Sandigan finds 3 shoe firm execs guilty of graft over behest loans

Three executives of the Integrated Shoes, Inc. (ISI) were found guilty of nine counts of graft and corruption by the Sandiganbayan in connection with the million behest loans secured from the former government-owned the Philippine National Bank (PNB) from 1971 to 1980, the Office of the Ombudsman (OMB) announced.

The anti-graft body identified the convict as ISI executives Leticia Teodoro, Marfina Singian and Gregorio Singian who were sentenced to imprisonment of up to 10 years for each count.

The criminal cases against PNB executives Panfilo Domingo, Domingo Ingco, Constantino Bautista and Tomas Teodoro were dismissed on account of their deaths.

Ombudsman Conchita Carpio Morales said OMB prosecutors were able to establish that the loan transactions were grossly and manifestly disadvantageous to the government as ISI was under capitalized while the loans were under collateralized.

Morales narrated that in 1972, a fiveyear loan amounting to $2.5 million was granted to ISI to cover the purchase of equipment and machinery for its Bataan factory. The loan was secured only by a second mortgage on a property in Cainta, Rizal.

Subsequently, eight other loans were granted to ISI from 1972 to 1980 as export advance and credit line accommodations.

When ISI defaulted in its payment, the government was only able to foreclose properties amounting to million whereas ISI’s indebtedness stood at more than million.

Morales said that under 3(g) of RA 3019 (anti-graft law) public officers are banned from entering, on behalf of the government, into any contract or transaction manifestly and grossly disadvantageous to the same, whether or not the public officer profited or will profit thereby.