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ENBANC

G.R.No.200238PHILIPPINESAVINGSBANKandPASCUALM.GARCIAIII,as
representativeofPhilippineSavingsBankandinhispersonalcapacity,Petitioners,
versusSENATEIMPEACHMENTCOURT,consistingoftheSenatorsofthe
RepublicofthePhilippines,actingasSenatorJudges,namely:JuanPonceEnrile,
JinggoyEjercitoEstrada,VicenteC.SottoIII,AlanPeterS.Cayetano,EdgardoJ.
Angara,JokerP.Arroyo,PiaS.Cayetano,FranklinM.Drilon,FrancisG.Escudero,
TeofistoGuingonaIII,GregorioB.HonasanII,PanfiloM.Lacson,ManuelM.Lapid,
LorenB.Legarda,FerdinandR.Marcos,Jr.,SergioR.OsmenaIII,KikoPangilinan,
AquilinoPimentelIII,RalphG.Recto,RamonRevilla,Jr.,AntonioF.TrillanesIV,
MannyVillar,andtheHonorableMembersoftheProsecutionPaneloftheHouseof
Representatives,Respondents.

Promulgated:

February9,2012
xx

DISSENTINGOPINION

CARPIO,J.:

Idissentbecausethemajorityrulingmakesamockeryofallexistinglawsdesignedtoinsure
transparencyandgoodgovernanceinpublicservice.

Themajorityrulingineffectadvisesallgovernmentofficialsandemployeesthattheycan
legallyevadereportingtheiractualassetsintheirStatementofAssets,LiabilitiesandNet
Worth,whichisrequiredbytheConstitution1andRANos.30192and6713,3bysimply
openingforeigncurrencydepositaccountswithlocalbanks.Themajorityholdsthatunder
Section8ofRANo.6426,4foreigncurrencydepositsofgovernmentofficialsand
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employeesareabsolutelyconfidential,eveninimpeachmentorbriberycasesfiledagainst
them.Themajoritydeclaresthatforeigncurrencydepositaccountscanbeopenedinany
judicial,administrative,legislative,orimpeachmentinquiryonlyiftheaccountowner
himselfconsentsinwritingtoopenhisaccounttohisprosecutorsorinvestigators.

TheworldwillnowknowthatPhilippineforeigncurrencydepositaccountsprovideamuch
bettersafehavenforillgottenwealththanSwissbankaccounts.FormerPresidentFerdinand
MarcoswaswrongindepositinghundredsofmillionsofU.S.dollarsinSwissbank
accounts.5Hadhedeposited,eveninhisownname,themoneyinforeigncurrencyaccounts
withlocalbanksunderRANo.6426,asamendedbyhisthreePresidentialDecrees,6he
wouldhavegottenawaywithhislootunderthisrulingofthemajority.

IsthistheintentionofSection8ofRANo.6426whenitmandatesthesecrecyofforeign
currencydeposits?Theanswerisclearlyno.Section8wasinsertedbyPDNo.1246,
whoselasttwoWhereasclausesprovide:

Whereas,inordertoinsurethedevelopmentandspeedygrowthoftheForeignCurrencyDeposit
SystemandtheOffshoreBankingSysteminthePhilippines,certainincentiveswereprovidedfor
underthetwoSystemssuchasconfidentialityofdepositssubjecttocertainexceptionsandtax
exemptionsontheinterestincomeofdepositorswhoarenonresidentsandarenotengagedin
tradeorbusinessinthePhilippines

Whereas,makingabsolutetheprotectivecloakofconfidentialityoversuchforeigncurrency
deposits,exemptingsuchdepositsfromtax,andguaranteeingthevestedrightsofdepositorswould
betterencouragetheinflowofforeigncurrencydepositsintothebankinginstitutions
authorizedtoacceptsuchdepositsinthePhilippinestherebyplacingsuchinstitutionsmoreina
positiontoproperlychannelthesametoloansandinvestmentsinthePhilippines,thusdirectly
contributingtotheeconomicdevelopmentofthecountry.(Emphasissupplied)

Thus,PDNo.1246expresslydeclaresthatthesecrecyofforeigncurrencydepositsunder
Section8ofRANo.6426isintendedtoprotectdepositorswhoarenonresidents
becausethepurposeofthesecrecyistoencouragetheinflowofforeigncurrency
depositstoPhilippinebanksfromsuchdepositorswhoarenonresidents.

ThisexpressintentofPDNo.1246wasaffirmedbytheSupremeCourtinseveralcases.In
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Salvacionv.CentralBank,7decidedin1997,thisCourtruled:

InhisComment,theSolicitorGeneralcorrectlyopined,thus:

xxx

Itisevidentfromtheabove[Whereasclauses]thattheOffshoreBankingsystemandtheForeign
CurrencyDepositSystemweredesignedtodrawdepositsfromforeignlendersandinvestors
(VidesecondwhereasofPDNo.1034thirdwhereasofPDNo.1035).Itisthesedepositsthat
areinducedbythetwolawsandgivenprotectionandincentivesbythem.(Emphasissupplied)

InSalvacion,theCourtemphaticallystressedthatthedepositsprotectedundertheForeign
CurrencyDepositSystemaredepositsfromforeignlendersandinvestors.

Likewise,inChinaBankingCorporationv.CourtofAppeals,8decidedin2006,theCourt
declared:

ItmustberememberedthatunderthewhereasclauseofPresidentialDecreeNo.1246which
amendedSec.8ofRepublicActNo.6426,theForeignCurrencyDepositSystemincludingthe
OffshoreBankingSystemunderPresidentialDecree1034wereintendedtodrawdeposits
fromforeignlendersandinvestors,andwequote:

Whereas,inordertoassurethedevelopmentandspeedygrowthoftheForeignCurrencyDeposit
SystemandtheOffshoreBankingSysteminthePhilippines,certainincentiveswereprovidedfor
underthetwoSystemssuchasconfidentialityofdepositssubjecttocertainexceptionsandtax
exemptionsontheinterestincomeofdepositorswhoarenonresidentsandarenotengagedintrade
orbusinessinthePhilippines

Whereas,makingabsolutetheprotectivecloakofconfidentialityoversuchforeigncurrency
deposits,exemptingsuchdepositsfromtax,andguaranteeingthevestedrightsofdepositorswould
betterencouragetheinflowofforeigncurrencydepositsintothebankinginstitutionsauthorizedto
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acceptsuchdepositsinthePhilippinestherebyplacingsuchinstitutionsmoreinapositionto
properlychannelthesametoloansandinvestmentsinthePhilippines,thusdirectlycontributingto
theeconomicdevelopmentofthecountry.(Emphasissupplied)

Thus,inChinaBankingCorporation,theCourtagainstressedthattheForeignCurrency
DepositSystemincludingtheOffshoreBankingSystemunderPresidentialDecree1034
wereintendedtodrawdepositsfromforeignlendersandinvestors.

EvenGSISv.CourtofAppeals,9decidedin2011,whichthemajoritycitesinitsruling,also
declaredthatRepublicActNo.6426wasintendedtoencouragedepositsfromforeign
lendersandinvestors.Clearly,thesecrecyofforeigncurrencydepositsinSection8ofRA
No.6426,aspeciallaw,appliesonlytoforeigndepositorsandinvestors.

WhatsecrecythenappliestoPhilippinecitizenswhoholdforeigncurrencydepositswith
localbanks?SuchdepositsofPhilippinecitizensaregovernedbyRANo.1405,10the
generallawonsecrecyofbankdeposits,whichprovides:

Section2.AlldepositsofwhatevernaturewithbanksorbankinginstitutionsinthePhilippines
includinginvestmentsinbondsissuedbytheGovernmentofthePhilippines,itspolitical
subdivisionsanditsinstrumentalities,areherebyconsideredasofanabsolutelyconfidential
natureandmaynotbeexamined,inquiredorlookedintobyanyperson,governmentofficial,
bureauoroffice,exceptuponwrittenpermissionofthedepositor,orincasesofimpeachment,or
uponorderofacompetentcourtincasesofbriberyorderelictionofdutyofpublicofficials,orin
caseswherethemoneydepositedorinvestedisthesubjectmatterofthelitigation.(Emphasis
supplied)

UnderSection2ofRANo.1405,alldepositsofwhatevernaturewithbanksxxxmaybe
examined,inquiredorlookedintoxxxincasesofimpeachment.Thus,thereisno
questionthattheimpeachmentcourtcanpryopentheforeigncurrencyaccountsof
impeachableofficers.

Thereisevenamorecompellinglegalgroundwhytheforeigncurrencyaccountsinquestion
arenotconfidential.Section8ofRANo.6713,asamended,mandatesthedisclosureofthe
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assetsofgovernmentofficialsandemployeeswhohaveanobligationtodisclosetheir
assets.Moreover,Section8expresslystatesthatthepublichastherighttoknowthe
assetsofgovernmentofficialsandemployees.Section8ofRANo.6713provides:

Sec.8.StatementsandDisclosure.Publicofficialsandemployeeshaveanobligationto
accomplishandsubmitdeclarationsunderoathof,andthepublichastherighttoknow,the
assets,liabilities,networthandfinancialandbusinessinterestsincludingthoseoftheirspousesand
ofunmarriedchildrenundereighteen(18)yearsofageandlivingintheirhouseholds.(Emphasis
supplied)

Thus,governmentofficialsandemployeeshavetheobligationtodisclosetheirassetsto
thepublic,andthepublichastherighttoknowtheassetsofgovernmentofficialsand
employees.Thisobligationofgovernmentofficialsandemployeestodisclosealltheir
assetsisabsoluteandhasnoexception.Therightofthepublictoknowtheassetsof
governmentofficialsandemployeesisalsoabsoluteandhasnoexception.

Whatthemajorityhasruledisthatgovernmentofficialsandemployeeshavenoobligation
todisclosetheirforeigncurrencyaccounts,andthatthepublichasnorighttoknow
suchforeigncurrencyaccounts.ThiscompletelyviolatesSection8ofRANo.6713.The
majorityrulinginventsanexceptionthatisnotfoundinSection8ofRA6713.This
exceptionrendersSection8ofRA6713useless.Governmentofficialsandemployeescan
simplyopenforeigncurrencyaccountsanddepositalltheircashinsuchaccounts.Thenthey
nolongerhavetheobligationtodisclosetheircashassets,andthepublicnolongerhas
therighttoknowsuchassets.

Section8ofRANo.671311isamuchlaterlawthanSection8ofRANo.6426.12The
repealingclauseofRANo.6713statesthatalllaws,decreesandordersorpartsthereof
inconsistentherewith,aredeemedrepealedormodifiedaccordingly,unlessthesame
provideforaheavierpenalty.13Sincethereisanirreconcilableinconsistencybetween
Section8ofRANo.6713andSection8ofRANo.6426,thelaterlaw,whichisRANo.
6713,prevails.Inshort,thegovernmentofficialsandemployeesobligationtodisclose
theirassets,andthepeoplesrighttoknowsuchassets,asexpresslymandatedbySection
8ofRANo.6713,prevailsoverthesecrecyofforeigncurrencydepositsunderSection8of
RANo.6426,grantingthatsuchsecrecyappliestoPhilippinecitizens.
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Incidentally,ChiefJusticeRenatoC.Coronahaspubliclyadmittedthatheownstheforeign
currencyaccountsinquestion.ThePhilippineStarnewsreportentitledDisclosureinDue
Time,SaysCJ,writtenbyPerseusEscheminadaon11February2012,statesinpart:

MANILA,PhilippinesChiefJusticeRenatoCoronayesterdayadmittedhavingdollaraccountsand
vowedtodisclosetheminduetime.

CoronabeliedinsinuationsthathisbidintheSupremeCourttostopthesubpoenaoftheSenate
impeachmentcourtonhisforeigncurrencyaccountsinPhilippineSavingsBank(PSBank)wasa
signofguiltorobviousmovetoconcealthetruth.

Iwillmakethedisclosureinduetime,theChiefJusticetoldTheSTARinatextmessage.

Heexplainedthathefiledanurgentpetitionseekingtheissuanceofatemporaryrestrainingorder
(TRO)ontheimpeachmenttrial,includingthesubpoenaonhisdollaraccounts,becausehisrights
werebeingviolatedintheproceedings.

Coronasaidhejustwantedlegalissuestoberesolvedfirstbeforethedisclosureofhisdollar
accounts.

Withthisadmissionthatheownstheforeigncurrencyaccountsinquestion,ChiefJustice
Coronahastheobligationtodisclosetheseforeigncurrencyassetstothepeople,who
havetherighttoknowhisassets.

TheConstitutionmandatesthatpublicofficersandemployeesmustatalltimesbe
accountabletothepeople.14Agovernmentofficialoremployeewhorefusestobe
accountabletothepeoplebynotdisclosingassetsheadmittedlyowns,despitehis
obligationtosodisclosetothepeople,whohavetherighttoknowhisassets,puts
himselfbeyondaccountabilitytothepeople.

Accordingly,sincetheforeigncurrencyaccountsinquestionarenotcoveredbySection8of
RANo.6426,andpetitionerswillnotsuffergraveandirreparableinjury,IvotetoDENY
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petitionersprayerforaTemporaryRestrainingOrder.

ANTONIOT.CARPIO
AssociateJustice

1Section17,ArticleXI,ofthe1987Constitutionprovides:

Sec.17.Apublicofficeroremployeeshall,uponassumptionofofficeandasoftenthereafterasmayberequiredby
law,submitadeclarationunderoathofhisassets,liabilities,andnetworth.InthecaseofthePresident,theVice
President,theMembersoftheCabinet,theCongress,theSupremeCourt,theConstitutionalCommissionsandother
constitutionaloffices,andofficersofthearmedforceswithgeneralorflagrank,thedeclarationshallbedisclosedto
thepublicinthemannerprovidedbylaw.

2Section7ofRANo.3019,asamended,otherwiseknownastheAntiGraftandCorruptPracticesAct,provides:

Sec.7.StatementofAssetsandLiabilities.Everypublicofficer,withinthirtydaysafterassumingofficeand,
thereafter,onorbeforethefifteenthdayofAprilfollowingthecloseofeverycalendaryear,aswellasuponthe
expirationofhistermofoffice,oruponhisresignationorseparationfromoffice,shallprepareandfilewiththeoffice
ofthecorrespondingDepartmentHead,orinthecaseofaHeadofDepartmentorChiefofanindependentoffice,with
theOfficeofthePresident,atrue,detailedandswornstatementofassetsandliabilities,includingastatementofthe
amountsandsourcesofhisincome,theamountsofhispersonalandfamilyexpensesandtheamountofincometaxes
paidfortheprecedingcalendaryear:Provided,Thatpublicofficersassumingofficelessthantwomonthsbeforethe
endofthecalendaryear,mayfiletheirfirststatementonorbeforethefifteenthdayofAprilfollowingthecloseofthe
saidcalendaryear.

3Section8,RANo.6713,asamended,otherwiseknownastheCodeofConductandEthicalStandardsforPublicOfficials
andEmployees,quotedonpage6ofthisOpinion.

4Section8ofRANo.6426provides:

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Section8.SecrecyofForeignCurrencyDeposits.AllforeigncurrencydepositsauthorizedunderthisAct,as
amendedbyPresidentialDecreeNo.1035,aswellasforeigncurrencydepositsauthorizedunderPresidentialDecree
No.1034,areherebydeclaredasandconsideredofanabsolutelyconfidentialnatureand,exceptuponthewritten
permissionofthedepositors,innoinstanceshallsuchforeigncurrencydepositsbeexamined,inquiredorlooked
intobyanyperson,governmentofficial,bureauorofficewhetherjudicialoradministrativeorprivate:Provided,
however,thatsaidforeigncurrencydepositsshallbeexemptfromattachment,garnishment,oranyotherorderor
processofanycourt,legislativebody,governmentagencyoranyadministrativebodywhatsoever.

5SeeRepublicv.Sandiganbayan,G.R.No.152154,15July2003,406SCRA1900.

6PresidentialDecreeNos.1034,1035and1246.

7G.R.No.94723,21August1997,278SCRA27,45.

8G.R.No.140687,18December2006,511SCRA110,117118.

9G.R.No.189206,8June2011.

10AnActProhibitingDisclosureoforInquiryinto,DepositswithanyBankingInstitutionandProvidingPenaltyTherefor.

11Approvedon20February1989.

12Issuedon21November1977.

13Section16,RANo.6713,asamended.

14Section1,ArticleXI,1987Constitution.

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