'} (Si. Len ce, The Chair' hei::\rs. none t :
1;lousc of Representatives
Logislative Archives Service
':f: P,TIFIED TRUE COPY
/l
J:D~'ty
Jal.~;~ :
24 al' angilinan
()!l0037
Tab l.Lq.an - 1 02-05-~92
" '("
~ . '. '.b 7',' .
pr-OdLu:tive uses;
PRESIDIN~; the~e
o ............ . '
objection
THE
1:0
OFFICER
~.ccept the" ::3.mendm.en,'ts, ~Ltbmi.ttec;l by' the 8ena.te on House .E~i 1'1
Island of Mindanao~
ob i ect.iol'1 to the" moti.on? (Eli 1 J2f1Ce) The C\";.ai r hears nCii:le ~ "
I
the. !llot:L(Jri "l.s {;;1p'proved"
\
Spraying Ser:vices ~!ith Dava.o a.s its ma.jor, huo , I so ~Qve.~
SUSPENSION OF SESSION
", r-eCE''55s ..
THE F'RESIDING OFFICEH (MI", Fua)., Session is
',.
suspend~=c;! ~
'.
House of Representatives
g
' i.eg;Slative Archives Service
. ERTIFmD TRUE COpy
, ,
',jlirl'flMroyE r H. PiuigiIinan
te!.- Hf\ ' U:le:: "
4
!!n0039
. ~ ,
, \] '," 't) 't1
~' ,
..,,/,.,,'d' BCNGULTO - 1 5:15 P.M.'.
House of Representatives ..
(PO-"MR;' FUA)' Legislative Archives Service.: ,
. ,
MR . ZAMORA. Mr. Speaker-.
THE PRESIDING OFFICER (Mr. Fua) . Majority Floor
Leader.
suspension.
THEPRESIDING OFFIqER (Hr.'Fua). Session is suspended
1
-'~-'2'+05''''92-'''' 5:15 P.1"l.
.".,',
-'farone' minute.
ItWdS5:19 p;m.
Honse of Representatives
Legislative Archives Service
JfERTIFIED TRUE COpy
lal~1ftEdga o~, Pangilinan
2
noonA1
, , " ir- .QUI S~lUNPO 2 2-5-9'7 5:55 P.i"l .
"~'1 -::,,,,--~==:...:.:::...:.::-=------,-=---,-~--...,...'----=--=-...:..:::...-_------=..:-=~~~ _
RESUMPTION OF SESSION'
resumed.
ADJOURNMENT OF SESSION
>
hereby adjourned.
HQuSe of Representatives :
Legislative Archives Service .
TRUE COpy'
,..
H. Pangilinan
Date: lme:
". '~
1 '
':.- .
'j (I 0 04 2
ANNEX 9t 1"
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ANNEX" 10"
VOLUME 1, NOS. 1 - 27
Maceda just wauted to have an investigation, I would have Mr. President, I rise to speak of an event that seemed at
expected that there would have been more' prudence aud a first to involve unrestrained muck-throwing between two fra-
respect for facts before such a matter was brought up before ternity brothers over what appears to be a battle for turf aud
this Chamber. spoils.
Thauk you, Mr. President. The occurrence, billed by the Philippine Daily Inquirer
columnist Conrado R. Banal III as "Suspender Kid vs. Flash
Senator Romulo: Mr. President. Bernardo," could have truly provided a comic relief to a nation
grown weary of daily blackouts and never-ending tales of
The President: The Majority Leader is recognized. police involvement in criminality.
MOTION OF SENATOR~OMULO But not so, Mr. President, if one takes a hard look at the
(Referral of Senator Shahani's Speech protagonists. For the parties are both public persona, both
to the Ethics Committee) lawyers of considerable clout the "Kid;' being former Solici-
tor General Francisco Chavez, while the "Flash" is Antonio
Senator Romulo: Mr. President, I reiterate that the mat- Carpio, the Chief Legal Counsel of the President of the Repub-
ter be referred to the Committee on Ethics as asked by the lie.
Gentle Lady from Pangasinan herself.
The accusations or innuendoes of improprieties that for-
The President: The statementwill go to the Committee
mer top government lawyer Chavez and presidential counsel
on Ethics.
The Minority Leader is recognized. Whether the unfreezing of this suspected Marcos Swiss
dollar deposit amounting to US$4,136,318 or about P150 mil-
PRIVILEGE SPEECH OF SENATOR TANADA lion in favor of the Security Bank is legal or not is not for me
(Does the Government Need a Solicitor General?) to determine. Rather, this should be looked into aud resolved
by the PCGG and its counsel, the Solicitor General of the '
Senator Tafiada: Thank yon, Mr. President. Philippines.
True it is that it was Mr. Raul Goco and not Mr. Chavez squarely applicable to former Solicitor General Chavez, is the
who was Solicitor General when the suspected Marcos Swiss following declaration of the Supreme Court:
dollar deposit in Zurich was released. But still and all, Mr.
President, former Solicitor General Francisco Chavez, now a [T]he prohibition agaiust representation of
practicing lawyer with former PCGG Commissioner Jose Lau- adverse interest precludes a lawyer from accepting
reta as partner, should answer fundamental questions of ethics employment as an advocate in any matter upon the
in his past and present advocacy. merits of which he has previously intervened as a
public official. Having once held a public office or
For instance, what is the participation or role of Mr. having been in the public employ, a lawyer should
Chavez in the unfreezing of this suspected Marcos Swiss dol- not, after his retirement or resignation, accept
lar deposit in the Bankers Trust AG of Zurich? Did Mr. professional employment in connection with any
Chavez or his law firm act as counsel for Security Bank in this matter he has investigated or passed upon in such
particular transaction? Can Mr. Chavez or his law firm do this office or employ. (Ibid, pp. 232-233, citing Canon
when not too long ago, as the Solicitor General, he was the 36, Canon of Professional Ethics; Pasay Law and
lawyer for PCGG tasked with recovering ill-gotten wealth Conscience, Inc. v. Paz, G. R. No. 1008, Jan. 22,
from, among others, the Security Bank? 1980.)
Mr. President, if this is not an unmistakable case of con- Mr. President, the stern rule against representation of
f1ictof interest amounting to professioual misconduct, I do not conflicting interest, said the Supreme Court in the cases of
know what to make of it. Hilado v. David, 84 Phil. 560, and U.S. v. Laranja, 21 Phil.
500, is founded on principles of public policy and good taste.
!) I can only b~ guided, Mr. President, by the rulings laid It springs from the attorney's duty to represent his client with
'trown by the Supreme Court in a number of cases involving undivided fidelity and to maintain inviolate the client's confi-
disciplinary action imposed on errant lawyers in which the dence as well as from injunction forbidding the examination of
Supreme Court has emphatically declared that, and I quote: an attorney as to any of the privileged communications of his
client. The reason for the prohibition is found in the relation
[A] lawyer is prohibited from representing of attorney and client, which is one of trust and' confidence of
conflicting interest or discharging inconsistent duties. the highest degree. A lawyer becomes familiar with all the
He may not; without being guilty of professional facts connected with his client's case. He learns from the
misconduct, act as counsel for a person whose client the weak and strong ones. Such knowledge must be
interest conflicts with that of his present or former considered sacred and guarded with care.
client. (Ruben E. Agpalo, Legal Ethics, 1989 ed., p.
224, citing Rule 15.03, Code of Professional Has former Solicitor General Francisco Chavez lived up
Responsibility; In re De la Rosa, 27 Phil 258; Mejia to the canons of the law profession? The Gentleman's answer,
v. Reyes, G. R. Adm. Case No. 378, March 3D, 1962; Mr. President, and that of my esteemed Colleagues in this
In re Hamilton, 24 Phil. 100, etc.) Chamber is as good as mine .
.~ Mr. President, that Mr. Francisco Chavez has ceased to be And this brings me, Mr. President, to the case of Mr. Raul
Uicitor General when Security Bank may have einployed Goco, the incumbent Solicitor General, the chief legal counsel
him or his law firm as its counsel is of no moment. For, as the for the Government of the Philippines.
High Tribunal has likewise admonished:
As I said earlier, Mr. Chavez pointed to Mr. Goco as the
[T]he termination of the relation of attorney and solicitor general under whose term the suspected Marcos dol-
client provides no justification for a lawyer to lar deposit in Switzerland was unfrozen, Mr. Chavez' allega-
represent an interest adverse to or in conflict with that tion is confirmed by a letter of Mr. Goco dated March 29,1993
of a former client. The reason for the rule is that the to Atty. Peter Cosandey, the District Attorney of Zurich, in
client's confidence once reposed cannot be divested which Mr. Goco alluded to his letter of March 23, stating that
by the expiration of tile professional employment. his office interposed no objection to the release of this deposit.
(Ibid, p. 2, citing San Jose v. Cruz, 57 Phil. 79; I must assume, Mr. President, that with his high position in the
Hilado v. David, 84 Phil. 569.) government, being no less than the top counsel for the Repub-
lic itself, Mr. Goco must have studied and did quite believe the
More to the point, Mr. President, and certainly more merits of the Security Bank's claim that its dollar deposit in
A~~S
lJlRECTOR :m:
t.l:S.RECOIlDS lit ARCHIVES SV'
Privilege Speech ofTaiiada RECORD OF THE SENATE VoL I,No. 4
110
,;i:i~J,IFI 0 TRUE COP.
()..,(+ 10JvvfJ<V
. ANTONIA 'P. BARROS
lJJR!'CTOR :m:
~es. RECORD II! ARCHIVES 8Vla
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Oq ]V "hflldh.. ' ..... orJoYwlleD JIDfoJlb; SWlH 1K'Nt'l1..... lIUch_ OCOll:lllwow_l;()llld
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to thf! .... 'Uppilltif 10 JHIft lhe: 'or,..y tbe Man:!~. unt ~ till!' crlml..-l 1:iMt'.
('atIl"'. .phlt'ed _plMI tll.I~' 'Ih~ lrou.ble
lmeld..'. ft'hlra. Gee.l, Ihf!y M1! e'VlI'.I
_"uf~I1 exc.n. II thai II Im~iO;. Hlblb "tae' hM~"
attNblao. Ifb.. '" .-dmltlh~llIIIe II. hl(j
Th... pCf.Gw....~dIO!\It ..WUtf d~1I ,...aJlh - _ thll j ltit! criminal
~,. MeceM alie )'CIIMrUy, .... 1,
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lW Ul1:1_ft l"~.tl aDd' the JQVIlt (If
traft OOl'Y'Uft'!IbR.
UwII_ ahowa hJ'
~y people I....
.penuneat. Mmtdl" .. BOt lad.,..,.
c...... elt.'leI'Mfttll'"...l"OllId.... WMld
Ilwould. however, be. dl"~ftJlt..ory
" tll.f: A.. uJ.lto,overa.-n, offe ... (OtII-
-'l1'1Ull ameen_UoII of HI' puIPOt1. prom_lh.11WO.Jd frft hllelcJa.lld btl'
PCGG C........~t"t D-vld CMfro wu dl..llclreaofcrllBlaai '1abI1:lly. The botlom
bot ~-=tJy IdlDtl ~ tnldl wMa .he llllllf'lIe.-..lt.t"'lwkUwrP'reIWl'lItAq"'o
dalDMHll thai MNttlnl and futIDtr .a. 1lkM l' orbo~ lmeld. hold" .. UUIIfl' ~'o
uwlton Mbl"'U GftJ Ce1Id.... """,0 141 1M recowry of lhor- Sw* monty of Ole
u.o 1M .ubJed I)'
111 hold-onkr, left ~
mutr'1 IIAer lDSA. n~ nUl of the
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Man"'l*S IIlI Haw~~ ...,d k 110'1'1' wltJa
...
Imelda I. New York... lb.' DOW a~rt_1
Ex-client seeks
.disbarment
of Chavez
BY EVANGELINE DE VERA
Carp', which was inrhe ptOCeS5 'of
a"ciit~g th:ePa'!trllnco'p~operty .
expireci 'aria):~rio;es~!1iialied "t9
A FORMER clienr of lawyer onQuezou'andRooseveltavenues' " d~liver, M.naysougntrJiffibiJrse-:
Frank Chavez has filed a disbar- In Quezon' City," ',j....; : " ,.. ,,-' ment fromher, ~romp.tiiJ.g.him to .
ment case against him and his The propertywas ownedbythe" file an es~.~fa:c~$~ .. :. r , ;':.: J.
associates for conflict Ofinterest. PhilippineNationalBankand'was ,., )Y(imdy sai~ h~ le~rn~a iha,
In a 24-page complaint filed valued-at P505;620;0OO. '..i ,;.'. . Pnor~sc.hi,e.ngagedth~ ;e~ic!'S,of'
before the Integrated Bar of the At the, same time; 'Mandy,: as t , Chal1~" whobecame herlawyer in
Philippines, William Mandyasked head of Mandy Enterprise, was the: criminal case-,~ ,;' .: . ... "
that Chavez be disbarred or sus- sub-leasing from PNB.a portion . . . Dlzonpointed 04~ that the lease
pended from the practice of law . .' -. conet~c;t over.the Nuin.,nciaprop~.
forviolating the Attorney's Oath of"the P.antranco property,.called erty 15- now beY011d' 'salvage as
and the Canons of Professional . "Numancia; property'". by virtue. Mandy hasyetto recover thevaiue .
Responsibility. . ;ofa contract oflease executedon' ()fth~improvement.heintt'odueed '
into the leased property, '1M 'from,
o Mandy's lawyer Joel Dizon, in ..Oct.-1:h1994. : .,' ,.....
the disbarment complaint, said
Chavez is' liable for violating
.. 'The case ensued from rlielaw
.firm's move'tro represent: Siohy
alljndicatiorjf,' Prioreschi hils no
intention of.returnirig the '!show
money" collected from:Mandy,- ",
several canonsof the profession. . Prioreschi in relation.to'the' ESO-
Among them are Canon 15, :':l!llion ~stafa .~Iui,rge ,1odgec;l by' .11'1 pursuing the criminal. case.;
Rule 15.03 saying that a lawyer Mandybefore the Manila regional .Dlzon,said he had.thought of ..
shallhot representconflicting in- trial court.' ... ;', ' ,- ' presenring'Chavez as a Witness" ' ,
terests, ""cept by writteri consent r. 'Mandy Claimed Ptioreschi used , Dleon claimedChavezexerted'
ofallconcerned; Canon I? saying her positionand political connec- efforts to',annul-'tlie' agreement
that a lawyer owes fidelity to the tio,~:'as president of 'PNlilcMan- of,PN~-Madec<ir- andancther-
cause ofhisclient; Canon 19say- iagement and Development <1oq,. company f~t: the acquisition of
ing that a lawyer shall represent . (pNB-MadeciJr) andmember ofthe the Numancia property in 1996 "
hisclientwithzealand. within.the board, of P.NB 'supposedly tohelp and steered'it into "Comprpinise'
, , ,Mandy getarrextension ofhlslease Agreementin.1997. . ,"",
bounds' oi.l~w;'Ca~~n, li,sa~g on the'Numancia.properp; ", .' . . "How can' Mandy enlist, the,
.that a,lawyer shall: preserve, the: '. Mandy saia,tlie"PNB',official support and. fidelity 'ofhis formes-::
confldences atld:secrets.. <ifhis,cliJ ' , ask~d,hlnl,tq.prol1e,.his f\nari.cial laWliet'inpt6secuclhg,sioriy!when '.,
ent even.after.the attorney..client " .capacitY to enter ~nio~a lcng-term he' (Chavez) is now her lawyer1":
relation.is-termlnated; and Ganon . -conrracr tb'atwould cost at-least Dizon. . said. . , I , " .
I .'
~, .
21,Rule21.02saying stating that ,~~2S;655,!m.80'over 17'years '
, a lawyer shall not, to thedisad- "Oy"C!epbsinng "show-money" of
vantageofhis "lielit,-.use- infor'" ,PI0'ni1llion,"". : "',.', -'
mation-acqulred-in rhe course-of. ,Ove'~ tl)..e' ensuing months,
his-employment, nor shall he use, -however; the'P10',million rose
the'sameco his-own advantage pi), to .PSq,09S,OOQ' and' Brtorescni
that of a third person"iinless!tlie:' demaridedmore-monej' as -she-
, client with full knowledge, oftthe warned Macidy, of eviction from
. circumstances consents. (l':~ f theNumaticia property. ..:.,
, ',hsidj".'-fr01l1 'Qhave,z; -also : , " ':'I':herHhe lease eventually
named respondenes iJi.~the suit: ...". . '
were Chavez's law partners, Luis '
Aseoche and Don CarlosYbanez,.
Mandy is a- stockholder of ,
ega'Prime Realtyap:d Holdings:
ANNEX
ABS-CBN - UMAGANG KAY GANDA (20 May 2010)
Punta Por Punto (segment portion)
Anchored by: Anthony Taberna
Voice-over:
A. Taberna:
o Kamusta po kayo?
F. Chavez:
Mabuti po naman.
A. Taberna:
F. Chavez:
Salamat sa Diyos.
A. Taberna:
F. Chavez:
1
Medyo matagal-tagal din po pala iyan ano? Sa
kabuuan halos ng Aquino administration. Atty.
Frank sa inyo na po nanggaling dahil ito po' y
matagal nang pinag-uusapan, mabuti na lang at
kayo po' y nagsali ta tungkol dito. Ano po ba ang
pagkaka-kilala nyo dito po sa The Firm bilang isa
pong abogadong de kampanilya na nandyan po lagi
sa mga legal community?
F. Chavez:
A. Taberna:
Okay po.
F. Chavez:
o Pero sa amin namang pong fraternity may tinatawag
namang hierarchy of loyalties. Ang number one
namin is God, number two is country, number three
is University, panghuli lang yung fraternity.
A. Taberna:
Opo.
F. Chavez:
A. Taberna:
Opo.
F. Chavez:
A. Taberna:
Opo.
2
~~ ..... ~.~- -.-.---... .1.-
A. Taberna:
F . .Chavez:
A. Taberna:
r>
U Ay good morning, kabayan!
A. Taberna:
S. Marcelo:
A. Taberna:
() Wala hong problema.
S.Marcelo:
A. Taberna:
S. Marcelo:
Hahaha!
A. Taberna:
3
F. Chavez:
A. Taberna:
Opo.
F. Chavez:
A. Taberna:
Okay.
F. Chavez:
o A. Taberna:
Dahil ?
F. Chavez:
A. Taberna:
Opo.
F. Chavez:
4
fi-nile yung farmers.
A. Taberna:
F. Chavez:
A. Taberna:
o S. Marcelo:
A. Taberna:
Opo.
S. Marcelo:
A. Taberna:
Opo.
5
So, ewan ko kung saan nakukuha ni Frank yung
kanyang mga sinasabi, pero pag kaso ni GMA talaga
yun ang official position ko noon, nag i-inhibit
ako, dahil talagang dapat naman parang katulad ng
Supreme Court iyan eh, by analogy (inaudible)
dahil kung kliyente mo yung magkakaso sa iyo, eh
hindi na ano, hindi maganda tingnan na ako ang
magdedesisyon.
S. Marcelo:
A. Taberna:
o Opo.
S. Marcelo:
A. Taberna:
Oho.
6
S. Marcelo:
A. Taberna:
F. Chavez:
A. Taberna:
o F. Chavez:
A. Taberna:
F. Chavez:
7
F. Chavez:
A. Taberna:
A. Taberna:
S. Marcelo:
F. Chavez;
Hindi.
8
kaya lang ako nag-Ombudsman dahil kinausap ako nl
GMA, sabi ni GMA sa akin "a lot of these lawyers
are dying to get this position, ikaw pahele-hele
ka pan sabi nya sa akin, kaya medyo, sige na nga
sabi ko tatanggapin ko na.
A. Taberna:
S. Marcelo:
F. Chavez:
S. Marcelo:
A. Taberna:
o S. Marcelo:
A. Taberna:
Opo.
S. Marcelo:
A. Taberna:
S. Marcelo:
9
S. Marcelo:
A. Taberna:
S. Marcelo:
F. Chavez:
o Isa ang masasabi ko sa inyo, kinausap nyo si
Special Prosecutor Wendell Sulit, idi-deny mo
yun? Idi-deny mo ba yun? In open television, are
you going to deny that?
S. Marcelo:
F. Chavez:
A. Taberna:
F. Chavez:
10
Gentlemen
S. Marcelo:
F. Chavez:
S. Marcelo:
A. Taberna:
F. Chavez:
S. Marcelo:
A. Taberna:
S. Marcelo:
11
Atty. Marcelo maraming salamat po, pasensya na po
at gahol na gahol lang tayo sa oras, sa uulitin
po, I want you to go here para po magkaintindihan
tayo nang mas mahaba-haba. Thank you, Sir! Okay,
Atty. Frank.
F. Chavez:
Ako naman?
A. Taberna:
Go ahead po.
F. Chavez:
c -\ A. Taberna:
\_)
Sige po.
F. Chavez:
A. Taberna:
12
A. Taberna:
Salamat po sa inyo.
F. Chavez:
A. Taberna:
- E N 0 -
13