REPUBLIC OF THE PHILIPPINES

vs.
HONORABLE SANDIGANBAYAN (SPECIAL FIRST DIVISION), et. al.
G.R. No. 152154
July 15, 2003

Perquisites and Inhibition; Executive Department

FACTS:

One of the foremost concerns of the Aquino Government in February 1986 was the recovery of the
unexplained or ill-gotten wealth reputedly amassed by former President and Mrs. Ferdinand E. Marcos,
their relatives, friends and business associates. Thus, the very first Executive Order (EO) issued by then
President Corazon Aquino upon her assumption to office after the ouster of the Marcoses was EO No. 1,
issued on February 28, 1986. It created the Presidential Commission on Good Government (PCGG) and
charged it with the task of assisting the President in the "recovery of all ill-gotten wealth accumulated by
former President Ferdinand E. Marcos, his immediate family, relatives, subordinates and close associates,
whether located in the Philippines or abroad, including the takeover or sequestration of all business
enterprises and entities owned or controlled by them during his administration, directly or through
nominees, by taking undue advantage of their public office and/or using their powers, authority,
influence, connections or relationship."

In all the alleged ill-gotten wealth cases filed by the PCGG, this Court has seen fit to set aside
technicalities and formalities that merely serve to delay or impede judicious resolution. This Court prefers
to have such cases resolved on the merits at the Sandiganbayan. But substantial justice to the Filipino
people and to all parties concerned, not mere legalisms or perfection of form, should now be relentlessly
and firmly pursued. Almost two decades have passed since the government initiated its search for and
reversion of such ill-gotten wealth. The definitive resolution of such cases on the merits is thus long
overdue. If there is proof of illegal acquisition, accumulation, misappropriation, fraud or illicit conduct,
let it be brought out now. Let the ownership of these funds and other assets be finally determined and
resolved with dispatch, free from all the delaying technicalities and annoying procedural side-tracks.

ISSUE:

Whether or not President Marcos committed prohibited and inhibited acts as a president during his term
of office

RULING:

Yes

The sum of $304,372.43 should be held as the only known lawful income of respondents since they did
not file any Statement of Assets and Liabilities (SAL), as required by law, from which their net worth
could be determined. Besides, under the 1935 Constitution, Ferdinand E. Marcos as President could not
receive any other emolument from the Government or any of its subdivisions and instrumentalities.
Likewise, under the 1973 Constitution, Ferdinand E. Marcos as President could not receive during his
tenure any other emolument from the Government or any other source. In fact, his management of
businesses, like the administration of foundations to accumulate funds, was expressly prohibited under the
1973 Constitution:
Article VII, Sec. 4(2) The President and the Vice-President shall not, during their tenure, hold any other
office except when otherwise provided in this Constitution, nor may they practice any profession,
participate directly or indirectly in the management of any business, or be financially interested directly
or indirectly in any contract with, or in any franchise or special privilege granted by the Government or
any other subdivision, agency, or instrumentality thereof, including any government owned or controlled
corporation.

Article VII, Sec. 11 No Member of the National Assembly shall appear as counsel before any court
inferior to a court with appellate jurisdiction, x x x. Neither shall he, directly or indirectly, be interested
financially in any contract with, or in any franchise or special privilege granted by the Government, or
any subdivision, agency, or instrumentality thereof including any government owned or controlled
corporation during his term of office. He shall not intervene in any matter before any office of the
government for his pecuniary benefit.

Article IX, Sec. 7 The Prime Minister and Members of the Cabinet shall be subject to the provision of
Section 11, Article VIII hereof and may not appear as counsel before any court or administrative body, or
manage any business, or practice any profession, and shall also be subject to such other disqualification as
may be provided by law.

Their only known lawful income of $304,372.43 can therefore legally and fairly serve as basis for
determining the existence of a prima facie case of forfeiture of the Swiss funds.