Supreme Court's order Cebu governor to settle bank debt



MANILA, Philippines — The Supreme Court (SC) has mandated Cebu Governor Gwendolyn Garcia to settle her debt to a foreign bank, rejecting her petition to block the payment order.

In a 12-page decision issued in December last year, the SC Second Division instructed a Makati trial court to enforce its August 2012 resolution. This resolution requires Garcia to pay the Hongkong and Shanghai Banking Corp. (HSBC) $700,000 in damages, along with 12 percent legal interest from July 2000, and P404,560.50 in legal costs. The SC’s directive followed Garcia’s challenge to the alias writ of execution issued in 2018.

Garcia argued that the debt collection order was issued without giving her an opportunity to contest it. She also claimed that the writ was improperly served, as it should have been directed to her business, GGC Enterprises. In denying her petition, the SC stated that Garcia failed to present any facts or circumstances that would justify quashing the writ.

“Garcia can point to no specific error in the amount under the alias writ issued by the trial court. She did not even claim that the legal and accumulated interests were improperly calculated, and merely objects to the ‘staggering amount,’” the ruling stated.

The high court also dismissed Garcia’s claim that the alias writ of execution was not properly served to her. It noted that the sheriff made several attempts to personally serve the writ at her office before leaving it with an authorized personnel.

The SC highlighted that it has been more than 10 years since the 2012 resolution against Garcia became final and executory. It added that due to Garcia’s “dilatory petitions,” the five-year period of the alias writ of execution issued in 2019 has expired.

The case dates back to 1996, when Garcia took out a $900,000 loan from HSBC to purchase a light transit barge for her company, GGC Enterprises. Garcia and GGC Enterprises failed to repay the loan, leading HSBC to file a complaint. In 2001, a trial court ruled in favor of HSBC.

via PhilStar


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