Leynes Cries Foul

 Click on this link to view the original letter of Atty Jose Leynes (PDF file). Make sure you have Acrobat Reader installed.

May 26, 2012

The Philippine Canine Club, Inc.

Messrs. Augusto Benedicto Santos, Ronnie Natividad, Eugene Reyes,

Roland Gapus, Emmanuel Santos, Godofredo Salud, and

     Emiliano Valdes

Hillcrest Condominium

E. Rodriguez Sr. Blvd., Quezon City

Sirs:

I am writing you not as a former candidate for the Board of Directors, but as a regular member of the Philippine Canine Club, Inc. (PCCI) to put on record my objection to the participation in the last annual general elections of Messrs, Augusto Benedicto Santos III, Ronnie Natividad, Eugene Reyes, Roland Gapus, Emmanuel Santos, Godofredo Salud and Emiliano Valdes (hereinafter collectively referred to as Santos & Co. for convenience), and to ask them to desist from assuming the office or exercising the functions of members of the Board of Directors.

I received a letter from Atty. Jose Sibal that dealt with 2 issues, namely, inspection of the books of PCCI and the eligibility of certain nominees for candidacy as members of the Board.  I thought I had no business being involved in his issues with PCCI until I discovered anomalies committed in the conduct of the general membership meeting and election of directors last May 18, 2012.

During the latter part of that meeting I noticed that a copy of the 2003 PCCI By-Laws was inserted in the meeting kit.  Piecing this manipulative act together with the fact that there was an unusually large number of members who voted by mail, I got the impression that the membership was deliberately being misled about the governing election rules.  I discussed the matter with the PCCI legal counsel who was then present and I pointed out to him that the 2008 By-Laws should have been followed because it is the one that is effective, having been superseded the 2003 By-Laws.

I argued that if the 2008 By-Laws is to be applied, Santos & Co., would be barred from election to the Board having already served two (2) consecutive terms.  Surprisingly, he had the opposite view saying that since the case of PCCI (CA vs Judge Hernando, CA-GR SP No. 107516) concerning the implementation of the 2008 By-Laws for the termination of membership of certain PCCI members is not yet fully terminated, the 2003 By-Laws should apply for the purposes of the general membership meeting.  If he honestly believed in his position and if he led the ineligible candidates to commit such flagrant disregard of the By-Laws, I would have to say he is dead wrong in serving the interests of individuals whose collective action in inimical to the interest of PCCI.  Consider the following:

1.       The 2008 By-Laws was duly approved by the Securities and Exchange Commission on August 22,     2008 and effective under the law. (Sec 48, Corporation Code “xxx the amended pr new by-laws shall only be effective upon the issuance by the Securities and Exchange Commission of a certification that the same are not inconsistent with this Code,”) Attached is a copy of the SEC Certificate stating in part that the By-Laws “was approved by the Commission on this date pursuant to the provisions of Section 48 of the Corporation Code of the Philippines xxx.”

2.       The 2008 By-Laws has not been superseded.

3.       PCCI itself enforced and implemented the 2008 By-Laws in terminating certain members, applying Article VI thereof.

4.       The board of directors at that time was composed of the same individuals who are no longer eligible to be in the Broad.  They are expected to be fully aware of the provisions pertaining to their own disqualification/ineligibility for having completed their 2 consecutive terms and for initiating the amendment of the 2003 By-Laws.

5.       PCCI applied to the letter Article V of the 2008 By-Laws in the conduct of the last general membership meeting and elections of the members of the Board.

6.       PCCI defended the validity of the 2008 By-Laws  in its pleadings at the Regional Trial Court, Br. 93, Quezon City.  It is not PCCI that claims the invalidity of the 2008 By-Laws.  On the contrary, PCCI maintained that the 2008 By-Laws was duly passed by the PCCI Board and its membership and approved by the SEC.

7.       The Court of Appeals rendered a decision affirming the validity of the 2008 By-Laws stating in part: “At that time, all private respondents have either been expelled or suspended and the amended by-laws was already in full force and effect. Xxx”

This decision of the Court of Appeals simply means that the 2008 By-Laws of the PCCI is valid and effective and for as long as there is a status quo or as long as it is not annulled or declared invalid, the 2008 By-Laws is effective and binding and should be applied by PCCI, which it actually did in that case.

PCCI cannot apply the 2008 By-Laws and seek refuge under it to expel members in December 2008 and then use the superseded 2003 By-Laws in the general membership meeting of 2012.  This is not only illegal but insulting to common legal sense.  If this is allowed to happen, PCCI would have no established rules and would not be legally operating as a corporate entity.  As it is, Santos & Co. was intended to unduly favor these individuals who are trying to cling to the office for which they have become ineligible and disqualified.

Santos & Co. cannot invoke the 2003 By-Laws as applicable to the conduct or process of the nomination and elections for the 2012 directors because they themselves know of their ineligibility under the 2008 By-Laws the adoption of which they themselves initiated as directors at that time.  The act, therefore, of inserting the 2003 By-Laws in the election kit smacks of pure misrepresentation designed to distort the election process.

A corporation is governed by it’s By-Laws particularly in terms of its relationship with its members.  At any stage of the life of a corporation, there has to be an effective By-Laws for otherwise, there would be chaos not to mention the violation of the tenets of good governance.

Santos & Co. including the PCCI counsel who is supposed to be lawyer for the Club, cannot argue that the 2003 By-Laws is the law of the Club at this time based solely on the pendency of the court case involving the club and some terminated members.  There is likewise no basis to say that there is no governing By-Laws (or that the 2003 By-Laws is effective) at this time or that everything is to be governed by edicts of the old Board.  This would be ludicrous.

The fact is, the party questioning the 2008 By-Laws is not PCCI but the members who had been terminated on the strength of its provisions, and the PCCI Board used the 2008 By-Laws to terminate them.  PCCI in effect maintained that the 2008 By-Laws is the governing law since its adoption and approval by the SEC. When the case was filed by the terminated members questioning the 2008 By-Laws, PCCI defended it anf finally for the favorable decision of the Court of Appeals.  PCCI effectively affirmed the validity and applicability of its 2008 By-Laws.  PCCI has applied the 2008 By-Laws consistently.

Can the board of directors apply the 2008 By-Laws in one situation and apply the superseded 2003 By=-Laws in another situation?  You and I would know the answer.

As above stated, PCCI applied the provisions of Article V on or before May 19, 2012 specifically such requirements pertaining to the general membership meeting and the voting procedures.  Article V was followed –

                From the organization of the meeting to the order of business,

                Notices, quorum, attendance and voting, voting, proxies, voting by mail,

               Delivery of ballots to the audit firm and rules of order.

All of the election procedures were conducted and election materials printed under and by authority of the 2008 By-Laws.  A;; acts related to the elections were done following the 2008 By-Laws indicating the full recognition by PCCI of its validity and applicability since its approval by the SEC.

Why is it then that Article VII of the same 2008 By-Laws was not applied in determining the eligibility of the candidates for the Board.  Section 7.7 Article V is very clear –

                “No person shall be eligible to serve more than two (2)

                Consecutive terms on the board. A Board members who has served

                More than half a term on the Board is considered to have served a

                Full term.  This section does not preclude the reelection of any

                Person to the Board od Directors after one year or greater hiatus

                from Directorship.  This section shall apply to directors elected during the

                year of approval of this amended By-Laws and to all directors elected

                thereafter.  Thus, the two term limit shall apply and be reckoned from

                2008 for directors elected in 2008 and from 2009 for directors who

                Were elected in 2007 whose original terms of office will expire.”

               

No debate is necessary to know the rationale behind the prohibition.  Obviously, the intention of the members in approving this provision of the 2008 By-Laws is to prevent perpetuation of membership in the Board and to enable the PCCI to have a regular or predictable turn over of directors.

The prohibition against Santos & Co. who have been in the Board for at least four (4) years, from sitting in the Board is stated unequivocally in the 2008 By-Laws and is self-explanatory – a director who has served two (2) consequtive terms is prohibited from serving a new term.  Santos & Co. fall squarely under this prohibition by virtue of which they are no longer eligible to be members of the PCCI Board of Directors.

The prohibition under Section 7.7 is mandatory by the use of “no person shall xxx.” Thus, even if they some out “winners” in the elections, their disqualification or ineligibility cannot be cured because their participation in the elections is expressly prohibited by Article VII.  Section 7.7 of the 2008 By-Laws.  In simple terms, they cannot be elected or they can no longer sit in the Board.

To insist on the applicability of the 2003 By-Laws would be catastrophic.  Under Article V. Section 5.7 thereof, voting can be done only in two ways: either in person or by proxy.  In the last general membership meeting and elections on May 19, members were allowed to vote by mail as provided under the 2008 By-Laws.  In effect, what transpired during the whole election process was an arbitrary and selective application of the By-Laws, an act that now appears as a veiled conspiracy to bend the election rules to secure seats in the Board.  If, therefore, Santos & Co. should argue that the 2003 By-Laws is the present law, the the whole election process collapses because it was conducted under the 2008 By-Laws allowing voting by mail, a procedure that was not permitted under the 2003 By-Laws.

Are we to say now that the rules of PCCI can be twisted and mangled at the whims and caprices of certain individuals?  What kind of club would have not stable governing law?

In view of the foregoing and by virtue of the pertinent provisions of the 2008 By-laws discussed above, I hereby respectfully demand that the above-named individuals desist from assuming the office of members of the Board of Directors and/or exercising the functions of the office.  It behooves honest and self-respecting person like you, valuing “delicadeza” to voluntarily relinquish any claim to the office of the Board of Directors of PCCI you surely know at heart that you are no longer eligible to sit in the board.  Your response will reflect on the strength of your character.

This time the cost of a lawsuit, if it should get to that point, cannot be passed on to the PCCI and will have to be shouldered by the individual respondents.

Very truly yours;

(signed)

Jose C. Leynes

Another Open Letter

Dear Ladies and Gentlemen of the Board:

Tama na  AT  tigilan na yung pagwaldas niyo ng pera ng mga PCCI members.  PAPANO NAUBOS ang P47 Million pesos sa nakaraan taon?  Hindi biro ang halaga na yan.  PERA ng MEMBERS and ginagamit PARA PANSARILING PAGPAPAYAMAN. 

ANG NANGUNGUNA  AY ANG  pagbulakbol ni DINKY SANTOS sa Amerika at Europa buwan buwan.  First Class tickets, 5 star hotel accommodations at may US $ 500 a day pocket money!  P3,509,748.00 ang nagastos sa mga pasyal ng mga Direktors  abroad sa nakaraan taon (2012) pa lang.  Add up all the Directors’ travel expenses since Dinky became President in 2005 it will amount to over P18 million pesos of member’s money wasted on their pleasure trips abroad.  Dinky, doble ang kinikita mo sa mga foreign assignments.  Binabayaran  ng PCCI ang hotel, pocket money at pamasahe  para sa mga judging assignments mo abroad pero pinapa reimburse mo din sa mga foreign clubs na nagimbita sa iyo.  DI BA LAGARING HAPON ANG GINAGAWA MO? Kaya pala ayaw mo na bumaba sa posisyon mo bilang director lalong lalo na sa Presidente..  Ikaw pa ang #1 na lumalabag sa by-laws na BAWAL umupo  ang isang tao sa Board for more than 2 terms  SOBRANG SOBRA NA PAGOVERSTAY MO SA PCCI !! 

ISA PA RIN PAGGASTOS AY ANG SUMMER OUTING NG WHOLE PCCI STAFF to Hong Kong Disneyland plus POCKET MONEY $$$$.  Diyos Mio daig nyo pa ang Manila Polo Club kung mag bigay ng benefits sa employees.  Ang bait NIYO talaga SA MGA LOYAL AND PIPING EMPLEADO.  Nakakainggit naman, lam niyo ba karamihan ng mga members ay hindi pa nakarating sa ibang bansa  tapos nilibre niyo pa ang staff using member’s money!  Tama ba yan?  Hindi kaya para to buy their SILENCE sa mga anomalies nangyayari sa loob ng Club?  Nagtatanong lang po.

Lalong SUMISIPAG si Direktor M.A.V. na mag kennel visit kasi binabayaran siya ng P2,500 a day  with libreng merienda, service car and driver pa.  Delikado pag pinapasok mo siya sa kennel dahil kung saan saan siya pumupunta baka mag dala ng sakit at mahawa ang mga aso.  For the most part of his miserable life, M.A.V. had been unemployed and lived on earnings from dogs alone.    Thanks to PCCI finally may trabaho na siya for the first time in his 60 years on earth. That goes to all the directors who visit the PCCI office and are given an allowance of P2,500 a day for their “services” to the Club lalong lalo na si Direktor S.S. and halos araw araw nasa PCCI para mag check ng emails, mag kamot ng pwet at mag-kolekta ng P2,500 per visit. Isa rin yan unemployed at umaasa lang sa PCCI. 

Higit P8 million pesos ang lugi  ng PCCI last year sa mga dog shows. Hindi niyo ba naiisip karamihan ng mga members ay hindi interesadong mag dog show.  Ang dog show ay para sa mga mayayaman lamang na 3% ng total membership.  Ang nakikinabang talaga ay ang mga Direktor judges na naiimbita magjudge abroad I invite you, you invite me ang nangyayari.  Sa aming mga ordinaryong members walang pakinabang ang mga shows.  Why spend all that money to please a few while the majority have to shell out their hard earned money and get nothing in return? 

Ang tatakaw niyo naman at milyon milyon ang napupunta sa mga committee and board meetings averaging  over P300,000 pesos a month!  ANO BA ANG KINAKAIN NYO SA KADA MEETING IMPORTED WAGYU STEAK AND CAVIAR  sa mamahaling hotels? May take home pa siguro noh? 

SINO BA TALAGA ang kumita sa microchip project? May nag-supply ng microchips at P50 at pinatungan ng promotor ng microchipping si PCCI Director Mr. CASHTANOS  at pinasa sa PCCI at P100. Which pinapasa naman ng PCCI sa members for P200. Hindi ba dapat non-stock, non-profit ang PCCI please explain paano ang P50. original halaga ng microchip naging P200 pagdating sa members? This is the real TRUTH Nothing more nothing less all at the expense of the long suffering members. Some greedy  Directors made money  and  passed the buck to the members.  Ma-awa naman kayo sa AMIN  taon taon nagtataas kayo ng fees pero ano ang napapala ng mga members? WALA!  Direktors lang nakikinabang sa Club – new cars, foreign trips, food for the Gods hindi na kayo nahihiya.

Hawak niyo ang mga boto/proxies ng 100+ voting members samantalang mahigit 55,000 mga associate members ay walang boses, hindi kami  makakaboto para piliin ang tamang tao na mamumuno sa aming mahal na organisasyon.  Ganun ang systema kaya bulok ang mga nakaupo sa Board.  LORD PLEASE SAVE PCCI FROM THE DINKY ADMINISTRATION BEFORE IT IS TOO LATE.

From your long suffering members.
JUAN DELA CRUZ

DINKY's Little SECRET

Siya ang sekreto sa buhay ni Dinky.  Tuwing namamasyal si DINKY sa Europe, he makes it a point to see this mysterious woman in the picture.  PCCI Members, this is where your money has been going to because Dinky's trips are all funded with PCCI money.  Mga litratong eto ay galing sa "MOLE" namin abroad.  Sabi ng eye witness, "I think your President might be in love."  

It was only P800,000 NOT P7 million! - Danny Ramilliano

Umamin na si Danny Ramilliano tungkol sa kaniyang partisipasyon sa P7 Million scam. Ayon sa kanya, inaprub ng ex-com ang "loan" niya sa halagang P800,000.00 (Eight hundred thousand pesos). Pinirmahan ni Ting Bustos ang mga tseke payable to Danny Ramilliano Na inencash naman niya sa Metro Bank. Yung ibang members ng ex-com na sina Dinky Santos, Bong Natividad, Roland Gapus, Ting Bustos at ang PCCI Adviser na si Bob Castanos ay pawang may mga "loans" din. Nang nadiskubre ni Atty Joe Leynes na may nawawalang P7 million sa pondo ng PCCI agad agad tumawag si Dinky Santos ng emergency ex-com meeting sa payo ng mastermind na si Bob Castanos(ideya niya ang P7 million scam). Dito nagkaroon sila ng gentleman's agreement na hindi lalabas ang sekreto nila at si Dinky & Bob na ang bahala magpalusot kay Atty Leynes. Ang hindi nila inaasahan ay ang pagkwento ni Atty Leynes sa ilan members ng Board tungkol sa kaniyang natuklasan. Isa diyan sa nakwentuhan ni Atty Leynes ay si Milo Valdes. Sa mga hindi nakakaalam si Milo ay isa sa mga pinakatsismosong tao sa dog world. Ang lihim mo ay di mapapagkaila ni Milo. Sa isang provincial dog show unang kumalat ang balita. Biglang nagbago na ang plano ng ex-com dahil di na nila maitago ang sekreto kaya pinasyahan ng mastermind na kelangan pumili ng fall guy para mailigtas ang sarili. Sa kamalasan ni Danny, sa kaniya nila idiin ang lahat.

Sa wakas nagkaroon din ng liwanag sa P7 million pesos scam:

Tanong: Sa 33 checks na sinabi ng PCCI na encash ni Danny, 8 checks lang ang napresenta ng PCCI sa prosecutor bilang ebidensiya. BAKIT?

Ang Sagot: Dahil yung 8 tseke lang ang nakapangalan kay Danny at yung iba ay paid to "CASH". At kung susuriin ang mga tseke makikita sa likod ang pangalan, I.D.number at pirma ng mga empleyado ng PCCI na nag encash sa mga eto. Clue: isa sa mga PCCI managers na may pirma sa likod ng ilan tseke ay may initials S.P.T. kaya nasagot din ang pangalawang tanong kung bakit walang empleyado nakasuhan ng PCCI bilang co-conspirator ni Danny. Dahil pag ginawa nila yan madadamay ang ibang direktor hanggang sa Chairman of the Board at Presidente.

Basahin ang mga entries mula 2008 sa blog na eto para malaman mo ang buong pangyayari.

In fairness - Hindi LAHAT ng direktors ng PCCI ay nakinabang sa P7 million pesos. Salamat naman at sobrang swapang ang mga membro ng ex-com at sinolo nila ang pera kaya lumabas ang kanilang baho. Moral lesson: learn to share the spoils so everybody happy & your secret will be safe.

Nakakahiya Sila

PCCI members nanaman ang nagbayad ng piyansa nila. That's a cool 450,000 pesos spent to keep their dirty asses out of prison. Why should we keep on paying for their crimes?

Teka, teka mga pare ko. Am I missing something here? Why is Mareng Dinky Santos not included in the charge sheet? Nagkamali ba ang husgado? Si Dinky pa naman ang #1 Kurakot ng PCCI he should be locked up behind bars and throw away the keys. May mali yata dito don't you agree?

Wow! I like your mug shot Bong, now you, Gloria Arroyo and Erap have something in common.

Bale wala eto kay Roland Gapus sanay na siya makulong sa dami ng estafa cases nakasampa sa kaniya.

Is that you Johnny? What do your students at Ateneo have to say? Business ethics pa naman tinuturo mo - plastik!

Ting Bastos! Bastos ang ugali, bastos din ang itsura pweh. At si Mr. Manager Jojo, you are an accessory to the crimes committed. Mabuti pa kumanta ka na and ask the members for forgiveness while you still can before it will be too late.

To the PCCI Board Moderate Your Greed

Nagtaas nanaman ang PCCI ng membership fees from P300.00 a year to P600.00!!!! Kulang pa ba ang kinukurakot nila??? Sus mariosep MODERATE NAMAN YOUR GREED. Tapos etong December 2011 papasyal nanaman si Dinky & Bong sa Amerika, all expenses paid by the PCCI members - Business Class tickets, 5 star hotel accommodations and US$300 a day pocket money for 2 weeks just to watch a dog show. Read all about it in the latest PCCI Quarterly Magazine folks. This is where all our money is going.

Strictly Confidential - The document PCCI does not want you to see

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Nakakaiyak basahin ang resolution ni Prosecutor Almonte. Dito maliwanag ang ebidensiya laban sa kasong moro-moro sinampa ng KKK.

Ang sumusunod ay mga highlights sa recommendation ni Prosecutor Almonte:

1) Si Danny Ramilliano ay hindi nagbigay ng kanyang sagot o responde sa kasong nakasampa kaya ang desisyon ng prosecutor ay galing lang sa ebidensiya naisubmit ng PCCI sa korte.

2) Ang tangi at kaisa-isang ebidensiya naibigay ng PCCI sa korte ay ang Affidavit of Denial ni Florentino Bastos este Bustos, PCCI Corporate Secretary. Walang nanggaling supporting evidence sa ni isang ahensiya ng gobyerno tulad ng NBI, CIDG or handwriting expert na nagpapatunay na forged ang signatures ni Ting Bastos este.. Bustos pala.

3) Wala silang pinakita sa korte na may demand letter ang PCCI kay Danny Ramilliano na dapat ibalik niya ang P7 million.

4) Walang pinakita ang PCCI na sapat na ebidensiya na kinuha ni Danny ang pera ng Club.

YOU BE THE JUDGE