Keeping eye on Lucio Tan's 'ill-gotten' assets, gov't moves to stop merger of PNB, Allied Bank

By: Philippines News Agency

MANILA - The government, through the Office of the Solicitor General, has asked the Supreme Court to stop the impending merger of the Philippine National Bank and the Allied Bank. The government's petition was in line with its bid to recover alleged ill-gotten wealth of tycoon Lucio Tan.

In a 20-page motion, Solicitor General Francis Jardeleza urged the high court to put Allied Bank assets in custodial egis (custody of the law) until the rightful owner is determined.

"It bears stressing that Allied Bank and all its assets are alleged to be ill-gotten and subject of litigation," the OSG said.

In September 2012, the Sandiganbayan dismissed with finality Civil Case No. 0005 which is about the government's claim on Tan's 60 percent holdings in various companies.

In upholding its June 2012 ruling, the Sandiganbayan said the government failed to present enough evidence to prove that majority of Tan's assets were ill-gotten.

The case is now pending with the SC.

The government is seeking forfeiture of Tan's assets from Allied Bank, Fortune Tobacco Corporation, Asia Brewery Inc., Foremost Farms, Himmel Industries Inc., Grandspan Development Corporation, Silangan Holdings inc. and Dominium Realty and Construction Corporation.

The planned merger between PNB and Allied Bank was approved by the Securities and Exchange Commission early this year.

The government said that  if the merger pushes through, the merger will not only dilute Tan's stake in the bank but will also be more difficult to trace.