DOJ orders prosecutor to recall theft raps vs Taiwanese aviation firm

THE Department of Justice (DOJ) has ordered the Office of the City Prosecutor of Pasay City to withdraw the qualified theft complaint filed before the trial court by businessman Christopher Pastrana against the officials of Taiwanese aviation firm and its officials that repossessed a $3.7-million Airbus helicopter over alleged violations of his contractual obligations.

In an 11-page joint resolution handed down last June 27, the DOJ directed the Pasay City state prosecutor to withdraw the complaint lodged by the Pastrana-owned CAPP Industries Inc. against Ricardo Liao, Molly Tseng, Hunto Chang, and Jack Pang, officials of the Chailease Financial Services Co. based in Taiwan.

Also ordered to be withdrawn is the qualified theft complaint filed against Robert Reguero of Philjet Aero Charter Corp.

“In the absence of a clear proof that complainant-appellant is the lawful owner of the aircraft, respondents cannot be charged for qualified theft. For failure of the complainant appellee to prove that there were misrepresentations committed by the respondents, we also cannot find probable cause for estafa,” the DOJ said.

On September 22, 2022, the Pasay City Prosecutor’s Office found probable cause to charge the respondents for qualified theft based on the complaint filed by CAPP.

CAPP alleged that it entered into a helicopter purchase agreement with Starline Global Industries Pte. Ltd. (Starline) represented by Thierry Tea for the importation of a brand-new Airbus Helicopter H130.

Upon execution of the agreement, the complainant said it immediately paid the amount of $700,000 as down payment.

Initially, the balance of $3 million was supposed to be financed through a loan from a reputable bank or a financial institution.

However, as a condition to the aircraft purchase, CAPP was made to enter into three subsidiary contracts with Starline’s affiliated companies.

CAPP entered into an Aircraft Lease Agreement with Chailease International Financial Services Co., Ltd. (Chailease), which was represented by the respondents, to finance the balance of the purchase price of the aircraft for five years.

CAPP resisted the repossession and lodged its criminal complaint in September last year against the Taiwanese businessmen, along with Reguero of Philjet, the designated “operator” or maintenance service provider for the aircraft.

It claimed that all the subsidiary agreements which were supposed to last until October 2021 were prepared by the respondents and that during the five-year term of the contract, it paid interest payments to Chalilease, Philjets, for the management of aircraft, and Airbus for the repair and maintenance.

The last payments made by CAPP to Chailease were in November 2020 and February 2021.

The DOJ, however, upheld Chailease’s argument that under its financial lease agreement with complainant CAPP, Chailease was the owner-lessor of the aircraft while the CAPP was the lessee until the sale was consummated.

However, CAPP allegedly defaulted on some of its contractual obligations under the lease agreement, prompting Chailease to repossess the Airbus chopper “to protect its rights.”

Chailease said CAPP’S alleged delinquencies consisted of failure to maintain and pay insurance premium on time, failure to maintain insurance coverage on the aircraft as required by the Civil Aviation Authority of the Philippines, late or delayed payment of rentals, unauthorized rental payment by non-related parties, failure to assume maintenance costs to Airbus; and failure to pay management fees to Philjet.

In ordering the withdrawal of the complaint, the DOJ declared: “A review of the complaint itself will reveal that CAPP was never the registered owner of the aircraft. As in fact, in the CAAP Certificate of Registration incorporated in their complaint, it was indicated that the owner was Philjets Aero Charter.”

It further noted that the Helicopter Purchase Agreement, which was given much weight in the resolution of the Pasay City Prosecutor’s Office expressly indicates ownership of the helicopter will be transferred from Starline to CAPP upon signature of the acceptance certificate and the receipt of the full payment of the contract value and that the same will be confirmed by the issuance of the “Bill of Sale” by Starline.

“Interestingly, complainant CAPP did not allege and prove that an acceptance certificate was signed or that a Bill of Sale was issued by Starline in its favor,” DOJ noted.

Prior to this, Chailease was advised in 2016 by Airbus Helicopters Philippines. Inc. that CAPP wanted to acquire one H-130 Airbus Helicopter to be shipped to the Philippines, and asked whether Chailease would be interested in offering a financial leasing policy to the CAPP.

But the helicopter model being eyed by CAPP was already reserved for Starline Global Industries Pte Ltd.

However, Starline was willing to give up its order provided CAPP refunds the $700,000 down payment it has made for the aircraft.

A purchase agreement was subsequently sealed between CAPP and Starline.