article xi - compiled case digests (complete)

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ARTICLE XI: COMPLETE CASES DIGESTS Section 3: Impeachment Proceedings Francisco vs. De Venecia, G.R. 160261, Nov. 10,2003 FACTS: On July 22, 2002, the House of Representatives adopted a Resolution, which directed the Committee on Justice "to conduct an investigation, in aid of legislation, on the manner of disbursements and expenditures by the Chief Justice of the Supreme Court of the Judiciary Development Fund (JDF)." On June 2, 2003, former President Estrada filed an impeachment complaint, which was dismissed, against Chief Justice Davide and seven Associate Justices for "culpable violation of the Constitution, betrayal of the public trust and other high crimes." A day after the dismissal, a second impeachment complaint was filed against the Chief Justice. Respondent House of Representatives argues that the House impeachment Rules do not violate the Constitution (Sec. 3(5) of Art. XI), contending that the term “initiate” does not mean “to file.” ISSUE #1: When is an impeachment complaint deemed initiated? RULING: In cases where a Member of the House files a verified complaint of impeachment or a citizen files a verified complaint that is endorsed by a Member of the House through a resolution of endorsement against an impeachable officer, impeachment proceedings against such official are deemed initiated on the day the Committee on Justice finds that the verified complaint and/or resolution against such official, as the case may be, is sufficient in substance, or on the date the House votes to overturn or affirm the finding of the said Committee that the verified complaint and/or resolution, as the case may be, is not sufficient in substance. In cases where a verified complaint or a resolution of impeachment is filed or endorsed, as the case may be, by at least one-third (1/3) of the Members of the House, impeachment proceedings are deemed initiated at the time of the filing of such verified complaint or resolution of impeachment with the Secretary General. ISSUE #2: Are impeachment proceedings outside the scope of judicial review? RULING: No. Our Constitution, though vesting in the House of Representatives the exclusive power to initiate impeachment cases, provides for several limitations to the exercise of such power as embodied in Section 3(2), (3), (4) and (5), Article XI thereof. These limitations include the manner of filing, required vote to impeach, and the one year bar on the impeachment of one and the same official. The power of judicial review as expressly provided for in the Constitution, is not just a power but also a duty, and it was given an expanded definition to include the power to correct any grave abuse of discretion on the part of any government branch or instrumentality. There exists no constitutional basis for the contention that the exercise of judicial review over impeachment proceedings would upset the system of checks and balances. The second impeachment complaint is unconstitutional. Having concluded that the initiation takes place by the act of filing of the impeachment complaint and referral to the House Committee on Justice, the initial action taken thereon, the meaning of Section 3 (5) of Article XI becomes clear. Once an impeachment complaint has been initiated in the foregoing manner, another may not be filed against the same official within a one year period following Article XI, Section 3(5) of the Constitution. In fine, considering that the first impeachment complaint, was filed by former President Estrada against Chief Justice Davide on June 2, 2003 and referred to the House Committee on Justice on August 5, 2003, the second impeachment complaint against the Chief Justice on October 23, 2003 violates the constitutional prohibition against the initiation of impeachment proceedings against the same impeachable officer within a one-year period. Gutierrez vs. House Com. on Justice, G.R. 193459, Feb. 15, 2011 Facts: The Ombudsman, Ma. Merceditas Gutierrez (petitioner), challenges via petition for certiorari and prohibition the Resolutions of September 1 and 7, 2010 of the House of Representatives Committee on Justice (public respondent). Before the 15th Congress opened its first session on July 26, 2010 (the fourth Monday of July, in accordance with Section 15, Article VI of the Constitution) or on July 22, 2010, private respondents Risa Hontiveros- Baraquel, Danilo Lim, and spouses Felipe and Evelyn Pestaño (Baraquel group) filed an

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Consti art 11

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  • ARTICLE XI: COMPLETE

    CASES DIGESTS

    Section 3: Impeachment

    Proceedings

    Francisco vs. De Venecia, G.R. 160261,

    Nov. 10,2003

    FACTS: On July 22, 2002, the House of

    Representatives adopted a Resolution, which

    directed the Committee on Justice "to conduct

    an investigation, in aid of legislation, on the

    manner of disbursements and expenditures by

    the Chief Justice of the Supreme Court of the

    Judiciary Development Fund (JDF)." On June 2,

    2003, former President Estrada filed an

    impeachment complaint, which was dismissed,

    against Chief Justice Davide and seven

    Associate Justices for "culpable violation of the

    Constitution, betrayal of the public trust and

    other high crimes." A day after the dismissal, a

    second impeachment complaint was filed against

    the Chief Justice. Respondent House of

    Representatives argues that the House

    impeachment Rules do not violate the

    Constitution (Sec. 3(5) of Art. XI), contending

    that the term initiate does not mean to file.

    ISSUE #1: When is an impeachment complaint

    deemed initiated?

    RULING: In cases where a Member of the

    House files a verified complaint of impeachment

    or a citizen files a verified complaint that is

    endorsed by a Member of the House through a

    resolution of endorsement against an

    impeachable officer, impeachment proceedings

    against such official are deemed initiated on the

    day the Committee on Justice finds that the

    verified complaint and/or resolution against such

    official, as the case may be, is sufficient in

    substance, or on the date the House votes to

    overturn or affirm the finding of the said

    Committee that the verified complaint and/or

    resolution, as the case may be, is not sufficient

    in substance.

    In cases where a verified complaint or a

    resolution of impeachment is filed or endorsed,

    as the case may be, by at least one-third (1/3) of

    the Members of the House, impeachment

    proceedings are deemed initiated at the time of

    the filing of such verified complaint or

    resolution of impeachment with the Secretary

    General.

    ISSUE #2: Are impeachment proceedings

    outside the scope of judicial review?

    RULING: No. Our Constitution, though vesting

    in the House of Representatives the exclusive

    power to initiate impeachment cases, provides

    for several limitations to the exercise of such

    power as embodied in Section 3(2), (3), (4) and

    (5), Article XI thereof. These limitations include

    the manner of filing, required vote to impeach,

    and the one year bar on the impeachment of one

    and the same official. The power of judicial

    review as expressly provided for in the

    Constitution, is not just a power but also a duty,

    and it was given an expanded definition to

    include the power to correct any grave abuse of

    discretion on the part of any government branch

    or instrumentality. There exists no constitutional

    basis for the contention that the exercise of

    judicial review over impeachment proceedings

    would upset the system of checks and balances.

    The second impeachment complaint is

    unconstitutional. Having concluded that the

    initiation takes place by the act of filing of the

    impeachment complaint and referral to the

    House Committee on Justice, the initial action

    taken thereon, the meaning of Section 3 (5) of

    Article XI becomes clear. Once an impeachment

    complaint has been initiated in the foregoing

    manner, another may not be filed against the

    same official within a one year period following

    Article XI, Section 3(5) of the Constitution.

    In fine, considering that the first impeachment

    complaint, was filed by former President Estrada

    against Chief Justice Davide on June 2, 2003

    and referred to the House Committee on Justice

    on August 5, 2003, the second impeachment

    complaint against the Chief Justice on October

    23, 2003 violates the constitutional prohibition

    against the initiation of impeachment

    proceedings against the same impeachable

    officer within a one-year period.

    Gutierrez vs. House Com. on Justice,

    G.R. 193459, Feb. 15, 2011

    Facts: The Ombudsman, Ma. Merceditas

    Gutierrez (petitioner), challenges via petition for

    certiorari and prohibition the Resolutions of

    September 1 and 7, 2010 of the House of

    Representatives Committee on Justice (public

    respondent). Before the 15th Congress opened

    its first session on July 26, 2010 (the fourth

    Monday of July, in accordance with Section 15,

    Article VI of the Constitution) or on July 22,

    2010, private respondents Risa Hontiveros-

    Baraquel, Danilo Lim, and spouses Felipe and

    Evelyn Pestao (Baraquel group) filed an

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    VALOREXSticky NoteWhen does impeachment proceeding initiate?

    At the time when a verified complaint is filed and referred to the committee on Justice for action.

    Does a second impeachment proceeding in a year unconstitutional?

    Yes. It is stated on Article Xi of the 1987 constitution that only 1 impeachment proceeding can be done on any official concerned to prevent the usage of impeachment as a form of harassment.

    VALOREXSticky NoteSufficiency of the complaint of impeachment:

    Mentioned on Art. XI section 2.

    Impeachment rules be published?

    No. It is with the discretion of the HOR / CONGRESS to make the rules of Impeachment. Art. X1 section 3 (8)

    One impeachable complaint to one impeachable offense

    It, therefore, follows that an impeachment complaint need not allege only one impeachable offense.

  • impeachment complaint against petitioner, upon

    the endorsement of Party-List Representatives

    Arlene Bag-ao and Walden Bello. A day after

    the opening of the 15th Congress or on July 27,

    2010, Atty. Marilyn Barua-Yap, Secretary

    General of the House of Representatives,

    transmitted the impeachment complaint to

    House Speaker Feliciano Belmonte, Jr. who, by

    Memorandum of August 2, 2010, directed the

    Committee on Rules to include it in the Order of

    Business.

    Issue #1: Did the House Committee on Justice

    fail to ascertain the sufficiency of form and

    substance of the complaints on the basis of the

    standards set by the Constitution and its own

    Impeachment Rules?

    Ruling: No. The Court said that the

    determination of sufficiency of form and

    substance of an impeachment complaint is an

    exponent of the express constitutional grant of

    rule-making powers of the House of

    Representatives which committed such

    determinative function to public respondent. In

    the discharge of that power and in the exercise

    of its discretion, the House has formulated

    determinable standards as to the form and

    substance of an impeachment

    complaint. Prudential considerations behoove

    the Court to respect the compliance by the

    House of its duty to effectively carry out the

    constitutional purpose, absent any contravention

    of the minimum constitutional guidelines.

    Contrary to petitioners position that the Impeachment Rules do not provide for

    comprehensible standards in determining the

    sufficiency of form and substance, the

    Impeachment Rules are clear in echoing the

    constitutional requirements and providing that

    there must be a verified complaint or resolution, and that the substance requirement

    is met if there is a recital of facts constituting the offense charged and determinative of the

    jurisdiction of the committee.

    Issue #2: Should the Impeachment Rules be

    published to be effective?

    Ruling: No. It is within the discretion of

    Congress to determine on how to promulgate its

    Impeachment Rules, in much the same way that

    the Judiciary is permitted to determine that to

    promulgate a decision means to deliver the

    decision to the clerk of court for filing and

    publication. It is not for this Court to tell a co-

    equal branch of government how to

    promulgate when the Constitution itself has not

    prescribed a specific method of

    promulgation. The Court is in no position to

    dictate a mode of promulgation beyond the

    dictates of the Constitution. Had the

    Constitution intended to have the Impeachment

    Rules published, it could have stated so as

    categorically as it did in the case of the rules of

    procedure in legislative inquiries. Other than

    promulgate, there is no other single formal term in the English language to appropriately

    refer to an issuance without need of it being

    published.

    Issue #3: Should the impeachment against

    Gutierrez be considered a prohibited second

    impeachment proceedings initiated within one-

    year?

    Ruling: Contrary to petitioners asseveration that within one year from July 22, 2010, no

    second impeachment complaint may be accepted

    and referred to public respondent,

    Francisco states that the term initiate means to file the complaint and take initial action on

    it. The initiation starts with the filing of the

    complaint which must be accompanied with an

    action to set the complaint moving. It refers to

    the filing of the impeachment complaint coupled

    with Congress taking initial action of said complaint. The initial action taken by the House

    on the complaint is the referral of the complaint

    to the Committee on Justice. Petitioner misreads

    the remark of Commissioner Joaquin Bernas,

    S.J. that no second verified impeachment may be accepted and referred to the Committee on

    Justice for action which contemplates a situation where a first impeachment complaint

    had already been referred. Bernas and

    Regalado, who both acted as amici

    curiae in Francisco, affirmed that the act of

    initiating includes the act of taking initial action

    on the complaint. From the records of the

    Constitutional Commission, to the amicus

    curiae briefs of two former Constitutional

    Commissioners, it is without a doubt that the

    term "to initiate" refers to the filing of the

    impeachment complaint coupled with Congress'

    taking initial action of said complaint. Having

    concluded that the initiation takes place by the

    act of filing and referral or endorsement of the

    impeachment complaint to the House Committee

    on Justice or, by the filing by at least one-third

    of the members of the House of Representatives

    with the Secretary General of the House, the

    meaning of Section 3 (5) of Article XI becomes

    clear. Once an impeachment complaint has been

    initiated, another impeachment complaint may

    not be filed against the same official within a

    one year period.

    Issue #4: Should an impeachment complaint

    only allege one impeachable offense under the

    one offense, one complaint rule of the Rules on Criminal Procedure?

    Ruling: The Court says: without going into

    the effectiveness of the suppletory application of

    the Rules on Criminal Procedure in carrying out

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  • the relevant constitutional provisions, which

    prerogative the Constitution vests on Congress,

    and without delving into the practicability of the

    application of the one offense per

    complaint rule, the initial determination of

    which must be made by the House which has yet

    to pass upon the question, the Court finds that

    petitioners invocation of that particular rule of Criminal Procedure does not lie. Suffice it to

    state that the Constitution allows the indictment

    for multiple impeachment offenses, with each

    charge representing an article of impeachment,

    assembled in one set known as the Articles of Impeachment. It, therefore, follows that an impeachment complaint need not allege only

    one impeachable offense.

    Section 4: Sandiganbayan

    Desierto vs. Carandang, G.R. no. 148076,

    Jan. 11, 2011

    Facts: Antonio Carandang is the general

    manager if the television network RPN. In his

    tenure, he was charged with grave misconduct

    before the Ombudsman. The charge says that he

    had entered into a contract with AT

    Broadcasting Incorporated in which he had

    financial and material interests. The said

    transaction is tantamount to grave misconduct

    under the Code of Conduct and Ethical

    Standards for Public Officials and Employees.

    In this said petition, Carandang

    challenges the jurisdiction over him of the of the

    Ombudsman and of the Sandiganbayan on the

    ground that he was being held to account for acts

    committed while he was serving as general

    manager and chief operating officer of Radio

    Philippines Network, Inc. (RPN), which was not

    a government-owned or -controlled corporation;

    hence, he was not a public official or employee.

    Issue: As general manager and chief operating

    officer of Radio Philippines Network, Inc. does

    the Sandiganbayan have jurisdiction over

    Carandang?

    Ruling: The Ombudsman and Sandiganbayan

    have jurisdiction over administrative cases

    committed exclusively by the officials and

    employees if government owned and govt

    controlled corporations(in which a government

    directly or indirectly owns or controls at least

    majority or 51% share of the capital stock.

    Consequently, RPN is neither a government

    owned or controlled corporation. The

    government may have shares in RPNs capital

    stock but it is only 32.4%. In conclusion, the

    petition is meritorious and Carandang is correct

    that the Ombudsman and Sandiganbayan have

    no jurisdiction over him for being an employee

    of a private company.

    Lazarte vs. Sandiganbayan, G.R. 180122,

    March 13, 2009

    Facts: Sandiganbayan tried and affirmed graft

    charges against Felicimo Lazarte Jr., an engineer

    and chair of the National Housing

    Authority(NHA). He allegedly used public

    funds amounting to P230,000 to pay a Makati-

    based construction company for a ghost

    project(financing a project that is not part of a

    plan) in Bacolod City.

    Further, he was accused of conspiring

    with fellow officers;namely, Josephine Angsico,

    Virgilio Dacalos, Robert Balao, and Josephine

    Espinosa. They filed a motion to quash the

    allegation, and after a thorough investigation,

    the court dismissed the charges of the alleged

    conspirants for failure to prove participation, but

    it retained Lazartes charge. Issue: As department manager of the NHA

    (Salary Grade 26), does the Sandiganbayan have

    jurisdiction over petitioner Lazarte?

    Ruling: The Court sustains the Sandiganbayans jurisdiction to hear the case. As correctly

    pointed out by the Sandiganbayan, it is of no

    moment that petitioner does not occupy a

    position with Salary Grade 27 as he was a

    department manager of the NHA, a government-

    owned or controlled corporation, at the time of

    the commission of the offense, which position

    falls within the scope of its jurisdiction.

    Sandiganbayan has jurisdiction over criminal

    and civil cases involving graft and corrupt

    practices and such other offenses committed by

    public officers and employees, including those

    in government-owned or controlled

    corporations, in relation to their office as may be

    determined by law. NHA being part of that.

    Further, the position of manager in a

    government-owned or controlled corporation, as

    in the case of Philhealth, is within the

    jurisdiction of respondent court. It is the

    position that petitioner holds, not her salary

    grade, that determines the jurisdiction of the

    Sandiganbayan---- that which includes the

    position held by Lazarte.

    Section 6: Ombudsman as an

    Independent Body

    Ombudsman versus- CSC, G.R. No. 162215, July 30, 2007

    Facts: The Court is called upon to settle once

    again a controversy between two independent

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    VALOREXSticky NoteJurisdiction of the Ombudsman over administrative cases

    -officials and employees of the government and government owned or controlled corporations. Also if the government directly or indirectly owns or controls the majority of the share of the capital stock (51%)

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    VALOREXSticky NoteJurisdiction of the Sandiganbayan:

    Sandiganbayan has jurisdiction over criminal and civil cases involving graft and corrupt practices and such other offenses committed by public officers and employees, including those in government-owned or controlled corporations, in relation to their office as may be determined by law. NHA being part of that.

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  • constitutional bodies and delineate the limits of

    their respective powers. In the exercise of its

    mandate, this Court reaffirms its commitment to

    constitutionalism and the rule of law. The

    controversy traces its roots to Ombudsman

    Simeon V. Marcelos letter dated July 28, 2003 to the Civil Service Commission (CSC)

    requesting the approval of the amendment of

    qualification standards for Director II positions

    in the Central Administrative Service and

    Finance and Management Service of the Office

    of the Ombudsman. Acting thereon, the CSC

    issued Opinion No. 44, s. 2004 dated January

    23, 2004 disapproving the request.

    Issue: What is the extent of CSCs power of the personnel organization, staffing and

    qualification over the employees of the

    Ombudsman?

    Ruling: Under the Constitution, the Office of

    the Ombudsman is an independent body. As a

    guaranty of this independence, the Ombudsman

    has the power to appoint all officials and

    employees of the Office of the Ombudsman,

    except his deputies. This power necessarily

    includes the power of setting, prescribing and

    administering the standards for the officials and

    personnel of the Office. To further ensure its

    independence, the Ombudsman has been vested

    with the power of administrative control and

    supervision of the Office. This includes the

    authority to organize such directorates for

    administration and allied services as may be

    necessary for the effective discharge of the

    functions of the Office, as well as to prescribe

    and approve its position structure and staffing

    pattern. Necessarily, it also includes the

    authority to determine and establish the

    qualifications, duties, functions and

    responsibilities of the various directorates and

    allied services of the Office. This must be so if

    the constitutional intent to establish an

    independent Office of the Ombudsman is to

    remain meaningful and significant. Since the

    responsibility for the establishment,

    administration and maintenance of qualification

    standards lies with the concerned department or

    agency, the role of the CSC is limited to

    assisting the department or agency with respect

    to these qualification standards and approving

    them. The CSC cannot substitute its own

    standards for those of the department or agency,

    especially in a case like this in which an

    independent constitutional body is involved.

    Section 13: Ombudsmans Powers

    Boncalon vs. Ombudsman, G.R. 171812,

    Dec. 28, 2008

    Facts: On November 25, 1997, Loida C.

    Arabelo, the State Auditor II of Bago City,

    Negros Occidental, conducted an audit on the

    cash accounts of Boncalon, a Cashier IV

    at Bago City Treasurers Office. The audit

    revealed a cash shortage of P1,023,829.56. The

    state auditor also discovered, upon verification

    from the depository bank, that the entry in

    Boncalons cashbook pertaining to the deposit of

    P1,019,535.21 on October 31, 1997 was false. D

    eposits totaling said amountwere made only on

    November 25, 1997 and December 22, 1997, in

    the amounts of P200,000.00 and P819,535.21,

    respectively. In view of the audit findings,

    Boncalon was administratively charged with

    dishonesty before the Office of the Ombudsman

    (Visayas)

    .Issue: Is the Ombudsman limited only to the

    power to recommend, but not to impose, the

    penalty of removal, suspension, demotion, fine,

    censure, or prosecution of a public officer or

    employee?

    Ruling: Ombudsman has the power to directly

    impose the penalty of removal, suspension,

    demotion, fine, censure, or prosecution of an

    erring public official, other than a member of

    Congress and the Judiciary, within the exercise

    of its administrative disciplinary authority as

    provided for in Section 13(3), Article XI of the

    1987Constitution, and Section 15(3) of Republic

    Act No. 6770. While Section 15(3) of RA 6770

    states that the Ombudsman has the power to

    recommend, removal, suspension, demotion

    of government officials and employees, the same

    Section 15(3) also states that the Ombudsman in

    the alternative may enforce its disciplinary

    authority as provided in Section 21of RA 6770.

    The word or in Section 15(3) before the phrase

    enforce its disciplinary authority as provided in

    Section 21 grants the Ombudsman this

    alternative power. Section 21 of RA 6770 states

    that, the power of disciplinary authority over all

    elective and appointive officials of the

    Government, except impeachable officers,

    members of Congress, and the Judiciary vests in

    the ombudsman. And under Section 25 of RA

    6770, the Ombudsman may impose in

    administrative proceedings the

    penalty ranging from suspension without pay for

    one year to dismissal with forfeiture of benefits

    or a fine ranging from five thousand pesos

    (P5,000.00) to twice the amount malversed,

    illegally taken or lost, or both at the discretion of

    the ombudsman.

  • Ombudsman vs. Samaniego, G.R. no.

    175573, Oct. 5, 2010

    Facts: This is a resolution of the second motion

    for partial reconsideration filed by petitioner

    Office of the Ombudsman to our decision dated

    September 11, 2008, particularly a

    pronouncement with respect to the stay of the

    decision of the Ombudsman during the

    pendency of an appeal:

    Following Office of the Ombudsman v. Laja,

    the court held that the mere filing by respondent

    of an appeal sufficed to stay the execution of the

    joint decision against him. Respondents prayer

    for the issuance of a writ of a preliminary

    injunction (for purposes of staying the execution

    of the decision against him) was therefore a

    superfluity. The execution of petitioners joint

    decision against respondent should be stayed

    during the pendency of CA-G.R. SP No. 89999.

    Issue: Is the Ombudsmans decision imposing

    the penalty of suspension for one year

    immediately executor pending appeal?

    Ruling: Yes. The court ruled, The decision of

    the Ombudsman is immediately executory

    pending appeal and may not be stayed by the

    filing of the appeal or the issuance of an

    injunctive writ. An appeal shall not stop the

    decision from being executory. In case the

    penalty is suspension or removal and the

    respondent wins such appeal, he shall be

    considered as having been under preventive

    suspension and shall be paid the salary and such

    other emoluments that he did not receive by

    reason of the suspension or removal. The

    Ombudsmans decision imposing the penalty of

    suspension for one year is immediately

    executory pending appeal. Moreover, Section

    13 (8), Article XI of the Constitution authorizes

    the Office of the Ombudsman to promulgate its

    own rules of procedure. In this connection,

    Sections 18 and 27 of the Ombudsman Act of

    1989 also provide that the Office of the

    Ombudsman has the power to promulgate its

    rules of procedure for the effective exercise or

    performance of its powers, functions and duties

    and to amend or modify its rules as the interest

    of justice may require. For the CA to issue a

    preliminary injunction that will stay the penalty

    imposed by the Ombudsman in an

    administrative case would be to encroach on the

    rule-making powers of the Office of the

    Ombudsman.

    Section 15: Ill-gotten Wealth and

    Prescription

    Republic vs Cojuangco, GR No. 166859,

    April 12, 2011

    Facts: Eduardo Cojuangco, Jr., served as a

    public officer during the Marcos administration.

    During the period of his incumbency as a public

    officer, he acquired assets, funds, and other

    property grossly and manifestly disproportionate

    to his salaries, lawful income and income from

    legitimately acquired property. . Having fully

    established himself as the undisputed coconut king with unlimited powers to deal with the coconut levy funds, the stage was now set for

    Cojuangco to launch his predatory forays into

    almost all aspects of Philippine economic

    activity namely: softdrinks, agribusiness, oil

    mills, shipping, cement manufacturing, and

    textile.

    Eduardo Cojuangco, Jr. taking undue

    advantage of his association, influence and

    connection, acting in unlawful concert with

    Defendants Ferdinand E. Marcos and Imelda R.

    Marcos, and the individual defendants,

    embarked upon devices, schemes and

    stratagems, including the use of defendant

    corporations as fronts, to unjustly enrich

    themselves at the expense of Plaintiff and the

    Filipino people, such as when he misused coconut levy funds to buy out majority of the

    outstanding shares of stock of San Miguel

    Corporation in order to control the largest agri-

    business, foods and beverage company in the

    Philippines.

    Issues: (1) What is the concept and concurring

    elements of ill-gotten wealth? (2) Were

    Cojuangcos SMC illegally acquired with

    coconut levy-funds?

    Ruling (1): In Bataan Shipyard and Engineering

    Co., Inc., this Court described ill-gotten wealth as follows: Ill-gotten wealth is that acquired through or as a result of improper or

    illegal use of or the conversion of funds

    belonging to the Government or any of its

    branches, instrumentalities, enterprises, banks or

    financial institutions, or by taking undue

    advantage of official position, authority,

    relationship, connection or influence, resulting

    in unjust enrichment of the ostensible owner and

    grave damage and prejudice to the State. And

    this, too, is the sense in which the term is

    commonly understood in other jurisdiction. The two concurring elements to be

    present before assets or properties were

    considered as ill-gotten wealth, namely: (a) they

    must have originated from the government itself, and (b) they must have been taken by

  • former President Marcos, his immediate family,

    relatives, and close associates by illegal means.

    Ruling (2): No. The Republic did not discharge

    its burden as the plaintiff to establish by

    preponderance of evidence that the respondents

    SMC shares were illegally acquired with

    coconut-levy funds. The Court finds its evidence

    insufficient to prove that the source of funds

    used to purchase SMC shares indeed came from

    coconut levy funds. Its evidence do not suffice

    to prove the material allegations in the complaint

    that Cojuangco took advantage of his positions

    in UCPB and PCA in order to acquire the said

    shares.

    Republic vs. Cojuangco, G.R. no. 139930,

    June 26, 2012

    Facts: This case, which involves another

    attempt of the government to recover ill-gotten

    wealth acquired during the Marcos era, resolves

    the issue of prescription.

    On April 25, 1977 respondents Teodoro

    D. Regala, Victor P. Lazatin, Eleazar B. Reyes,

    Eduardo U. Escueta and Leo J. Palma

    incorporated the United Coconut Oil Mills, Inc.

    (UNICOM), with an authorized capital stock

    of P100 million divided into one million shares

    with a par value of P100 per share. On

    September 18, 1979 a new set of UNICOM

    directors approved another amendment to

    UNICOMs capitalization. About 10 years later or on March 1, 1990 the Office of the Solicitor

    General (OSG) filed a complaint for violation of

    Section 3(e) of Republic Act (R.A.) 3019 against

    respondents, before the Presidential Commission

    on Good Government (PCGG). About nine years

    later or on March 15, 1999 the Office of the

    Special Prosecutor (OSP) issued a

    Memorandum, stating that although it found

    sufficient basis to indict respondents for

    violation of Section 3(e) of R.A. 3019, the action

    has already prescribed. In a

    Memorandum, dated May 14,

    1999, the Office of the Ombudsman approved

    the OSPs recommendation for dismissal of the complaint. The OSG filed a motion for

    reconsideration on the Office of the

    Ombudsmans action but the latter denied the same; hence, this petition.

    Issue: May the prosecution of offenses arising

    from, relating or incident to, or involving ill-

    gotten wealth contemplated in Section 15,

    Article XI of the 1987 Constitution be barred by

    prescription?

    Ruling: Yes. The court already settled

    in Presidential Ad Hoc Fact-Finding Committee

    on Behest Loans v. Desierto that Section 15,

    Article XI of the 1987 Constitution applies only

    to civil actions for recovery of ill-gotten wealth,

    not to criminal cases such as the complaint

    against respondents in OMB-0-90-2810. Thus,

    the prosecution of offenses arising from, relating

    or incident to, or involving ill-gotten wealth

    contemplated in Section 15, Article XI of the

    1987 Constitution may be barred by

    prescription. Prescription of actions is a valued

    rule in all civilized states from the beginning of

    organized society. It is a rule of fairness since,

    without it, the plaintiff can postpone the filing of

    his action to the point of depriving the

    defendant, through the passage of time, of access

    to defense witnesses who would have died or

    left to live elsewhere, or to documents that

    would have been discarded or could no longer

    be located. Moreover, the memories of

    witnesses are eroded by time. There is an

    absolute need in the interest of fairness to bar

    actions that have taken the plaintiffs too long to

    file in court

    Section 17: SALN

    Re: request for copy of 2008 statement of

    assets, liabilities and networth [saln] and

    personal data sheet or curriculum vitae of

    the justices of the supreme court and

    officers and employees of the judiciary,

    A.M. No. 09-8-6-SC, June 13, 2012

    Facts: In a letter, dated July 30, 2009, Rowena

    C. Paraan, Research Director of the Philippine

    Center for Investigative Journalism (PCIJ),

    sought copies of the Statement of Assets,

    Liabilities and Networth (SALN) of the Justices

    of this Court for the year 2008. She also

    requested for copies of the Personal Data Sheet

    (PDS) or the Curriculum Vitae (CV) of the

    Justices of this Court for the purpose of updating

    their database of information on government

    officials. Karol M. Ilagan, a researcher-writer

    also of the PCIJ, likewise sought for copies of

    the SALN and PDS of the Justices of the Court

    of Appeals (CA), for the same above-stated

    purpose. Since then, several requests for copies

    of the SALN and other personal documents of

    the Justices of this Court, the CA and the

    Sandiganbayan (SB) were filed.

    Issue: Are the information contained in the

    SALN matters of public concern necessitating

    public disclosure?

    Ruling: Yes. While public concern like public interest eludes exact definition and has been said to embrace a broad spectrum of

    subjects which the public may want to know,

    either because such matters directly affect their

    lives, or simply because such matters naturally

    arouse the interest of an ordinary citizen, the

  • Constitution itself, under Section 17, Article XI,

    has classified the information disclosed in the

    SALN as a matter of public concern and interest.

    In other words, a duty to disclose sprang from the right to know. Both of constitutional origin, the former is a command while the latter

    is a permission.