Frozen bank account thwarting LTO’s license plate delivery

A STOCKHOLDER with a single share in an LTO contractor company is sowing mayhem to the country’s license plate delivery system.

The Ortigas branch of Land Bank of the Philippines added to the controversy when it froze the bank account of PPI-JKG Philippines Inc., now OMI-JKG Philippines Inc., a contractor for the Land Transportation Office.

The bank initiated the account freeze following a letter from Christian Calalang, who claims to be the majority shareholder of OMI-JKG, when in reality he merely owns just one share valued at P100 after selling his previous stocks to the company to Ms. Annabelle Arcilla-Margaroli

Mr. Calalang’s ownership claim over OMI-KMG rests on thin ice. His original company PPI-JKG forged joint ventures with Dutch company JKG (the manufacturer of the plates) and served as the LTO’s license plate supplier before being acquired by ArcillaMargaroli. The acquisition led to the emergence of OMI-JKG as the surviving firm.

The bank freeze, meanwhile, has caused significant disruptions to the issuance of motor vehicle plates, with OMI-JKG struggling to pay its local and foreign suppliers.

Dean Israelito Torreon, the legal representative of OMI-JKG, expressed disappointment over LandBank Ortigas and branch manager Nenita Camposano for refusing to release the necessary funds to settle outstanding payments to suppliers.

Torreon argued that the bank based its decision on a mere letter of request from Calalang, which was accompanied by a questionable general information sheet.

The bank filed an interpleader, citing conflicting requests and instructions from both Calalang and Arcilla-Margaroli as the basis for its action. The bank has claimed uncertainty over which party should be recognized with valid authority over the frozen account, resulting in a litigation between the two parties.

Calalang notably sent identical letters to other banks where Arcilla-Margaroli maintains the company account after assuming control. These banks include Asia United Bank, Security Bank and Trust Co., Union Bank of the Philippines, Philippine National Bank and Bank of the Philippine Islands. The banks, however, did not comply with Calalang’s request to freeze the accounts. OMI-JKG’s lawyer said the banks thoroughly reviewed all the legal documents provided by Arcilla-Margaroli and determined that they were in order.

Furthermore, in response to a subpoena from the National Bureau of Investigation (NBI), the active banks clarified that Calalang was not a signatory to the account and that there were no court orders or sufficient documents supporting his claims.

Only the LandBank Ortigas branch froze the funds of PPI-JKG, despite an earlier deduction of P182 million through a manager’s check from the corporation’s bank account at the request of ArcillaMargaroli.

The abrupt freezing of the account, immediately after ArcillaMargaroli returned to the bank following her dealings with AUB’s similar claim by Calalang on that day, raises significant concerns. The situation is particularly distressing considering that these funds are allocated for a critical government project and show proper documentation affirming ownership by the Arcilla-Margaroli-JKG Group.

In contrast, Calalang’s claim of ownership is weak. Calalang’s claim documents have been verified and rebuffed by the Philippine National Police, National Bureau of Investigation and fiscal’s offices, resulting in nine ongoing criminal cases filed against him and his associates by Arcilla-Margaroli and her foreign partner, JKG.

Calalang has been issued arrest warrants and has already been arraigned.

The bank freeze, thus, should be resolved immediately. It is of utmost importance that the legal system upholds justice and expeditiously resolves the ongoing interpleader cases filed by LandBank and the LTO.

The true owner of the company has been clearly established and it is crucial to address the plate shortage issue. The Department of Transportation and LTO may consider filing criminal cases against the fraudulent claimant and the disruption Calalang has caused to the government’s operations.

Meanwhile, the court should prioritize the prompt release of funds to OMI-JKG, the legitimate contractor, without any unnecessary delays or unreasonable conditions.

E-mail: rayenano@yahoo.com or extrastory2000@gmail.com

WHEREAS, the pilot of

No. 17-08-09-SC in selected lower courts has been the subject of audit observations citing non-conformance to Section 75 of Presidential Decree No. 1445 , COA Circular No. 97-002 dated February 10, 1997, and other pertinent accounting and auditing rules and regulations prescribed by this Commission;

WHEREAS, the SC intimated that under its Strategic Plan for Judicial Innovations (SPJI) for 2022-2027 regional administrative offices shall be established wherein decentralization of administrative matters for the trial courts will be instituted.

NOW, THEREFORE, the Commission Proper RESOLVES, as it does hereby RESOLVE, to grant the request of the Supreme Court to adopt the guidelines contained in its A.M. No. 1708-09-SC which shall also serve as guide in the audit of MOOE allocations directly released to the lower courts pursuant to the Special Provision in the GAA; and RESOLVE FURTHER, that the adoption of A.M. No. 17-08-09-SC shall be effective only during the period covered by the Supreme Court’s SPJI 2022-2027 and shall be subject to the Commission’s review. This Commission reserves its right to amend or revoke the authority herein granted, with prior notice to the Supreme Court.

Ovialand defers P2.2-b IPO amid global market volatility

By Jenniffer B. Austria

PROPERTY developer Ovialand Inc. said Wednesday it deferred its planned P2.2-billion initial public offering due to volatility in the local and global markets.

Ovialand said in a statement Wednesday it would “wait for better market conditions” before proceeding with the planned maiden listing.

“Ovialand has always been about creating value for everyone we serve—whether it be our homebuyers, organization, business partners and shareholders. We want our IPO to be a testament to this principle,” said Ovialand president and chief executive Pammy Olivares-Vital.

The decision was made in consultation with SB Capital Investment Corp., the sole underwriter for the IPO.

“We aim to find the most suitable vehicle for our client to achieve growth, and as of the moment, a public listing is not the best option,” SB Capital president and chief executive Virgilio Chua said.

“We will continue to work and support Ovialand so that all options are available to maximize their long-term growth potential,” he said.

Olivares-Vital said despite the deferment of the fund-raising activity, the group remained on track to sustaining its growth momentum in 2023. It will also continue to implement growth strategies and expansion plans to achieve its goal of becoming a nationwide player in the property sector, she said.

Ovialand has been planning to go public since 2021. Such plans were deferred also due to volatile market conditions.

Based on the IPO prospectus filed in March, Ovialand planned to sell up to 360 million primary and secondary shares with an over-allotment option for another 36 million secondary shares at an offer price of P5.60.