In a 17-page resolution written by Associate Justice Diosdado Peralta and concurred in by Presiding Justice Teresita Leonardo de Castro and Associate Justice Efren dela Cruz, the court reconsidered its Nov. 30, 2004 resolution finding probable cause against all 14 accused in Criminal Case No. 26146 for violation of Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. The ruling effectively nullified the warrant of arrest earlier issued against all the accused.

The court granted the motions for reconsideration separately filed by former DBP governors Roberto Ongpin, Rolando Zosa, Jose Tengco Jr., Ofelia Castell, Alicia Reyes, Rodolfo Manalo and Faustino Agbada.

It also dismissed the case as against former DBP governor Alejandro Melchor in view of his death prior to the issuance of the resolution.

Since the court dismissed the entire case, other accused who did not appeal the Nov. 30, 2004 ruling were likewise cleared of graft charges.

They include former DBM governors Cesar Zalamea, Don Ferry and Rolando Gapud, and private respondents Raymundo Feliciano, Cecilio de Villa and Carlos Syquia.

The former DBP executives were accused of causing undue injury to the government when they granted loans totaling R20,517,594.45 covering the period from May 26 to Oct. 13, 1982 to the Black Mountain, Inc. (BMI), a domestic corporation engaged in copper mining.

This, according to government prosecutors, was despite the fact that at the time loans were granted, the DBP officials knew fully well that BMI had no adequate collateral and had several loan exposures and despite its noncompliance with the criteria set by law, the Central Bank and DBP.