PSALM warns vs. garnishments

Manila Standard Today
By Alena Mae S. Flores | Aug. 23, 2014 at 12:01am

Power Sector Assets and Liabilities Management Corp. on Friday warned companies and banks against implementing notices of garnishments and releasing the agency’s properties and bank deposits.

“In order to preclude any devastating effects on the general welfare and the country’s energy security and financial stability, PSALM cautions the recipients of the notices of garnishment against unlawfully, carelessly and hastily releasing PSALM’s receivables or bank deposits in their possession,” PSALM president Emmanuel Ledesma Jr. said.

PSALM, created under the Electric Power Industry Reform Act of 2001, manages the assets and liabilities of National Power Corp.

Ledesma said sheriffs’ notices of garnishment were “legally baseless, violative of due process, premature at best, and hence patently void.”

Ledesma issued the statement in reference to the notices of garnishment issued by the sheriffs of the Regional Trial Court of Quezon City to PSALM’s banks, customers and other energy industry partners.

The sheriff’s office issued the notice following a Supreme Court resolution on June 30, 2014 in connection with the case filed by the NPC Drivers and Mechanics Association against Napocor.

The high court decided with finality the payment of DAMA claims of Napocor employees, who were terminated in 2003.

The sheriff’s office set PSALM’s alleged payables at P60.244 billion for the class suit petitioners, comprising around 8,018 beneficiaries.

The sheriffs also issued a demand against PSALM for the immediate settlement of the same amount of money.

Ledesma said public policy considerations dictated that government funds dedicated for specific public uses could not be diverted for other purposes and seized under writs of garnishment to satisfy monetary judgments by courts.

He added all disbursements of public funds should be covered by an appropriation from Congress to avoid disruption of public functions.

PSALM cited court rulings that a money claim against the government, despite validation in a final and executory judgment, should first be filed with the Commission on Audit.

PSALM said the safeguards were contained in Supreme Court directive dated Oct. 25, 2000 and addressed to judges of lower courts. source