ON BALANCE: An aggrieved citizen who goes to court sometimes wonders what he has to load on the balance that symbolizes justice to gain a modicum of fairness.

Does a complainant have to pad his legal arguments with money, influence or firepower to be heard?

I presume to ask the question for 2,500 or so stockholders of the publicly listed Philcomsat Holdings Corp. that seems to have been captured by former Presidential Commission on Good Government agents who refuse to leave despite the withdrawal of their nominations.

One sad thing is that the courts may have wittingly or unwittingly abetted not only the questioned actions of PCGG agents but also the alleged looting of PHC coffers.

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INJUNCTION: The latest chapter in the story is the issuance by the Court of Appeals in June 2006 of a Temporary Restraining Order blocking the holding of a stockholders’ meeting ordered by the Securities and Exchange Commission.

CA Justice Vicente Q. Roxas who issued the TRO later transformed it into a permanent injunction.

This means that as long as the lawyers can keep alive the case before Roxas, the PHC would be unable to hold the stockholders’ meeting mandated by the Securities Regulation Code to protect stockholders’ interests.

Among the potential losers is the Philippine government, which with its 35-percent equity is among the biggest stockholders.

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NIETO BACKS OUT: When the SEC ordered the holding of a stockholders’ meeting, then PHC president Manuel Nieto Jr., assisted by Luis Lokin Jr. and Alma Kristina Alobba, ran to the CA to stop the SEC order. Justice Roxas obliged.

Nieto later broke with Lokin and Alobba, and the rest of his erstwhile group — Philip Brodett, Concepcion Poblador, Johnny Tan and then PCGG nominees Enrique Locsin, Benito Araneta, Manuel Andal, Julio Jalandoni and Guy de Leon. He joined forces with Katrina Ponce-Enrile and Erlinda Bildner.

Nieto petitioned the SEC to order the holding of a PHC meeting. He also told Roxas that he was withdrawing his petition and no longer had any objections to a stockholders’ meeting and the election of new directors.

Surprisingly, Roxas did not allow Nieto to withdraw and went on to permanently enjoin the SEC from calling stockholders’ meetings.

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GOV’T NOMINEES: This spelled bad news for new government nominees Daniel Gutierrez, Ramon Jacinto, Abraham Abesamis and Rodolfo Serrano Jr. who have been instructed by President Arroyo to gain control of PHC from the dismissed PCGG nominees.

Accusing Roxas of being partial to the erstwhile Nieto allies, Bildner filed a case with the Supreme Court.

But last June 12, the tribunal issued a decision siding with Roxas. While not citing any case that supported his action, the High Court said that allowing Nieto to withdraw his petition was discretionary on the part of Roxas.

Ironically, the SC in another case (GR No. 166984) allowed Nieto to withdraw his petition on the basis of the same memorandum of understanding among the private shareholders of Philcomsat and PHC.

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SEC SLAPPED: Roxas proceeded to rule on a case where the petitioner was no longer interested in going after the minority stockholders and just wanted to benefit the corporation by finally calling a stockholders’ meeting.

By enjoining the SEC, Roxas has allowed publicly listed corporations such as PHC to disregard the Securities Regulation Code, which mandates the calling of annual stockholders’ meetings and election of directors.

He has spat in the face of the SEC by saying it has no power to compel corporations to call stockholders’ meetings.  He has made it possible for directors who fear being taken out to perpetuate themselves in power.

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PLUNDER?: Bildner commented that Roxas’s order has given certain officers “ample time to loot, plunder and siphon PHC corporate funds to the prejudice of the 2,500 innocent stockholders, including the government.”

She said: “Over P800 million was lost by the stockholders and the government as a result of Roxas’ injunction.  This include P450 million in money market deposits placed by Brodett and Araneta in the failing Bankwise. With the closure of Bankwise by the Bangko Sentral ng Pilipinas on Feb. 7, 2008, the fate of PHC’s money seems uncertain.”

She mentioned some P50 million in corporate funds allegedly transferred by Brodett to a joint account with Nieto and a “PHC c/o Cesar Munsayac” account, which she said was later cleaned out.

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FUNDS GONE: Bildner accused Brodett and Tan of masterminding the setting up of Telecommunications Center Inc. to which PHC supposedly kept advancing funds. She said the TCI never received the advance, and that its income went to private pockets.

She said “Brodett was, by far, the largest beneficiary of the Roxas injunction as he was able to make deposits of some P600 million to his personal accounts and those of his children and a female friend.”

He was able to graduate to Big Bucks, she added, despite his being an employee who only declares a P165,000 monthly income to the Bureau of Internal Revenue.

Some of PHC’s funds can no longer be traced. These include the P82 million spent for legal expenses of lawyers and, from what is recorded in PHC’s books as extra-legal expenses, “representation” to the Supreme Court, the Sandiganbayan, the PCGG and the SEC.

Whether the money earmarked for these extra-legal expenses reached the courts and government agencies mentioned or were pocketed is now the subject of separate investigations by the Supreme Court and the Sandiganbayan.