GR 174462; (February, 2016) (Digest)
G.R. No. 174462 . February 10, 2016.
PHILIPPINE OVERSEAS TELECOMMUNICATIONS CORPORATION (POTC) and PHILIPPINE COMMUNICATIONS SATELLITE CORPORATION (PHILCOMSAT), Petitioners, vs. SANDIGANBAYAN (3rd Division) and REPUBLIC OF THE PHILIPPINES represented by the PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), Respondents.
FACTS
Following the 1986 EDSA Revolution, President Corazon Aquino issued Executive Orders creating the PCGG to recover ill-gotten wealth from the Marcoses and their cronies. Pursuant to this mandate, the PCGG sequestered the Philippine Overseas Telecommunications Corporation (POTC) and the Philippine Communications Satellite Corporation (PHILCOMSAT) on March 14, 1986. The Republic, through the PCGG, subsequently filed Civil Case No. 0009 for reconveyance and restitution against several individuals, alleging they illegally acquired and monopolized assets, including controlling interests in POTC and PHILCOMSAT, using ill-gotten wealth and as dummies/nominees of the Marcoses.
Petitioners POTC and PHILCOMSAT filed an Omnibus Motion before the Sandiganbayan seeking to lift the sequestration order. They argued that the sequestration, issued under the revolutionary government’s authority, automatically expired on February 2, 1987, upon the ratification of the 1987 Constitution, as it was not followed by the filing of a corresponding judicial action within the constitutional one-year period. The Sandiganbayan denied the motion, prompting this Petition for Certiorari.
ISSUE
Whether the Sandiganbayan committed grave abuse of discretion in denying the Omnibus Motion and refusing to lift the sequestration order against POTC and PHILCOMSAT.
RULING
Yes, the Sandiganbayan committed grave abuse of discretion. The Supreme Court granted the petition and lifted the sequestration order. The legal logic is anchored on the transitory provisions of the 1987 Constitution. Section 26, Article XVIII provides that sequestrations or freeze orders issued by the PCGG before the ratification of the Constitution “shall automatically lapse” if no corresponding judicial action is filed within one year from its ratification on February 2, 1987.
The Court meticulously applied this rule. The sequestration order was issued on March 14, 1986. The judicial action, Civil Case No. 0009, was filed only on July 22, 1987. This filing date was beyond the one-year grace period that ended on February 2, 1988. Consequently, the sequestration automatically lapsed by operation of law on February 2, 1987. The Sandiganbayan’s continued enforcement of the lapsed order, despite this clear constitutional mandate, constituted grave abuse of discretion. The Court emphasized that the constitutional provision is self-executing; the lapse is automatic and does not require a judicial order to take effect. Therefore, the sequestration against POTC and PHILCOMSAT was declared lifted six months after the Constitution’s ratification.