Local media has reported that a graft complaint has been filed at the office of the Ombudsman against a judge who allegedly sided with a bank that was embroiled in a legal battle for control of Steel Corporation of the Philippines.

Mr Antonio M Lorenzana executive VP & CEO of Steel Corporation of the Philippines filed the complaint against Judge Ms Ma Cecilia Austria of the Batangas City Regional Trial Court Branch 2 for allegedly violating Republic Act number 3019 or the Graft and Corrupt Practices Act.

Mr Lorenzana claimed that Ms Austria held unrecorded informal meetings to allow the bank unmitigated access to the company’s records and facilitate the takeover. He alleged that the judge knowingly allowed the appointment of a rehabilitation receiver despite a conflict of interest situation with the creditor bank, which was seeking the corporation’s rehabilitation. Mr Lorenzana said Ms Austria orchestrated the meetings where Steel Corporation was required to fully articulate its business, financial and rehabilitation plans without requiring similar detailed presentations and justifications from BDO or the receiver.

Lawyers of Steel Corporation had filed 3 petitions for certiorari before the court of appeals to stop Ms Austria’s decision. But the judge noted that no temporary restraining order had been granted to them.

She said she had not yet received a copy of the graft complaint and it was only through the Inquirer that she learned about it. She maintained that she did not facilitate any bias for whatever party to the case and the decision she rendered was fair. Ms Austria said that “I am not affected because I know it will not prosper. My conscience is clear. I only laughed because I know it will not prosper. Otherwise, we would be held hostage to parties na lang. What if my decision would be upheld by the court of appeals and the Supreme Court?”