G.R. No. 125788 June 5, 1998
THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT (PCGG), petitioner, vs. HON. SANDIGANBAYAN and AEROCOM INVESTORS & MANAGERS, INC., respondents.

FACTS

The Presidential Commission on Good Government (PCGG) filed Civil Case No. 0009 for reconveyance, reversion, accounting, restitution, and damages against several individuals, alleging they acted as dummies to monopolize the telecommunications industry. Annexed to the complaint was a list of assets of defendants Manuel H. Nieto and Jose L. Africa, which included their shares of stock in Aerocom Investors & Managers, Inc. (Aerocom). Almost a year later, on June 15, 1988, the PCGG issued a writ of sequestration against Aerocom, which was served on and received under protest by Aerocom’s president on August 3, 1988. On August 10, 1988, Aerocom filed Civil Case No. 0044 seeking to nullify the sequestration order, arguing it was served beyond the eighteen-month period from the ratification of the 1987 Constitution as required by Section 26, Article XVIII. During the pendency of this case, Aerocom filed a motion praying that the Sandiganbayan direct the PCGG to release dividends pertaining to Aerocom’s shares in other corporations. The Sandiganbayan, in its Resolution of January 31, 1996, granted the motion, ordering the release of dividends, finding that Aerocom as a corporation was not itself sequestered—only the shares of Nieto and Africa in Aerocom were sequestered—and noting that the PCGG had previously recognized Aerocom’s non-sequestration status by releasing some of its dividends. The PCGG’s motion for reconsideration was denied. The PCGG then filed the present petition for certiorari assailing the Sandiganbayan’s order.

ISSUE

1. Whether the petition for certiorari is the proper remedy to challenge the Sandiganbayan’s Resolutions.
2. Whether the writ of sequestration against Aerocom was validly issued and served within the constitutional eighteen-month period.
3. Whether the PCGG filed the corresponding judicial action against Aerocom within the required six-month period.
4. Whether the Sandiganbayan committed grave abuse of discretion in ordering the release of dividends to Aerocom.

RULING

1. The petition for certiorari is an improper remedy. The Sandiganbayan’s Resolutions of January 31, 1996 and May 7, 1996 constituted a final adjudication on the merits regarding the validity of Aerocom’s sequestration. This is reviewable only by appeal under Rule 45 of the Rules of Court, not by certiorari, which corrects errors of jurisdiction, not errors of judgment. Certiorari cannot substitute for a lost appeal.
2. The writ of sequestration was not validly served within the constitutional period. Section 26, Article XVIII of the Constitution requires both the issuance and the service of the writ within the eighteen-month period to protect property rights and prevent abuse. Service on Aerocom on August 3, 1988 was beyond the deadline, whether computed as expiring on July 26, 1988 or August 2, 1988. The PCGG’s theory that mere issuance within the period suffices is untenable, as it could enable antedating and circumvent constitutional safeguards.
3. The PCGG failed to file the corresponding judicial action against Aerocom within the six-month period required by the Constitution. The mere mention of Aerocom in the complaint in Civil Case No. 0009, which was filed against individuals and not against Aerocom as a corporate entity, does not satisfy the requirement. The judicial action must be directed against the sequestered entity itself.
4. The Sandiganbayan did not commit grave abuse of discretion. Its findings were based on evidence, including PCGG Resolutions that had previously authorized the release of dividends to Aerocom, thereby recognizing its separate juridical personality and non-sequestration status. The PCGG is estopped from denying this recognition. The order was consistent with principles of fairness and due process.
WHEREFORE, the petition is DISMISSED. The assailed Resolutions of the Sandiganbayan promulgated on January 31, 1996 and May 7, 1996 are AFFIRMED.