BY PETER TABINGO

THE Sandiganbayan Third Division has ordered the Philippine Overseas Telecommunications Corp (POTC) to turn over cash dividends of P150.61 million payable to government-sequestered shares to be placed in escrow at the Land Bank of the Philippines.

The graft court last Dec. 7 upheld the sequestration by the Presidential Commission on Good Government of shareholder Polygon Investors and Managers Inc. and declared that the government is right to demand that the dividends be turned over to the graft court for safekeeping.

PCGG seized the firm along with several other business interests of late businessman Jose Africa, on allegations they were partly funded by ill-gotten wealth of the Marcos family.

The graft court also overruled Polygon’s claim that it is the proper repository of the stock earnings.

"We hold that the sequestration of Polygon is valid. Hence it is just proper that its dividends just like that of the other sequestered corporations be put under the custody of this court is an escrow account at the Land Bank of the Philippines until its rightful owner is determined," it declared.

Lawyers from the PCGG and the Office of the Solicitor General reported in June 2006 that two other firms controlled by the Africa family, Eastern Telecommunications Philippines Inc and the Oceanic Wireless Network Inc., turned over to the graft court P547.29 million and P52.72 million, representing the firms’ share earnings as of March 31, 2006.

Government has a 34.9 percent stake in POTC but only 22 percent is under sequestration.

PCGG said the total government stake could fetch up to P1.41 billion when sold but the Senate has recommended that disposition of the POTC stake be handled by the Privatization and Management Office.