JURISPRUDENCE

Republic v. Sandiganbayan [GR 152154]

Proceedings in the Swiss Federal Supreme Court

REPUBLIC v. SANDIGANBAYAN

RELEVANCE:

THE SOURCE OF FUNDING FOR RA 10368

FACTS:

The PCGG sought the declaration of the aggregate amount

of $356 million deposited in escrow in the PNB as ill-gotten wealth.

These funds used to be held under the name of several

Marcos-created foreign foundations in Swiss banks.
REPUBLIC v. SANDIGANBAYAN

The PCGG also sought the declaration of $25 million and $5

million in treasury notes as ill-gotten wealth.

These amounts exceeded Mr. and Mrs. Marcos’ salaries,

other lawful income and income from legitimately acquired
property.

ISSUE:

May the PCGG forfeit the amounts of $356 million, $25 million and
$5 million as ill-gotten wealth?
REPUBLIC v. SANDIGANBAYAN

RULING:

YES. The lame denial of the Marcos heirs in their Answer that:

“they clandestinely stashed the country’s wealth in Switzerland and hid

the same under layers and layers of foundations and corporate entities, the truth
being that the aforesaid properties were lawfully acquired.”

partakes of the nature of what is called in the law on pleadings as a

NEGATIVE PREGNANT.
REPUBLIC v. SANDIGANBAYAN

A negative pregnant is a form of negative expression

which carries with it an affirmation or at least an implication of
some kind favorable to the adverse party.

It is a denial pregnant with an admission of the substantial

facts alleged in the pleading.

Where a fact is alleged with qualifying or modifying

language and the words of the allegation as so qualified or
modified are literally denied, has been held that the qualifying
circumstances alone are denied while the fact itself is admitted.
REPUBLIC v. SANDIGANBAYAN

The Answer of the Marcos heirs only denied that

the wealth in Switzerland was unlawfully obtained and
clandestinely stashed under layers and layers of
foundations and corporate entities.

THE DENIAL WAS HOWEVER PREGNANT WITH

THE ADMISSION THAT THE SWISS BANK DEPOSITS DID
EXIST.
REPUBLIC v. SANDIGANBAYAN

RA 1379 raises the prima facie presumption that property

is unlawfully acquired, hence subject to forfeiture, if its amount or
value is manifestly disproportionate to the official salary and other
lawful income of the public officer who owns it.

The only lawful income that could be attributed to the

Marcos spouses was $304, 372 which represented their combined
salaries as public officials.

Hence, the amount in excess of $304, 372 is deemed to be

ill-gotten wealth and subject to forfeiture.
 Proceedings in the Swiss Federal
Supreme Court

1986 – The Philippines requested mutual legal assistance from Switzerland

to recover ill-gotten wealth kept in Swiss banks by President Marcos.

The Philippines presented Marcos’ diaries left behind at

Malacanang and documents confiscated by US Customs to prove the
existence of Marcos’ secret bank deposits in Switzerland.

1998 – Switzerland turned over bank deposits worth about $627 million
after the Swiss Federal Supreme Court ruled that the Marcos accounts and
securities hidden in Swiss banks were likely to be ill-gotten.

This amount was placed under escrow with the PNB and could
only be disposed after a competent Philippine court will determine by final
enforceable judgment how the amount was to be disposed.
 Proceedings in the Swiss Federal
Supreme Court

2000 – The Pimentel class of human rights claimants sought to intervene in the
proceedings.

The Swiss Federal Supreme Court dismissed their petition to

intervene stating that their proper remedy as human rights victims was to
present their claims before the probate proceedings for Marcos’ personal
liability or to file a claim for damages against the Republic of the Philippines for
the wrong committed by its organs.

MDL No. 840, CA No. 88-0390

The Pimentel class filed a case in the US District Court of Hawaii on

behalf of 134 claimants and some 10,000 unnamed claimants for damages
against Marcos for his personal liability for human rights violations.
 Proceedings in the Swiss Federal
Supreme Court
Decision and Enforcement

The US District Court of Hawaii ruled in favor of the

Pimentel class.

The Marcos heirs and the Pimentel class executed a

compromise agreement whereby the Marcos family is to be
released from all criminal and civil liability in exchange for the
payment of $150 million to be taken from the Swiss bank deposits.

The Sandiganbayan rejected the compromise agreement

stating that the Hawaii court’s award was against the estate of
Marcos and not against the Republic of the Philippines. The Republic
claims that it cannot compensate the Pimentel class for the grave
injury done to them and release from any liability the one
responsible for that grave injury.
DIFFICULTY IN IMPLEMENTATION

THIRD PARTY CLAIMS

In addition to the PNB, the Republic of the Philippines also

held some of the escrow accounts in a Singaporean bank called
WestLB.

The Pimentel class filed a claim with the Singaporean

Courts for the enforcement its Compromise Agreement with the
Marcos heirs on the escrow accounts in WestLB.

At present, the claim is pending before the Singaporean

Court of Appeal.
DIFFICULTY IN IMPLEMENTATION

REPERCUSSIONS:

A Decision by the Singaporean Supreme Court in favor of the

Pimentel class would:

a) invalidate the judgment of the Philippine Supreme Court in

Republic v. Sandiganbayan;

b) defeat the legal assistance provided by Switzerland in the

recovery of the Marcos ill-gotten wealth since 1998; and

c) violate one of the main objectives and a fundamental principle of

the UN Convention against Corruption which is the return of assets.
IN RELATION TO INTERNATIONAL
HUMAN RIGHTS

United Nations Convention against Corruption

Corruption is no longer a local matter but a transnational

phenomenon that affects all societies and economies, making
international cooperation to prevent and control it essential

The prevention and eradication of corruption is a responsibility of

all States. They must cooperate with one another, with the support
and involvement of individuals and groups outside the public
sector, such as civil society, non-governmental organizations and
community-based organizations, if their efforts in this area are to
be effective.
IN RELATION TO INTERNATIONAL
HUMAN RIGHTS

ASSET RECOVERY
CHAPTER V; UNCAC

International Asset Recovery is any effort by governments to

repatriate the proceeds of corruption hidden in foreign jurisdictions.

The stages of asset recovery are:

a) A victim-country must first succeed in tracing the stolen assets;

b) The victim-country must request cooperation from the authorities in the
jurisdictions where the assets reside to seize the assets;
c) Legal processes must usually be initiated in the requested country in order
to confiscate the assets.
 POVERTY REDUCTION

Section 17. Conclusive Presumption that One is an HRVV

under RA 10368

The claimants in the class suit and direct action

plaintiffs in the Human Rights Litigation Against the Estate of
Ferdinand E. Marcos (MDL No. 840, CA No. 88-0390) in the
US Federal District Court of Honolulu, Hawaii wherein a
favorable judgment has been rendered, shall be extended
the conclusive presumption that they are HRVV’s.
 POVERTY REDUCTION

Entitlement to Monetary Reparation

Section 4; RA 10368

Considering that the budget allocated for HRVV’s is at

10 billion Pesos and that there are about 75,730 claimants (as
of September 2015),

P10,000,000,000 divided by 75, 730 claimants

P 132, 048.06
 HUMAN AND NATION
DEVELOPMENT

Non-monetary Reparation
Section 5; RA 10368

Necessary services shall be extended to HRVV’s and/or

their families by the:

a) Department of Health;
b) Department of Social Welfare and Development;
c) Department of Education;
d) Commission on Higher Education;
e) Technical Education and Skills Development Authority
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