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Presidential Ad-Hoc Fact-Finding Committee on Behest Loans and/or PCGG Vs. Hon. Aniano Desierto, et al.

PRESIDENTIAL AD HOC FACT- FINDING COMMITTEE ON BEHEST LOANS AND/OR PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), Petitioners, versus HON. ANIANO DESIERTO, ALICIA LL. REYES, LOURDES M. MONTENEGRO, SERAFIN M. MONTENEGRO, BASILIO LIRAG and FELIX LIRAG, Respondents.

G.R. No. 147723 | 2008-08-22

D E C I S I O N


Tinga, J.:

Respondents Lourdes M. Montenegro, Serafin M. Montenegro, Basilio Lirag and Felix Lirag were all officers or stockholders of Midland Cement Corporation (Midland Cement), a corporation which was registered with the Securities and Exchange Commission on 14 June 1963. On 18 January 1968, Midland Cement obtained a foreign guarantee loan from the Development Bank of the Philippines (DBP) in the amount of USD 18.5M, or an equivalent of P110M. The loan was secured to finance the acquisition of a brand new cement plant to be supplied and installed by French contractor Fives Lille-Cail on a turn-key basis. The loan...