Gov’t lawyers ask SC to stop PNB-Allied Bank merger

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MANILA, Philippines – Government lawyers asked the Supreme Court to stop the impending merger of the Philippine National Bank and the Allied Bank as part of its bid to recover alleged ill-gotten wealth of tycoon Lucio Tan.

In a 20-page motion, the government through Solicitor General Francis Jardeleza urged the high court to put Allied Bank assets in custodial egis (custody of the law) until the rightful owner is determined.

“It bears stressing that Allied Bank and all its assets are alleged to be ill-gotten and subject of litigation,” the government lawyer said.

On September last year, the Sandiganbayan dismissed with finality Civil Case 0005 which is about the government’s claim on Tan’s 60 percent holdings in various companies.

In affirming its June 2012 ruling, the anti-graft court said the government failed to present enough evidence to prove that majority of Tan’s assets were ill-gotten. The case is already with the Supreme Court.

The government is seeking forfeiture of Tan’s assets from Allied Bank, Fortune Tobacco Corporation, Asia Brewery Inc., Foremost Farms, Himmel Industries Inc., Grandspan Development Corporation, Silangan Holdings Inc. and Dominium Realty and Construction Corporation.

The planned merger between PNB and Allied Bank was approved by the Securities and Exchange Commission early this year.

The government said, if the merger would push through, it  will not only dilute Tan’s stake in the bank but will also be more difficult to trace.

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  • carlcid

    Too little, too late. Should have been done 25 years ago by PNoy’s mother. But maybe this is just a little sarsuela, pretending that government is really running after the fat cats who got away.

  • upupperclassman

    In Philippines, all court rulings with finality are never final. We will need soon a More Supreme Court.

  • desi derata

    The PNB used to be the government’s financial partner. There was pride when one stepped into the lobby of the Bank in Escolta.

    Lucio Tan was able to manipulate every corruptible politician in the government. For some reason that escapes me, his tax that piled up to P1B was forvigen, he was able to buy majority of stocks in the PNB and PAL (PNB provided the financial resources for PAL).. He cannibalized PAL, by selling its non-profitable components at bargain prices except engineering and catering. Then he took over PNB at practically no cost at all.

    Who was his silent partner? The silent but very corrupt Fidel Ramos. Instead of pursuing the case of tax evasion, the BIR head instead was hurled to the courts. Liwayway Chato suffered so much.

    in order for Tan to pursue his greed, he put Joseph Estrada into his pocket, a duo of twits. With presidents like Ramos and Estrada and then succeeded by Arroyo, the Philippines would never go far.

    • upupperclassman

      Your comment makes wonder. Lucio Tan was toying Ramos, Estrada and Arroyo. How could these 3 presidents allow themselves to be such?

      • Yxon

        you under estimate the power of money? look what status the finances of these three are now.

    • carlcid

      Lucio Tan didn’t only have 3 Presidents in his pocket. Cory Aquino let Tan off the hook, big time. Basically, Tan’s Fortune Tobacco and Asia Brewery were doing business as usual after EDSA 1. Tan had several Aquino cabinet members and advisers in his pocket, including Ramon Mitra, whose Presidential bid against FVR Tan bankrolled. The foundation of Tan’s fortune came from Fortune Tobacco and AB. His forays into airlines and banking were basically ploys to “launder” the wealth he accumulated from tobacco and alcohol.

      After almost 30 years, it would be very difficult indeed to get back Lucio Tan’s ill-gotten wealth. This is just a sarsuela staged by the government in order to make a “palabas” to the public that they are doing their job.

  • WeAry_Bat

    Lotion is effective in minimizing tan’s damage from the heat of the sun. Lotion Tan, if you don’t have it, you don’t get it.

  • EmmanuelGomez

    eheheh too late

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