The Supreme Court on Tuesday upheld with modification the judgment rendered by the Sandiganbayan finding Herminio Disini, a former associate of the late President Ferdinand Marcos, liable for receiving commissions from Westinghouse Electrical Corporation in connection with his role in the awarding of the controversial $2.2 billion Bataan Nuclear Power Plant to the American electric company.
In a unanimous vote, the Court En Banc affirmed the resolution of the Sandiganbayan in Civil Case No. 0013 and ordered Disini’s estate to pay the government P1 billion in temperate damages as well as P1 million in exemplary damages instead of the conveyance of about $50,562,500 million that he allegedly received as commission from Westinghouse.
Chief Justice Alexander Gesmundo and Associate Justice Amy Lazaro-Javier took no part in the resolution of the case.
In the decision penned by Associate Justice Ramon Paul Hernando, the SC held Disini liable for exerting undue influence in the awarding of the mothballed BNPP Project by taking advantage of his close association with former President Marcos.
The government, through the Presidential Commission on Good Government, filed a complaint before the Sandiganbayan in 1987 for restitution and damages against Disini, former President Marcos and Mrs. Imelda Marcos.
In 2012, the anti-graft court found Disini liable for receiving commissions of about $50 million from Westinghouse, but absolved the Marcoses for lack of evidence.
The PCGG claimed that Westinghouse solicited the influence of Disini, who was known as a close associate of the late president, to become its “special sales representative” to ensure its appointment as the main contractor for the BNPP Project and for favorable terms, for a fee of 3 percent of the contract price as commission.
In partially granting the petition of Disini, the high court modified the findings of the Sandiganbayan ordering the Marcos associate to account and convey the $50,562,500 in favor of the government.
“The order to account and convey US$50,562,500.00 is deleted for lack of basis,” the High Court ruled.
According to the tribunal, the Sandiganbayan committed an error in relying on a piece of photocopied document which was not substantiated as secondary evidence, and which purportedly showed that Disini received $50 Million in commissions.
“Nonetheless, the totality of the testimonial and documentary evidence of the government proved that Disini had unduly enriched himself at the expense of the people and the Republic. The Republic has the right to be indemnified by reason thereof in the form of damages,” the SC added.