The Office of the Ombudsman has dismissed charges of grave coercion and misconduct filed by a former Korean investor in the Clark Freeport against some officials of the Clark Development Corporation, headed by its former President and CEO Arthur P. Tugade, for lack of merit.
In the dispositive section of the order, Irmina H. Bautista, Graft Investigation and Prosecution Officer II (GIPO) who handled the case, said that “it is respectfully recommended that the criminal and administrative charges against respondents Tugade, et al., be dismissed for lack of merit.”
The case was reviewed by Margie G. Fernandez-Calpatura, reviewing GIPO and Head, EIO-Zero Backlog Unit, and approved by Ombudsman Conchita A. Carpio-Morales.
The case was filed by Kim Eung Il (aka Steve Kim), president of Holywood Park Development Corporation (HPDC), last year.
Included in the complaint were Tugade, Vice President for Legal Affairs and General Counsel and Corporate Secretary Perlita Sagmit, Vice President for Business Development and Business Enhancement Group Evangeline Tejada, Vice President for Security Services Ricardo Banayat, Manager for Marketing and Promotions Department Thelma Ocampo, Sr. Legal Officer Juvy Manwong, former Asst. Vice President for Business Enhancement Group Mariza Mandocdoc.
The Ombudsman order states: “records show that the lease agreement between CDC and complainant (Kim) was terminated due to the latter’s violations of the provisions of the agreement which include among others non-payment of the agreed rentals, failure to comply with the development timeliness and meet employment and investments commitments, and subleasing and/or selling the leased property without the consent and approval of CDC.”
Kim filed the cases with the Ombudsman following the CDC’s termination of lease agreement due to the non-payment of lease rentals, arrears, failure to comply with the agreement, among others, including the non-compliance on the temporary restraining order issued by the Regional Trial Court in Angeles City.
The graft court said the termination of the subject lease agreement and take over of leased property are based on Section 3, Article VI of the Lease Agreement, providing that any breach, non-performance or non-observance of the terms and conditions will constitute default and sufficient ground to terminate lease.
Likewise Kim’s offer to pay CDC in the form of manager’s check amounting to P5 million for the rental arrears indicated that the Korean investor incurred delays in the payment of rentals, Bautista said.
“Being it so, it cannot be said that respondents (CDC) prevented complainants and his employees without authority, or by means of force, threats or intimidation from doing something against their will, whether it be right or wrong, so as to indict for grave coercion,” the graft court said.
Relatedly, a separate disbarment case filed by Kim at the Integrated Bar of the Philippines (IBP)—Commission on Bar Discipline—on January 28 this year against the former CDC President and Legal Officers of the state-owned firm has been dismissed recently by the Supreme Court.