Title
Sibayan vs. Alda
Case
G.R. No. 233395
Decision Date
Jan 17, 2018
Petitioner challenges BSP's denial of discovery requests in an administrative case involving alleged unauthorized bank deductions, citing bank secrecy and due process issues. Supreme Court affirms denial, upholding summary nature of proceedings and confidentiality of bank accounts.
unauthorized deductions
savings account
technical rules of procedure
A

Case Summary (G.R. No. 233395)

Factual Background

Elizabeth O. Alda filed a complaint through Ruby O. Alda with the Office of Special Investigation of the Bangko Sentral ng Pilipinas alleging unauthorized deductions from her BDO savings account No. 0970097875 and failure to post two manager’s checks deposited on October 27, 2008. The complaint alleged that Elizabeth’s account balance of P1,071,561.73 on July 22, 2008 had fallen to P334.47 by October 31, 2008 and that two crossed manager’s checks—UCPB Check No. 0000005197 for P2,743,346 and BPI Check No. 0000002688 for P2,237,341.89—were not posted. Norlina G. Sibayan, then Assistant Manager and Marketing Officer of Banco De Oro Unibank, Inc. (BDO) San Fernando, La Union Branch, was charged in an administrative investigation for Conducting Business in an Unsafe or Unsound Manner under Section 56.2 of Republic Act No. 8791.

Underlying Bank Investigation and Related Documents

BDO’s internal inquiry disclosed that a Fastcard account issued in the name of Ruby O. Alda had been erroneously credited and that from November 15, 2007 to September 20, 2008 withdrawals totaling P64,229,297.50 occurred although only P1,645,486 had been remitted. Ruby O. Alda allegedly admitted liability in documents executed before the Philippine Consulate in Dubai, namely an Undertaking with Authorization dated October 21, 2008, a Special Power of Attorney dated October 22, 2008, and a Deed of Dation in Payment dated October 22, 2008, which purportedly conveyed a list of properties and bank accounts, including BDO Account No. 0970097875 (Elizabeth O. Alda), UCPB Account No. 2351047157 (Ferdinand Oriente), and BPI Account No. 85890237923 (Jovelyn Oriente), to BDO for setoff.

Administrative Charging and Petitioner’s Discovery Requests

The OSI-BSP issued a Resolution dated June 13, 2012 finding a prima facie case and the OGCLS-BSP directed Norlina G. Sibayan to submit a sworn answer. On October 19, 2012, Norlina served written interrogatories on Elizabeth O. Alda, Ferdinand Oriente, and Jovelyn Oriente, and filed a Motion for Production of Documents seeking inspection and copying of Statements of Account for UCPB Account No. 2351047157 and BPI Account No. 85890237923, asserting that Ruby O. Alda was the legal and beneficial owner of those accounts. The prosecution filed objections and one witness manifested inability to answer while abroad.

Rulings of the OGCLS-BSP

In its June 9, 2014 Order the OGCLS-BSP denied the Motion for Production of Bank Documents and the Request to Answer Written Interrogatories. The OGCLS-BSP ruled that administrative proceedings under the BSP Rules of Procedure are summary in nature and not bound by the technical rules on discovery in the Rules of Court, that the bank accounts sought were privileged under Republic Act No. 1405, and that the documents executed by Ruby O. Alda did not constitute permission from the actual depositors Ferdinand Oriente and Jovelyn Oriente. The OGCLS-BSP further held that the persons to be interrogated were prosecution witnesses and could be confronted at the presentation of the prosecution’s evidence, and it denied reconsideration in an August 26, 2014 Order.

Court of Appeals Decision

The Court of Appeals in CA-G.R. SP No. 137921 affirmed the OGCLS-BSP Orders in a Decision dated October 25, 2016 and denied reconsideration in an August 9, 2017 resolution. The CA agreed that the OGCLS-BSP did not commit grave abuse of discretion in refusing to admit discovery measures, emphasizing the summary nature of BSP administrative proceedings, the potential delay that discovery would occasion—particularly where a witness was abroad—and that the defense theories, including alleged fraud, were sufficiently presented in the pleadings and attachments before the administrative body.

Issues Presented to the Supreme Court

Norlina G. Sibayan petitioned the Court under Rule 45, Rules of Court, contending that the OGCLS-BSP gravely abused its discretion by denying her Requests to Answer Written Interrogatories and her Motion for Production of Bank Documents, asserting that such discovery may be applied to any person including witnesses for the prosecution, that the interrogatories and documents were relevant and material, and invoking Section 1, Rule 27 of the Rules of Court for production of documents.

Supreme Court’s Ruling and Disposition

The Supreme Court denied the petition and affirmed the Court of Appeals Decision and Resolution. The Court held that the OGCLS-BSP did not commit grave abuse of discretion in denying the requested discovery. The Court explained that technical rules of procedure and evidence applicable in judicial trials do not strictly apply to administrative investigations and that the BSP Rules provide that administrative proceedings are summary in nature and confidential. The Court further held that bank deposits remain privileged under Republic Act No. 1405 absent depositor permission and that the documents executed by Ruby O. Alda did not supply the requisite consent from Ferdinand Oriente and Jovelyn Oriente.

Legal Basis and Reasoning

The Court relied on the summary character of administrative proceedings as prescribed in Bangko Sentral ng Pilipinas Circular No. 477, series of 2005 (Section 3, Rule 1) and on precedents establishing that administrative tribunals need not adhere strictly to technical judicial rules, citing Geronimo v. Spouses Calderon, Oriental Shipmanagement Co., Inc. v. Bastol, and Securities and Exchange Commission v. Interport Resources Corporation. The Court observed that discovery tools of the Rules of Court are not mandatory for administrative bodies and that granting the motions would likely delay resolution without materially assisting the OGCLS-BSP, given that the parties’ pleadings and the attached affidavits and documents contained the essential facts. The Court also invoked Section 2 of Republic Act No. 1405 to justify the denial of production of the UCPB and BPI account statements in the absence of the depositors’ written permission or a cour

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