Title
Disini vs. Republic
Case
G.R. No. 205172
Decision Date
Jun 15, 2021
The Republic of the Philippines sued Herminio Disini for amassing $50.5M in commissions as a Marcos associate during the Bataan Nuclear Power Plant project. The Supreme Court found Disini liable for ill-gotten wealth, awarding P1B in damages.

Case Digest (G.R. No. 158891)
Expanded Legal Reasoning Model

Facts:

  • Background of the BNPP project
    • In 1976, the Republic awarded the Bataan Nuclear Power Plant (BNPP) project to Westinghouse Electric Corporation (main contractor) and Burns & Roe, Inc. (architect-engineer).
    • The BNPP remains inoperable to date.
  • Initiation of litigation
    • On July 23, 1987, the Presidential Commission on Good Government (PCGG) filed a complaint for reconveyance, reversion, accounting, restitution and damages against Herminio T. Disini (Disini), Ferdinand E. Marcos and Imelda Marcos for alleged ill-gotten commissions tied to the BNPP contract.
    • Disini was declared in default after summons remained unserved and summons by publication was effected; the default order was affirmed by the Supreme Court in 2010.
  • Evidence presented by the Republic
    • Ex parte witnesses: PCGG officers, former executives of Herdis Group, Asia Industries, DBP, Security Bank, and financial adviser Rolando Gapud.
    • Documentary exhibits: series of alphabet-coded private documents (A–Z, AA–ZZ, AAA–ZZZ, AAAA–DDDD) and translations.
    • Republic’s version: Disini acted as “Special Sales Representative” (SSR) for Westinghouse (3% commission) and Burns & Roe (10% commission), leveraging his influence with President Marcos; commissions routed through Swiss accounts and Interbank in the Philippines.
  • Sandiganbayan decisions
    • April 11, 2012 Decision: declared Disini’s BNPP commissions amounting to US$50,562,500 as ill-gotten, ordered him to account for and reconvey that sum with interest; dismissed other damage claims.
    • October 24, 2012 Resolution: denied both the Republic’s partial motion for reconsideration (seeking to hold the Marcoses liable and additional damages) and Disini’s motions to strike out and for reconsideration.

Issues:

  • Whether the Sandiganbayan erred in admitting and relying on Republic’s Exhibit E-9 (a tabulation of commissions) without proper authentication.
  • Whether the Republic had a valid civil cause of action against Disini for reconveyance of US$50,562,500.
  • Whether the Sandiganbayan violated Article VIII, Section 14 of the 1987 Constitution in concluding the Westinghouse and Burns & Roe contracts existed without producing them.
  • Whether the court erred in concluding Disini actually received the US$50,562,500 without adequate proof.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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