The judge presiding over the Philippines' long-running case to resolve a dispute over a US$4.4 million letter of credit (L/C) has quit the case.

This apparently means that closure in the dispute that has been rumbling on for 17-years is not as close as it seemed earlier this year (DCWorld News, 14 August 2003).

Suspicions and distrust

Justice Minita Chico-Nazario said she no longer felt able to preside over the case in the light of allegations that she is favouring the Philippine National Bank (PNB). The allegations have been made by Vicente Chuidian, believed to be a close associate of former Philippine leader Ferdinand Marcos.

The judge denies the allegation but nevertheless feels obliged to stand down to "to allay suspicions and distrust" of any party in the case.

Too lenient

In October Chuidian, a defendant in the case, said the court had been too lenient in the three extensions it had given PNB to comply with a Supreme Court resolution ordering it to deposit into the Land Bank of the Philippines a US$4.4 million L/C. Leniency over the extensions is, claims Chuidian, an indication that Nazario favours the bank. Extensions were granted by the court to PNB on 5 August, 15 August and 1 September 2003.

The PNB has asked for several extensions to comply with the order for procedural reasons. It claims the amount concerned is "huge" and it should be granted time to comply with "certain bank procedures as well as some central bank regulations" before it remits the funds.

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