G.R. No. 145951; August 12, 2003
PEOPLE OF THE PHILIPPINES, petitioner, vs. SANDIGANBAYAN (2ND DIV.), and JOSE S. RAMISCAL, JR., JULIAN ALZAGA, ATTY. MANUEL SATUITO, ELIZABETH LIANG and JESUS GARCIA, respondents.

FACTS

Respondents were charged with Malversation through Falsification of Public Documents before the Sandiganbayan for allegedly misappropriating over P250 million from the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS). Respondent Ramiscal filed an Urgent Motion to declare the Information null, arguing the Sandiganbayan lacked jurisdiction because the AFP-RSBS is a private entity. Initially denied, the Sandiganbayan, upon reconsideration, sustained this view and dismissed the criminal case. The prosecution’s motion for reconsideration was denied, prompting the filing of this special civil action for certiorari under Rule 65, alleging grave abuse of discretion by the Sandiganbayan in dismissing the case for lack of jurisdiction.

ISSUE

Whether the Sandiganbayan committed grave abuse of discretion in dismissing the criminal case, ruling it had no jurisdiction on the premise that the AFP-RSBS is a private entity whose funds are not public.

RULING

The Supreme Court granted the petition. Initially, the Court addressed the procedural issue, noting that the proper remedy from a final Sandiganbayan order is a petition for review on certiorari under Rule 45. However, it relaxed this rule as the case involved a pure question of law and paramount public interest. On the substantive issue, the Court held that the AFP-RSBS is a government entity. Created by Presidential Decree No. 361, its purpose is to manage the retirement and pension funds of military personnel, who are expressly excluded from the GSIS. Its administration is vested in the AFP Chief of Staff, subject to the approval of the Secretary of National Defense. While primarily funded by compulsory contributions from military personnel, the law expressly allows for future government appropriations and donations. Its character and operations are imbued with public interest, serving a critical public function for state security forces. Consequently, its funds are public in nature. The Sandiganbayan thus erred in dismissing the case; it possesses jurisdiction. The Court annulled the Sandiganbayan’s Resolution and ordered the reinstatement of the criminal case.