Case Digest No.

: 38
Case Title: Republic vs Sandiganbayan
Citation: G.R. No. 142476, May 28, 1992

ISSUES:
Issue #1: ConstiLaw1; Sovereignty
“Whether the Republic of the Philippines can be held liable in an
agreement made between PCGG and Fuller Aircraft in the sale of the
Falcon Jet”
Held: NO.
The Republic did not authorize PCGG to enter into a contract with Fuller Aircraft
for the sale of the Falcon Jet. PCGG exceeded its authority when it sold the aircraft
because the sale was made without the approval of the Sandiganbayan. Because of the
invalid sale, the agreement between PCGG and Fuller Aircraft would also be rendered null
and void. 

Meanwhile, it is the legal duty of the Republic of the Philippines to return to Fuller Aircraft
the escrow deposit ($8,568,905.55) through the PCGG