either locally or abroad, to report such earnings or receipts to the Central Bank.

Violations of the
Circular were punishable as a criminal offense under Section 34 of the Central Bank Act.

That same day, nine additional Informations charging Mrs. Marcos and Benedicto with the same
offense, but involving different accounts, were filed with the Manila RTC, which docketed these as
Criminal Cases Nos. 91-101884 to 91-101892. The accusatory portion of the charge sheet in
Criminal Case No. 91-101888 reads:

That from September 1, 1983 up to 1987, both dates inclusive, and for sometime
SECOND DIVISION thereafter, both accused, conspiring and confederating with each other and with the late
President Ferdinand E. Marcos, all residents of Manila, Philippines, and within the
G.R. No. 125359 September 4, 2001 jurisdiction of this Honorable Court, did then and there wilfully, unlawfully and
feloniously fail to submit reports in the prescribed form and/or register with the Foreign
ROBERTO S. BENEDICTO and HECTOR T. RIVERA, petitioners, Exchange Department of the Central Bank within 90 days from October 21, 1983 as
vs. required of them being residents habitually/customarily earning, acquiring or receiving
THE COURT OF APPEALS, HON. GUILLERMO L. LOJA, SR., PRESIDING JUDGE, foreign exchange from whatever source or from invisibles locally or from abroad, despite
REGIONAL TRIAL COURT OF MANILA, BRANCH 26, and PEOPLE OF THE the fact they actually earned interests regularly every six (6) months for the first two years
PHILIPPINES, respondents. and then quarterly thereafter for their investment of $50-million, later reduced to $25-
million in December 1985, in Philippine-issued dollar denominated treasury notes with
floating rates and in bearer form, in the name of Bank Hofmann, AG, Zuring, Switzerland,
QUISUMBING, J.:
for the benefit of Avertina Foundation, their front organization established for economic
advancement purposes with secret foreign exchange account Category (Rubric) C.A.R.
Assailed in this petition is the consolidated decision rendered on May 23, 1996, by the Court of No. 211925-02 in Swiss Credit Bank (also known as SKA) in Zurich, Switzerland, which
Appeals in CA-G.R. SP No. 35928 and CA-G.R. SP No. 35719. CA-G.R. SP No. 35928 had earned, acquired or received for the accused Imelda Romualdez Marcos and her late
affirmed the order dated September 6, 1994, of the Regional Trial Court, Manila, Branch 26, husband an interest of $2,267,892 as of December 16, 1985 which was remitted to Bank
insofar as it denied petitioners’ respective Motions to Quash the Informations in twenty-five (25) Hofmann, AG, through Citibank, New York, United States of America, for the credit of
criminal cases for violation of Central Bank Circular No. 960. Therein included were informations said Avertina account on December 19, 1985, aside from the redemption of $25 million
involving: (a) consolidated Criminal Cases Nos. 91-101879 to 91-101883 filed against Mrs. Imelda (one-half of the original $50-M) as of December 16, 1985 and outwardly remitted from
R. Marcos, Roberto S. Benedicto, and Hector T. Rivera; (b) consolidated Criminal Cases Nos. 91- the Philippines in the amounts of $7,495,297.49 and $17,489,062.50 on December 18,
101884 to 91-101892 filed against Mrs. Marcos and Benedicto; and (c) Criminal Cases Nos. 92- 1985 for further investment outside the Philippine without first complying with the
101959 to 92-101969 also against Mrs. Marcos and Benedicto. Note, however, that the Court of Central Bank reporting/registering requirements.1âwphi1.nêt
Appeals already dismissed Criminal Case No. 91-101884.
CONTRARY TO LAW.4
The factual antecedents of the instant petition are as follows:
The other charge sheets were similarly worded except the days of the commission of the offenses,
On December 27, 1991, Mrs. Imelda Marcos and Messrs. Benedicto and Rivera were indicted for the name(s) of the alleged dummy or dummies, the amounts in the foreign exchange accounts
violation of Section 10 of Circular No. 9601 relation to Section 342 of the Central Bank Act maintained, and the names of the foreign banks where such accounts were held by the accused.
(Republic Act No. 265, as amended) in five Informations filed with the Regional Trial Court of
Manila. Docketed as Criminal Cases Nos. 91-101879 to 91-101883, the charge sheets alleged that
On January 3, 1992, eleven more Informations accusing Mrs. Marcos and Benedicto of the same
the trio failed to submit reports of their foreign exchange earnings from abroad and/or failed to
offense, again in relation to different accounts, were filed with the same court, docketed as
register with the Foreign Exchange Department of the Central Bank within the period mandated by
Criminal Cases Nos. 92-101959 to 92-101969. The Informations were similarly worded as the
Circular No. 960. Said Circular prohibited natural and juridical persons from maintaining foreign
earlier indictments, save for the details as to the dates of the violations of Circular No. 960, the
exchange accounts abroad without prior authorization from the Central Bank. 3 It also required all
identities of the dummies used, the balances and sources of the earnings, and the names of the
residents of the Philippines who habitually earned or received foreign currencies from invisibles,
foreign banks where these accounts were maintained.
All of the aforementioned criminal cases were consolidated before Branch 26 of the said trial court. Finding that both cases involved violations of Central Bank Circular No. 960, the appellate court
consolidated the two cases.
On the same day that Criminal Cases Nos. 92-101959 to 92-101969 were filed, the Central Bank
issued Circular No. 13185 which revised the rules governing non-trade foreign exchange On May 23, 1996, the Court of Appeals disposed of the consolidated cases as follows:
transactions. It took effect on January 20, 1992.
WHEREFORE, finding no grave abuse of discretion on the part of respondent Judge in
On August 24, 1992, the Central Bank, pursuant to the government’s policy of further liberalizing denying petitioners’ respective Motions to Quash, except that with respect to Criminal
foreign exchange transactions, came out with Circular No. 1356, 6 which amended Circular No. Case No. 91-101884, the instant petitions are hereby DISMISSED for lack of merit. The
1318. Circular No. 1353 deleted the requirement of prior Central Bank approval for foreign assailed September 6, 1994 Order, in so far as it denied the Motion to Quash Criminal
exchange-funded expenditures obtained from the banking system. Case No. 91-101884 is hereby nullified and set aside, and said case is hereby dismissed.
Costs against petitioners.
Both of the aforementioned circulars, however, contained a saving clause, excepting from their
coverage pending criminal actions involving violations of Circular No. 960 and, in the case of SO ORDERED.7
Circular No. 1353, violations of both Circular No. 960 and Circular No. 1318.
Dissatisfied with the said decision of the court a quo, except with respect to the portion ordering
On September 19, 1993, the government allowed petitioners Benedicto and Rivera to return to the the dismissal of Criminal Case No. 91-101884, petitioners filed the instant petition, attributing the
Philippines, on condition that they face the various criminal charges instituted against them, following errors to the appellate court:
including the dollar-salting cases. Petitioners posted bail in the latter cases.
THAT THE COURT ERRED IN NOT FINDING THAT THE INFORMATIONS/CASES
On February 28, 1994, petitioners Benedicto and Rivera were arraigned. Both pleaded not guilty to FILED AGAINST PETITIONERS-APPELLANTS ARE QUASHABLE BASED ON
the charges of violating Central Bank Circular No. 960. Mrs. Marcos had earlier entered a similar THE FOLLOWING GROUNDS:
plea during her arraignment for the same offense on February 12, 1992.
(A) LACK OF JURISDICTION/FORUM SHOPPING/NO VALID
On August 11, 1994, petitioners moved to quash all the Informations filed against them in Criminal PRELIMINARY INVESTIGATION
Cases Nos. 91-101879 to 91-101883; 91-101884 to 91-101892, and 91-101959 to 91-101969. Their
motion was grounded on lack of jurisdiction, forum shopping, extinction of criminal liability with (B) EXTINCTION OF CRIMINAL LIABILITY
the repeal of Circular No. 960, prescription, exemption from the Central Bank’s reporting
requirement, and the grant of absolute immunity as a result of a compromise agreement entered
1) REPEAL OF CB CIRCULAR NO. 960 BY CB CIRCULAR NO.
into with the government.
153;

On September 6, 1994, the trial court denied petitioners’ motion. A similar motion filed on May 23, 2) REPEAL OF R.A. 265 BY R.A. 7653 8
1994 by Mrs. Marcos seeking to dismiss the dollar-salting cases against her due to the repeal of
Circular No. 960 had earlier been denied by the trial court in its order dated June 9, 1994.
Petitioners then filed a motion for reconsideration, but the trial court likewise denied this motion on (C) PRESCRIPTION
October 18, 1994.
(D) EXEMPTION FROM CB REPORTING REQUIREMENT
On November 21, 1994, petitioners moved for leave to file a second motion for reconsideration.
The trial court, in its order of November 23, 1994, denied petitioners’ motion and set the GRANT OF ABSOLUTE IMMUNITY.9
consolidated cases for trial on January 5, 1995.
Simply stated, the issues for our resolution are:
Two separate petitions for certiorari and prohibition, with similar prayers for temporary restraining
orders and/or writs of preliminary injunction, docketed as CA-G.R. SP No. 35719 and CA-G.R. SP
No. 35928, were respectively filed by Mrs. Marcos and petitioners with the Court of Appeals.
 (1) Did the Court of Appeals err in denying the Motion to Quash for lack of jurisdiction on Circular No. 960 is but an element of the offense of prohibited transactions punished under
the part of the trial court, forum shopping by the prosecution, and absence of a valid Republic Act No. 3019 and should, thus, be deemed absorbed by the prohibited transactions cases
preliminary investigation? pending before the Sandiganbayan.

(2) Did the repeal of Central Bank Circular No. 960 and Republic Act No. 265 by Circular For the charge of forum shopping to prosper, there must exist between an action pending in one
No. 1353 and Republic Act No. 7653 respectively, extinguish the criminal liability of court and another action pending in one court and another action before another court: (a) identity
petitioners? of parties, or at least such parties as represent the same interests in both actions; (b) identity of
rights asserted and relief prayed for, the relief being founded on the same facts; and (c) the identity
(3) Had the criminal cases in violation of Circular No. 960 already prescribed? of the two preceding particulars is such that any judgment rendered in the other action will,
regardless of which party is successful, amount to res judicata in the action under
consideration.13 Here, we find that the single act of receiving unreported interest earnings on
(4) Were petitioners exempted from the application and coverage of Circular No. 960?
Treasury Notes held abroad constitutes an offense against two or more distinct and unrelated laws,
Circular No. 960 and R.A. 3019. Said laws define distinct offenses, penalize different acts, and can
(5) Were petitioners’ alleged violations of Circular No. 960 covered by the absolute be applied independently.14 Hence, no fault lies at the prosecution’s door for having instituted
immunity granted in the Compromise Agreement of November 3, 1990? separate cases before separate tribunals involving the same subject matter.

On the first issue, petitioners assail the jurisdiction of the Regional Trial Court. They aver that the With respect to the RTC cases, the receipt of the interest earnings violate Circular No. 960 in
dollar-salting charges filed against them were violations of the Anti-Graft Law or Republic Act No. relation to Republic Act No. 265 because the same was unreported to the Central Bank. The act to
3019, and the Sandiganbayan has original and exclusive jurisdiction over their cases. be penalized here is the failure to report the interest earnings from the foreign exchange accounts to
the proper authority. As to the anti-graft cases before the Sandiganbayan involving the same
Settled is the rule that the jurisdiction of a court to try a criminal case is determined by the law in interest earnings from the same foreign exchange accounts, the receipt of the interest earnings
force at the time the action is instituted.10 The 25 cases were filed in 1991-92. The applicable law transgresses Republic Act No. 3019 because the act of receiving such interest is a prohibited
on jurisdiction then was Presidential Decree 1601. 11 Under P.D. No. 1606, offenses punishable by transaction prejudicial to the government. What the State seeks to punish in these anti-graft cases is
imprisonment of not more than six years fall within the jurisdiction of the regular trial courts, not the prohibited receipt of the interest earnings. In sum, there is no identity of offenses charged, and
the Sandiganbayan.12 prosecution under one law is not an obstacle to a prosecution under the other law. There is no
forum shopping.
In the instant case, all the Informations are for violations of Circular No. 960 in relation to Section
34 of the Central Bank Act and not, as petitioners insist, for transgressions of Republic Act No. Finally, on the first issue, petitioners contend that the preliminary investigation by the Department
3019. Pursuant to Section 34 of Republic Act No. 265, violations of Circular No. 960 are of Justice was invalid and in violation of their rights to due process. Petitioners argue that
punishable by imprisonment of not more than five years and a fine of not more than P20,000.00. government’s ban on their travel effectively prevented them from returning home and personally
Since under P.D. No. 1606 the Sandiganbayan has no jurisdiction to try criminal cases where the appearing at the preliminary investigation. Benedicto and Rivera further point out that the joint
imposable penalty is less than six years of imprisonment, the cases against petitioners for violations preliminary investigation by the Department of Justice, resulted to the charges in one set of cases
of Circular No. 960 are, therefore cognizable by the trial court. No error may thus be charged to the before the Sandiganbayan for violations of Republic Act No. 3019 and another set before the RTC
Court of Appeals when it held that the RTC of Manila had jurisdiction to hear and try the dollar- for violation of Circular No. 960.
salting cases.
Preliminary investigation is not part of the due process guaranteed by the Constitution. 15 It is an
Still on the first issue, petitioners next contend that the filing of the cases for violations of Circular inquiry to determine whether there is sufficient ground to engender a well-founded belief that a
No. 960 before the RTC of Manila Constitutes forum shopping. Petitioners argue that the crime has been committed and the respondent is probably guilty thereof. 16 Instead, the right to a
prosecution, in an attempt to seek a favorable verdict from more than one tribunal, filed separate preliminary investigation is personal. It is afforded to the accused by statute, and can be waived,
cases involving virtually the same offenses before the regular trial courts and the Sandiganbayan. either expressly or by implication.17 The waiver extends to any irregularity in the preliminary
They fault the prosecution with splitting the cases. Petitioners maintain that while the RTC cases investigation, where one was conducted.
refer only to the failure to report interest earnings on Treasury Notes, the Sandiganbayan cases seek
to penalize the act of receiving the same interest earnings on Treasury Notes in violation of the The petition in the present case contains the following admissions:
Anti-Graft Law’s provisions on prohibited transactions. Petitioners aver that the violation of
 1. Allowed to return to the Philippines on September 19, 1993 … on the condition that he previously declared as illegal, such that the offense no longer exists and it is as if the person who
face the criminal charges pending in courts, petitioner-appellant Benedicto, joined by his committed it never did so. There are, however, exceptions to the rule. One is the inclusion of a
co-petitioner Rivera, lost no time in attending to the pending criminal charges by posting saving clause in the repealing statute that provides that the repeal shall have no effect on pending
bail in the above-mentioned cases. actions.24 Another exception is where the repealing act reenacts the former statute and punishes the
act previously penalized under the old law. In such instance, the act committed before the
2. Not having been afforded a real opportunity of attending the preliminary investigation reenactment continues to be an offense in the statute books and pending cases are not affected,
because of their forced absence from the Philippines then, petitioners-appellants invoked regardless of whether the new penalty to be imposed is more favorable to the accused. 25
their right to due process thru motions for preliminary investigation … Upon denial of
their demands for preliminary investigation, the petitioners intended to elevate the matter In the instant case, it must be noted that despite the repeal of Circular No. 960, Circular No. 1353
to the Honorable Court of Appeals and actually caused the filing of a petition for retained the same reportorial requirement for residents receiving earnings or profits from non-trade
certiorari/prohibition sometime before their arraignment but immediately caused the foreign exchange transactions.26Second, even the most cursory glance at the repealing circulars,
withdrawal thereof … in view of the prosecution’s willingness to go to pre-trial wherein Circular Nos. 1318 and 1353 shows that both contain a saving clause, expressly providing that the
petitioner would be allowed access to the records of preliminary investigation which they repeal of Circular No. 960 shall have no effect on pending actions for violation of the latter
could use for purposes of filing a motion to quash if warranted. Circular.27 A saving clause operates to except from the effect of the repealing law what would
otherwise be lost under the new law.28 In the present case, the respective saving clauses of Circular
3. Thus, instead of remanding the Informations to the Department of Justice … respondent Nos. 1318 and 1353 clearly manifest the intent to reserve the right of the State to prosecute and
Judge set the case for pre-trial in order to afford all the accused access to the records of punish offenses for violations of the repealed Circular No. 960, where the cases are either pending
prosecution… or under investigation.

xxx Petitioners, however, insist that the repeal of Republic Act No. 265, particularly Section 34, 29 by
Republic Act No. 7653, removed the applicability of any special sanction for violations of any non-
trade foreign exchange transactions previously penalized by Circular No. 960. Petitioners posit that
5. On the basis of disclosures at the pre-trial, the petitioners-appellants Benedicto and
a comparison of the two provisions shows that Section 36 30 of Republic Act No. 7653 neither
Rivera moved for the quashing of the informations/cases… 18
retained nor reinstated Section 34 of Republic Act No. 265. Since, in creating the Bangko Sentral
ng Pilipinas, Congress did not include in its charter a clause providing for the application of
The foregoing admissions lead us to conclude that petitioners have expressly waived their right to Section 34 of Republic Act No. 265 to pending cases, petitioners’ pending dollar-salting cases are
question any supposed irregularity in the preliminary investigation or to ask for a new preliminary now bereft of statutory penalty, the saving clause in Circular No. 1353 notwithstanding. In other
investigation. Petitioners, in the above excerpts from this petition, admit posting bail immediately words, absent a provision in Republic Act No. 7653 expressly reviving the applicability of any
following their return to the country, entered their respective pleas to the charges, and filed various penal sanction for the repealed mandatory foreign exchange reporting regulations formerly required
motions and pleadings. By so doing, without simultaneously demanding a proper preliminary under Circular No. 960, violations of aforesaid repealed Circular can no longer be prosecuted
investigation, they have waived any and all irregularities in the conduct of a preliminary criminally.
investigation.19 The trial court did not err in denying the motion to quash the informations on the
ground of want of or improperly conducted preliminary investigation. The absence of a preliminary
A comparison of the old Central Bank Act and the new Bangko Sentral’s charter repealing the
investigation is not a ground to quash the information.20
former show that in consonance with the general objective of the old law and the new law "to
maintain internal and external monetary stability in the Philippines and preserve the international
On the second issue, petitioners contend that they are being prosecuted for acts punishable under value of the peso,"31 both the repealed law and the repealing statute contain a penal cause which
laws that have already been repealed. They point to the express repeal of Central Bank Circular No. sought to penalize in general, violations of the law as well as orders, instructions, rules, or
960 by Circular Nos. 1318 and 1353 as well as the express repeal of Republic Act No. 265 by regulations issued by the Monetary Board. In the case of the Bangko Sentral, the scope of the penal
Republic Act No. 7653. Petitioners, relying on Article 22 of the Revised Penal Code, 21 contend that clause was expanded to include violations of "other pertinent banking laws enforced or
repeal has the effect of extinguishing the right to prosecute or punish the offense committed under implemented by the Bangko Sentral." In the instant case, the acts of petitioners sought to be
the old laws.22 penalized are violations of rules and regulations issued by the Monetary Board. These acts are
proscribed and penalized in the penal clause of the repealed law and this proviso for proscription
As a rule, an absolute repeal of a penal law has the effect of depriving a court of its authority to and penalty was reenacted in the repealing law. We find, therefore, that while Section 34 of
punish a person charged with violation of the old law prior to its repeal. 23 This is because an Republic Act No. 265 was repealed, it was nonetheless, simultaneously reenacted in Section 36 of
unqualified repeal of a penal law constitutes a legislative act of rendering legal what had been Republic Act No. 7653. Where a clause or provision or a statute for the matter is simultaneously
repealed and reenacted, there is no effect, upon the rights and liabilities which have accrued under 1987. They maintain that given the considerable lapse of time from the dates of the commission of
the original statute, since the reenactment, in effect "neutralizes" the repeal and continues the law in the offenses to the institution of the criminal actions in 1991 and 1992, the State’s right to
force without interruption.32 The rule applies to penal laws and statutes with penal provisions. prosecute them for said offenses has already prescribed. Petitioners assert that the Court of Appeals
Thus, the repeal of a penal law or provision, under which a person is charged with violation thereof erred in computing the prescriptive period from February 1986. Petitioners theorize that since the
and its simultaneous reenactment penalizing the same act done by him under the old law, will remittances were made through the Central Bank as a regulatory authority, the dates of the alleged
neither preclude the accused’s prosecution nor deprive the court of its jurisdiction to hear and try violations are known, and prescription should thus be counted from these dates.
his case.33 As pointed out earlier, the act penalized before the reenactment continues to remain an
offense and pending cases are unaffected. Therefore, the repeal of Republic Act No. 265 by In ruling that the dollar-salting cases against petitioners have not yet prescribed, the court a
Republic Act No. 7653 did not extinguish the criminal liability of petitioners for transgressions of quo quoted with approval the trial court’s finding that:
Circular No. 960 and cannot, under the circumstances of this case, be made a basis for quashing the
indictments against petitioners.
[T]he alleged violations of law were discovered only after the EDSA Revolution in 1986
when the dictatorship was toppled down. The date of the discovery of the offense,
Petitioners, however, point out that Section 36 of Republic Act No. 7653, in reenacting Section 34 therefore, should be the basis in computing the prescriptive period. Since (the) offenses
of the old Central Act, increased the penalty for violations of rules and regulations issued by the charged are punishable by imprisonment of not more than five (5) years, they prescribe in
Monetary Board. They claim that such increase in the penalty would give Republic Act No. 7653 eight (8) years. Thus, only a little more than four (4) years had elapsed from the date of
an ex post facto application, violating the Bill of Rights.34 discovery in 1986 when the cases were filed in 1991.40

Is Section 36 of Republic Act No. 7653 and ex post facto legislation? The offenses for which petitioners are charged are penalized by Section 34 of Republic Act No.
265 "by a fine of not more than Twenty Thousand Pesos (P20,000.00) and by imprisonment of not
An ex post facto law is one which: (1) makes criminal an act done before the passage of the law more than five years." Pursuant to Act No. 3326, which mandates the periods of prescription for
and which was innocent when done, and punishes such an act; (2) aggravates a crime, or makes it violations of special laws, the prescriptive period for violations of Circular No. 960 is eight (8)
greater than it was when committed; (3) changes the punishment and inflicts a greater punishment years.41 The period shall commence "to run from the day of the commission of the violation of the
than the law annexed to the crime when committed; (4) alters the legal rules of evidence, and law, and if the same be not known at the time, from the discovery thereof and institution of judicial
authorizes conviction upon less or different testimony than the law required at the time of the proceedings for its investigation and punishment."42 In the instant case, the indictments against
commission of the offense; (5) assuming to regulate civil rights, and remedies only, in effect petitioners charged them with having conspired with the late President Ferdinand E. Marcos in
imposes penalty or deprivation of a right for something which when done was lawful; and (6) transgressing Circular No. 960. Petitioners’ contention that the dates of the commission of the
deprives a person accused of a crime of some lawful protection to which he has become entitled alleged violations were known and prescription should be counted from these dates must be viewed
such as the protection of a former conviction or acquittal, or a proclamation of amnesty. 35 in the context of the political realities then prevailing. Petitioners, as close associates of Mrs.
Marcos, were not only protected from investigation by their influence and connections, but also by
The test whether a penal law runs afoul of the ex post facto clause of the Constitution is: Does the the power and authority of a Chief Executive exercising strong-arm rule. This Court has taken
law sought to be applied retroactively take "from an accused any right that was regarded at the time judicial notice of the fact that Mr. Marcos, his family, relations, and close associates "resorted to all
of the adoption of the constitution as vital for the protection of life and liberty and which he sorts of clever schemes and manipulations to disguise and hide their illicit acquisitions." 43 In the
enjoyed at the time of the commission of the offense charged against him." 36 instant case, prescription cannot, therefore, be made to run from the dates of the commission of
those offenses were not known as of those dates. It was only after the EDSA Revolution of
The crucial words in the test are "vital for the protection of life and liberty." 37 We find, however, February, 1986, that the recovery of ill-gotten wealth became a highly prioritized state
policy,44 pursuant to the explicit command of the Provisional Constitution. 45 To ascertain the
the test inapplicable to the penal clause of Republic Act No. 7653. Penal laws and laws which,
relevant facts to recover "ill-gotten properties amassed by the leaders and supporters of the
while not penal in nature, nonetheless have provisions defining offenses and prescribing penalties
(Marcos) regime"46 various government agencies were tasked by the Aquino administration to
for their violation operate prospectively.38 Penal laws cannot be given retroactive effect, except
investigate, and as the evidence on hand may reveal, file and prosecute the proper cases. Applying
when they are favorable to the accused.39 Nowhere in Republic Act No. 7653, and in particular
Section 36, is there any indication that the increased penalties provided therein were intended to the presumption "that official duty has been regularly performed", 47 we are more inclined to believe
operate retroactively. There is, therefore, no ex post facto law in this case. that the violations for which petitioners are charged were discovered only during the post-February
1986 investigations and the tolling of the prescriptive period should be counted from the dates of
discovery of their commission. The criminal actions against petitioners, which gave rise to the
On the third issue, petitioners ask us to note that the dollar interest earnings subject of the criminal instant case, were filed in 1991 and 1992, or well within the eight-year prescriptive period counted
cases instituted against them were remitted to foreign banks on various dates between 1983 to from February 1986.
The fourth issue involves petitioners’ claim that they incurred no criminal liability for violations of validity of the said Agreement and directing the various government agencies to be consistent with
Circular No. 960 since they were exempted from its coverage. it. Benedicto and Rivera now insist that the absolute immunity from criminal investigation or
prosecution granted to petitioner Benedicto, his family, as well as to officers and employees of
Petitioners postulate that since the purchases of treasury notes were done through the Central firms owned or controlled by Benedicto under the aforesaid Agreement covers the suits filed for
Bank’s Securities Servicing Department and payments of the interest were coursed through its violations of Circular No. 960, which gave rise to the present case.
Securities Servicing Department/Foreign Exchange Department, their filing of reports would be
surplusage, since the requisite information were already with the Central Bank. Furthermore, they The pertinent provisions of the Compromise Agreement read:
contend that the foreign currency investment accounts in the Swiss banks were subject to absolute
confidentiality as provided for by Republic Act No. 6426,48 as amended by Presidential Decree WHEREAS, this Compromise Agreement covers the remaining claims and the cases of
Nos. 1035, 1246, and 1453, and fell outside the ambit of the reporting requirements imposed by the Philippine Government against Roberto S. Benedicto including his associates and
Circular No. 960. Petitioners further rely on the exemption from reporting provided for in Section nominees, namely, Julita C. Benedicto, Hector T. Rivera, x x x
10(q),49 Circular No. 960, and the confidentiality granted to Swiss bank accounts by the laws of
Switzerland. WHEREAS, specifically these claims are the subject matter of the following cases (stress
supplied):
Petitioners correctly point out that Section 10(q) of Circular No. 960 exempts from the reporting
requirement foreign currency eligible for deposit under the Philippine Foreign Exchange Currency
1. Sandiganbayan Civil Case No. 9
Deposit System, pursuant to Republic Act No. 6426, as amended. But, in order to avail of the
aforesaid exemption, petitioners must show that they fall within its scope. Petitioners must satisfy
the requirements for eligibility imposed by Section 2, Republic Act No. 6426. 50 Not only do we 2. Sandiganbayan Civil Case No. 24
find the record bare of any proof to support petitioners’ claim of falling within the coverage of
Republic Act No. 6426, we likewise find from a reading of Section 2 of the Foreign Currency 3. Sandiganbayan Civil Case No. 34
Deposit Act that said law is inapplicable to the foreign currency accounts in question. Section 2,
Republic Act No. 6426 speaks of "deposit with such Philippine banks in good standing, as 4. Tanodbayan (Phil-Asia)
may…be designated by the Central Bank for the purpose." 51 The criminal cases filed against
petitioners for violation of Circular No. 960 involve foreign currency accounts maintained 5. PCGG I.S. No. 1.
in foreign banks, not Philippine banks. By invoking the confidentiality guarantees provided for by
Swiss banking laws, petitioners admit such reports made. The rule is that exceptions are strictly
xxx
construed and apply only so far as their language fairly warrants, with all doubts being resolved in
favor of the general proviso rather than the exception.52 Hence, petitioners may not claim
exemption under Section 10(q). WHEREAS, following the termination of the United States and Swiss cases, and also
without admitting the merits of their respective claims and counterclaims presently
involved in uncertain, protracted and expensive litigation, the Republic of the Philippines,
With respect to the banking laws of Switzerland cited by petitioners, the rule is that Philippine
solely motivated by the desire for the immediate accomplishment of its recovery mission
courts cannot take judicial notice of foreign laws.53 Laws of foreign jurisdictions must be alleged
and Mr. Benedicto being interested to lead a peaceful and normal pursuit of his endeavors,
and proved.54 Petitioners failed to prove the Swiss law relied upon, either by: (1) an official
the parties have decided to withdraw and/or dismiss their mutual claims and
publication thereof; or (2) a copy attested by the officer having the legal custody of the record, or
counterclaims under the cases pending in the Philippines, earlier referred to (underscoring
by his deputy, and accompanied by a certification from the secretary of the Philippine embassy or
supplied);
legation in such country or by the Philippine consul general, consul, vice-consul, or consular agent
stationed in such country, or by any other authorized officer in the Philippine foreign service
assigned to said country that such officer has custody.55 Absent such evidence, this Court cannot xxx
take judicial cognizance of the foreign law invoked by Benedicto and Rivera.
II. Lifting of Sequestrations, Extension of Absolute Immunity and Recognition of the
Anent the fifth issue, petitioners insist that the government granted them absolute immunity under Freedom to Travel
the Compromise Agreement they entered into with the government on November 3, 1990.
Petitioners cite our decision in Republic v. Sandiganbayan, 226 SCRA 314 (1993), upholding the
 a) The Government hereby lifts the sequestrations over the assets listed in Annex "C" of the Compromise Agreement will reveal that it does not include all cases filed by the government
hereof, the same being within the capacity of Mr. Benedicto to acquire from the exercise against Benedicto, his family, and associates.
of his profession and conduct of business, as well as all the haciendas listed in his name in
Negro Occidental, all of which were inherited by him or acquired with income from his Additionally, the immunity covers only "criminal investigation or prosecution against said persons
inheritance…and all the other sequestered assets that belong to Benedicto and his for acts (or) omissions committed prior to February 25, 1986 that may be alleged to have violated
corporation/nominees which are not listed in Annex "A" as ceded or to be ceded to the any penal laws, including but not limited to Republic Act No. 3019, in relation to the acquisition of
Government. any asset treated, mentioned, or included in this Agreement." 62 It is only when the criminal
investigation or case involves the acquisition of any ill-gotten wealth "treated mentioned, or
Provided, however, (that) any asset(s) not otherwise settled or covered by this included in this Agreement"63 that petitioners may invoke immunity. The record is bereft of any
Compromise Agreement, hereinafter found and clearly established with finality by proper showing that the interest earnings from foreign exchange deposits in banks abroad, which is the
competent court as being held by Mr. Roberto S. Benedicto in trust for the family of the subject matter of the present case, are "treated, mentioned, or included" in the Compromise
late Ferdinand E. Marcos, shall be returned or surrendered to the Government for Agreement. The phraseology of the grant of absolute immunity in the Agreement precludes us from
appropriate custody and disposition. applying the same to the criminal charges faced by petitioners for violations of Circular No. 960. A
contract cannot be construed to include matters distinct from those with respect to which the parties
b) The Government hereby extends absolute immunity, as authorized under the pertinent intended to contract.64
provisions of Executive Orders Nos. 1, 2, 14 and 14-A, to Benedicto, the members of his
family, officers and employees of his corporations above mentioned, who are included in In sum, we find that no reversible error of law may be attributed to the Court of Appeals in
past, present and future cases and investigations of the Philippine Government, such that upholding the orders of the trial court denying petitioners’ Motion to Quash the Informations in
there shall be no criminal investigation or prosecution against said persons for acts (or) Criminal Case Nos. 91-101879 to 91-101883, 91-101884 to 91-101892, and 92-101959 to 92-
omissions committed prior to February 25, 1986, that may be alleged to have violated any 101969. In our view, none of the grounds provided for in the Rules of Court 65 upon which
laws, including but not limited to Republic Act No. 3019, in relation to the acquisition of petitioners rely, finds applications in this case.
any asset treated, mentioned or included in this Agreement.lawphil.net
On final matter. During the pendency of this petition, counsel for petitioner Roberto S. Benedicto
x x x56 gave formal notice to the Court that said petitioner died on May 15, 2000. The death of an accused
prior to final judgment terminates his criminal liability as well as the civil liability based solely
In construing contracts, it is important to ascertain the intent of the parties by looking at the words thereon.66
employed to project their intention. In the instant case, the parties clearly listed and limited the
applicability of the Compromise Agreement to the cases listed or identified therein. We have ruled WHEREFORE, the instant petition is DISMISSED. The assailed consolidated Decision of the
in another case involving the same Compromise Agreement that: Court of Appeals dated May 23, 1996, in CA-G.R. SP No. 35928 and CA G.R. SP No. 35719,
is AFFIRMED WITH MODIFICATION that the charges against deceased petitioner, Roberto S.
[T]he subject matters of the disputed compromise agreement are Sandiganbayan Civil Benedicto, particularly in Criminal Cases Nos. 91-101879 to 91-101883, 91-101884 to 101892, and
Case No. 0009, Civil Case No. 00234, Civil Case No. 0034, the Phil-Asia case before the 92-101959 to 92-101969, pending before the Regional Trial Court of Manila, Branch 26, are
Tanodbayan and PCGG I.S. No. 1. The cases arose from complaints for reconveyance, ordered dropped and that any criminal as well as civil liability ex delicto that might be attributable
reversion, accounting, restitution, and damages against former President Ferdinand E. to him in the aforesaid cases are declared extinguished by reason of his death on May 15,
Marcos, members of his family, and alleged cronies, one of whom was respondent 2000.lawphil.net No pronouncement as to costs.
Roberto S. Benedicto.57
SO ORDERED.
Nowhere is there a mention of the criminal cases filed against petitioners for violations of Circular
No. 960. Conformably with Article 1370 of the Civil Code, 58 the Agreement relied upon by Bellosillo, Mendoza, Buena, and De Leon, Jr., JJ., concu
petitioners should include only cases specifically mentioned therein. Applying the parol evidence
rule,59 where the parties have reduced their agreement into writing, the contents of the writing
constitute the sole repository of the terms of the agreement between the parties. 60 Whatever is not
found in the text of the Agreement should thus be construed as waived and abandoned.61 Scrutiny