Saturday, February 11, 2012

China Banking Corp vs. CA & Gotianuy Lo, GR No 140687, 12-18-06; and Salvacion vs. Central Bank, 343 Phil. 539 (1997)-allowing inquiry into dollar deposits without written consent of depositor

in GR No. 140687,
FIRST DIVISION
G.R. No. 140687 : December 18, 2006
CHINA BANKING CORPORATION, Petitioner, v. THE HONORABLE COURT OF APPEALS and JOSE "JOSEPH" GOTIANUY as substituted by ELIZABETH GOTIANUY LO, Respondents.

the Supreme Court held:

Under the above provision, the law provides that all foreign currency deposits authorized under Republic Act No. 6426, as amended by Sec. 8, Presidential Decree No. 1246, Presidential Decree No. 1035, as well as foreign currency deposits authorized under Presidential Decree No. 1034 are considered absolutely confidential in nature and may not be inquired into. There is only one exception to the secrecy of foreign currency deposits, that is, disclosure is allowed upon the written permission of the depositor.
This much was pronounced in the case of Intengan v. Court of Appeals,10 where it was held that the only exception to the secrecy of foreign currency deposits is in the case of a written permission of the depositor.
It must be remembered that under the whereas clause of Presidential Decree No. 1246 which amended Sec. 8 of Republic Act No. 6426, the Foreign Currency Deposit System including the Offshore Banking System under Presidential Decree 1034 were intended to draw deposits from foreign lenders and investors, and we quote:
Whereas, in order to assure the development and speedy growth of the Foreign Currency Deposit System and the Offshore Banking System in the Philippines, certain incentives were provided for under the two Systems such as confidentiality of deposits subject to certain exceptions and tax exemptions on the interest income of depositors who are nonresidents and are not engaged in trade or business in the Philippines;
Whereas, making absolute the protective cloak of confidentiality over such foreign currency deposits, exempting such deposits from tax, and guaranteeing the vested rights of depositors would better encourage the inflow of foreign currency deposits into the banking institutions authorized to accept such deposits in the Philippines thereby placing such institutions more in a position to properly channel the same to loans and investments in the Philippines, thus directly contributing to the economic development of the country.
As to the deposit in foreign currencies entitled to be protected under the confidentiality rule, Presidential Decree No. 1034,11 defines deposits to mean funds in foreign currencies which are accepted and held by an offshore banking unit in the regular course of business, with the obligation to return an equivalent amount to the owner thereof, with or without interest.12 cra

in the case below, cited in 343 Phil. 539 (1997), the Supreme Court allowed the inquiry into the dollar deposit without the written consent of the depositor:

It is in this light that the court in the case of Salvacion v. Central Bank of the Philippines,13 allowed the inquiry of the foreign currency deposit in question mainly due to the peculiar circumstances of the case such that a strict interpretation of the letter of the law would result to rank injustice. Therein, Greg Bartelli y Northcott, an American tourist, was charged with criminal cases for serious illegal detention and rape committed against then 12 year-old Karen Salvacion. A separate civil case for damages with preliminary attachment was filed against Greg Bartelli. The trial court issued an Order granting the Salvacions' application for the issuance of a writ of preliminary attachment. A notice of garnishment was then served on China Bank where Bartelli held a dollar account. China Bank refused, invoking the secrecy of bank deposits. The Supreme Court ruled: "In fine, the application of the law depends on the extent of its justice x x x It would be unthinkable, that the questioned law exempting foreign currency deposits from attachment, garnishment, or any other order or process of any court, legislative body, government agency or any administrative body whatsoever would be used as a device by an accused x x x for wrongdoing, and in so doing, acquitting the guilty at the expense of the innocent.14 cra

NO CRIMINAL CHARGES VS THE CJ UNLESS HE IS FIRST REMOVED FROM OFFICE BY IMPEACHMENT, AM NO.88-4-5433, April 15, 1988

No criminal charges against the CJ unless he is removed from office by impeachment- A.M. No. 88-4-5433, april 15, 1988

 Friday, January 27, 2012 at 8:50pm ·

No criminal charges can be filed against the CJ for "ill-gotten wealth" unless he is first removed from office by impeachment... is this not reason why the Senate should allow evidence on Art. 2.2.1,2.2,2.3, and 2.4  of the impeachment complaint which have something to do with the alleged "ill-gotten" wealth" of the CJ?
------
EN BANC
A.M. No. 88-4-5433 April 15, 1988
IN RE FIRST INDORSEMET FROM HONORABLE RAUL M. GONZALEZ DATED 16 MARCH 1988 REQUESTING HONORABLE JUSTICE MARCELO B. FERNAN TO COMMENT ON AN ANONYMOUS LETTER-COMPLAINT.

in an En Band R E S O L U T I O N,The Supreme Court has held:

"This is not the first time the Court has had occasion to rule on this ...matter. In Lecaroz v. Sandiganbayan, 1 the Court said:

The broad power of the New Constitution vests the respondent court with jurisdiction over "public officers and employees, including those in government-owned or controlled corporations." There are exceptions, however, like constitutional officers, particularly those declared to be removed by impeachment. Section 2, Article XIII of the 1973 Constitution provides:

Sec. 2 The President, the Members of the Supreme Court, and the Members of the Constitutional Commissions shall be removed from office on impeachment for, and conviction of, culpable violation of the Constitution, treason, bribery, other high crimes, or graft and corruption."

Thus, the above provision proscribes removal from office of the aforementioned constitutional officers by any other method; otherwise, to allow a public officer who may be removed solely by impeachment to be charged criminally while holding his office, would be violative of the clear mandate of the fundamental law.

Chief Justice Enrique M. Fernando, in his authoritative dissertation on the New Constitution, states that "judgement in cases of impeachment shall be limited to removal from office and disqualification to hold any office of honor, trust, or profit under the Republic of the Philippines, but the party convicted shall nevertheless be liable and subject to prosecution trial, and punishment, in accordance with law. The above provision is a reproduction of what was found in the 1935 Constitution. It is quite apparent from the explicit character of the above provision that the effect of impeachment is limited to the loss of position and disqualification to hold any office of honor, trust or profit under the Republic. It is equally manifest that the party this convicted may be proceeded against, tried and thereafter punished in accordance with law. There can be no clearer expression of the constitutional intent as to the scope of the impeachment process (The Constitution f the Philippines, pp. 465-466)." The clear implication is, the party convicted in the impeachment proceeding shall nevertheless be liable and subject of prosecution, trial and punishment according to law; and that if the same does not result in a conviction and the official is not thereby removed."

FUNCTIONS OF THE AMLC:-

FUNCTIONS OF ANTI-MONEY LAUNDERING COUNCIL (AMLC)

on Saturday, February 11, 2012 at 3:27pm ·
Section 7. Creation of Anti-Money Laundering Council (AMLC). – The Anti-Money Laundering Council is hereby created and shall be composed of the Governor of the Bangko Sentral ng Pilipinas as chairman, the Commissioner of the Insurance Commission and the Chairman of the Securities and Exchange Commission as members. The AMLC shall act unanimously in the discharge of its functions as defined hereunder:

(1) to require and receive covered transaction reports from covered institutions;

(2) to issue orders addressed to the appropriate Supervising Authority or the covered institution
to determine the true identity of the owner of any monetary instrument or property
a.subject of a covered transaction report

b.or request for assistance from a foreign State,

c.or believed by the Council,
on the basis of substantial evidence to be in whole or in part, whenever located, representing, involving, or related to, directly or indirectly, in any manner or by any means, the proceeds of an unlawful activity;

(3) to institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General;

(4) to cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses;

(5) to initiate investigations of covered transactions, money laundering activities and other violations of this Act;

(6) to freeze any monetary instrument or property alleged to be proceed of any unlawful activity;

(7) to implement such measures as may be necessary and justified under this Act to counteract money laundering;

(8) to receive and take action in respect of, any request from foreign states for assistance in their own anti-money laundering operations provided in this Act;

(9) to develop educational programs on the pernicious effects of money laundering, the methods and techniques used in money laundering, the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders; and

(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government-owned and –controlled corporations, in undertaking any and all anti-money laundering operations, which may include the use of its personnel, facilities and resources for the more resolute prevention, detection and investigation of money laundering offenses and prosecution of offenders.

what does the law mean when it says the council "shall act unanimously in the discharge of its functions" as enumerated in the law... does it can act only if the vote of the Council is without any dissent?  just to establish the "true identity of the owner" of any  "monetary instrument or property?  the council must have a 100% vote of approval?

is there no conflict between the above functions of the AMLC and the provision of Section 11 of the Act which limits the authority of the AMLC to inquire into bank deposits?:

Section 11. Authority to inquire into Bank Deposits. – Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, and other laws, the AMLC may inquire into or examine any particular deposit or investment with any banking institution or non-bank financial institution upon order of any competent court in cases of violation of this Act when it has been established that there is probable cause that the deposits or investments involved are in any way related to a money laundering offense: Provided, That this provision shall not apply to deposits and investments made prior to the effectivity of this Act.



without first an conducting an inquiry into or investigating bank deposits....it must first seek an order from a competent court for authority to do that, but it can only seek such authority in a case involving violations of the money laundering Act... but again, how can the AMLC bring such a case for a violation of the Act without first determining that the deposit involves proceeds from an unlawful activity...which it can do only by inquiring into and investigating the bank deposit involved...


ANSWER:

this only means that the AMLC will have to establish the identity of the owner first, and find out if he has a business or the financial capacity to own a monetary instrument or property such as a bank deposit...through appropriate investigation...maybe it can require the owner to submit evidence on such business or financial capacity or to provide information on his legitimate sources of income...

it can do this through the exercise of its funtion under the following provision of the Anti Money laundering Act:

(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government-owned and –controlled corporations, in undertaking any and all anti-money laundering operations, which may include the use of its personnel, facilities and resources for the more resolute prevention, detection and investigation of money laundering offenses and prosecution of offenders.


in that  manner, the AMLC can exercise its authority



on the basis of substantial evidence to be in whole or in part, whenever located, representing, involving, or related to, directly or indirectly, in any manner or by any means, the proceeds of an unlawful activity;

the AMLC can do that by:

(10) to enlist the assistance of any branch, department, bureau, office, agency or instrumentality of the government, including government-owned and –controlled corporations, in undertaking any and all anti-money laundering operations, which may include the use of its personnel, facilities and resources for the more resolute prevention, detection and investigation of money laundering offenses and prosecution of offenders.

(2) to issue orders addressed to the appropriate Supervising Authority or the covered institution
to determine the true identity of the owner of any monetary instrument or property
a.subject of a covered transaction report
b.or request for assistance from a foreign State,
c.or believed by the Council,
on the basis of substantial evidence to be in whole or in part, whenever located, representing, involving, or related to, directly or indirectly, in any manner or by any means, the proceeds of an unlawful activity;

 without first going to court to seek authority to inquire into or investigate a bank deposit, which it can only do if there is already a case in court for a violation of the Act...

how can the AMLC come to the belief that a monetary instrument or property represents, involves, or is related to the proceeds of an unlawful activity:
how can the AMLC do the following:
(3) to institute civil forfeiture proceedings and all other remedial proceedings through the Office of the Solicitor General;
(4) to cause the filing of complaints with the Department of Justice or the Ombudsman for the prosecution of money laundering offenses;
(5) to initiate investigations of covered transactions, money laundering activities and other violations of this Act;

freeze order by AMLC

freeze order of deposits:-Saturday, February 11, 2012

Section 10. Authority to Freeze. – Upon determination that probable cause exists that any deposit or similar account is in any way related to an unlawful activity, the AMLC may issue a freeze order, which shall be effective immediately, on the account for a period not exceeding fifteen (15) days.

Notice to the depositor that his account has been frozen shall be issued simultaneously with the issuance of the freeze order.

The depositor shall have seventy-two (72) hours upon receipt of the notice to explain why the freeze order should be lifted.

The AMLC has seventy-two (72) hours to dispose of the depositor's explanation. If it falls to act within seventy-two (72) hours from receipt of the depositor's explanation, the freeze order shall automatically be dissolved.

The fifteen (15)-day freeze order of the AMLC may be extended upon order of the court, provided that the fifteen (15)-day periodUpon determination that probable cause exists that any deposit or similar account is in any way related to an unlawful activity, shall be tolled pending the court's decision to extend the period.

No court shall issue a temporary restraining order or writ of injunction against any freeze order issued by the AMLC except the Court of Appeals or the Supreme Court...

the law states that is only "Upon determination that probable cause exists that any deposit or similar account is in any way related to an unlawful activity," that the AMLC can issue a freeze order...but how can it make that determination... when it has no authority to inquire into bank deposits without order of a competent court in a case involving a violation of the anti-money laundering Act...

does it mean that the AMLC must make such a determination on the basis of facts from available from sources outside of the bank deposits themselves...after all, it has authority to look into the identity of the owner of the account and also it can look into whether or not such owner has a business or financial capacity to own the account...

AUTHORITY OF AMLC TO INQUIRE INTO BANK DEPOSITS.-

inquiry into deposits or investments can be made by AMLC upon order of the Court in money-laundering cases?

on Saturday, February 11, 2012
 
Section 11. Authority to inquire into Bank Deposits. – Notwithstanding the provisions of Republic Act No. 1405, as amended; Republic Act No. 6426, as amended; Republic Act No. 8791, and other laws,
the AMLC may inquire into or examine any particular deposit or investment with any banking institution or non-bank financial institution

upon order of any competent court in cases of violation of this Act

when it has been established that there is probable cause that the deposits or investments involved are in any way related to a money laundering offense: Provided, That this provision shall not apply to deposits and investments made prior to the effectivity of this Act.

if one just reads the opening sentence of this Section he might think that AMLC can moto proprio inquire into or examine any particular deposit or investment with any banking institution or non-bank financial institution, nothwithstanding the provisions of the laws on the secrecy of bank deposits like RA 1405 as amended by RA 6426 or RA 8791 and other laws...

until he finds out that the AMLC can do that only upon order of any competent court in cases of violation of the ACT... which order can be issued only

when it has been established that there is probable cause that the deposits or investments involved are in any wya related to a money laundering offense....

but the above provision of law cannot even apply to deposits and investments made prior to the effectivity of the Anti-money laundering law....

what kind of law is this...? you have an AMLC that is without power on its own to inquire into or investigate deposits....? what is the use of all the provisions creating this council?

how can it initiate money-laundering charges without first inquiring into or investigating deposits...how would the council know if a violation of the Act has taken place without such an inquiry or investigation?


Thursday, November 17, 2011

right to travel...

Constitutional Law Chapter VIII – The Constitutional Right to Travel

CONSTITUTIONAL LAW
CHAPTER VIII – THE CONSTITUTIONAL RIGHT TO TRAVEL

Section 6. The liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired except in the interest of national security, public safety, or public health, as may be provided by law.
NOTE: THE APPLICABLE PROVISION OF THE HUMAN SECURITY ACT ON THE RIGHT TO TRAVEL
Section 26 provides that persons who have been charged with terrorism or conspiracy to commit terrorism—even if they have been granted bail because evidence of guilt is not strong—can be:
  • Detained under house arrest;
  • Restricted from traveling; and/or
  • Prohibited from using any cellular phones, computers, or other means of communications with people outside their residence.
Upon application of the prosecutor, the suspect’s right to travel shall be limited to the municipality or city where he resides or where the case is pending, in the interest of national security and public safety. Travel outside of said municipality or city, without the authorization of the court, shall be deemed a violation of the terms and conditions of the bail which shall then be forfeited as provided in the Rules of Court.
These restrictions shall be terminated upon acquittal of the accused; or the dismissal of the case filed against him; or earlier upon the discretion of the court or upon motion of the prosecutor.
1. The constitutional as well as human right to travel,    129 SCRA
2. Read:
FERDINAND MARCOS, ET AL. VS. HON. RAUL MANGLAPUS, ET AL., G.R. NO. 88211, September 15, 1989 and the Resolution of the Motion for Reconsideration dated  October 27, 1989
Right to travel; liberty of abode and “right to return”
En banc

Cortes, J.
This is a petition for mandamus and prohibition asking the Supreme Court to Order the respondents to issue travel documents to the petitioners and to enjoin the implementation of the President’s decision to bar their return to the Philippines.
The case for the petitioners is founded on the assertion that their right to return to the Philippines is guaranteed by the following provisions of the Constitution:
Section 1. No person shall be deprived of life liberty or property without due process of law, nor shall any person  be denied equal protection of the laws.
Section 6. The liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except in the interest of national security, public safety or public health, as may be provided by law.
The petitioners contend that the President has no power to impair the liberty of abode of the Marcoses because only the Courts may do so “within the limits prescribed by law”. Nor may the President impair the right to travel because no law has authorized her to do so.
Also, the petitioners claim that under international law, particularly the Universal Declaration of Humjan Rights guaranteed the right of the Marcoses to return to the Philippines. Thus:
Art. 13 (1) Everyone has the right to freedom of movement and residence within the borders  of each state.
(2) Everyone has the right to leave any country, including his own, AND TO RETURN TO HIS COUNTRY.
Likewise, under the International Covenant on Civil and Political Rights, which had been ratified by the Philippines, provides:
Art. 12
4) No one shall be arbitrarily deprived of the right to enter his own country.
The respondents argue that the issue in this case involves a political question which is therefore beyond the jurisdiction of the Court. Furthermore, they argue that the right of the state to national security prevails over individual rights, citing Section 4, Art. II of the 1987 Philippine Constitution.
Issue:
Whether or not, in the exercise of the powers granted in the Constitution, the President may prohibit the Marcoses from returning to the Philippines.
The sub-issues, which could help in the determination of the main issue, are:
1. Does the President have the power to bar the Marcoses to return to the Philippines?
a. Is this a political question?
2. Assuming that the President has the power to bar former Pres. Marcos and his family from returning to the Philippines, in the interest of national security, public safety or public health, has the President made a finding that the return of the petitioners to the Philippines is a clear and present danger to national security, public welfare or public health. And if she has made that finding, have the requirements of due process been complied with in making such finding? Has there been prior notice to the petitioners?
Held:
It must be emphasized that the individual right involved in this case is not the right to travel from the Philippines to other countries or within the Philippines. These are what the right to travel connote. Essentially, the right to return to one’s country, a totally distinct right under international law, independent  from, though related to the right to travel. Thus, even the Universal declaration of Human Rights and the International Covenant on Civil and Political Rights treat the right to freedom of movement and abode within the territory of the state, the right to leave a country and the right to enter one’s country as separate and distinct rights.
THE RIGHT TO RETURN TO ONE’S COUNTRY IS NOT AMONG THE RIGHTS SPECIFICALLY GUARANTEED BY THE BILL OF RIGHTS, WHICH TREATS ONLY OF THE LIBERTY OF ABODE AND THE RIGHT TO TRAVEL, BUT IT IS OUR WELL-CONSIDERED VIEW THAT THE RIGHT TO RETURN MAY BE CONSIDERED AS A GENERALLY ACCEPTED PRINCIPLE OF INTERNATIONAL LAW, UNDER OUR CONSTITUTION, IS PART OF THE LAW OF THE LAND.
To the President, the problem is one of balancing the general welfare and the common good against the exercise of rights of certain individuals. The power involved is the  President’s RESIDUAL POWER to protect the general welfare of the people.
The court cannot close its eyes to present realities and pretend that the country is not besieged by the insurgency, separatist movement in Mindanao, rightist conspiracies to grab power, etc. With these before her, the President cannot be said to have acted arbitrarily, capriciously and whimsically.
Lastly, the issue involved in the case at bar is not political in nature since under Section 1, Art. VIII of the Constitution, judicial power now includes the duty to “determine whether or not  there has been a grave abuse of discretion amounting to lack of jurisdiction on the part of any branch or instrumentality of the government.”
NOTE:
The main opinion was concurred in by 7 justices (CJ Fernan,  Narvasa, Melencio-Herrera, Gancayco, Grino-Aquino, Medialdea and Regalado) or a total of 8 justices in voting in favor of DISMISSING the petition. Seven justices filed separate dissenting opinions (Gutierrez, Jr., Cruz, Paras, Feliciano, Padilla, Bidin and Sarmiento).
***********************
Gutierrez, Jr., J., dissenting.
With all due respect for the majority in the Court that the main issue in this case is not one of power but one on RIGHTS. If he comes home, the government has the power to arrest and punish him but does it have the power to deny him his right to come home and die among familiar surroundings? x x x The government has more than ample powers under existing laws to deal with a person who transgresses the peace and imperils public safety. BUT THE DENIAL OF TRAVEL PAPERS IS NOT ONE OF THOSE POWERS BECAUSE THE BILL OF RIGHTS SAY SO. THERE IS NO LAW PRESCRIBING EXILE IN FOREIGN LAND AS THE PENALTY FOR HURTING THE NATION.
1. The fears expressed by its representatives were based on mere conjectures of political and economic destabilization without any single piece of concrete evidence to back up their apprehensions.
Amazingly, however, the majority has come to the conclusion that there exist “factual bases for the President’s decision” to bar Marcos’s return. That is not my recollection of the impressions of the Court after the hearing.
2. Silverio vs. CA, April 8, 1991
Read also:
1. Caunca vs. Salazar, 82 Phil. 851
2. Kwong vs. PCGG, December 7,l987
3. Manotoc vs. CA, 142 SCRA 149
1.   Petitioner Ricardo Manotoc, Jr. has 6 criminal cases for estafa pending against him. In said cases he was admitted to bail with the FGU Insurance Corporation as surety.
He is also involved in a case pending before the Securities and Exchange Commission.
2.   The SEC requested the Commissioner on Immigration not to clear petitioner for departure pending disposition of the case involving him. The same was granted by the Commissioner.
3.   Petitioner subsequently filed before the trial courts a motion entitled “motion for permission to leave the country” stating as ground therefor his desire to go to the United States, “relative to his business transactions and opportunities”.
4.   The motion was denied by the lower courts and the matter was elevated to the Court of Appeals which also denied the same. Petitioner brings the matter to the S.C. claiming his constitutional right to travel and also contending that having been admitted to bail as a matter of right, neither the courts which granted him bail nor the SEC would have jurisdiction over his liberty.
HELD:
Petition denied.
a.   A court has the power to prohibit a person admitted to bail from leaving the Philippines. This is a necessary consequence of the nature and function of a bail bond. The condition imposed upon petitioner to make himself available at all times whenever the court requires his presence operates as a valid restriction on his right to travel.
b.   “x  x  x the result of the obligation assumed by appellee to hold the accused amenable at all times to the orders and processes of the lower court, was to prohibit the accused from leaving the jurisdiction of the Philippines, because, otherwise, said orders and processes will be nugatory, and inasmuch as the jurisdiction of the courts from which they issued does not extend beyond that of the Philippines they would have no binding force outside of said jurisdiction.”(People vs. Uy Tuising, 61 Phil. 404 (l935)
c.   To allow the petitioner to leave the Philippines without sufficient reason would place him beyond the reach of the courts.
d.   Petitioner cites the Court of Appeals case of People vs. Shepherd (C.A.-G.R. No. 23505-R, Feb. 13, 1980) as authority for his claim that he could travel. The S.C. held however that said case is not squarely on all fours with the case at bar. Unlike the Shepherd case, petitioner has failed to satisfy the courts of the urgency of his travel, the duration thereof, as well as the consent of his surety to the proposed travel.
e.   It may thus be inferred that the fact that a criminal case is pending against an accused does not automatically bar him from travelling abroad. He must however convince the courts of the urgency of his travel, the duration thereof, and that his sureties are willing to undertake the responsibility of allowing him to travel.
4. Villavicencio vs. Lukban, 39 Phil. 778
5. Roan vs. Gonzales, supra.
6. Salonga vs. Hermoso, 97 SCRA 121
7. Read also the Ferdinand Marcos Cases of August         & October, 1989
Reference:
Constitutional Law Reviewer by Atty. Larry D. Gacayan (2008)
College of Law, University of the Cordilleras
Baguio City

Friday, July 15, 2011



FIRST DIVISION



ISIDRO OLIVAREZ, G.R. No. 163866
Petitioner,
'Present:
Davide, Jr., C.J. (Chairman),
- versus - Quisumbing,
Ynares-Santiago,
Carpio, and
Azcuna, JJ.
COURT OF APPEALS and
PEOPLE OF THE PHILIPPINES,
Respondents. Promulgated:
July 29, 2005
x ---------------------------------------------------------------------------------------- x

DECISION



YNARES-SANTIAGO, J.:

For review is the Court of Appeals' decision in CA-G.R. CR No. 22860[1] which affirmed the judgment[2] rendered by the Regional Trial Court of San Pedro, Laguna, Branch 93,[3] in Crim. Case No. 0505-SPL finding petitioner Isidro Olivarez guilty of violating Section 5, Republic Act No. 7610;[4] and its resolution denying reconsideration thereof.[5]

The case originated from a complaint filed by the offended party with the Municipal Trial Court of San Pedro, Laguna which was the basis upon which an information for violation of R.A. 7610 was filed against Isidro Olivarez, to wit:

The undersigned 4th Assistant Provincial Prosecution (sic) of Laguna upon a sworn complaint filed by the private complainant, CRISTINA B. ELITIONG, hereby accuses ISIDRO OLIVAREZ of the crime of 'VIOLATION OF RA 7610', committed as follows:

That on or about July 20, 1997, in the Municipality of San Pedro, Province of Laguna, within the jurisdiction of this Honorable Court, said accused actuated by lewd design did then and there wilfully, unlawfully and feloniously by means of force and intimidation commit acts of lasciviousness on the person of one CRISTINA B. ELITIONG, by touching her breasts and kissing her lips, against her will, to her damage and prejudice.

CONTRARY TO LAW.[6]

The established facts of this case are as follows:

... The offended party Cristina Elitiong was a 16-year old high school student who with her brothers were employed by the accused, 64-year old Isidro Olivarez, in the making of sampaguita garlands. For one year she had been reporting for work during weekends at the residence of the accused. Within the compound and at about three armslength from the main door of the house was her workplace.

At about 11:30 oclock in the morning of July 20, 1997, Cristina, her two brothers Macoy and Dodong, and one named Liezel were at their work when the accused who was near the main door called for her. She dutifully approached him. The accused asked her if she had told her mother that he gave her money, and when she said that she did not, he embraced her and held her breast. The workers were facing the street so that the two were not seen. He pulled her to the kitchen and, closing the kitchen door, kissed her on the lips. She pushed him away and went back to her station. Her brother Macoy saw her crying when she came out of the house. She did not say a word, but went to the faucet and washed her face.

The offended party continued to finish the garlands she was working on, and waited until the afternoon for her wages. When she arrived at her home, she first told her mother that she no longer wished to go back. When pressed for a reason, she said basta po mama ayaw ko ng magtuhog. Finally, she told her mother what happened.

Aurora Elitiong, the mother, accompanied the offended party to the San Vicente Barangay Hall on July 26 to report the incident and give a statement. Days later, Cristina gave another statement to the local police.

In the defense version, the offended party and her brothers had slept overnight in the house of the accused. When Isidro woke up in the early morning to relieve himself, he saw the girl sleeping on the sofa. He admonished her to join her brothers in the basement. He went back to his room and slept until 8 A.M. Two hours later, at 10 A.M., he left for the Caltex Service Station which was only a five minute ride from his home by tricycle. 'His daughter Analee Olivarez was staying in another house in the compound and attended a morning mass. When she returned at 10:30 A.M., she no longer saw her father. Maritess Buen, the laundrywoman, who was washing clothes outside the kitchen, saw the accused earlier. By 10 A.M., when she entered the house, he already left. He returned by noontime.

The accused testified that he was at the Caltex station for two and a half hours waiting for the shipment of flowers from Pampanga. The goods arrived at 12:15 P.M. He left shortly thereafter and passed by the market before going home. He arrived at 12:30 P.M. The next several days were uneventful for him until his laundrywoman Maritess told him that there was a complaint against him at the barangay office. A meeting took place between him and the girl's family in the presence of the barangay authorities. The girl's mother was demanding P30,000 for the settlement of the case, but he refused to cave in and told a barangay official Jaime Ramos that he would rather see his accusers in court than give a centavo because he did not commit the crime.[7]

The trial court found Olivarez guilty of violating Section 5 of R.A. 7610 and sentenced him to suffer an indeterminate penalty of imprisonment from eight (8) years and one (1) day of prision mayor as minimum to seventeen (17) years, four (4) months and one (1) day of reclusion temporal as maximum, to indemnify the minor Cristina Elitiong in the amount of P15,000.00 as moral damages and to pay the costs.

On appeal, the decision of the trial court[8] was affirmed by the Court of Appeals. The motion for reconsideration[9] filed by the accused was denied.[10] Hence, this petition for review[11] on the following grounds:

I. The Honorable Court of Appeals committed grave abuse of discretion in not holding that the essential elements in Violation of Section 5, Article III of Republic Act 7610, which are age of the offended party and that she is an abused or exploited child as defined in the law, not having been alleged in the Information, petitioner/accused cannot be found guilty of said offense and must be acquitted.

II. The Honorable Court of Appeals erred and committed grave abuse of discretion in holding that the Information charging petitioner/accused of Violation of Section 5, Republic Act 7610, but failing to allege the essential elements of said offense, had substantially complied with the requirements of due process for the accused.

III. The Honorable Court of Appeals erred and gravely abused its discretion in not reversing the judgment of the trial court convicting the accused/petitioner and sentencing him to suffer the penalty of imprisonment for alleged Violation of Section 5, Republic Act 7610, which was not alleged in the Information.[12]

Petitioner alleges that his right to be informed of the nature and cause of the accusation against him was violated for failure to allege in the information the essential elements of the offense for which he is being charged.

Section 5, Article III of R.A. 7610 states:

SEC. 5. Child Prostitution and Other Sexual Abuse. ' Children, whether male or female, who for money, profit, or any other consideration or due to the coercion or influence of any adult, syndicate or group, indulge in sexual intercourse or lascivious conduct, are deemed to be children exploited in prostitution and other sexual abuse.

The penalty of reclusion temporal in its medium period to reclusion perpetua shall be imposed upon the following:

...
(b) Those who commit the act of sexual intercourse or lascivious conduct with a child exploited in prostitution or subjected to other sexual abuse: Provided, That when the victim is under twelve (12) years of age, the perpetrators shall be prosecuted under Article 335, paragraph 3, for rape and Article 336 of Act No. 3815, as amended, the Revised Penal Code, for rape or lascivious conduct, as the case may be: Provided, That the penalty for lascivious conduct when the victim is under twelve (12) years of age shall be reclusion temporal in its medium period; ... (Italics supplied)



The elements of sexual abuse under Section 5, Article III of R.A. 7610 are as follows:

1. The accused commits the act of sexual intercourse or lascivious conduct.
2. The said act is performed with a child exploited in prostitution or subjected to other sexual abuse.
3. The child, whether male or female, is below 18 years of age.[13]

Section 32, Article XIII, of the Implementing Rules and Regulations of R.A. 7610 defines lascivious conduct as follows:

[T]he intentional touching, either directly or through clothing, of the genitalia, anus, groin, breast, inner thigh, or buttocks, or the introduction of any object into the genitalia, anus or mouth, of any person, whether of the same or opposite sex, with an intent to abuse, humiliate, harass, degrade, or arouse or gratify the sexual desire of any person, bestiality, masturbation, lascivious exhibition of the genitals or pubic area of a person.[14] (Emphasis supplied)

The first element obtains in this case. It was established beyond reasonable doubt that petitioner kissed Cristina and touched her breasts with lewd designs as inferred from the nature of the acts themselves and the environmental circumstances.[15]

The second element, i.e., that the act is performed with a child exploited in prostitution or subjected to other sexual abuse, is likewise present. As succinctly explained in People v. Larin:[16]

A child is deemed exploited in prostitution or subjected to other sexual abuse, when the child indulges in sexual intercourse or lascivious conduct (a) for money, profit, or any other consideration; or (b) under the coercion or influence of any adult, syndicate or group. ...

It must be noted that the law covers not only a situation in which a child is abused for profit, but also one in which a child, through coercion or intimidation, engages in lascivious conduct. (Emphasis supplied)


We reiterated this ruling in Amployo v. People:[17]

... As we observed in People v. Larin, Section 5 of Rep. Act No. 7610 does not merely cover a situation of a child being abused for profit, but also one in which a child engages in any lascivious conduct through coercion or intimidation...

Thus, a child is deemed subjected to other sexual abuse when the child indulges in lascivious conduct under the coercion or influence of any adult. In this case, Cristina was sexually abused because she was coerced or intimidated by petitioner to indulge in a lascivious conduct. Furthermore, it is inconsequential that the sexual abuse occurred only once. As expressly provided in Section 3 (b) of R.A. 7610, the abuse may be habitual or not. It must be observed that Article III of R.A. 7610 is captioned as 'Child Prostitution and Other Sexual Abuse because Congress really intended to cover a situation where the minor may have been coerced or intimidated into lascivious conduct, not necessarily for money or profit. The law covers not only child prostitution but also other forms of sexual abuse. This is clear from the deliberations of the Senate:

Senator Angara. I refer to line 9, 'who for money or profit. I would like to amend this, Mr. President, to cover a situation where the minor may have been coerced or intimidated into this lascivious conduct, not necessarily for money or profit, so that we can cover those situations and not leave loophole in this section.

The proposal I have is something like this: WHO FOR MONEY, PROFIT, OR ANY OTHER CONSIDERATION OR DUE TO THE COERCION OR INFLUENCE OF ANY ADULT, SYNDICATE OR GROUP INDULGE, et cetera.

The President Pro Tempore. 'I see. That would mean also changing the subtitle of Section 4. Will it no longer be child prostitution?

Senator Angara. No, no. Not necessarily, Mr. President, because we are still talking of the child who is being misused for sexual purposes either for money or for consideration. What I am trying to cover is the other consideration. Because, here, it is limited only to the child being abused or misused for sexual purposes, only for money or profit.

I am contending, Mr. President, that there may be situations where the child may not have been used for profit or ...

The President Pro Tempore. 'So, it is no longer prostitution. Because the essence of prostitution is profit.

Senator Angara. Well, the Gentleman is right. 'Maybe the heading ought to be expanded. But, still, the President will agree that that is a form or manner of child abuse.

The President Pro Tempore. What does the Sponsor say? Will the Gentleman kindly restate the amendment?

ANGARA AMENDMENT

Senator Angara. The new section will read something like this, Mr. President: MINORS, WHETHER MALE OR FEMALE, WHO FOR MONEY, PROFIT, OR ANY OTHER CONSIDERATION OR INFLUENCE OF ANY ADULT, SYNDICATE OR GROUP INDULGE IN SEXUAL INTERCOURSE, et cetera.

Senator Lina. It is accepted, Mr. President.

The President Pro Tempore. Is there any objection? [Silence] Hearing none, the amendment is approved.

How about the title, 'Child Prostitution, shall we change that too?

Senator Angara. Yes, Mr. President, to cover the expanded scope.

The President Pro Tempore. Is that not what we would call probable 'child abuse?

Senator Angara. Yes, Mr. President.

The President Pro Tempore. Subject to rewording. Is there any objection? [Silence] Hearing none, the amendment is approved. x x x. (Italicization supplied)[18]

Petitioner makes much of the failure to allege in the information that Cristina was a child below 18 years of age at the time the offense was committed. He insists that the Court of Appeals mistakenly relied on the case of People v. Rosare[19] because unlike in Rosare, he had no personal knowledge of Cristina's age, which he claims was not proven beyond reasonable doubt.

In all criminal prosecutions, the accused is entitled to be informed of the nature and cause of the accusation against him.[20] A complaint is sufficient if it states the name of the accused; the designation of the offense given by the statute; the acts or omissions complained of as constituting the offense; the name of the offended party; the approximate date of the commission of the offense; and the place where the offense was committed.[21]

The complaint or information shall state the designation of the offense given by the statute, aver the acts or omissions constituting the offense, and specify its qualifying and aggravating circumstances. If there is no designation of the offense, reference shall be made to the section or subsection of the statute punishing it.[22] The acts or omissions complained of as constituting the offense and the qualifying and aggravating circumstances must be stated in ordinary and concise language and not necessarily in the language used in the statute but in terms sufficient to enable a person of common understanding to know what offense is being charged as well as its qualifying and aggravating circumstances and for the court to pronounce judgment.[23]

In the present case, the Court of Appeals found the information to be sufficient. Relying on the principle laid down in People v. Rosare, it held:


Before us is an information for violation of RA 7610 that, as in Rosare, fails to mention an indispensable element of the offense, the age of the offended party, but makes allusion to another document, the sworn complaint of the offended party, and declares it to be the basis upon which the information was filed. This instrument is the complaint filed by the offended party with the Municipal Trial Court of San Pedro, Laguna in which she stated that she was 16 years old at the time of the offense. It forms part of the initial records of the case and comes before the posting of bail and entry of the plea of not guilty before the RTC. It appears that after the charge was filed with the MTC, and as the preliminary investigation went underway, the accused filed a manifestation stating that he had filed a counter-affidavit to the charge and reserved the right to file a motion to quash the information if it was filed. The MTC found probable cause against him and elevated the records to the provincial prosecutor for filing of the information.

A complaint is under the Rules one of the two charging instruments for the offense of which the accused was tried and convicted here. While the criminal action was instituted by the complaint of the offended party, the information signed only by the fiscal ushered in the formal trial process. But both are accusations in writing against the accused and serve the purpose of enabling him to take the necessary legal steps for his defense. What is important is that the information states that the accused is being charged of an offense under RA 7610 based on the complaint of the offended party, to which the accused had adequately responded. Under these conditions, the accused was fully apprised of the accusation against him. The purpose and objective of the constitutional mandate are discharged and satisfied. The accused may not be said to be taken by surprise by the failure of the information to state the age of the offended party, when he had received the initiatory complaint where he was told how old the offended party was.[24]

We agree with the ruling of the Court of Appeals. In People v. Rosare, the information did not allege that the victim was a mental retardate which is an essential element of the crime of statutory rape. This Court however sustained the trial court's judgment of conviction holding that the resolution of the investigating prosecutor which formed the basis of the information, a copy of which is attached thereto, stated that the offended party is suffering from mental retardation. It ruled that there was substantial compliance with the mandate that an accused be informed of the nature of the charge against him. Thus:

Appellant contends that he cannot be convicted of statutory rape because the fact that the victim was a mental retardate was never alleged in the information and, absent this element, the acts charged negate the commission of the offense for which he was convicted by the lower court.

Pursuant to Section 8, Rule 112 of the Rules of Court, we have decided to motu proprio take cognizance of the resolution issued by the investigating prosecutor in I.S. No. 92-0197 dated June 2, 1992, which formed the basis of and a copy of which was attached to the information for rape filed against herein appellant. Therein, it is clearly stated that the offended party is suffering from mental retardation. We hold, therefore, that this should be deemed a substantial compliance with the constitutional mandate that an accused be informed of the nature of the charge against him. ...[25]

In People v. Villamor,[26] the information failed to allege the age of the offended party but since a copy of the order issued by the investigating judge was attached in the record of the preliminary investigation clearly stating that the complainant was nine years old, it was held that there was substantial compliance with the mandate to inform the accused of the nature of the accusation. It was also declared that the defense cannot invoke the element of surprise as to deprive it of the opportunity to suitably prepare for the accused's defense, thus:

... Furthermore, even if the information filed did not allege that the complainant was nine years old, there was substantial compliance with the constitutional mandate that an accused be informed of the nature of the charge against him when the Order issued by the investigating judge, a copy of which was attached in the record of the preliminary investigation, clearly stated that the complainant was nine years old. Consequently, the defense cannot invoke the element of surprise as to deprive it of the opportunity to suitably prepare for the accused's defense.[27]

In People v. Galido,[28] the information for rape failed to allege the element of force or intimidation. The Court ruled that this omission is not fatal since the complaint specifically charged the accused with three counts of rape committed by means of force and intimidation. Thus:

Appellant avers that because the Informations on which he was arraigned and convicted did not allege the element of force or intimidation, he was deprived of his constitutional right to be informed of the nature and cause of the accusation against him. He insists that such failure was a fatal defect that rendered the Informations void.

As a rule, the accused cannot be convicted of an offense, unless it is clearly charged in the complaint or information. Otherwise, their constitutional right to be informed of the nature and cause of the accusation against them would be violated.

In the present case, appellant correctly pointed out that the element of 'force or intimidation should have been expressly alleged in the Informations. This omission is not fatal, however, because the Complaint specifically accused him of three counts of rape committed by means of force and intimidation...[29]

The same ground was adopted in People v. Mendez[30] which involved an information for rape that failed to allege force or intimidation. We ruled therein that it was not a fatal omission because it was stated in the complaint that accused Rosendo raped Virginita 'by means of force.

In People v. Torellos,[31] the Court treated the information for rape which failed to allege force and intimidation as merely defective and that the deficiency was cured by the failure of the accused to assail the insufficiency of the allegations in the Information and by competent evidence presented during trial.

Thus, while it is necessary to allege the essential elements of the crime in the information, the failure to do so is not an irremediable vice. When the complaint or the resolution by the public prosecutor which contain the missing averments is attached to the information and form part of the records, the defect in the latter is effectively cured, and the accused cannot successfully invoke the defense that his right to be informed is violated.

In the instant case, the missing averment in the information is supplied by the Complaint which reads in full:

COMPLAINT

The undersigned complainant, accuses ISIDRO OLIVAREZ, of the crime of VIOLATION OF RA 7610, committed as follows:

That on or about 11:30 A.M. of July 20, 1997 at Brgy. San Vicente, San Pedro, Laguna, Philippines and within the jurisdiction of this Honorable Court the said accused with lewd design did then and there willfully, unlawfully and feloniously commit an act of lasciviousness against one CRISTINA ELITIONG Y BALDONO, 16 years old, by kissing and touching her private parts and embracing her against her will.

CONTRARY TO LAW.[32]

Petitioner was furnished a copy of the Complaint which was mentioned in the information, hence he was adequately informed of the age of the complainant. The prosecution has also established the minority of the offended party through competent evidence. Cristina testified that she was 16 years old and a certification from the Office of the Local Registrar of San Pedro, Laguna was presented showing that she was born on October 17, 1980.[33] The third element of sexual abuse is therefore present.

The information merely states that petitioner was being charged for the crime of violation of R.A. 7610 without citing the specific sections alleged to have been violated by petitioner. Nonetheless, we do not find this omission sufficient to invalidate the information. The character of the crime is not determined by the caption or preamble of the information nor from the specification of the provision of law alleged to have been violated, they may be conclusions of law, but by the recital of the ultimate facts and circumstances in the complaint or information.[34] The sufficiency of an information is not negated by an incomplete or defective designation of the crime in the caption or other parts of the information but by the narration of facts and circumstances which adequately depicts a crime and sufficiently apprise the accused of the nature and cause of the accusation against him.

True, the information herein may not refer to specific section/s of R.A. 7610 alleged to have been violated by the petitioner, but it is all to evident that the body of the information contains an averment of the acts alleged to have been performed by petitioner which unmistakably refers to acts punishable under Section 5 of R.A. 7610. As to which section of R.A. 7610 is being violated by petitioner is inconsequential. What is determinative of the offense is the recital of the ultimate facts and circumstances in the complaint or information.
The prosecution has proved beyond reasonable doubt that petitioner committed acts of sexual abuse against Cristina. The trial court found Cristina's testimony to be clear, candid, and straightforward.[35] Her testimony, given in a categorical, straightforward, spontaneous and candid manner, is worthy of faith and belief.[36] In the face of the accusations against him, petitioner could only interpose uncorroborated alibi and denial. Denial, like alibi, is an inherently weak defense and cannot prevail over the positive and categorical identification provided by eyewitnesses.[37] Not only did Cristina identify the petitioner as her assailant but no ill-motive was adduced why she would impute against him so grave a charge. This Court will not interfere with the trial court's assessment of the credibility of witnesses, absent any indication that some material fact was overlooked or a grave abuse of discretion committed. None of the exceptions obtain in the instant case.[38]

In addition to moral damages, a fine in the amount of P15,000.00 should likewise be imposed pursuant to our ruling in Amployo v. People:[39]

It does not end there.  In People v. Abadies, and with respect specifically to lascivious conduct amounting to child abuse under Section 5(b) of Rep. Act No. 7610, we imposed a fine of P30,000 for each count of lascivious conduct in addition to the award of moral damages on the justification that '

It will be noted that Section 5, Article II of Republic Act No. 7610 provides for the penalty of imprisonment.  Nevertheless, Section 31(f), Article XII (Common Penal Provisions) thereof allows the imposition of a fine subject to the discretion of the court, provided that the same is to be administered as a cash fund by the Department of Social Welfare and Development and disbursed for the rehabilitation of each child victim, or any immediate member of his family if the latter is the perpetrator of the offense.  This provision is in accord with Article 39 of the Convention on the Rights of the Child, to which the Philippines became a party on August 21, 1990, which stresses the duty of states parties to ensure the physical and psychological recovery and social reintegration of abused and exploited children in an environment which fosters their self-respect and human dignity.

With the case of Abadies as guidepost, we impose a fine of Fifteen Thousand Pesos (P15,000.00) on petitioner.


WHEREFORE, the petition is DENIED. The decision of the Court of Appeals dated January 9, 2004 in CA-G.R. CR No. 22860 and its resolution dated June 4, 2004, are AFFIRMED with MODIFICATION. In addition to the award of P15,000.00 as moral damages, petitioner Isidro Olivarez is also ordered to pay a fine in the amount of P15,000.00.

SO ORDERED.


CONSUELO YNARES-SANTIAGO