Republic v Sandiganbayan (G.R. No. 155832)

FACTS: 

Presidential Commission on Good Government (PCGG) Commissioner Daza gave written authority to two lawyers to sequester any property, documents, money, and other assets in Leyte belonging to Imelda Marcos. A sequestration order was issued against the Olot Resthouse in Tolosa, Leyte. Imelda Marcos filed a motion to quash claiming that such order was void for failing to observe Sec. 3 of the PCGG Rules and Regulations. The Rules required the signatures of at least 2 PCGG Commissioners.

The Republic opposed claiming that Imelda is estopped from questioning the sequestration since by her acts ( such as seeking permission from the PCGG to repair the resthouse and entertain guests), she had conceded to the validity of the sequestration. The Republic also claims that Imelda failed to exhaust administrative remedies by first seeking its lifting as provided in the Rules; that the rule requiring the two signatures did not yet exist when the Olot Resthouse was sequestered; and that she intended to delay proceedings by filing the motion to quash.



Sandiganbayan granted the motion to quash and ruled that the sequestration order was void because it was signed not by the 2 commissioners but by 2 agents. Hence the certiorari.


ISSUE:
 Whether or not the sequestration order is valid.


HELD:
No. The Order is not valid. Under Sec. 26, Art 18 of the Constitution, a sequestration order may be issued upon a showing of a prima facie case that the properties are ill-gotten wealth. When the court nullifies an Order, the court does not substitute its judgment for that of the PCGG.



In the case, the PCGG did not make a prior determination of the existence of the prima facie case. The Republic presented no evidence to the Sandiganbayan. Nor did the Republic demonstrate that the the 2 PCGG representatives were given the quasi-judicial authority to receive and consider evidence that would warrant a prima facie finding. The Republic's evidence does not show how the Marcoses' acquired the property, what makes it “ill-gotten wealth”,and how Ferdinand Marcos intervened in its acquisition.



As regards the issue on estoppel, a void order produces no effect and cannot be validated under the doctine of estoppel. The Court cannot accept the view that Imelda should have first sought the lifiting of the sequestration order. Being void, the Sandiganbayan has the power to strike it down on sight.

*Decision of Sandiganbayan affirmed and orders the annotation of lis pendens on the title of the Olot Resthouse with respect to the claim of the Republic in another civil case.