Disini estate to pay gov’t ₱100 M over Bataan nuke plant; SC rules with finality

and must therefore be reduced,” the SC said.

As modified in a resolution made public on Feb. 20, 2024, the dispositive portion of the SC decision, which has been declared final, states:

“Wherefore, this Court resolves to deny with finality the Republic of the Philippines’ Oct. 28, 2021 Motion for Reconsideration. Petitioner Herminio T. Disini’s comment (Re: Motion for Reconsideration) with Omnibus Motion as well as his Supplement to the Comment with Omnibus Motion are noted and partially granted.

“The award of temperate damages is reduced to ₱100,000,000. All other aspects of the assailed decision stand. No further pleadings or motions shall be entertained in this case. Let the entry of judgment be issued immediately.”

The resolution denied the motion filed by the government on the Jan. 15, 2021 decision. The motion insisted that the estate of Disini should also pay the more than $50 million as ordered by the Sandiganbayan.

In denying the government’s motion and modifying the ruling, the SC said:

“As regard the amount of damages imposed, we find it imperative to revisit our pronouncement. To recall, we held that the Republic has duly proved by preponderance of evidence that petitioner (Disini) acquired ill-gotten wealth in the form of commissions from Westinghouse Electric Corporation and Bums & Roe, Inc. by acting as their special sales representative.

“Consequently, we directed petitioner to pay the Republic temperate damages in the amount of ₱1 billion and exemplary damages in the amount of ₱1 billion with a legal interest of six percent per annum from the finality of the decision until full satisfaction.

“In its comment (Re: Motion for Reconsideration) with Omnibus Motion, petitioner asserts in particular that the entitlement of the Republic to temperate damages has not been proved by preponderance of evidence.

“This argument fails to persuade. There is no equivocation that the Republic suffered some pecuniary loss due to the illicit acts of petitioner of collecting commissions in connection with a government project. This is already a subject of a lengthy discussion in the assailed decision and demands no reiteration.

“However, upon closer examination, we find that there is a need to modify the amount of the award of temperate damages. In the assailed decision, we noted that the Republic’s witnesses did not specifically quantify the amount of commissions received by petitioner aside from the fact that it was substantial. In short, the amount obtained by petitioner was uncertain.

“To recall, we held that the Republic proved by preponderance of evidence that petitioner acquired ill-gotten wealth in the form of commissions. However, the Republic failed to quantify with specificity the pecuniary loss it suffered as well as the amount of commissions received by petitioner; hence, the grant of temperate and exemplary damages.

“Upon another closer examination, we find that the award of temperate damages in the amount of ₱100 million is more commensurate under the circumstances.

“The Court notes that petitioner’s liability has nothing to do with the present condition or status of the BNPP. His liability lies in his illicit use of influence, power, and government connections to secure special concessions in relation to the BNPP project. Such illicit use is clearly independent of the status or condition of the BNPP today, which is predominantly a product of legislative and/or executive discretion.

“Besides, despite the illicit acts committed by petitioner, the subject nuclear power plant was completed and delivered to the Republic. The fact that the subject nuclear plant has remained inoperable despite the considerable amount invested and allocated for its construction should thus not be imputed to the acts of petitioner.

“To recall, it was then President Corazon C. Aquino, by virtue of Executive Order No. 55, series of 1986, who decided not to operate the subject nuclear plant for reasons of safety and economy. Clearly, it was not due to the illicit acts of petitioner. Hence, whatever happened to the BNPP should not have been a factor in assessing the amount of temperate damages.

“Finally, the Court stresses that there is nothing on record that links former President Marcos and his wife Imelda R. Marcos to the commissions received by petitioner in relation to the BNPP project.

“Upon a careful re-examination of the records, the Court sustains such finding and affirms that the Marcoses were not, in any way, shown to have acted illicitly in the award of the BNPP contracts to Westinghouse Electric Corporation and Burns & Roe, Inc. by reason of petitioner’s acts. The evidence on record only pointed to petitioner receiving ill-gotten wealth. Hence, only petitioner may be held liable to pay damages in this case.”

The construction of the BNPP started in 1975 and was finished in 1984.

In 1986, the late former President Corazon Aquino mothballed the BNPP on safety concerns. The government then filed a suit in the United States against Westinghouse and Burns & Roe for bribery, fraud and racketeering. In 1993, the New Jersey court dismissed the case.

In 1995, the administration of then President Fidel V. Ramos signed a $100-million settlement agreement with Westinghouse.

In June 2014, Disini died due to organ failure and was buried at the Manila Memorial Park in Parañaque City.