Case Digest (G.R. No. 75885)
Facts:
Bataan Shipyard & Engineering Co., Inc. (G.R. No. 75885), May 27, 1987, the Supreme Court En Banc, Narvasa, J., writing for the Court. Petitioner is Bataan Shipyard & Engineering Co., Inc. (BASECO); respondents are the Presidential Commission on Good Government (PCGG), its Chairman Jovito Salonga and several commissioners and agents. BASECO filed a special civil action in the nature of certiorari and prohibition to annul Executive Orders Nos. 1 and 2 and to nullify sequestration, takeover and related orders issued by the PCGG; a temporary restraining order (TRO) had been issued by this Court on October 14, 1986 and later lifted by the Court's decision.On April 14, 1986 Commissioner Mary Bautista of the PCGG issued a sequestration order directed at BASECO and related entities; on April 18, 1986 PCGG agents demanded production of corporate records (with threat of contempt). Between April and July 1986 PCGG agents issued operational orders affecting BASECO: termination of private security contracts at Engineer Island, changes in collection modes for entry charges, attempted grant of wharf-improvement privileges to a third party (later disavowed), authorization for quarry operation at Mariveles, directives to dispose of scrap, and on July 14, 1986 Commissioner Ramon Diaz issued a provisional takeover order vesting a PCGG management team with powers to run the companies, install officers, enter contracts and ensure assets were not dissipated. The PCGG also advised termination of several BASECO executives.
BASECO challenged the constitutionality of Executive Orders Nos. 1 and 2 and asked the Court to annul the April 14 sequestration and the July 14 takeover and to enjoin all acts based thereon, asserting violations of due process (no prior notice and hearing), that PCGG acted as prosecutor and judge, that the writs amounted to a bill of attainder, and that compelled production of documents violated the privilege against self-incrimination and protection from unreasonable searches and seizures. BASECO further complained of PCGG interference with management (termination of contracts and officers, disposal of assets, voting sequestered stock).
The PCGG defended its actions as authorized by Proclamation No. 3 (the Freedom Constitution), Executive Orders Nos. 1 and 2 (directing recovery of ill‑gotten wealth), and Executive Order No. 14 (directing prosecution of cases in the Sandiganbayan). The PCGG pointed to documentary evidence (including stock certificates and deeds found in Malacañang) that, prima facie, showed BASECO was owned or controlled by President Marcos through nominees. The Solicitor General submitted evidentiary materials and urged dismissal...(Subscriber-Only)
Issues:
- Did petitioner establish a legal basis to annul Executive Orders Nos. 1 and 2 or to set aside the PCGG's sequestration and provisional takeover orders (procedural standing and adequacy of petition)?
- Do Executive Orders Nos. 1 and 2 and the PCGG's sequestration, freeze and provisional takeover orders violate due process, constitute a bill of attainder, or otherwise exceed constitutional limits?
- Did the PCGG exceed its authority in ordering production of corporate records and thereby violate the privilege against self-incrimination or protection against unreasonable searches and seizures?
- What are the scope and limits of the PCGG's powers over sequestered or provisionally taken enterprises — specifically, may it exercise acts of ownership (e.g., vote...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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