Press Release
February 2, 2012

Transcript of Senate Minority Leader Alan Peter Cayetano's Manifestation During the 10th Day of CJ Corona's Impeachment Trial
RE: Relevance of the Status of Basa-Guidote Enterprises, Inc. to the Article 2


1. If the prosecution's line of questioning is aimed at clarifying the nature and source of the P11 million in the Chief Justice's SALN, it can be tolerated by the Court as it relates to 2.2 and 2.3 on proper disclosure. But if the point is to prove whether or not Basa-Guidote Enterprises, Inc. is "dead" for having its certificate of registration revoked, the prosecution's line of questioning is not proving anything in relation to Article II. It is irrelevant.

2. Even if a corporation is "dead", that doesn't mean that de facto (in fact), it can no longer lend out.

-An unregistered corporation can function and exercise all the powers of a corporation under the Corporation Code. However, it would not be subjected to the regulatory measures of the State and not be under State protection.

-It is accorded corporate status as against 3rd parties although not against the State.


ASC: Just to clear things up, kapag ang isang korporasyon ay may ginawa na hindi nila pwedeng gawin, ultra vires 'yon, ibig sabihin, labag sa batas at labag sa charter.

Kapag ang isang tao ay sinabing inutangan pero patay na, mapapatunayan mo na hindi nagpautang ang taong iyon dahil patay na siya. Pero ang isang korporasyon, kapag sinabi ng SEC na patay na, ang sinasabi ninyo ay hindi na pwedeng magpautang. Hindi ba iyon irrelevant?

Hindi natin pinag-uusapan dito ang batas ng SEC o Corporation Law. Ang pinag-uusapan ay kung totoong mayroong P11 million noong 2003, P11 million noong 2004, P10 million noong 2005, P8 million noong 2006, P6.5 million noong 2007, P5 million noong 2008, at P3 million noong 2009. Ibig sabihin, kahit patay na ang korporasyon, kung may bank account o may pera sila, pwede pa din silang magpautang, sapagkat ito ay isang family corporation.

Ano ang relevance kung buhay pa ang korporasyon o hindi na? Hindi ba ang dapat nating patunayan ay kung totoo o hindi na nagpautang ang korporasyon? 'Yon ang ating ipinupunto dito, hindi kung buhay ang korporasyon o hindi.

Kasi, kahit patay na ang korporasyon, de facto wise, you can still get the money. You can still loan the money out.

Can you clarify on that matter, please?

Rep. Reynaldo Umali of the Prosecution said their line of questioning is in relation to the truthfulness of the entries in the SALN of the Chief Justice.

Presiding Officer Senator Enrile interjected and pointed out to the prosecution that if the question is if the corporation lent money that is reflected in the SALN of the Chief Justice, it does not prove the truthfulness of the SALN.

The prosecution replied that because the permit of the corporation has been revoked, it can only liquidate and distribute the assets.

Senate President Enrile said the prosecution has not made the connection between the legality of the loan to the proceedings.

Senator Cayetano yielded to Senator Panfilo Lacson.

ASC: 'Yung deadline ay noong 2010.

SEC Director Benito A. Cataran (BAC): Yes, Your Honor.

ASC: Pwede po ba silang mag-liquidate?

BAC: If they will not file an appeal.

ASC: But can they liquidate the assets of the corporation?

BAC: It's up to them.

ASC: Isn't cash advances a form of liquidation?

BAC: I don't think so, Your Honor.

ASC: Kung sampu kayo sa korporasyon at pare-pareho ang shares ninyo, kung may sampung milyon ang korporasyon, ibig sabihin, kung wala na kayong utang, ibabalik ang tig-isang milyon sa bawat isa ng stakeholders. Ibig sabihin, kung sa hatian, pwede mong hingin na nang mas maaga o i-cash advance ang dapat mong makuha.

BAC: Kung iyon po ang kanilang liquidation, it's up to them.

ASC: If these questions are preliminary, and the prosecution is going into proving whether or not there was a loan, or if there's money at all, or if the money is fictitious, there is relevance there. But if the point of all of these is simply to point out that the corporation is "dead", we're wasting our time because that is irrelevant. Because even if the corporation is "dead", that doesn't mean that de facto, they could not have given money to the Corona spouses.

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