PNCC: Rising GOCC Phoenix-10
b) Government funds/property shall be spent or used SOLELY for public purposes (PD 1445, Section 4(2).
The indicated constitutional provisions have been implanted in Sections 84 and 85 of PD 1445, which instruct that a law must first be enacted by Congress appropriating P6.185 billion as COMPROMISE MONEY before payment can be validly made to Radstock.
Otherwise, said the High Court, such payment violates a prohibitory law and, thus, VOID under Article 5 of the Civil Code.
Absent, therefore, an appropriation law, the use of the toll fees by PNCC to pay Radstock under the mentioned Compromise Agreement would constitute malversation of public funds.
Parenthetically, it was eventually ascertained that the Marubeni loans consisted of unpaid loans of CDCP Mining Corporation (an affiliate firm of CDCP set up as ‘miner/siphoner of funds’ by Marcos’ ilks and maintained by GMA’s vultures) to Marubeni.
In this regard, the Supreme Court held that it would be unlawful for PNCC to use the toll fees – which are PUBLIC FUNDS – to pay a private indeb-tedness of CDCP Mining to Radstock (Marubeni’s assignee).
Such payments can never be construed as expenditures for a public purpose.
Besides, the toll fees are merely held in trust by PNCC for the national government, which is the real owner of the said fees.
6. As previously stated, the said Compromise Agreement expressly provides that several prime properties of PNCC shall be assigned thru dacion en pago to a Radstock nominee.
The High Court castigated both the PNCC and Radstock on this score.
It held that Radstock, a “mysterious” foreign corporation with no known stockholders and whose nationalities are also unknown, appears to have been registered in the British Virgin Islands, with offices at Central Hong Kong.
Being a foreign corporation, Radstock is NOT qualified to own lands in the Philippines under Section 7, in relation to Section 3, Article III of the 1987 Constitution. (To be continued)