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MAPA DATE OF PROMULGATION: November 28, 2007 FACTS: On October 8, 1992 then President Fidel V. Ramos issued Administrative Order No. 13 creating the Presidential Ad Hoc Fact-Finding Committee on Behest Loans. Be hest loans refer to those loans granted by government banks or the government-ow ned-and controlled corporations at the behest, command, or urging by previous go vernment officials to the disadvantage of the Philippine government. The Committ ee was tasked to inventory all behest loans and determine the courses of action that the government should take to recover these loans. By Memorandum Order No. 61 dated November 9, 1992, the functions of the Committe e were expanded to include all non-performing loans which shall embrace behest a nd non-behest loans. Said Memorandum also named criteria to be utilized as a fr ame of reference in determining a behest loan, to wit: The following criteria may be utilized as a frame of reference in determining a behest loan: 1. 2. It is under-collateralized; The borrower corporation is undercapitalized;
3. Direct or indirect endorsement by high government officials like presenc e of marginal notes; 4. Stockholders, officers or agents of the borrower corporation are identif ied as cronies; 5. 6. 7. 8. Deviation of use of loan proceeds from the purpose intended; Use of corporate layering; Non-feasibility of the project for which financing is being sought; and Extraordinary speed in which the loan release was made.
Several loan accounts were referred to the Committee for investigation, includin g the loan transactions between Metals Exploration Asia, Inc. (MEA), now Philipp ine Eagle Mines, Inc. (PEMI) and the Development Bank of the Philippines (DBP). The Committee determined that they bore the characteristics of behest loans, as defined under Memorandum Order No. 61 because the stockholders and officers of PEMI were known cronies of then President Ferdinand Marcos; the loan was under-c ollateralized; and PEMI was undercapitalized at the time the loan was granted. Consequently, after an exhaustive investigation on the matter, Atty. Orlando L. Salvador, Consultant of the Fact-Finding Committee, in representation of the PCG G (Presidential Commission on Good Governance), filed with the Ombudsman a sworn complaint for violation of Sections 3(e) and (g) of Republic Act No. 3019, or t he Anti-Graft and Corrupt Practices Act, against the respondents Mapa, Jr. et. a l. Ombudsmanâ s decision: The Ombudsman dismissed the complaint on the ground of prescri ption. According to the Ombudsman, basing on Section 11 of R.A. No. 3019 as ori ginally enacted, the prescriptive period for violations of the said Act (R.A. 30
RULING: No RATIO DECIDENDI: It is well-nigh impossible for the State to have known the violations of R. The Committee filed a Motion for Reconsideration. the SC treated the petition as one filed under Rule 65 since a reading of its contents reveals that petioner imputes grave abuse of discretion to the Ombudsma n for dismissing the complaint. 13 and Mem orandum Order No. the period of prescription comme nced to run from the date the said instrument were executed. the loans were entered into by virtue of public documents during the period of 1978 to 1981. the offenses c harged had already prescribed. 3019 at the time the questioned transactions were made because the public offi cials concerned connived or conspired with the beneficiaries of the loans. Therefore. which lays down the organization of the Committee and the frame of reference for the determination of behest loans. Records show that the complaint was referred and filed with the Ombudsman on October 4. determine the nature of the action. RULING: No. when there is nothing which was concealed or needed to be discovered because the entire ser ies of transactions were by public instruments. the prescriptive period should be computed from the discovery of the commissio n thereof and not from the day of such commission. 3019 HAS ALREADY PRESCRIBE D. from the discovery thereof and the institution of t he judicial proceedings for its investigation and punishment (as provided by Act No. et. 40 O. Further. 3326). No . The averments in the complaint. Citing People vs. but the Ombudsman denied it on July 27.A..G. It should have been a petition for certiorar i under Rule 65. were ex-post facto law s which are therefore unconstitutional. Thus. the Ombudsman also pointed out that Administrative Order No.al. In the case at bar . 50). ISSUE 1: WON THE PRESENT PETITION FOR REVIEW ON CERTIORARI SHOULD BE DISMISSED FOR BEING THE WRONG REMEDY IN ELEVATING THE CASE TO THE SC. contended that the petitioners availed of th e wrong remedy since a petition for review on certiorari under Rule 45 is not th e proper remedy for the given case. Thus. Thus . Dinsay (C. 61. not the nomencl ature given by the parties. ISSUE 2: WON THE CRIME OR OFFENSE CHARGED UNDER R.A. the defendants contended that herein petition should be d ismissed. .A. 1998. this petition before the Supreme Court.19) is ten (10) years computed from the day of the commission of the violation o f the law. RATIO DECIDENDI: While it is true that a petition for review on certiorari under Rule 45 is not t he proper mode by which resolutions of the Ombudsman in preliminary investigatio ns of criminal cases are reviewed by the SC being that the proper remedy from th e adverse resolution of the Ombudsman is a petition for certiorari under Rule 65 . In the Supreme Court: Mapa. 12th Supp. and if not known. according to the Ombudsman. 1996 or after the lapse of more than fifteen years from the violation of the law.
treat of their nature. 61 ARE EX-POS T FACTO LAWS. or (f) that which deprives a person accused of a crime of some lawful protection to which he has become en titled. Not being penal laws. or (c) which changes the punishment and inflicts a greater punishme nt than the law annexed to the crime when it was committed. or (d) which alters the legal rules of evidence and receives less or different testimony than the la w required at the time of the commission of the offense in order to convict the defendant. or t hose that define crimes. RATIO DECIDENDI: The SC did not sustain the Ombudsmanâ s declaration that Administrative Order No. 61 cannot be characterized as ex post facto laws. 13 and Memorandum Order No. It does not mete out penalty for the act of granting behest lo ans.ISSUE 3: WON ADMINISTRATIVE ORDER NO. This Court added two (2) more to the list. there must be a clear and unequivocal breach of the Con stitution. The SC held that Administrative Order No. 13 and Memorandum Order No. and provide for their punishment . the SC said that th e Ombudsman has no jurisdiction to entertain questions on the constitutionality of a law. and provides for its compositio n and functions. Further. Memorandum Order No. not a doubtful or arguable implication. 13 creates the Presidentia l Ad Hoc Fact-Finding Committee on Behest Loans. To justify nullification of a law. such as the protection of a former conviction or acquittal. or (b) which aggravates a crime or makes it greater than it was whe n committed. 61 are not ex post facto laws. The subject administrative and memorandum orders clearly do not come within th e shadow of this definition. Administrative Order No. Administrative Order No. and punishes such action. . 13 AND MEMORANDUM ORDER NO. An ex post facto law has been defined as one â (a) which makes an action done before the passing of the law and which was innocent when done criminal. 61 merely provides a frame of reference for determini ng behest loans. The SC pointed out that constitutionality of laws is always presumed. RULING: No. Penal laws are those acts of the legislatur e which prohibit certain acts and establish penalties for their violations. The constitutional doctrine that outlaws an ex post facto law generally prohibit s the retrospectivity of penal laws. the Ombudsman acted in excess of its jurisdiction in decl aring unconstitutional the subject administrative and memorandum orders. In so doing. 13 and Memorandu m Order No. namely: (e) that which ass umes to regulate civil rights and remedies only but in effect imposes a penalty or deprivation of a right which when done was lawful. or a proclam ation of amnesty. 61 violate the prohibition against ex post facto laws f or ostensibly inflicting punishment upon a person for an act done prior to their issuance and which was innocent when done.