Caguioa

EN BANC
G.R. No. 195837 - REPUBLIC OF THE PHILIPPINES, petitioner,

versus HONORABLE SANDIGANBAYAN 5TH DIVISION, DON
FERRY, and CESAR ZALAMEA, respondents.

versus HONORABLE SANDIGANBAYAN 5TH DIVISION, LUCIO
C. TAN, ESTATE OF FERDINAND E. MARCOS
(REPRESENTED BY IMELDA R. MARCOS, IMEE M.
MANOTOC, IRENE M. ARANETA AND FERDINAND R.
MARCOS, JR.), IMELDA R. MARCOS, CARMEN KHAO TAN,
FLORENCIO T. SANTOS, NATIVIDAD P. SANTOS, DOMINGO
CHUA, TAN HUI NEE, MARIANO TAN ENG LIAN, ESTATE OF
BENITO TAN KEE HIONG (REPRESENTED BY TARCIANA C.
TAN), FLORENCIO N. SANTOS, JR., HARRY C. TAN, TAN ENG
CHAN, CHUNG POE KEE, MARIANO KHOO, MANUEL KHOO,
MIGUEL KHOO, JAMIE KHOO, ELIZABETH KHOO, CELSO
C. RANOLA, WILLIAM T. WONG, ERNESTO B. LIM,
BENJAMIN T. ALBACITA, DON FERRY, WILLY CO,
FEDERICO MORENO, P ANFILO 0. DOMINGO, HEIRS OF
GREGORIO LICAROS, CESAR ZALAMEA, SHAREHOLDINGS
INC., ALLIED BANKING CORP., FOREMOST FARMS INC.,
FORTUNE TOBACCO CORP., MARANAW HOTELS AND ·
RESORTS CORP., VIRGINIA TOBACCO REDRYING PLANT,
NORTHERN TOBACCO REDRYING PLANT, ASIA BREWERY
INC., SIPALAY TRADING CORP., HIMMEL INDUSTRIES,
GRANDSP AN DEVELOPMENT CORP., BASIC HOLDINGS
CORP., PROGRESSIVE FARMS, INC., MANUFACTURING
SERVICES AND TRADE CORP., ALLIED LEASING &
FINANCE CORP., JEWEL HOLDINGS INC., IRIS HOLDINGS
AND DEVELOPMENT CORP., and VIRGO HOLDINGS AND
DEVELOPMENT CORP., respondents.

versus HONORABLE SANDIGANBAYAN 5TH DIVISION, LUCIO
C. TAN, ESTATE OF FERDINAND E. MARCOS
(REPRESENTED BY IMELDA R. MARCOS, IMEE M.
MANOTOC, IRENE M. ARANETA AND FERDINAND R.
MARCOS, JR.), IMELDA R. MARCOS, CARMEN KHAO TAN,
FLORENCIO T. SANTOS, NATIVIDAD P. SANTOS, DOMINGO·
CHUA, TAN HUI NEE, MARIANO TAN ENG LIAN, ESTATE OF
BENITO TAN KEE HIONG (REPRESENTED BY TARCIANA C.
TAN), FLORENCIO N. SANTOS, JR., HARRY C. TAN, TAN ENG
CHAN, CHUNG POE KEE, MARIANO KHOO, MANUEL KHOO,
MIGUEL KHOO, JAMIE KHOO, ELIZABETH KHOO, CELSO
C. RANOLA, WILLIAM T. WONG, ERNESTO B. LIM,
BENJAMIN T. ALBACITA, DON FERRY, WILLY CO,
>'EDERICO MORENO, PAN>TLO 0, DOMINGO, HEIRS O ~ •
Concurring and Dissenting Opinion 2 G.R. Nos. 195837,
198221, 198974, and 203592
GREGORIO LICAROS, CESAR ZALAMEA, SHAREHOLDINGS

INC., ALLIED BANKJNG CORP.; FOREMOST FARMS INC.,
FORTUNE TOBACCO CORP., MARANAW HOTELS AND
GRANDSPAN DEVELOPMENT CORP., BASIC HOLDINGS

versus SANDIGANBAYAN 5TH DIVISION, LUCIO C. TAN,
ESTATE OF FERDINAND E. MARCOS (REPRESENTED BY
IMELDA R. MARCOS, IMEE M. MANOTOC, IRENE M.
ARANETA AND FERDINAND R. MARCOS, JR.), IMELDA R.
MARCOS, CARMEN KHAO TAN, FLORENCIO T. SANTOS,
NATIVIDAD P. SANTOS, DOMINGO CHUA, TAN HUI NEE,
MARlANO TAN ENG LIAN, ESTATE OF BENITO TAN KEE
HIONG (REPRESENTED BY TARCIANA C. TAN), FLORENCIO
N. SANTOS, JR., HARRY C. TAN, TAN ENG CHAN, CHUNG
POE KEE, MARIANO KHOO, MANUEL KHOO, MIGUEL
KHOO, JAMIE KHOO, ELIZABETH KHOO, CELSO C.
RANOLA, WILLIAM T. WONG, ERNESTO B. LIM, BENJAMIN
T. ALBACITA, DON FERRY, WILLY CO, FEDERICO
MORENO, PANFILO 0. DOMINGO, HEIRS OF GREGORIO
LICAROS, CESAR ZALAMEA, SHAREHOLDINGS INC.,
ALLIED BANKING CORP., FOREMOST FARMS INC.,
FORTUNE TOBACCO CORP., MARANAW HOTELS AND
GRANDSPAN DEVELOPMENT CORP., BASIC HOLDINGS
Promulgated:
October 3, 2023
L ).tn,d._ -~
--,u
X-------------------------------------- -- ------ X
CONCURRING AND DISSENTING OPINION
198221, 198974, and 203592
CAGUIOA, J.:
On July 17, 1987, the Republic of the Philippines (Republic) filed a

civil action for reversion, reconveyance, restitution, accounting, and
damages (Complaint) against the late President Ferdinand E. Marcos
(President FM), Imelda R. Marcos (Imelda), Ferdinand "Bongbong" R.
Marcos, Jr. (BBM), Lucio C. Tan (Tan), as well as the officers, directors,
and individual stockholders 1 (respondent-stockholders) of Tan's alleged
dummy corporations. 2
The Republic subsequently filed a Second Amended Complaint to

implead additional defendants, including the corporations (respondent-
corporations)3 which were allegedly granted concessions by President FM .
and Imelda.
The consolidated petitions now pending before the Court stem from
the proceedings that transpired before the Sandiganbayan in relation to the
Second Amended Complaint. These are:
1. The Sandiganbayan's Resolutions dated December 22, 2010 and

February 25, 2011 which granted the separate motions to
dismiss/demurrer to evidence filed by respondents Don Ferry (Ferry)
and Cesar Zalamea (Zalamea), and resulted in the dismissal of the
Second Amended Complaint as against them. These resolutions are
the subject of the Petition for Review on Certiorari docketed as G.R.
No. 195837;4
2. The Sandiganbayan's Order dated June 9, 2011 and Resolution dated

August 2, 2011 excluding from the evidence the testimonies of
Joselito Yujuico (Joselito) and Aderito Yujuico (Aderito), 5 as well as
the Sandiganbayan's Resolutions dated May 3, 2011 and July 4, 2011
dismissing the Republic's Motion for Voluntary Inhibition. These
issuances are the subject of the Petition for Certiorari docketed as
G.R. No. 198221; 6
Namely, Carmen Khao Tan, Florencio T. Santos, Natividad P. Santos, Domingo Chua, Tan Hui Nee,
Mariano Tan Eng Lian, Estate of Benito Tan Kee Hiong represented by Tarciana C. Tan, Florencio N.
Santos, Jr., Harry C. Tan, Tan Eng Chan, Chung Poe Kee, Mariano Khoo, Manuel Khoo, Miguel
Khoo, Jamie Khoo, Elizabeth Khoo, Celso C. Ranola, William T. Wong, Ernesto B. Lim, Benjamin T.
Albacita, Don Ferry, Willy Co, and Federico Moreno. See also rollo (G.R. No. 203592) (Vol. lV), p.
2631.
' Id at 2631-2632.
Namely, (a) Shareholdings, lnc.; (b) Asia Brewery, lnc.; (c) Allied Banking Corporation; (d) Fortune
Tobacco; (e) Mara.,aw Hotels; (t) Virginia Tobacco; (g) Northern Tobacco; (h) Foremost Farms; (i)
Sipalay Trading, U) Himmel Industries; (k) Grandspan Development Corp.; (1) Basic Holdings Corp.;
(m) Progressive Farms, Inc.; (n) Manufacturing Services and Trade Corp.; (o) Allied Leasing and
Finance Corp.; (p) Jewel Holdings, Inc.; (q) Iris Holdings and Development Corp.; and (r) Virgo
Holdings and Development Corp.
See ponencia, p. 11.
Id at 61.
6
Id. at 11-13.
198221, 198974, and 203592
3. The Sandiganbayan's Resolutions dated July 13, 2011 and August 23,
2011 denying the Republic's Motion to Admit Third Amended
Complaint for the purpose of impleading PMFTC, Inc. as a party.
These resolutions . are the subject of the Petition for Certiorari
docketed as G.R. No. 198974;7 and
4. The Sandiganbayap's Decision (Assailed Decision) dated June 11,

2012 and Resolution (Assailed Resolution) dated September 26, 2012
dismissing the Republic's Second Amended Complaint. These
issuances are the subject of the Petition for Review on Certiorari
docketed as G.R. No. 203592. 8
The ponencia resolves the consolidated petitions, as follows:
WHEREFORE, premises considered, this Court rules on the

present consolidated petitions as follows:
(1) In G.R. No. 195837, the Petition for Review on

Certiorari filed by the Republic is DENIED, and
the Sandiganbayan 's Resolutions dated 22
December 2010 and 25 February 2011 are
AFFIRMED. The Sandiganbayan's dismissal of
the complaint against respondents [Ferry] and
[Zalamea] is declared valid.
(2) In G.R. No. 198221, the Petition for Certiorari filed

by the Republic is DISMISSED, and the
Sandiganbayan's Order dated 9 June 2011 and
Resolution dated 2 August 2011 are AFFIRMED.
The Court holds that the testimonies of [Joselito]
and [Aderito] were correctly excluded from
evidence by the Sandiganbayan.
The Sandiganbayan Resolutions dated 3 May 2011 and 4

July 2011 dismissing the Republic's Motion for Voluntary
Inhibition are likewise AFFIRMED.
(3) In G.R. No. 198974, the Petition for Certiorari filed

by the Republic is DISMISSED, and the
Sandiganbayan Resolutions dated 13 July 2011 and
23 August 2011, which denied the Republic's
Motion to Admit Third Amended Complaint, are
AFFIRMED.
(4) In G.R. No. 203592, the Sandiganbayan Decision

dated 11 June 2012 and Resolution dated 26
September 2012 dismissing the Republic's Second
Amended Complaint for reversion, reconveyance,
restitution, accounting and damages are
7
Id. at 14.
Id. at 16.
198221, 198974, and 203592
AFFIRMED. Consequently, the Petition for

Review on Certiorari of the Republic of the
Philippines is DENIED for lack of merit. 9
I concur with the disposition of the petitions docketed as G.R. Nos.

195837, 198221, 198974 in paragraphs (1), (2), and (3), respectively.
However, I disagree with the disposition to affirm the Assailed Decision
and Assailed Resolution in paragraph (4).
At the outset, I agree with the holding of the ponencia that it was a
mistaken notion on the part of the Sandiganbayan that ill-gotten wealth
must originate from the vast resources of the government in order to be
deemed as such. As I will also explain below, assets and properties
illegally acquired by President FM, Imelda, their close relatives,
subordinates, business associates, dummies, agents, or nominees, even if
private in nature, still fall within the concept of ill-gotten wealth as
contemplated under prevailing law and jurisprudence.
Moreover, as opposed to the ponencia, I find the evidence, offered

by the Republic thus far, sufficiently establish that Tan was able to secure a
brewery license for his corporation, Asia Brewery, Inc. (Asia Brewery),
because of his close business relationship with President FM. The chief
evidence proffered by the Republic to prove this was Tan's own Written
Disclosure which contained admissions. This was bolstered by the other
pieces of evidence adduced by the Republic, specifically, Imelda's
Amended Answer with Counterclaim and Compulsory Cross-Claim
(Amended Answer), BBM's Testimony, and the Sworn Statement of
President FM's financial executor, Rolando Gapud (Gapud). 10
Under prevailing law and jurisprudence, the grant of the brewery

license on account of President FM and Tan's close business relationship
sufficiently gives rise to the Republic's right of recovery. It should be
stressed, -however, that since the brewery license is the only benefit
shown to have been granted by President FM in favor of Tan, the
Republic's right of recovery in this case is premised solely on the grant
of said licens,e. Accordingly, the amount that may be recovered by the
Republic must be measured based on the ill-gotten wealth derived
therefrom. It cannot include any income or wealth that pertains to
Allied Banking Corporation (Allied Bank), Fortune Tobacco
Corporation (Fortune Tobacco), Foremost Farms, Inc. (Foremost
Farms), Himmel Industries, Inc. (Himmel Industries), Silangan
Holdings, Inc. (Silangan Holdings), Dominium Realty and
Construction Corporation (Dominium Realty), or Grandspan
Development Corporation (Grandspan).
Strikingly however, there is nothing in the records which would

allow the reasonable quantification of such ill-gotten wealth. For this
9
Id. at 6I--o2.
10 Id. at 21.
198221, 198974, and 203592
reason, I submit that the Second Amended Complaint should be remanded

to the Sandiganbayan to: (i) allow the Republic to present additional
evidence that will permit the proper assessment of such ill-gotten wealth
with reasonable certainty; and (ii) afford Tan the opportunity to present
controverting evidence, if any.
To this end, I submit this Opinion to explain the foregoing

submissions in greater detail.
The concept of ill-gotten wealth
The resolution of G.R. No. 203592 centers on the concept of ill-

gotten wealth under prevailing law and jurisprudence. Hence, as a starting
point, it is apt to discuss its scope and nuances.
The Court has long acknowledged that one of the foremost and
pressing concerns of the Aquino government in February 1986 was the
recovery of the unexplained or ill-gotten wealth amassed by former
President FM and Imelda, their relatives, friends, and business associates. 11
The Court, in Republic v. Lobregat, 12 succinctly described this undertaking
as an enterprise "of great pith and moment," and was attended by "great
expectations." At the same time, the Court realized that the task of
recovering ill-gotten wealth was "initiated not only out of considerations of
simple justice but also out of sheer necessity - the national coffers were
empty, or nearly so." 13 For indeed, when President FM was ousted in 1986,
the country's debt was over a staggering amount of $26 billion, while his
"illegally acquired wealth" alone, not counting that of his relatives and
cronies, was then already estimated to be in the aggregate amount of five to
ten billion U.S. dollars, 14 an undoubtedly significant disproportion from his
income as a public servant.
As the Court found in the much later case of Republic v.

Sandiganbayan, 15 while President FM made it appear that he had an
extremely profitable legal practice before he became President and that,
incredibly, he was still receiving payments almost 20 years after, his first
income tax return in 1965 belied all of these claims because no such
receivables from any client were indicated at all. As to how his and
Imelda's joint income had ballooned over the years, therefore, the Court
concurred with the Office of the Solicitor General's (OSG) conclusion in
said case that President FM's and Imelda's joint income tax returns from
1965 to 1984 failed to conceal the skeletons of their kleptocracy. 16
It is likewise common knowledge that crony capitalism during the
administration of President FM thrived. It was a system that allowed certain
11
See Republic v. Sandiganbayan, G.R. No. 152154, July 15, 2003, 406 SCRA 190, 219.
12
G.R. No. 96073, January 23, 1995, 240 SCRA 376.
ll Id.
14
See id.
15
Supra note 11.
16 See Republic v. Sandiganbayan, id at 223, citing the Office of the Solicitor General's findings.
198221, 198974, and 203592
friends and relatives of his and Imelda's to acquire great wealth and
economic power through special favors and privileges extended by the
government. 17 Reportedly, there were more than 100 companies owned by
friends of the Marcos family that failed in the early 80's. Many of these
firms were taken over by the State when they were unable to repay loans
guaranteed by t."l.e government, but the favoritism continued to benefit some
cronies through government bailouts even after their firms went belly up. 18
This is why, evidently, the definition of ill-gotten wealth is not only limited
to President FM and Imelda, but extends as well to their close relatives,
subordinates, business associates, dummies, agents or nominees who also
acquired ill-gotten wealth directly or indirectly, through or as a result of the
improper or illegal use of funds or properties of the government or by
taking undue advantage of their office, authority, influence, connections or
relationship with President FM. Whether ill-gotten wealth was acquired by
President FM, Imelda or their family on one hand, or their cronies on the
other, the same results of unjust enrichment, and grave damage and
prejudice to the Filipino people and the Republic of the Philippines were
the common denominator.
Verily, just three days after her inauguration in 1986, former

President Corazon C. Aquino (President Aquino) issued her very first
executive order, Executive Order (EO) No. 1. 19
EO No. 1 created the Presidential Commission on Good Government

(PCGG), and charged it with the task of assisting President Aquino in the
"recovery of all ill-gotten wealth accumulated by [President FM], his
immediate family, relatives, subordinates and close associates, whether
located in the Philippines or abroad, including the takeover or sequestration
of all business enterprises and entities owned or controlled by them, during
his administration, directly or through nominees, by taking undue .
advantage of their public office and/or using their powers, authority,
influence, connections or relationship." 20
Subsequently, President Aquino issued EO No. 2, 21 further

authorizing the PCGG to freeze or otherwise prevent the transfer,
conveyance, encumbrance, concealment, or dissipation of assets and
properties pertaining to former President FM and/or his wife Imelda, their
close relatives, subordinates, business associates, dummies, agents, or
nommees.
As clearly reflected in their respective "whereas clauses," the
aforesaid EOs were premised on the need to recover the assets and
17
See William, B. (1984, August 16). 'Crony Capitalism' Blamed for Economic Crisis. Last accessed on
June 6, 2023, from <https://www.washingtonpost.com/archive/politics/l 984/08/16/crony-capitalism-
blamed-for-economic-crisisid99e87 60-08 7d-4d25-ad66-3 d324150dc4d/>.
1s Id.
19
Creating the Presidential Commission on Good Government, signed on February 28, 1986.
20
See id. Sec. 2(a), EO No. I.
21
Regarding the Funds, Moneys, Assets. and Properties lllegally Acquired or Misappropriated by Former
President Ferdinand Marcos, Mrs. Imelda Romualdez Marcos, their Close Relatives, Subordinates
Business Associates, Dummies, Agents, or Nominees, signed on March 12, 1986.
I 98221, 198974, and 203592
properties amassed by President FM, his immediate family, relatives, and

close associates illegally acquired during the Marcos regime. To quote:
EONo.1
WHEREAS, vast resources of the government have been amassed by

former [President FM], his immediate family, relatives, and close
associates both here and abroad;
WHEREAS, there is an urgent need to recover all ill-gotten wealth[.]
EONo.2
WHEREAS, the Government of the Philippines is in possession of

evidence showing that there are assets and properties purportedly
pertaining to former [President FM], and/or his wife, [Imelda], their close
relatives, subordinates, business associates, dummies, agents or nominees
which had been or were acquired by them directly or indirectly, through or
as a result of the improper or illegal use of funds or properties owned by
the Government of the Philippines or any of its branches,
instrumentalities, enterprises, banks or financial institutions, or by taking
undue advantage of their office, authority, influence, connections or
relationship, resulting in their unjust enrichment and causing grave
damage and prejudice to the Filipino people and the Republic of the
Philippines;
WHEREAS, said assets and properties are in the form of bank accounts,
deposits, trust accounts, shares of stocks, buildings, shopping centers,
condominiums, mansions, residences, estates, and other kinds of real and
personal properties in the Philippines and in various countries of the
world[.] (Emphasis supplied)
On April 11, 1986, the PCGG issued the Rules and Regulations
(PCGG Rules) implementing EO Nos. 1 and 2. Drawing from the modes of
acquisition of ill-gotten wealth detailed in EO Nos. 1 and 2, the PCGG Rules
explicitly defined ill-gotten wealth, as follows:
SEC. 1. Definition. - (A) "lll-gotten wealth" is hereby defined as

any asset, property, business enterprise or material possession of persons
within the purview of [EO Nos. 1 and 2], acquired by them directly, or
indirectly thru dummies, nominees, agents, subordinates and/or business
associates by any of the following means or similar schemes:
( 1) Through misappropriation, conversion, misuse or

malversation of public funds or raids on the public
treasury;
(2) Through the receipt, directly or indirectly, of any

commission, gift, share, percentage, kickbacks or any
other form of pecuniary benefit from any person and/or
entity in connection with any government contract or
project or by reason of the office or position of the
official concerned[;]
(3) By the illegal or fraudulent conveyance or disposition

of assets belonging to the government or any of its
198221, 198974, and 203592
subdivisions, agencies or instrumentalities or

government-owned or controlled corporations;
( 4) By obtaining, receiving or accepting directly or

indirectly any shares of stocks, equity or any other form
of interest or participation in any business enterprise or
undertaking;
(5) Through the establishment of agricultural, industrial or

commercial monopolies or other combination and/or by
the issuance, promulgation and/or implementation of
decrees and orders intended to benefit particular
persons or special interest; and
(6) By taking undue advantage of official pos1t10n,

authority, relationship or influence for personal gain or
benefit.
Thereafter, EO No. 14 was issued on May 7, 1986, empowering the

PCGG to file and prosecute all cases investigated by it under EO Nos. 1 and
2 before the Sandiganbayan. 22
In Bataan Shipyard & Engineering Co., Inc. (Baseco) v. Presidential

Commission on Good Government, 23 the Court further clarified the scope of
the concept of ill-gotten wealth by detailing the specific situations
contemplated under the aforesaid EO Nos., hence:
The situations envisaged and sought to be governed are self-evident,

these being:
I) that "(i)ll-gotten properties (were) amassed by the

leaders and supporters of the previous regime";
a) more particularly, that (i)ll-gotten

wealth (was) accumulated by former
[President FM], his immediate family,
relatives, subordinates and close
associates, * * located in the Philippines
or abroad, * * (and) business enterprises
and entities (came to be) owned or
controlled by them, during * * (the
Marcos) administration, directly or
through nominees, by taking undue
advantage of their public office and/or
using their powers, authority, influence,
[c]onnections or relationship;"
b) otherwise stated, that "there are

assets and properties purportedly
pertaining to former [President FM],
and/or his wife [Imelda], their close
22
Sec. 1, EO No. 14.
23
G.R. No. L-75885, May 27, 1987, 150 SCRA 181.
198221, 198974, and 203592
relatives, subordinates, business

associates, dummies, agents or
nominees which had been or were
acquired by them directly or
indirectly, through or as a result of
the improper or illegal use of funds or
properties owned by the Government
of the Philippines or any of its
branches, instrumentalities,
enterprises, banks or financial
institutions, or by taking undue
advantage of their office, authority,
influence, connections or relationship,
resulting in their unjust enrichment
and causing grave damage and
prejudice to the Filipino people and
the Republic of the Philippines";
c) that "said assets and properties are in

the form of bank accounts, deposits,
trust accounts, shares of stocks,
buildings, shopping centers,
condominiums, mansions, residences,
estates, and other kinds of real and
personal properties in the Philippines
and in various countries of the
world;" and
2) that certain "business enterprises and properties (were)

taken over by the government of the Marcos
Administration or by entities or persons close to former
[President FM]. " 24 (Emphasis and underscoring
supplied)
From the foregoing, two fundamental points become apparent.
Foremost, ill-gotten wealth does not only pertain to assets and

properties illegally acquired by President FM himself. Ill-gotten wealth also
pertains to assets and properties illegally acquired by other individuals,
particularly, President FM's wife Imelda, their close relatives, subordinates,
business associates, dummies, agents, or nominees.
As well, the Court affirmed in several cases 25 that ill-gotten wealth

may be acquired through either of two means:first, "through or as a result of
the improper or illegal use of funds or properties owned by the government
of the Philippines or any of its branches, instrumentalities, enterprises,
banks, or financial institutions" (first mode of acquisition), or second, "by
taking undue advantage of their office, authority, influence, connections or
relationship [for personal gain or benefit] resulting in their unjust enrichment
and causing grave damage and prejudice to the Filipino people and the
24
Id. at 205-206.
25
Ponencia, p. 42.
198221, 198974, and 203592
Republic of the Philippines" (second mode of acquisition).
As keenly observed by the ponencia, the second mode of acquisition

does not require that the assets and properties in question be government-
owned in order to be deemed ill-gotten. 26 Stated otherwise, assets and
properties which are private in nature may still fall within the concept of ill-
gotten wealth if they have been acquired by President FM, Imelda, their
close relatives, subordinates, business associates, dummies, agents, or
nominees by taking undue advantage of their office, "authority, influence,
connections or relationship" 27 for personal gain or benefit28 "resulting in
their unjust enrichment and causing grave damage and prejudice to the
Filipino people and the Republic of the Philippines." 29
On this score, I agree that the Sandiganbayan unduly restricted the

concept of ill-gotten wealth when it held that such"[ does] not include all the
properties of [President FM], his immediate family, relatives, and close
associates[,] but only the part that originated from the ['vast resources of the
government.']" 30 To restrict the definition of ill-gotten wealth in such
manner, as did the Sandiganbayan, would be to ignore the plain construction
of the definition found in the relevant laws, which, to repeat, contemplate
two (2) things: (i) assets and properties originating from government funds
and obtained through the first mode of acquiring ill-gotten wealth; QI (ii)
private assets and properties acquired through the second mode of acquiring
ill-gotten wealth. The Sandiganbayan's narrow interpretation would set a
dangerous precedent, as it would effectively remove private assets and
properties which were unlawfully acquired by President FM, his immediate
family, relatives, or close associates from the scope ofEO Nos. 1, 2, and 14.
The broad construction of ill-gotten wealth is reinforced by

jurisprudence.
In Silverio v. Presidential Commission on Good Government:3 1

(Silverio), the OSG filed with PCGG a complaint for graft and corrupt
practices and other crimes related to public service. Therein petitioner
Ricardo Silverio (Ricardo) was impleaded as one of several defendants.
During the proceedings, PCGG issued several writs of sequestration against
Ricardo's properties. Ricardo filed a motion to quash the complaint and lift ·
the writs of sequestration, claiming that no probable cause had been shown
to justify the sequestration of his properties. However, PCGG did not act on
the motion. Aggrieved, Ricardo filed a Rule 65 petition before the Court,
imputing grave abuse of discretion on the part of PCGG.
26
Id. at 41--43.
27
Whereas Clause, EO No. 2.
" Sec. l, PCGG Rules.
29
Supra note 27.
30
Rollo (G.R. No. 203592, Vol. 1), p. 145.
31
G.R. No. L-77645, October 26, 1987, 155 SCRA 60.
198221, 198974, and 203592
The Court dismissed Ricardo's petition for lack of merit. In so ruling,

the Court held that under EO Nos. 1, 2, and 14, the PCGG is empowered to
issue writs of sequestration and similar orders in furtherance of its duty of
recovering illegally-acquired wealth. The Court explained:
Under [EO Nos.] 1, 2 and 14, the respondent PCGG is empowered

to issue writs of sequestration, and similar orders so as to accomplish its
duty of recovering illegally-acquired wealth. The power to sequester
property means to place or cause to be placed under its possession or
control said property, or any building or office wherein any such property
or any records pertaining thereto may be found, including business
enterprises and entities - for the purpose of preventing the destruction,
concealment or dissipation of, and otherwise conserving and preserving,
the same - until it can be determined, through appropriate, judicial
proceedings, whether the property was in truth "ill-gotten," i.e., acquired
through or as a result of improper or illegal use of or the conversion
of funds belonging to the Government or any of its branches,
instrumentalities, enterprises, banks or financial institutions, or by
taking undue advantage of official position, authority, relationship,
connection or influence, resulting in unjust enrichment of the
ostensible owner and grave damage and prejudice to the State. 32
(Emphasis and underscoring supplied)
While Silverio primarily involved a motion to lift the provisional

sequestration orders of the PCGG, it is well to note that the properties
involved therein were private in nature, and owned by therein petitioner
Ricardo, a businessman who was charged before the PCGG due to his close
relationship with President FM. Thus, in dismissing Ricardo's Petition for
Certiorari, the Court held that "the record of the case shows prima facie that
the various business interests of [Ricardo] have enjoyed considerable
privileges obtained from former President [FM] during his tenure as Chief
Executive in violation of existing laws; privileges which could not have been
so obtained were it not for the close association of the petitioner with the
former President. " 33
As well, in Republic v. Tuvera 34 (Tuvera), Juan Tuvera (Juan), as

Presidential Executive Assistant of President FM, was charged with taking
advantage of his relationship and connection with the latter by engaging in a
scheme to unjustly enrich himself at the expense of the Republic and of the
Filipino people. This was allegedly accomplished on his part by securing a
Timber Licensing Agreement (TLA) on behalf of Twin Peaks, a private
corporation owned by his son, Victor Tuvera (Victor), despite Twin Peaks'
lack of qualification to be a grantee thereof. The Republic, through PCGG,
sought the reconveyance of the revenues earned by Twin Peaks in an
approximate amount of P45 million. 35
32
Id. at 64-65. Citations omitted.
33
Id. at 65--{i6.
34
G.R. No. 148246, February 16, 2007. 516 SCRA 113.
35
See id. at 120-121.
198221, 198974, and 203592
The Court agreed with the Republic that Juan, Victor, and Twin Peaks
had amassed ill-gotten wealth in the form of assets and properties derived ·
through the latter's operations. 36 Similar to Silverio, the assets and properties
found to be ill-gotten in Tuvera were also private in nature.
More recently, in the case of Disini v. Republic37 (Disini), the

Republic filed an action for recovery of ill-gotten wealth against Herminio
Disini (Herminio ), a close associate of President FM. The Republic claimed
that contractor Westinghouse Electric Corporation (Westinghouse) and
architectural firm Bums & Roe, Inc. (B&R) solicited the influence of
Herminio for the purpose of ensuring their appointment as the main
contractor and architect-engineer for the government's Bataan Nuclear
Power Plant Project (BNPP). In exchange, Herminio received commissions
equivalent to a percentage of the price of Westinghouse's and B&R's
awarded contracts. The Republic further alleged that Herminio unduly took
advantage of his close association with President FM to obtain favorable
terms for Westinghouse by requesting the latter to issue orders and directives
to the National Power Corporation (NPC) to accept Westinghouse's
proposals.
For his part, Herminio argued, among others, that the Republic had no
cause of action against him as it failed to present proof that the alleged
commissions he received were part of the purchase price paid by the
Republic to Westinghouse and B&R. In other words, the Republic failed to
adduce proof that the alleged commissions had been derived from
government funds. This argUinent was strongly rejected by the Court, thus:
[C]ontrary to the contention ofDisini, ill-gotten wealth also encompasses

those that are derived indirectly from government funds or properties
through the use of power, influence, or relationship resulting in unjust
enrichment and causing grave damage and prejudice to the Filipino
people and the Republic. The alleged subject commissions may not
have been sourced directly from the public funds but it is beyond cavil
that Disiini would not have amassed these commissions had he not
exerted undue influence on [President FM]. 38 (Emphasis and
underscoring supplied)
The Court notably added that "the Republic may recover ill-gotten
wealth not only from [President FM], Imelda and his immediate family, but
also from his dmnmies, nominees, agents, subordinates and/or business
associates whether or not [President FM] is also found liable together
with them." 39
To repeat, the concept of ill-gotten wealth, as properly under~tood iIJ

36
See id
37
G.R. No. 205172, June 15. 2021, accessed at <https://elibrary.judiciary.gov.ph/thebookshelf/showdocs
/i/67468>.
" Id.
39 !d.
/4
198221, 198974, and 203592
Silverio, Tuvera, and Disini, can be broken down as follows:
1. Ill-gotten wealth does not only pertain to assets and properties

illegally acquired by President FM himself, but also to assets and
properties illegally acquired by other individuals, particularly,
President FM's wife Imelda, their close relatives, subordinates,
business associates, dummies, agents, or nominees. For this reason,
the Republic may recover ill-gotten wealth not only from President
FM, but also directly from said individuals, whether or not President
FM is found liable together with any of them.
2. Ill-gotten wealth may be acquired either "through or as a result of the

improper or illegal use of funds or properties owned by the
government of the Philippines or any of its branches,
instrumentalities, enterprises, banks, or financial institutions" (first
mode of acquisition), or "by taking undue advantage of their office,
authority, influence, connections or relationship, resulting in their
unjust enrichment and causing grave damage and prejudice to the
Filipino people and the Republic of the Philippines" (second mode of
acquisition). Under the second mode of acquiring ill-gotten wealth,
the assets and properties in question need not emanate from the vast
resources of the government in order to be deemed ill-gotten and
recovered by the Republic.
Furthermore, Section 3 ofEO No. 14, as amended, expressly provides

that all civil suits for restitution, reparation of damages, or indemnification
for consequential damages, forfeiture proceedings, or any other civil actions
in connection with EO Nos. 1 and 2 may proceed independently of any
criminal proceedings, and may be proved by preponderance of evidence.
Thus:
SEC. 3. The civil suits to recover unlawfully acquired property
under Republic Act No. 13 79 or for restitution, reparation of damages, or
indemnification for consequential and other damages or any other civil
actions under the Civil Code or other existing laws filed with the
Sandiganbayan against [President FM], [Imelda], members of their
immediate family, close relatives, subordinates, close and/or business
associates, dummies, agents and nominees, may proceed independently of
any criminal proceedings and may be proved by a preponderance of
evidence.
As often defined, preponderance of evidence is meant that the

evidence adduced by one side is, as a whole, superior to that of the other
side. Essentially, it refers to the comparative weight of the evidence
presented by the opposing parties and is usually considered to be
synonymous with the term greater weight of the evidence or greater weight
of the credible evidence. Preponderance of evidence is proof that is more
convincing to the court as worthy of belief than that which is offered in
opposition thereto. 40
40
See Republic v. Reyes-Bakunmea, G.R. No. 180418, August 28, 2013, 704 SCRA 163, 177-178.
198221, 198974, and 203592
In this case, the Republic's claim for reconveyance of 60% of the

shares of Shareholdings, Inc. (SHI) is anchored on the following premises:
(i) President FM and Tan entered into a 60-40 sharing agreement concerning
Tan's corporations; (ii) the umbrella corporation SHI, and the three primary
holding corporations Basic Holdings Corp. (Basic), Falcon Holdings Corp.
(Falcon), and Supreme Holdings Inc. (Supreme) were formed in order to
implement said 60-40 arrangement; (iii) President FM had been given
beneficial ownership of 60% of the shares of SHI; and (iv) such 60%
beneficial interest is presently held by respondent-stockholders as mere
dummies of President FM. On this basis, the Republic asserts that said 60%
interest should be reconveyed in favor of the Republic as it constitutes ill-
gotten wealth.
As I had stated at the outset, I find that the Republic failed to establish
that President FM beneficially owned 60% of SHI and that respondent-
stockholders merely stand as his dummies. Nevertheless, applying the
definition of ill-gotten wealth under prevailing law and jurisprudence, I find
that the Republic has preponderantly established that Tan had secured Asia
Brewery's license through his close business relationship with President FM.
Since this brewery license is the only undue benefit shown to have been
granted by President FM in favor of Tan, the extent of the Republic's right
of recovery in this case must be measured solely on the basis of the ill-gotten
wealth derived by Tan from said brewery license. It cannot be measured on
the basis of any wealth derived from the other operating companies whose
shares of stocks are also held by SHI, to wit: Allied Bank, Fortune Tobacco,
Foremost Farms, Himmel Industries, Silangan Holdings, Dominium Realty,
or Grandspan. Accordingly, I submit that it is improper, if not unjust, to use
60% of the shares of SHI as a metric for recovery in this case.
I expound.
The pieces of evidence relied

upon and formally offered by the
Republic are admissible and
should be duly considered
To recall, the Republic's Second Amended Complaint alleged,

among others, that:
Tan was a business partner of [Prysident FM]. [President FM] and

[Tan] had agreed that the former would own 60¾ of [SHI] which, in turn,
beneficially held and/or controlled substantial shares of Fortune Tobacco,
[Asia Brewery], [Allied Bank], and Foremost Fanns and other
corporations here and abroad. Apart from [the] said 60% beneficiial
interest of [President FM], [Tan] yearly paid the former surrfs of money
from 1980 to 1986, in exchange for privileges and concessions which
[President FM] gave [Tan] ...41
41
Rollo (G.R. No. 203592) (Vol. IV), p. 2634.
198221, 198974, and 203592
In support, the Republic presented as evidence, among others,

Imelda's Amended Answer filed before the Sandiganbayan, BBM's
Testimony before the Sandiganbayan, the Sworn Statement of Gapud, and
Tan's Written Disclosure. However, the Sandiganbayan, in its Assailed
pecision and Assailed Resolution, did not give credence to the first three
(3) pieces of evidence based on inadmissibility.
The Sandiganbayan held that Imelda's Amended Answer was, in

fact, disallowed, 42 and treated BBM's Testimony regarding President FM
and Tan's discussions as mere hearsay as he was not privy to those
discussions. 43 Similarly, the Sandiganbayan also found Gapud's Sworn
Statement as hearsay because he did not take the witness stand and was not
cross-examined by the defense. 44
As regards Tan's Written Disclosure, the Sandiganbayan gave it

short shrift, ruling that there was no proof that Tan's requests were
implemented or that the corporations benefited from President FM. It
further ruled that there is no showing that President FM's grant of favors
and privileges to a corporation results in the government's ownership of its
shares, assets, and properties that may be recovered as ill-gotten wealth. 45
The respondents, for their part, also have issues as to the inadmissibility of
Tan's Written Disclosure. They averred that it was presented by Senator
Jovito Salonga (Senator Salonga), whose direct examination on the matter
was not completed and who was also not cross-examined by the defense. 46
The ponencia agrees with the findings of the Sandiganbayan that the
above-cited pieces of evidence are either inadmissible in evidence or
lacking in probative value and hence, are not proof that the assets and
properties subject of this case were acquired by Tan by taking advantage of
his connections with the Marcos family. 47 I hold otherwise. I submit that
the above-cited pieces of evidence are admissible in evidence and should
have been duly considered by the Sandiganbayan. I submit further that they
preponderantly establish the Republic's right of recovery against Tan.
IMELDA'S AMENDED ANSWER
While it can be conceded that Imelda's Amended Answer was

disallowed by the Sandiganbayan on the ground that her cross-claims did
not involve the same transactions or acts as that of the principal cause of
action in the Republic's case, said pleading, however, was formally offered
as documentary evidence by the Republic. Thus, the statements contained
therein may be considered as extrajudicial admissions pursuant to Section
26 48 (now Section 27), Rule 130 of the Rules of Court, which states that
42
See ponencia, pp. 44---45.
43
See id. at 16.
44
See id.
45 Rollo (G.R. No. 203592) (Vol.!), p. 151.
46
47
See id. at 43----45.
48
Now. 2019 REVISED RULES ON EVIDENCE, Rule 130, approved on October 8, 2019.
198221, 198974, and 203592
"[t]he act, declaration or omission of a party as to a relevant fact may be

given in evidence against him or her." As held in Bon v. People, 49 this rule
is based upon the truism that no man [or woman] would make any
declaration against himself [or herself], unless it is true. 50
By analogy, the disallowed pleading of Imelda is akin to an original

pleading that was amended or superseded and hence, had disappeared from
the record, lost its status as a pleading, and ceased to be a judicial
admission which would have required no proof. 51 That said, such pleading
may still be utilized against the pleader as an extrajudicial admission,
subject to it being first formally offered in evidence. 52 Since Imelda's
Amended Answer had been formally offered in this case, there should be
no reason, therefore, to render it ineffective.
The ponencia points out however, that Imelda was not cross-
examined on her statements in the Amended Answer. 53
Certainly, Imelda's Amended Answer is in the nature of a private

document. Lacking the official or sovereign character of a public document,
or the solemnities prescribed by law, a private document requires
authentication in the manner allowed by law or the Rules of Court before
its acceptance as evidence in court. However, in four (4) instances, the
requirement of authentication of a private document is excused, to wit: (a)
when the document is an ancient one within the context of Section 21, Rule
132 of the Rules of Court; (b) when the genuineness and authenticity of an
actionable document have not been specifically denied under oath by the
adverse party; (c) when the genuineness and authenticity of the document
have been admitted; or (d) when the document is not being offered as
genuine. 54 I submit that Imelda's Amended Answer falls within the third
exception.
It is beyond cavil that Imelda fought for the admission of her

Amended Answer before the Sandiganbayan. After the graft court denied
its admission, Imelda moved for reconsideration, but the same was denied
by the Sandiganbayan via a minute resolution. 55 She then appealed said ·
denial before the Court, which, however, affirmed the Sandiganbayan. 56
These acts, to my mind, are clear affirmations on her part that her Amended
Answer is genuine and authentic. Consequently, it was not imperative
anymore for the Republic to authenticate the Amended Answer through the
testimony of Imelda.
Furthermore, given the genuineness and due execution of the

49
G.R. No. 152160. January 13, 2004, 419 SCRA 101.
50
See id at 111.
51
See Chingv. Court of Appeals, G.R. No. I 10844, April 27, 2000, 331 SCRA 16, 34.
52
See id.
53
Ponencia, p. 47.
54
Fatula v. People, G.R. No. 164457, April 11, 2012, 669 SCRA 135, 156.
55
Rollo (G.R. No. 203592) (Vol. I), p. 154.
s, Id
Concurring and Dissenting Opinion G.R. Nos. 195837,
198221, 198974, and 203592
Amended Answer, the statements contained therein should be considered as

admissions against Imelda's interest. Admissions against [one's] interest
are those made by a party to a litigation or by one in privity with or
identified in legal interest with such party and are admissible whether or
not the declarant is available as a witness. 57
,:
,
So, too, notwithstanding the application of the res inter alias acta
rule, Imelda's Amended Answer is high quality evidence58 that cannot
simply be brushed aside. In the first place, the Sandiganbayan should not
have bound its,elf by the technical rules of procedure, taking its cue from
the adopted liberal approach of the Court regarding technical rules of
procedure in cases involving recovery of ill-gotten wealth. 59 As previously
elaborated by the Court in Republic v. Gimenez60 ( Gimenez):
In all the alleged ill-gotten wealth cases filed by the PCGG, this
Court has seen fit to set aside technicalities and formalities that merely
serve to delay or impede judicious resolution. This Court prefers to have
such cases resolved on the merits at the Sandiganbayan. But substantial
justice to the Filipino people and to all parties concerned, not mere
legalisms or perfection of form, should now be relentlessly and firmly
pursued. Almost two decades have passed since the government initiated
its search for and reversion of such ill-gotten wealth. The definitive
resolution of such cases on the merits is thus long overdue. If there is
proof of illegal acquisition, accumulation, misappropriation, fraud or illicit
conduct, let it be brought out now. Let the ownership of these funds and
other assets be finally determined and resolved with dispatch, free from all
the delaying technicalities and annoying procedural sidetracks. 61 (Italics in
the original)
Thus, here, even if it is assumed that the rule on res inter alias acta
were to apply, the treatment of the extrajudicial admission as hearsay is
bound by the exception on independently relevant statements. 62 Under the
doctrine of independently relevant statements, regardless of their truth or
falsity, the fact that such statements have been made is relevant. The
hearsay rule does not apply, and the statements are admissible as evidence.
Evidence as to the making of such statement is not secondary but primary,
for the statement itself may constitute a fact in issue or be circumstantially
relevant as to the existence of such a fact. 63
The statements in Imelda's Amended Answer, being extrajudicial

admissions against her interest, are independently relevant to prove the
arrangement between President FM and Tan. As the Republic emphasized,
Imelda maintained in her Amended Answer that their family owns at least
60% of Tan's businesses by virtue of the said arrangement. According to
the Republic, Imelda's claim validates its theory that, indeed, President FM
57
See Lazaro v. Agustin, G.R. No. 152364, April 15, 2010, 618 SCRA 298,308.
58
See People v. Buntag, G.R. No. 123070, April 14, 2004, 427 SCRA 180.
59
Republic v. Gimenez, G.R. No. I 74673, January 11, 2016, 778 SCRA 261.
,o Id.
61
Id. Citation omitted.
62
See Buenajlor Car Services, Inc., v. David, Jr., G.R. No. 222730, November 7, 2016, 807 SCRA 191.
" Id.
198221, 198974, and 203592
unlawfully entered into a business arrangement with Tan and then used his
position and power to grant numerous concessions and privileges to these
corporations in violation of the Constitution and anti-graft laws. 64
The Republic quoted the following telling narration in Imelda's

Amended Answer:
42. Way before and continuing through 1985, former [President

FM] had beneficial ownership, together with [Tan], his family and
associates, in the following operating companies, as well as the
subsidiaries and companies which these operating companies have
acquired, or in turn invested in, to wit:
1. [Himmel Industries]
2. [Fortune Tobacco]
3. [Foremost Farms]
4. [Asia Brewery]
S. [Grandspan]
6. [Silangan Holding(s)]
7. [Dominium Realty]
43. [President FM] had a sixty percent (60%) beneficial

ownership in said companies, which beneficial interests were held in
trust by [Tan] personally and through his family members and
business associates who appeared as the recorded stockholders of said
companies.
44. Sometime in late 1980, [President FM] and [Tan] agreed to

consolidate their ownership interests in the various businesses, in one
holding company organized under the name [SHI].
[44.1) To implement such consolidation, the record (or nominee)

stockholders of the above-named seven (7) operating companies
transferred their stockholdings in said companies to defendant [SHI]
through separate Deeds of Sale of Shares of Stock.
[44.2] In consideration, and in exchange, for such transfer of

shares of the operating companies, [SHI] in turn, issued its shares of stock
to the record (nominee) stockholders of the above-nan1ed operating
compames.
[44.3] In fine, the transferring record (nominee) stockholders of the

operating companies became likewise the record (nominee) stockholders
of the holding company, [SHI].
45. Having achieved the consolidation of their beneficial

ownership interests, through the organization of the holding
company, [SHI], [President FM] and [Tan] then agreed to structure
the segregation of their beneficial ownership interest[s] in the
proportion of sixty percent (60%) for [President FM] and forty
percent (40%) for [Tan].
45.1 For this purpose, three ultimate holding companies were

organized in the middle of 1984: [Basic], [Supreme], and [Falcon], with
64
See rollo (G.R. No. 203592) (Vol Vll), p. 3995.
198221, 198974, and 203592
the intention of having Basic as the record owner of the beneficial interests
of [Tan] and his group (40%) and Supreme and Falcon, as the record
owners of the aggregate beneficial interest[s] of [President FM] (60%).
45 .2 In express acknowledgment of the fact that they merely held

tl.1eir recorded interest in [SHI] in trust for [President FM] and [Tan], in
the ratio of 60%-40%, respectively, the record (nominee) stockholders of
(SHI] then assigned their stockholdings in [SHI] to the newly organized
111timate
, ..
holding companies as follows:
,;,
,;; Stockholders No. of Shares % of Holdings

'
[Basic] 61,617,500 [49.0]%
[Supreme] 31,437,500 25.0%
[Falcon] 31,437,500 25.0%
[Tan] 628,750 0.5%
[Mariano 628,750 0.5%
Tan Eng Lian]
TOTAL 125,750,000 100.0%
45.3 To make the shareholdings of Basic conform to the agreed 60%-

40% ratio, Basic executed a Deed of Sale of Shares of Stock in favor of
Supreme, transferring 9% of [SHI] shares held by the former in favor of
the latter.
45.[4] After Basic transferred 9% of its 49% stock ownership in

[SHI], the stock ownership in [SHI] became as follows:
Stockholders No. of Shares % of Holdings
[Basic] 50,300,000 40.0%

[Supreme] 42,755,000 34.0%
[Falcon] 31,437,500 25.0%
[Tan] 628,750 0.5%
[Tan Eng Lian] 628,750 0.5%
TOTAL 125,750,000 100.0%
46. In express recognition of the beneficial ownership of [President

FM], the incorporators of both Falcon and Supreme executed and
delivered to [President FM] blank Deeds of Assignment.
4 7. The assignment by the defendants record-stockholders of [SHI]

of sixty percent (60%) of that company's then outstanding capital stock to
Falcon and Supreme which are, in tum, beneficially owned entirely by
[President FM], is an express acknowledgment by such defendants,
including defendant [Tan], that they held such interests in trust for, and for
the benefit of [President FM].
48. Defendant [Imelda] as surviving spouse and heir of [President

FM] and the Estate of [President FM], the latter being the legal successor-
in-interest of [President FM], repeatedly demanded from defendant [Tan]
and the other defendant-record stockholders of [SHI] that they perform or
enforce the trust by delivering and recording the ownership of sixty
percent (60%) of [SHI]'s outstanding capital stock to [the] Estate of
[President FM], thru Falcon and Supreme, in accordance with the Deeds
198221, 198974, and 203592
of Assignment.
49. Despite and notwithstanding such repeated demands, defendants

[Tan] and record (nominee) stockholders of [SHI] failed and refused to
comply with said demands. 65 (Emphasis and italics supplied)
Apart from the foregoing admissions, it is well to note at this juncture

that the Republic likewise touched on the alleged public declarations of
Imelda about the Marcoses' wealth. One such "critical public declaration"
was narrated by the late Senator Salonga:
Imelda: "We own practically everything in the Philippines ... "
Many people did not realize how much had been accomplished by
the PCGG through sequestration until [Imelda] came out with a series of
"bombshell" revelations as published from day to day in the December
issues of Philippine Daily Inquirer (December 5, 6, 7, 8 and 9)[.] Without
realizing its far-reaching implication, [Imelda] declared:
We practically own everything in the Philippines,

from electricity, telecommunication, airlines, banking, beer
and tobacco, newspaper publishing, television stations,
shipping, oil, mining, hotels, and health resorts, down to
coconut mills, small fisheries, real estates and insurance.
[Imelda] said she would reclaim an estimated 500 billion pesos

(around $ I 3 billion 1999), now in the hands of the Marcos cronies. The
prominent Marcos cronies, whom she called "trustees" were, by her
own account, merely holding many of the sequestered properties for
her own account, merely holding many of the sequestered properties
for and in the name of her husband, [President FM]. This was
precisely what the PCGG had maintained since 1986 except that the
Marcoses are not the real owners -. it is the Filipino people. Among
the trustees she named were [Tan], Eduardo "Danding" Cojuangco, the
late Ramon Cojuangco and his son, Antonio "Tonyboy" Cojuangco,
Imelda Cojuangco, Herminio D[i]sini, [Gapud], Jose Yao Campos,
Roberto Benedicto and many others. 66 (Emphasis in the original)
The Republic highlighted another supposed public declaration made

by Imelda through the testimony of Christine Herrera (Herrera), a former
reporter from the Philippine Daily Inquirer to whom Imelda granted an
interview on the alleged wealth of the Marcoses based on various deeds of
sales of shares of stocks and blank deeds of assignments. 67 The pertinent
portions of the testimony of Herrera were quoted by the Republic in its
Memorandum as follows:
A'tty. Generillo:
Q: Ms. Witness in Exhibit "VVVVVVVVVVV" a

statement attributed to [Imelda] appears, and I would like to
read for the record, as follows:
65
Rollo (G.R. No. 203592) (Vol. VII), pp. 3997-4000.
66
Id. at 4003-4004. Citation omitted.
67
Id. at 3865.
Ii
l
198221, 198974, and 203592
"Among the biggest companies

held by Tan for [President FM] according
to the former First Lady were: [Fortune
Tobacco], [Allied Bank], [Asia Brewery],
[Foremost Farms] and the Flagship
Company [SHI]. According to [Imelda]
all the shares and stock up to 60% to
100% held by Tan were for [President
FM]. Tan, whom she called '[ang
magbobote]' (bottle peddler) gammg
substantial concession in specific taxes,
stamp duties for a cigarette Fortune
Tobacco and here Asia Brewery
Operations' she said, we gave Tan and
[others ... "]
INTERRUPTED -
(TSN dated July 2, 2008, pp. 24-25)
Atty. Generillo:
Another statement, Your Honor, was on page I is as

follows:
"[Imelda] said she met Tan through

her cousin Herminia [Disini]."
May we request, Your Honor, that this pos1t10n be

bracketed and marked as Exhibit "VVVVVVVVVVV-
3 [?"] ...
Atty. Generillo:
Another statement found on page 2, read[ s] as

follows:
"She explained that Tan was a

small[-]time businessman before he
became member of [President FM]'s
inner circle, she said Tan was into
bottling and filter manufacturing, but
that, these were just small businesses[."]
May we request that this portion be bracketed and

marked as Exhibit "VVVVVVVVVVV-4[?]"
Atty. Generillo:
On page 18, Your Honor, of this issue marked as

Exhibit ["]WWWWWWWWWWW-1" there appears a
statement, which read, as follows:
"The next thing [President FM] did,

[Imelda] said, was to assign trustees who
198221, 198974, and 203592
belong to [President FM] 's inner circle to

various companies[. "l
May we request, Your Honor, that this portion be

bracketed and marked as Exhibit
"WWWWWWWWWWW-2[?"]
Atty. Generillo:
There is also a statement appearing on page 18, and

it reads:
"Eduardo Danding Cojuangco was

brought in by Ramon Cojuangco, to
[Tan] was brought in by [Imelda]'s
cousin-in-Jaw Herminio [Disini], [Gapud],
former Security Bank and Trust
Company President was brought in by
Jose Yao-Campos, owner of the United
Laboratories, Roberto Benedicto, Manuel
Nieto, and 25 others would be cronies
were also top because they were there at
the right place at the right time, [Imelda]
said[."]
May we request, Your Honor that this portion be

"WWWWWWWWWWW-3 [?"]
Atty. Generillo:
Another statement appearing on page 18 reads as

follow[s]:
"She said 'since her husband was

President at that time, he could not sit as
President and Chairman of all the
companies he had acquired, so he instead
chose his [dummies] who fully agreed to
manage the company 011 his behalf[. "]

"WWWWWWWWWWW-5[?]"
Atty Generillo:
Another statement appearing on page 18 reads, as

follow[s]:
"lkaw ang assign dito, ikaw dito,

lzindi yung ako ang Presidente nito, ako
198221, 198974, and 203592
ang Presidente noon kasi Presidente na

ako ng bayan[.]" [T]ranslation in English,
Your Honor[:] "[Y]ou are assigned here,
you are assigned there, I won't to (sic) be
President of any company because I am
already the President of the
Philippines[,]" she said. All of them
willingly signed Deeds of Trust, this way,
they became his close associates, [Imelda]
said[."]

"WWWWWWWV,TWWW-6[?"]
(TSN dated July 2, 2008, pp. 31-32) 68 (Emphasis and italics m the
original)
The foregoing evidently shows that Imelda has been consistent with
her claims about the arrangement between her husband, President FM, and
Tan. These public declarations, taken together with her Amended Answer,
should therefore be weighed and evaluated by the Sandiganbayan more
carefully and closely.
BBM'S TESTIMONY
As to BBM's Testimony, the ponencia holds that it is hearsay

because he was not privy to the alleged 60-40 arrangement of the share
transfers between and among the various corporations. 69
I strongly disagree.
Any evidence - whether oral or documentary - is hearsay if its

probative value is not based on the personal knowledge of the witness, but
on that of some other person who is not on the witness stand. Hence,
information that is relayed to the former by the latter before it reaches the
court is considered hearsay. 70 In other words, hearsay evidence is defined
as "evidence not of what the witness knows himself [or herself! but of what
he [or she] has heard from others;" and the hearsay rule bars the testimony
of a witness who merely recites what someone else has told him or her,
whether orally or in writing. 71 This is certainly not the case here. BBM
testified on his own conversations with his father and on his own meetings
with Tan and Gapud that both pertain to his own orientation and eventual
involvement with the business interests of his family in Tan's companies.
Ineluctably, these are facts which he knows of his own personal knowledge
and specifically derived from his own perception and experience. 72
68
id. at 4005--4007.
69
Ponencia, p. 53.
70
Bon v. People, supra note 49, at I 09.
71
Calicdan v. Cendana, G.R. No. 155080, February 5, 2004, 422 SCRA 272,278.
72
See Sec. 22,2019 REVISED RULES ON EVIDENCE, supra note 48.
198221, 198974, and 203592
The equally telling testimony of BBM was quoted by the Republic in

this wise:
Q: "When was the first time that you saw [Tan]?"
WITNESS CONG. MARCOS, JR.
A: I could not give you the specific date but I know it was in
the early '70s. As I said, the first time I saw him was in the
area of the Palace that we call the "Study Room[,]" which is
the area next to my father's office.
ATTY. GENERILLO
Q: Did you have opportunity to talk to [Tan]?
A: Yes, several times after we have been introduced. We

would say "hello" to each other when we cross each other's
paths. And on a couple of occasions, we actually had an
opportunity to have substantive conversations aside from
meetings.
Q: What do you mean "substantive meetings" or

discussions?
A: Well, I remember that at one point, I was summoned by

my father to his office and so I went. And he was there with
[Tan) in the discussion.
And he at that point told me that he would like me to

familiarize myself with the operations of some of the
enterprises that we have interests in and that [Tan] was going
to help me to be more familiar with the said operations.
Q: Why did your father summon you to his office to

familiarize yourself with the business interests of the Marcoses?
A: It was part of a larger effort on the part of the family to

really clarify and to conduct an inventory and legal audit of all
those business interest that we have.
My sister Imee, who has legal training, was given the

job of conducting the legal audit, and I was given the job to go
to as many of these enterprises as I could and as I said, learn
the operations aud meet the people who were running them so
that when the time comes that we would take over, we would
know how to manage these different interests.
Q: And what was the condition of your father when he

summoned you to his cffice?
A: At that time, he was still quite strong. But then, he was

starting to feel the effect of his kidney disease. So perhaps, even
that has a factor in his wanting us to know the family's interests.
Q: What happened after that meeting with your father and

198221, 198974, and203592
defendant [Tan]?
A: Well, at the end of the meeting, [Tan] and I talked and

discussed the possibility of having a meeting, just the two of us.
And if I am not mistaken, he was leaving for abroad and so

he said that he will contact me as to when we will have that
meeting.
Q: Was there any occasion for your father to show proof of the
family's interests in [Tan]?
A: Well, when we first began this whole effort, he had me

and my sister, we met and we sat down and showed us some
documents which are essentially Deeds of Assignment, Shares
of Stock, Titles to properties, and all these kinds of things. And
he tried to give us a sketch of exactly how the structures were.
And then his instructions to us were - we go out and

make sure that first, all documentations were in place because
maybe the documents or something were in some persons, the
documents or something were in another person, to really
reorganize them and collate everything. So, that was the gist of
- We had several of those meetings, and that was then I saw
these documents.
Q: Now, let us go back to the instance where you had

substantial discussion with defendant [Tan].
\\There did it take place?
A: Well, as I have mentioned, the first time that we actually

sat down and talked of anything substantive was in my father's
office.
Subsequently, I received a message from [Tan]'s office

that he would ask me to meet him at his office in Allied Bank.
That is about I think a week or fortnight after I was
sl\lmmoned by my father.
Q: And you meet him at his office?
A: Yes, at his office in Allied Bank.
Q: And what did you discuss with him in that meeting?
A: He laid out the ownership structure of the different

corporations that we had an interest in.
Q: Did he tell you what those corporations are?
A: Yes, he actually drew out a diagram, a piece of paper,

explaining that there was a company, [SID], which was a
holding corporation for several other corporations.
I will try to remember them all - Foremost Farms,

198221, 198974, and 203592
Fortune Tobacco, Asia Brewery, Himmel Industries,

Grandspan, Dominion - I might be missing some but
basically, [SHI] was the holding corporation for all those other
corporations.
Q: Aside from that meeting in Allied Bank, where else did

you meet defendant [Tan]?
A: I think a couple of months after that, I flew to the

bottling plant of Asia Brewery in Laguna, by helicopter.
I remember clearly the visit because there was a

difficulty landing in the Asia Brewery Compound itself. We
nearly had an accident and so we had to land on the next
compound, then took a car to Asia Brewery.
Q: What happened in that plant visit?
A: At the plant visit, [Tan] [t]ook me around and basically

explained to me what they did in the bottling plant, how the bottles
were made, the different sizes that they made, the different kinds
of beer, how they fill out the bottles, how they package them, the
general operations of the plant.
MR. SANCHEZ
Q: You mentioned [SHI].
What is the relationship of [SHI] with the other

corporations that you mentioned earlier?
ATTY. MENDOZA
The best evidence are the corporate documents, Your Honors.
J. ESTRADA
Witness may answer!
WITNESS CONG. MARCOS
[SHI] was the holding company for the other companies

that I mentioned. And the ownership of the [SHI] was divided
at least initially, between three other companies.
This explanation (sic) that [Tan] gave me while we were

at his office in Allied Bank.
ATTY. GENERILLO
Could you name tl1e three other companies holding shares

in the [SHI]?
A: Yes. The three companies that own [SHI] were Basic,

Supreme and Falcon.
198221, 198974, and 203592
Initially, Basic own 50% of [SHI]; Falcon had 25%, and

Supreme had 25%.
This changed I think in early 1985 when some shares of
Basic were sold to Supreme, the net effect of which, Supreme
owned 34% of [SHI].
ATTY. GENERILLO
Mr. Witness, do you have proof that [Supreme] and

[Falcon] have interests in [SHI]?
WITNESS CONG. MARCOS
Well, there are documents that show Deeds of Sale of

[SHI] to the three companies - Basic, Falcon and Supreme. There
are also Deeds of Sale of certain percentage of Basic to Supreme.
This was relevant to us because we held the shares of stock

in Falcon and in Supreme which were with us, endorsed in blank. 73
(Emphasis in the original)
Even assuming arguendo that the testimony of BBM may not be

admitted as proof of the veracity or truth of the statements he attributed to
President FM, Tan, and Gapud, the same may still be admitted for the
purpose of placing on record the fact that those statements or the tenor of
such statements were indeed made. In other words, again, the doctrine of
independently relevant statements finds application, such that regardless of
the truth or falsity of a statement, when what is relevant is the fact that such
statement has been made, the hearsay rule does not apply and the statement
may be shown. 74 The ponencia concedes just as much - that BBM's
Testimony is admissible as an independently relevant statement as to the
fact that he had conversations with President FM, Tan, and Gapud. 75
Thus, here, as the Republic correctly pointed out, BBM' s direct and
personal testimony elaborated on the complex formation of SHI, Falcon,
Supreme, and Basic to hold the beneficial ownership of President FM and
Tan, and the multifarious rigodon of shares and deeds of assignments
endorsed in blank. 76 According to the Republic, BBM's Testimony
corroborated the statement of his own mother Imelda, to the effect that the
Marcoses were asserting a claim on certain shares of stocks in Tan's
companies. The Republic stressed that while BBM testified that President
FM did not perform any act reflective of his interests in these corporations,
he nonetheless knew that Tan was depositing money in Security Bank,
which represented the Marcoses' share in the income of the corporations. 77
73
Rollo (G.R. No. 203592) (Vol. VII), pp. 4013-4017.
74
See People v. Umapas. G.R. No. 215742. March 22, 2017, 821 SCRA 421.
75
76
See rollo (G.R. No. 203592) (Vol. Vil), p. 4017.
77
Seeidat4018.
198221, 198974, and 203592
The Republic added that the testimony of BBM dovetailed with

Gapud's Sworn Statement. BBM testified that he knew Gapud was his
father's financial manager who regularly came to Malacafiang Palace to
discuss certain aspects of the cases that he was handling with President FM
and later, with him, his mother Imelda, and his sister Imee. 78 Gapud's
Sworn Statement recounts, in · part, the purported 60-40 arrangement
between President FM and Tan, to wit:
With particular reference, for example, to [Tan], I know that

[President FM] and [Tan] had [an] understanding that [President
FM] owns 60% of [SHI], (sic) which owns shares of Fortune Tobacco,
Asia Brewery, Allied Bank, and Foremost Farms. I was asked
sometime in 1985 to formalize this arrangement. I went to [Tan] for that
purpose. He tried to bargain by reducing the equity of [President FM]
to 50%. I told him that I was merely carrying out the instructions of
[President FM] and that if he wanted to bargain, he should take up the
matter directly with [President FM]. As a matter of fact, [Tan], apart from
the 60% equity of [President FM] had been regularly paying, through
Security Bank, Sixty Million Pesos [l"60 Million] to One Hundred Million
Pesos [l"l00 million] to [President FM], in exchange for privileges and
concessions [President FM] had been giving him in relation to the
businesses managed by [Tan]. As I said on p. 7 of Annex "A", [Tan]
gained substantial concessions in specific taxes and stamp duties for
his cigarette (Fortune Tobacco) and beer (Asia Brewery) operations.
He belongs to the group that could get presidential decrees and letters
on (sic) instruction from [President FM] for their joint benefit. I
understand that [Tan] asserted that he was the victim of extortion,
and that he outwitted [President FM] by issuing to [him] his 60%
equity in fake certificate of stock. This is not accurate. [President FM]
and [Tan] were in partnership, and they derived great material
benefits from the relationship. As far as I know, [Tan] was not in a
position to outwit and outmaneuver [President FM]. I do not know
that there is a crony or business associate of [President FM] who
could have done that. 79 (Emphasis in the original)
GAPUD'S SWORN STATEMENT
Like BBM's Testimony, Gapud's Sworn Statement should not be

hastily dismissed as mere hearsay. Though it was merely presented by
Senator Salonga, whose testimony was not completed, it also offers
independently relevant statements that corroborate the close business
relationship described by BBM in his testimony, as well as by Imelda in her
Amended Answer and by Tan in his Written Disclosure. Tp be sgeqific,
Gapud's Swonrr Statement bolstered the described structure~ arrangement
between Tan and President FM on the latter's purported shar!)s of stqclfs in
Fortune Tobacco, Asia Brewery, Allied Bank; and For:bmost farms.
Furthennore, it narrated the regular bank deposits being mad~ by Ta.ii i1{the
amounts of P60-P100 million in favor of President FM in exchange fot the
concessions and favors the former president granted him for his businesses.
78
Id
79
Id. at 4020--402 J.
198221, 198974, and 203592
It must be borne in mind that it was an undisputed fact that Gapud was
the financial executor of President FM and Imelda and at times, acted as
their financial advisor who carried out their instructions. Gapud's Sworn
Statement, therefore, should be given consideration as the statements
contained therein are, at the very least, circumstantially relevant to the issue
at hand. Again, under the doctrine of independently relevant statements,
only the fact that Gapud made said statements is relevant, and the truth or
falsity thereof is immaterial. Evidence as to the making of such statements is
primary, for the statements themselves may constitute a fact in issue or be
circumstantially relevant as to the existence of such a fact. 80
Moreover, it is my considered view that Gapud's Sworn Statement is

a public document. Significantly, it was subscribed and sworn to (notarized)
before Consul General Vicente G. Reyes in the Philippine Consulate General
in Hong Kong. It also contained the seal of his office (authenticated). In this
regard, Teoco v. Metropolitan Bank and Trust Company81 quoting Lopez v.
Court ofAppea!s 82 is instructive:
From the foregoing provision, when the special power of attorney is

executed and acknowledged before a notary public or other competent
official in a foreign country, it cannot be admitted in evidence unless it is
certified as such in accordance with the foregoing provision of the rules by
a secretary of embassy or legation, consul general, consul, vice consul, or
consular agent or by any officer in the foreign service of the Philippines
stationed in the foreign country in which the record is kept of said public
document and authenticated by the seal of his office. A city judge-notary
who notarized the document, as in this case, cannot issue such
certification. 83
Consequently, Gapud's Sworn Statement had been converted into a

public document which renders it admissible as evidence of the fact which
gave rise to their execution, even against a third person,84 without need for
further proof of its authenticity.
Even on the assumption that Gapud's Sworn Statement remains a

private document, its due execution and authenticity were sufficiently
established through the testimony of Senator Salonga who witnessed its
execution, typed the statement, and signed it as witness. This is in
accordance with Section 20, Rule 132 of the Rules of Court, which provides:
SEC. 20. Proof of private document. - Before any private document
offered as authentic is received in evidence, its due execution and
authenticity must be proved either:
80
See People v. Umapas, G.R. No. 215742, March 22, 2017, 82 l SCRA 421.
81
G.R. No. I62333, December 23, 2008, 575 SCRA 82.
82
G.R. No. 77008, December 29, 1987, 156 SCRA 838.
83
Id. at841-842.
84
Sec. 23, Rule 132 provides:
Public Documents as Evidence. - Documents consisting of entries in public records
made in the performance of a duty by a public officer are prima facie evidence of the
facts therein stated. All other public documents are evidence, even against a third
person, of the fact which gave rise to their execution and of the date of the latter.
198221, 198974, and 203592
(a) By anyone who saw the document executed or written;

or
(b) By evidence of the genuineness of the signature or

handwriting of the maker.
Any other private document need only be identified as that which

it is claimed to be.
TAN'S WRITTEN DISCLOSURE
As well, the Republic banked on Tan's Written Disclosure which

purportedly provided a detailed narration of his 60-40 arrangement with
President FM, the specifics of which the Republic characterized as
"impossible to fabricate with unparalleled consistency." 85 Thus:
255. Respondent [Tan] confirmed [President FM]'s beneficial

interests in his various businesses which they cloaked under an umbrella
company - [SHI]. To segregate their unlawful business partnership, three
(3) holding companies, namely, Basic, Falcon and Supreme, were formed.
Thus:
SHI was incorporated on November 11, 1979. The

original intention for setting up this company was for it to
purchase and hold at least 99% of the shares of stock from
existing stockholders of the following companies:
2. [Asia Brewery]
3. [Foremost Farms]
5. [Grandspan]
6. · [Dominium Realty]
This set up is necessary in order to systematize the

stock ownership in the various corporations. Also, since the
group of companies was getting quite big, [Tan] felt and
wanted to [ensure] that the various companies would stay
under one umbrella in the event that anything should
happen to him - [Tan] wanted to ensure continuity of the
companies which he had worked so hard to build up.
By the end of [1980], it became imperative for SHI

to close the purchase of the aforementioned shares in order
to avail of the minimal transfer tax of [one-fourth] of 1%
which became unavailable starting 1981. On October 19,
1981, SHI also acquired all the shares of stock of
[Dominium Realty], a realty firm which owns vast tracts of
land in Cabuyao, Laguna upon which [Asia Brewery]'s
plant stands.
85
Rollo (G.R. No. 203592) (Vol. VII), p. 3946.
198221, 198974, and203592
On July 20, [1983], three holding companies were

incorporated as follows:
I. [Basic]
2. [Falcon]
3. [Supreme]
On the same day, the incorporators of [Falcon]

and! [Supreme] after paying their subscription in full,
sold and transferred 100% of their shares to a new
group Jed by [Tan]. In the meantime, [President FM]
thru [Gapud] persisted in his demand for 50, then 51 %,
then 60% share in SHI.
On July 16, 1984, the three holding companies

purchased 99% of the shares of the stockholders of SHI,
with the exception of [Tan] and [Tan Eng Lian] who
retained 0.5% each. On the same day, the said three
holdings companies borrowed from the stockholders-
vendors of [SHI] amounts equivalents to the respective
purchase prices of the aforementioned shares on [a] 30-day
term. Unable to pay the loan at maturity, the three
companies sold back (on August 22, 1984) the said shares
to the original vendors-stockholders in the same proportion
as when purchased. 86 (Emphasis in the original)
As with the Amended Answer of Imelda, however, the ponencia

posits that as documentary evidence, the Written Disclosure should have
been authenticated as genuine and duly executed either by a person who
had witnessed its execution or by any other evidence showing its
genuineness and due execution. Tan, however, was not presented on direct
to authenticate his Written Disclosure and was not cross-examined on the
statements he allegedly made. 87
In the same vein, according to the ponencia, the testimony of Senator

Salonga on direct examination about Tan's Written Disclosure cannot serve
as authentication thereof based on the preceding reasons as well. 88
Hence, the ponencia concludes, the Written Disclosure is hearsay,

lacks probative weight, and cannot sustain the Republic's allegations. 89
Again, I disagree.
While indeed, Tan's Written Disclosure was offered in connection

with the testimony of Senator Salonga which had not been completed, it is
noteworthy that Tan and the other respondents did not deny that it was
properly presented as documentary evidence. 90 They also failed to deny its
86
Id. at 3947-3948.
87
Ponencia, pp. 49-50.
88
Id. at 50.
89
Id. at 52.
90
Rollo (G.R. No. 203592) (Vol. IV), p. 3495.
198221, 198974, and 203592
execution. In fact, it must be emphasized that Tan relied on this Written

Disclosure in his own Memorandum, 91 albeit on the premise that his
arrangement with President FM was reached under duress and was
ultimately thwarted. Still, as in the case of Imelda's Amended Answer, this
essentially affirms the genuineness and authenticity of the Written
Disclosure and thereby excepts such from the requirement of authentication
of a private document. 92
Tan, in particular, should be estopped from discrediting his Written

Disclosure or from excluding it as evidence, when, for all intents and
purposes, his own treatment thereof is a deliberate indication that he is
lending it full faith and credence. It is incongruous for a party to pray for
the exclusion of an adversary's evidence which he or she has nonetheless
openly relied upon.
In sum, I submit that the admissions against Imelda's interest in her

Amended Answer, the Written Disclosure of Tan, and the Sworn Statement
of Gapud are uncannily identical and corroborative of BBM's Testimony.
All these pieces of evidence, to stress, were all made without collusion.
Hence, they are akin to interlocking extrajudicial confessions which
constitute an exception to the general rule that extrajudicial
confessions/admissions are admissible in evidence only against the
declarants thereof. 93
I find it a grievous error, therefore, for the Sandiganbayan to have

rejected and ignored the above-discussed pieces of evidence presented by
the Republic. As I have expressed earlier, there should be some measure of
forbearance with regard to the application of rules of evidence in the .
prosecution of ill-gotten wealth cases. Indeed, the difference between
the admissibility of evidence and the determination of its probative weight
is canonical. 94 Admissibility of evidence refers to the question of whether
or not the circumstance or evidence is to be considered at all. On the other
hand, the probative value of evidence refers to the question of whether or
not it proves an issue. 95 But as the Court cautioned in Gimenez, it is better
to admit and consider evidence for determination of its probative value than
to outright reject it based on very rigid and technical grounds. 96 The
Republic, in turn, cited Atienza v. Board of Medicine, et al, 97 where the
Court relevantly held:
Although trial courts are enjoined to observe strict enforcement of the

rules of evidence, in connection with evidence which may appear to be
of doubtful relevancy, incompetency, or admissibility, we have held
that: ·
91
Id at 3498--3499.
92 See Patula v. People, supra note 54.
93 See also People v. Encipido, G.R. No. L-70091, December 29, 1986, 146 SCRA 478,492.
94
Republic v. Gimenez, supra note 59.
95
Id
" Id
97
657 Phil. 536 (201 l).
198221, 198974, and 203592
[I]t is the safest policy to be liberal, not rejecting them on

doubtful or technical grounds, but admitting them unless
plainly irrelevant, immaterial or incompetent, for the reason
that their rejection places them beyond the consideration of
the court, if they are thereafter found relevant or competent;
on the other hand, their admission, if they turn out later to
be irrelevant or incompetent, can easily be remedied by
completely discarding them or ignoring them. 98 (Emphasis
and underscoring supplied)
The liberal and prudent approach in ill-gotten wealth cases is not

hard to fathom. The Court has always been mindful of the difficulty in
gathering voluminous documentary evidence in cases of forfeiture of ill-
gotten wealth acquired throughout the years. 99 This undoubtedly holds true
with regard to testimonial evidence, especially of those who fled the
country - more so in the present political climate. To be sure, it is never
easy to prosecute corruption and take back what rightfully belongs to the
government and the people of the Republic, 100 most especially of such
magnitude as was rampant in the administration of then President FM. The
Court must also bear in mind that corruption or plunder is done stealthily
and cleverly, so much so that direct evidence is sometimes nil. This is not a
valid reason, however, for the Republic and the courts, as well, not to
remain steadfast and soldier on.
President FM's alleged

beneficial ownership over 60%
of the shares of SHI has not
been established
In its Memorandum filed before the Court, the Republic, drawing

heavily from Imelda's Amended Answer, BBM's Testimony, Gapud's
Sworn Statement, and Tan's Written Disclosure, detailed how the alleged
sharing agreement had been implemented through the incorporation of SHI:
76. Respondent [Tan] later embarked on consolidating ownership

interests in the· various businesses in one umbrella company - [SHI].
77. On November 14, 1979, [SHI] was incorporated to purchase

and hold 99% of the shares of stocks from the existing stockholders of:
[Himmel Industries], [Fortune Tobacco], [Foremost Farms], [Asia
Brewery], [Grandspan], [Silangan Holdings], [and Dominium Realty].
78. The incorporators were Estrella Uy, Juanita Tan Lee, Harry
Tan, Jaime Qua and Manuel Khoo. [SHI] was incorporated with an
authorized capital stock of Five Million Pesos (P5,000,000.00), One
Million Pesos (Pl ,000,000.00) of which was subscribed and paid-up.
79. The consolidation gave ... [President FM] beneficial
98
Id. at 542. Citations omitted.
99
See Republic v. Gimenez. supra note 59. at 294.
100
Id. at 294-295.
198221, 198974, and 203592
ownership, together with .. . [Tan], his family and associates, in the

following companies (as well as its subsidiaries and acquired companies
or in turn invested in), to wit:
a) [Himmel Industries]
b) [Fortune Tobacco]
c) [Foremost Farms]
d) [Asia Brewery]
e) [Grandspan]
f) [Silangan Holdings]
g) [Dominium Realty]
80. . . . [President FM]'s 60% beneficial ownership in said

companies was held in trust by [Tan], personally and through his family
members and business associates, who appeared as stockholders-on-record
of said companies.
81. To implement the Marcos-Tan consolidation, the record (or

nominee) stockholders of the seven (7) companies ... transferred their
stockholdings in said companies to [SHI], through separate Deeds of Sales
of Shares of Stocks.
82. Thereafter, . . . [President FM] and [Tan] structured the

segregation of their beneficial ownership interests in the proportion of
60% for ... [President FM] and 40% for ... [Tan].
83. To segregate . . . [President FM]'s and [Tan]'s beneficial

ownership interests, three (3)·primary holding companies were organized:
[Basic], [Supreme], and [Falcon].
84. Basic was the owner on record of the beneficial interests of ...
[Tan] (40%), while Supreme and Falcon were the owners on record of the
aggregate beneficial interests of ... [President FM] (60%). These three (3)
holding companies were incorporated on July 20, 1983.
85. Acknowledging that they were merely holding their interest in

[SHI] in trust for ... [President FM] and [Tan], in the ratio of 60-40%,
respectively, the stockholders of [SHI] executed deeds assigning their
stockholdings/shares therein to the three (3) newly organized ultimate
holding companies, Basic, Supreme, and Falcon.
86. On July 16, 1984, the three (3) holding companies purchased
99% of the shares of the stockholders of [SHI] with the exception of
respondents [Tan] and [Tan Eng Lian] who retained 0.5% each.
87. To make Basie's shareholdings conform to the agreed [60-40]

ratio, shareholders of Basic executed a Deed of Sale of Shares of Stock in
favor of Supreme, transferring 9% of [SHI]'s shares held by the former in
favor of the latter.
88. After Basic transferred 9% of stock ownership in [SHI], the

stock ownership in [SHI] became as follows:
Stockholders No. of shares % of Holdings

198221, 198974, and 203592
[Basic] 50,300,000 40.0%

[Supreme] 42,755,000 34.0%
[Falcon] 31,437,500 25.0%
[Tan] 628,750 0.5%
[Tan Eng Lian] 628,750 0.5%
TOTAL 125,750,000 100.0%
89. In express recognition of the beneficial ownership of [President

FM], the incorporators of both Falcon and Supreme executed and
delivered to ... [President FM] blank [d]eeds of [a]ssignment, comprising
of a total of 60% majority control of the mentioned corporations. 101
From the foregoing, the Republic thus posited that 60% of the shares
in SHI are held by respondent-stockholders for and on behalf of President
FM as nominees, and that such 60% interest constitutes ill-gotten wealth
precisely for this reason. Further, as proof of President FM's beneficial
interest in the shares in question, the Republic relied on twelve deeds of
assignment of shares (blank deeds), the particulars of which are summarized
as follows:
Document Assi1mors Assi2nee/Subiect Consideration

Five undated and I. Soolim Co Unnamed assignee for an Unspecified
unnotarized deeds of (signed) unspecified number of
assignment 102 (Falcon 2. William C. Lee shares in [Falcon]
deeds) (signed)
3. AndyY. Li
(signed)
4. Jimmy C. Chua
(signed)
5. Antonio Choa
(illegible)
Five undated and I. Florentina Tan Unnamed assignee for an Unspecified

unnotarized deeds of (signed) unspecified number of
assignment103 2. Eduardo C. Chua shares in [Supreme]
(Supreme deeds) (signed)
3. William T. Wong
(illegible)
4. Nelson C. Tan
(signed)
5. Peter Sao (signed)
Undated and Tan (signed) Unnamed assignee for 1"628, 750.00

unnotarized Deed of 628,750 shares of stock in
Sale of Shares of SHI
Stock104 (Tan deed)
Undated and Tan Eng Lian (signed) Unnamed assignee for 1"628, 750.00
unnotarized Deed of 628,750 shares of stock in
1
°' Rollo (G.R. No. 203592) (Vol. VII), pp. 3846-3851.
1
°' Rollo (G.R. No. 203592) (Vol. II), pp. 1421-1425.
103
Id. at 1426-1430.
104
Id. at 1431-1432.
198221, 198974, and 203592
Sale of Shares of SHI

Stock105 (Tan Eng
Lian deed)
I diverge from the above position of the Republic. My conclusion is

that President FM' s alleged beneficial ownership over 60% of the shares of
SHI has not been established. I submit that a holistic appreciation of the
evidence merely shows that: (i) Tan might have been forced to agree to the
60-40 arrangement proposed by President FM; (ii) Tan made it appear that
the 60-40 arrangement had been implemented through the formation of SHI
and the three primary holding corporations Basic, Supreme, and Falcon; and
(iii) Tan had taken steps to preclude the implementation of the 60-40
arrangement by transferring the 60% interest claimed by President FM
to legitimate stockholders before the execution of the blank deeds in the
latter's favor.
a. The blank deeds of assignment are

sham documents
Tan's Written Disclosure detailed the 60-40 arrangement and the

context within which it had been forged, as follows:
For the duration of martial law which had effectively negated any
opposition to [President FM], [Tan] and his enterprises were not spared by
the various forms of intimidation and harassment that had plagued other
successful businessmen. Details of the Marcos exercise are further
described. Perhaps owing to sheer perseverance, ... [Tan's] enterprises
have managed to [survive] the pressure and in the Maria! Law era, two
major [Tan] companies were organized namely: a) [Allied Bank] which
was granted by the Central Bank (CB) a new commercial banking license
in May 1977; and b) [Asia Brewery] which had succeeded in proving the
misnomer in [the] [b]rewery [i]ndustry being classified as an overcrowded
industry for the last two decades in spite of the monopoly's continued
expansion projects.
ASIA BREWERY
By hindsight, we can now conclu(je that [President FM], from

the very beginning wanted to acquire the San Miguel Corporation
(~MC). However, it was impossible to :i-cquire SMC because it was
t{ghtly controlled by the Soriano and Ayala families. The only way is
t9 give SMC a competitor, to bring down the market price of SMC
shares and· to create conflicts within and among the SMC
stockholders.
105
Id. at 1433-1434.
198221, 198974, and 203592
[President FM] then started to say publicly that SMC was a

monopoly, that there should be free enterprise. Meanwhile, the GSIS and
SSS .were ordered to buy SMC shares. to a point that Roman Cruz, Jr.
became a director of SMC.
The ambition of John Gokongwei in becoming a director of SMC

resulted in a proxy fight and court battle, which in turn resulted in a lot of
revelations on the very high profitability of a brewery. Before that, every
year, SMC would make it of record with the BOI that the market demand
will always be met and that therefore, no new brewery should be approved
for establishment. It was also on record that SMC had continually been
increasing its brewery and bottling facilities.
Preparations went underway for the establishment of the second

brewery. Discussions with the BOI were steadfastly maintained and
supported SMC' s stand on the industry being overcrowded [despite] its
continued approval of SMC's expansion projects reached a stalemate.
The issue of (Asia Brewery)' s petition of being the second

brewerv was broached to [President FM] and nothing seemed to
please him more than to provide SMC with competition to realize his
obsession of gaining control of SMC. Upon his instruction, BOI
approved the application of [Asia Brewery] to establish the second
brewery and immediately, the market value of SMC's shares declined
from 1'48 to 1'25 per share. At this point, Danding Cojuangco started to
buy SMC shares. Eventually[,] he was able to buy Gokongwei's and
Enrique Zobel's block of shares which gave him a substantial holding.
Finally, Andres Soriano sold out to Cojuangco. Thus[,] full control went to
Cojuangco.
[President FM] however also took special interest in (Asia

Brewery]. As a condition to the grant of a brewery license, [President
FM] demanded that 25% of [Asia Brewery] be given to him.
In compliance with the said condition, [Silangan Holdings] was

incorporated on October 9, 1979. Twenty five percent (25%) of [Asia
Brewery ]'s shares of stock or fifty million shares was then transferred to
[Silangan Holdings]. Upon [President FM]'s insistence, a fake certificate
of stocks (sic) purportedly representing 100% of the total shares of
[Silangan Holdings] were delivered to him, endorsed in blank. In truth[,]
however, the [genuine] book of certificates of stock of [Silangan
Holdings] remained intact and remains so [to date]. Not a single certificate
of stock of [Silangan Holdings] has as yet been issued as none of the
subscriptions to the capital stock have been fully paid.
As insurance versus a possible claim by [President FM] or any

assignee upon the shares of [Silangan Holdings] purportedly evidenced by
the fake certificate of stocks (sic) issued and delivered to him in blank, all
stockholders of [Silangan Holdings] sold 100% of their shares to [SHI] on
December I 9, 1980. Moreover, on December 22, I 980, [Silangan
Holdings] sold 49.5 million shares of [Asia Brewery] to SHI (retaining
only 500,000 shares).
198221, 198974, and 203592
SHI was incorporated on November 11, 1979. The original

intention for setting up this company was for it to purchase and hold at
least 99% of the shares of stock from existing stockholders of the
following companies:
l. [Fortune Tobacco]
2. (Asia Brewery]
3. [Foremost Farms]
5. [Grandspan]
This set up is necessary in order to systematize the stock

ownership in the various corporations. Also, since the group of companies
was getting quite big, [Tan] felt and wanted to [ensure] that the various
companies would stay under one umbrella in the event that anything
should happen to him - [Tan] wanted to ensure continuity of the
companies which he had worked so hard to build up.
After the collapse of the mega-business[es] of his closest cronies

(DISINI, SILVERIO AND CUENCA), upon the rapid deterioration of
his health, and perhaps also on account of the inability of [Asia
Brewery] to generate satisfactory income, [President FM] began to
press that he be given a share in SHI. [Tan] attempted to evade the
unconscionable demand of [President FM] by spending most of his time
outside of the Philippines. From 1983 to the start of 1986, [Tan] spent
most of his time abroad. Despite [Tan]'s absence, [President FM] kept up
the pressure threatening the issuance of various tax decrees designed at
crippling [Fortune Tobacco]. ..
On July 20, 1983, three holding companies were incorporated

as follows:
l. [Basic]
2. [Falcon]
3. [Supreme]
On the same day, the incorporators of [Falcon] and [Supreme]

after paying their subscription in full, sold and transferred 100% of
their shares to a new group led by [Tan]. In the meantime, [President
FM] thru [Gapud] persisted in his demand for a share in SHI.
i~
On July 16, 1984, the three holding companies purchased 99% of

the shares of the st0ckholders of SHI, with the exception of [Tan] and
[Tan Eng Lian] who retained 0.5% each. On the same day, the said three
holding companies borrowed from the stockholders-vendors of SHI
amounts equivalent to the respective purchase prices of the
aforementioned shares on a 30-day term. Unable to pay the loan at
198221, 198974, and 203592
shares to the original vendors-stockholders in the same proportion as

when purchased.
\Vhen the pressure became too heavy to bear and with [President
FM] already displaying fangs of anger, deeds of assignment signed in
blank (without issuing much less surrendering the corresponding stock
certificates) by the original incorporators of [Falcon] and [Supreme] as
well as by [Tan] and [Tan Eng Lian] for their respective shares which all
together were supposed to have accounted for 51 % of [SHI]' s shares were
delivered to Gapud without revealing that:
1. The original incorporators had already much

earlier transferred and assigned their shares to the
new group led by [Tan] who were then the genuine
and registered owners of the shares with the sole
and exclusive authority to transfer the same;
2. [Falcon] and [Supreme] had already previously

divested themselves of SHI's shares having resold
the same to the original owners;
3. There could be no valid transfer of [Tan] and [Tan Eng

Lian's] shares in [SHI] as their respective subscriptions
had not been fully paid and to date remains unpaid.
Thereafter, [President FM] demanded for an additional 9% to give

himself supposedly a 60% control over [SHI]. To give the semblance of
compliance with said demand, it was madle to appear that on
[February] 28, 1985, [Basic] transferred the equivalent of 9% of SHI's
total shares to [Supreme] without revealing that:
1. [Basic] had in fact already divested itself of all its

SHI's shares (as of August 22, 1984) in favor of its
original owners;
2. At any rate, no transfer could legally be effected since

the subscriptions thereon have to date not yet been
fully paid; and
3. Moreover, the transfer docwnent itself was ineffective

because:
a. What was transferred were 11,317,500

shares of [Basic] (not SHI) when
[Basic] only had a total of 1,000,000
paid up shares ... ;
b. [T]he document was executed by some

person, wh0 are not stockholders of
[Basic]. 106 (Emphasis and
underscoring supplied)
00
' Rollo (G.R. No. 203592) (Vol. IV), pp. 3496-3502.
198221, 198974, and 203592
If Tan's statements were to be taken as fact, they would entail that

Tan had been pressured into ceding 60% interest in the various businesses
placed under the umbrella corporation, SHI. To secure his businesses, Tan
made it appear that he had complied with President PM's demands by
incorporating three holding c9mpanies to consolidate their respective 60%
and 40% interests in SHI. Thereafter, Tan made it appear that Falcon and
Supreme had been incorporated to hold President PM's 60% of the shares in·
SHI. Later still, Tan caused the execution of blank deeds purportedly
transferring 100% of the shares of Falcon and Supreme in President PM's
favor in compliance with the latter's demands.
However, unbeknownst to President FM, 100% of the shares of

Falcon and Supreme had been previously transferred by the incorporators to
respondent-stockholders. Thus, these incorporators, who stood as signatories
of the blank Falcon and Supreme deeds, were no longer stockholders of
Falcon and Supreme at the time the blank deeds were executed. Thus, based
on Tan's Written Disclosure, which, to repeat, the Republic itself
offered as evidence, the signatories of the blank Falcon and Supreme
deeds no longer had any capacity to convey, transfer, or assign any
interest in said holding companies at the time the blank deeds were
executed.
Strikingly, the Republic did not dispute the veracity of Tan's

narration. While it asserted, in general terms, that "exculpatory statements
... [which are] entirely barren of factual support ... ought to be regarded as
nothing but feigned defenses, 107 it nevertheless quoted these "defenses" to
elaborate on President FM's modus operandi in its Memorandum:
255. Respondent [Tan] confirmed [President FM]'s beneficial

interests in his various businesses which they cloaked under an umbrella
company - [SHI]. To segregate their unlawful business partnership, three
(3) holding companies namely, Basic, Falcon and Supreme, were formed.
Thus:
On July 20, 1[9]83, three holding companies were

incorporated as follows:
1. [Basic]
2. [Falcon]
3. [Supreme]
On the same day, the incorporators of [Fa)con] 1111d

[Supreme] after paying their subscription in full, sold
and transferred 100% of their shares to a new group led
by [Tan]. In the meantime, [President FM] thru
107
Rollo (G.R. No. 203592) (Vol. VII), p. 3940.
198221, 198974, and 203592
[Gapud] persisted in his demand for [a] ... share in

[SHI].
On July 16, 1984, the three holding companies

purchased 99% of the shares of the stockholders of [SHI]
with the exception of [Tan] and [Tan Eng Lian] who
retained 0.5% each. On the same day, the said three holding
companies borrowed from the stockholders-vendors of
[SHI] amounts [equivalent] to the respective purchase
prices of the aforementioned shares on [a] 30-day term.
Unable to pay the loan at maturity, the three companies
sold back (on August 22, 1984) the said shares to the
original vendors-stockholders in the same proportion as
when purchased.
256. Indeed, respondent [Tan] and former [President FM]'s

unlawful business partnership is manifested from [Tan]'s act of organizing
holding corporations, the structure of which he made known to [President
FM] through Gapud; and [Tan]'s execution of deeds of assignments to
conceal [President FM] 's proprietary and financial interests in these
holding corporations.
257. [Tan] explains that [SHI] was intended to purchase and hold
at least 99% of the shares of stocks from existing stockholders of
respondent corporations ... Thereafter, three holding companies, namely,
Basic, Falcon, and Supreme, were incorporated to structure the
segregation of respondents [President FM] and [Tan]'s 60%-40%
ownership interest.
258. The three holding companies purchased 99% of the shares of

stocks in [SHI] with the exception of respondents [Tan] and [Tan Eng
Lian] who retained 0.5% each. Falcon and Supreme, representing 60% of
[SHI] belong to respondent [President FM], while Basic, which holds the
remaining 40% interest, belongs to respondent [Tan].
259. The formed layers of holding corporations (Basic, Falcon,

Supreme) under the umbrella [SHI], and [Tan's group of companies]
execution of blank deeds of assignments (sic), clearly disclose that
respondents [Tan, et al.] implemented former [President FM]'s modus
operandi in hiding and concealing the Marcoses' proprietary interest in
[Tan's group of companies].1° 8 (Emphasis supplied)
Having relied on the afore-quoted statements in Tan's Written

Disclosure, the Republic cannot be permitted to cherry-pick the portions
thereof that support its cause, and conveniently disregard those which do
not. Taken in its entirety, Tan's Written Disclosure confirms that the
blank deeds of assignment were nothing but sham deeds without any
legal effect, drawn specifically to mislead President FM into believing
that his extortionate demands had been complied with.
"' Rollo (G.R. No. 203592) (Vol. VII), pp. 3947-3949.

198221, 198974, and 203592
b. The blank deeds are inadmissible as

evidence
Assuming arguendo that the blank deeds could be accorded legal

effect, they nevertheless remain inadmissible and bereft of any evidentiary
value.
The copies of the blank deeds presented as evidence by the Republic

and made part of the records of the case are plain photocopies, for while the
originals had been turned over by the U.S. government to PCGG, they were
later misplaced while in the latter's custody. As revealed during BBM's
cross-examination, the Republic, through PCGG, acknowledged such fact
and cited this as basis to present secondary evidence, thus:
Atty. Generillo [(PCGG)]:
Q: Now Mr. Witness, where are the original copies of these

documents?
A: As far as I know[,] the originals are with the [U.S.] Customs.
Q: Now in your previous testimony, you testified that your counsel in

the United States was trying to secure these documents from the
[U.S.] government?
A: Yes, sir.
Q: Was your counsel m the United States able to secure these

documents?
A: No, sir he was not. In fact, he went [to] us in preparation for my

appearance today, he wrote me a letter explaining that Mr.
[Gabriel,] who was appointed by the District Court in Hawaii to
look for the record was unable to locate those documents, the
originals of those documents.
Atty. Mendoza [counsel for BBM]:
Your Honors, please because of the non-production of these

records has been the reason of the testimony of [BBM] was deferred (sic)
for several months. I would like to read from the letter now pre~ented by
the witness the following statement. This is a letter as n{anifested
addressed to [BBM] from lawyers Bartko, Sandel, Tarant Millei; and th~
second paragraph of the letter read[s] as follows: "As you know based on
the information we received as well as the attached letter from Chief
Counsel of the [U.S.] Customs Service Michael V. Smiths to PCGG
Commiss10ner Parlade certified copies of various documents including
those involving [Tan] were already given to the PCGG last 27 December
198221, 198974, and 203592
1990. I am curious as to why these have not been presented to the

Philippine Courts[."] ...
CHAIRPERSON:
The PCGG ac.cording to the Letter should be in possession of the

certified true copies of those documents.
Atty. G~nerillo:
We respectfully submit, Your Honor that these documents are very

much relevant to the proof of the allegations in the Complaint, Your
Honors, especially with respect to the status of condition of the documents
that were seized by the [U.S.] government when the Marcoses landed in
Hawaii. Another thing, Your Honor, in the past we have tried to subpoena
former Commissioner Cesar Parlade, Your Honors. But the records will
show that the attempt of the Honorable Court to subpoena Commissioner
Parlade was unsuccessful, Your Honor. But we again issued a subpoena
for the testimony of Cesar Parlade on this point ... But we would like to
point out Your Honor that this will lay the basis for the presentation of
secondary evidence is (sic) that is necessary ... 109
However, even if the photocopies of the blank deeds are treated as

secondary evidence on account of the unavailability of the original
documents, they remain inadmissible. To be sure, all twelve blank deeds are
unnotarized and are thus in the nature of private documents. 110 At the time
these blank deeds were presented by the Republic as evidence, the prevailing
rule on proof of private documents was found in Section 20, Rule 132 of the
Revised Rules on Evidence which reads:
SEC. 20. Proof of private documents. - Before any private document

offered as authentic is received in evidence, its due execution and
authenticity must be proved by any of the following means:
(a) By anyone who saw the document executed or written;

(b) By evidence of the genuineness of the signature or
handwriting of tl1e maker; or
(c) By other evidence showing its due execution and
authenticity.
Any other private document need only be identified as that

which it is claimed to be.
No witnesses were presented to attest to the execution and authenticity

of the blank deeds. As well, no other evidence had been presented to
establish the genuineness of the signatures appearing thereon. Verily, the
Republic's failure to properly authenticate the blank deeds in question in
109
Ro/lo (G.R. No. 203592) (Vol. III), pp. 1669-1675.
IIO See Sec. 19, Rule 132 of the REVISED RULES ON EVIDENCE, supra note 48.
198221, 198974, and 203592
accordance with Section 20, Rule 132 rendered them inadmissible in

evidence, thus:
In the case of Chua v. Court of Appeals, it was held that before

private documents can be received in evidence, proof of their due
execution and authenticity must be presented. This may require the
presentation and examination of witnesses to testify as to the due
execution and authenticity of such private documents. When there is no
proof as to the authenticity of the writer's signature appearing in a
private document, such private document may be excluded. 111
(Emphasis supplied)
In stark contrast with the earlier discussion about Imelda's Amended

Answer and Tan's Written Disclosure, none of the exceptions to the rule on
authentication of private documents are present in the case of these blank
deeds. Again, these exceptions are: (a) when the document is an ancient one
within the context of Section 21, Rule 132 of the Rules of Court; (b) when
the genuineness and authenticity of an actionable document have not been
specifically denied under oath by the adverse party; (c) when the
genuineness and authenticity of the document have been admitted; or (d)
when the document is not being offered as genuine. 112 Verily, these blank
deeds are palpably inadmissible in evidence.
c. The other documentary evidence

presented in support of the
Republic's claim over 60% of SHI's
are likewise inadmissible
Finally, it bears to mention that the Republic attempted to bolster its

claim to 60% of the shares of SHI by presenting documents to show that
the other corporations under the SHI umbrella, particularly, Fortune
Tobacco and Allied Bank, had been granted undue concessions by
President FM. As summarized by the ponencia:
Additionally, the Republic presented voluminous documentary

evidence in support of its allegations ... :
I. Documents relating to Fortune Tobacco. There

are documents which show that numerous requests for
import quotas were made to the Philippine Virginia
Tobacco Administration or directly to [President FM],
bearing the latter's signature with the words "approved."
There are also those showing that respondent Tan, as
chairperson of Fortune Tobacco, wrote requests to
[President FM] which were favorably acted upon by the
latter. Likewise, several documents issued by the Office of
the President granting Fortune Tobacco's requests for
import quotas were submitted, which state that [President
111
Young Builders Corporation v. Benson Industries, Inc., G.R. No. 198998, June 19, 2019, 904 SCRA
485, 502. Citations omitted.
112
Fatula v. People~ supra note 54, at 156-157.
198221, 198974, and 203592
FM] approved the request for the import quota.
2. Documents relating to Allied Bank. The Republic

presented documents which show that respondent Tan
wrote direct requests to [President FM] on behalf of Allied
Bank. These were likewise approved or granted by
[President FM] as shown by notations or issuances by the
Office of the President. 113
I agree with the ponencia in upholding the Sandiganbayan's correct

observation that the aforesaid documents pertaining to the alleged
concessions granted in favor of Fortune Tobacco and Allied Bank are
inadmissible and incompetent. The voluminous documentary evidence
were mere photocopies, and the witnesses who testified on these
documents had no direct participation in the preparation and execution
thereof. 114
In sum, without any evidence to prove President FM's beneficial

interest in 60% of the shares in SHI, the Republic's claim over said interest
crumbles. The Court is left with absolutely no basis to order the
reconveyance of said interest in favor of the Republic. To my mind, such
60% interest as a metric for recovery in the absence of preponderant
evidence to show that it constitutes ill-gotten wealth would be improper,
iniquitous, and extremely unjust.
The grant of the brewery license

due to President FM and Tan's
close business relationship gives
rise to the Republic's right of
recovery
Notwithstanding the foregoing, I find that the Republic nevertheless

established that Tan did, in fact, take advantage of his close business
relationship with President FM to secure an undue benefit, specifically, the
brewery license granted in favor of Asia Brewery.
This has been established through the Written Disclosure of Tan,

which, to reiterate, he similarly relied upon and even quoted in full in his
own Memorandum. To restate:
ASIA BREWERY
By hindsight, we c2n now conclude that [President FM], from the

very beginrjng wanted :o acquire the San Miguel Corporation (SMC).
However, it was impossible to acquire SMC because it was tightly
controlled by the Soriano and Ayala families. The only way is to give
113
Ponencia, pp. 57-58.
114
Rollo (G.R. 203592) (Vol. I), pp. 157-161.
Concurring and· Dissenting Opiriion 47 G.R. Nos. 195837,
198221, 198974, and 203592
SMC a competitor, to bring down the market price of SMC shares and to
create conflicts within and among the SMC stockholders.
[President FM] then started to say publicly that SMC was a

monopoly, that there should be free enterprise. Meanwhile, the GSIS and
SSS were ordered to buy SMC shares to a point that Roman Cruz, Jr.
became a director of SMC.
Preparations went underway for the establishment of the second

brewery. Discussions with the BOI were steadfastly maintained and
supported SMC's stand on the industry being overcrowded [despite] of its
continued approval ofSMC's expansion projects reached a stalemate.
The issue of [Asia Brewery]'s petition of being the second

brewery was broached to [President FM] and nothing seem[s] to
please him more than to provide SMC with competition to realize his
obsession of gaining control of SMC. Upon his instruction, B01
approved the application of (Asia Brewery] to establish the second
brewerv and immediately, the market value of SMC's shares declined
from 1'48 to 1'25 per share. At this point, Danding Cojuangco started to
buy SMC shares. Eventually, he was able to buy Gokongwei's and
Enrique Zobel's block of shares which gave him a substantial holding.
Finally, Andres Soriano sold out to Cojuangco. Thus full control went to
Cojuangco. 115 (Emphasis and underscoring supplied)
Through the foregoing statements, Tan significantly concedes that: (i)

he was aware of President FM's specific interest to gain control of SMC; (ii)
he capitalized on President FM's interest in SMC by broaching to President
FM the establishment of Asia Brewery to give SMC a competitor and
disrupt the latter's dominant position in the market; and (iii) Asia Brewery's
license was thereafter granted by the Board of Investments (BOI) upon
President FM's instruction. Clearly, the grant of Asia Brewery's license was
a benefit granted by President FM in favor of Tan on account of their close ·
business relationship, inasmuch as Tan likewise concedes that he would not
have been able to secure the Asia Brewery's license had he not pitched the
idea to President FM. In so doing, Tan can be said to have acquired ill-
gotten wealth through Asia Brewery in accordance with the second mode of
acquisition - by taking undue advantage of his close business relationship
with President FM.
At this j1mcture, it bears stressing Ll-iat in actions for recovery of ill-

gotten wealth, evidentiary substantiation of the allegations as to how the
wealth in question had illegally been acquired and by whom is necessary.
Prevailing jurisprudence thus instructs that the mere holding of a
government position during President FM's administration does not
necessarily make a party a close associate within the context ofEO No. 1. 116
5
" Rollo (G.R. No. 203592) (Vol. IV). p. 3498.
116
See Republic v. Rzyes-Bakunawa, supra note 40, at 187.
Concurring and Dissenting Opinion 48 G.R. Nos. I 95837,
198221 , 198974, and 203592
In Republic v. Reyes-Bakunhwa, 117 the Court notably construed the

term "subordinate" as used in EOI
Nos. l and 2 to refer to a person who
enjoyed a close association with President FM and/or his wife, Imelda,
"similar to that of an immedia~e family member, relative, and close
associate, or to that of a close relative, business associate, dummy, agent, or
nominee."' 18 Indeed, a prima facie showing must be made to show that one
unlawfully accumulated wealth by virtue of a close association or relation
with President FM and/or his wife. 1 19
1
Here, there can be no gainsaying that Tan enjoyed such close

association as a business associate of President FM. Imelda's Amended
Answer and BBM's Testimony consistently painted Tan as a close business
associate of President FM. The i·elevant portions of said evidence bear
repeating here:
Imelda's t mended Answer
I
42. Way before and continuing through 1985, former
[President FM) had bcneficia( ownership, together with [Tani, his
family and associates, in the following operating companies, as well as
acquired[,] or in turn invested to wit: I°'

the subsidiaries and companies!which these operating companies have
3. [Foremost Farms]
4. (Asia Brewery]
5. [Grandspan]
6. (Silangan Ho ldings]
43. [President FMI had a sixty percent (60%) beneficial

ownership in said companies, !which beneficial interests were held in
trust by [Tan] personally and through his family members and
business associates who appeaJect as the recorded stockholders of said
companies. 120 (Emphasis and underscoring supplied)
BBj •s Testimony:
Q: "When was the first time lthat you saw [Tan]?"
WITNESS CONG. MARCOS, Jk.

. I .
A: I could not give you the specific date but I know it was in the
early '70s. As I said, the· (irstl time I saw him was in the area of the
Palace that we call the "Study Room", which is the area next to my
father's office.
A TTY. GENERILLO
11 1 Id
118
Id. citing Republic v. Migrinu, G.R. No. 894 83, August 30, 1990, 189 SCRA 289, 297- 298.
I IIJ Id.
1
120
Rollo (G .R. No. 203592) (Vol. V I, ), p. 3997.
I
ConcmTing and Dissenting Opinion 49 G.R. Nos. 195837,
198221, 198974, and 203592
Q: Did you have opportunity to talk to [Tan]?
A: Yes; several times after we have been introduced. We would

say "hello" to each other when we cross each other's paths. And on a
couple of occasions, we actually had an opportunity to have
substantive conversations aside from meetings.
Q: What do you mean "substantive meetings" or discussions?
A: Well, I remember that at one point, I was summoned by my

father to his office and so I went. And he was there with [Tan] in the
discussion.
And he at that point told me that he would like me to

familiarize myself with the operations of some of the enterprises that
we have interests in and that [Tan] was going to help me to be more
familiar with the said operations.
Q: Why did your father summon you to his office to familiarize

yourself with the business interests of the Marcoses?
A: It was part of a larger effort on the part of the family to really

clarify and to conduct an inventory and legal audit of all those
business interest that we have.
My sister Imee, who has legal training, was given the job of
conducting the legal audit, and I was given the job to go to as many of
these enterprises as I could and as I said, learn the operations and
meet the people who were running lthem so that when the time comes
that we would take over, we would know how to manage these
different interests.
Q: Was there any occasion for your father to show proof of the
family's interests in [Tan]?
A: Well, when we first began this whole effort, he had me and my

sister, we met and we sat down and showed us some documents which
are essentially Deeds of Assignment, Shares of Stock, Titles to
properties, and all these kinds of things. And he tried to give us a
sketch of exactly how the structures were.
And then his instructions to us were - we go out and make

sure that first, all documentations were in place because maybe the
documents or something were in some persons, the documents or
something were in another person, to really reorganize them and
collate everything. So, that was the gist of- We had several of those
meetings, and that was then I saw these documents. 121 (Underscoring
supplied; emphasis in the original)
121
/d.at4013--4015.
198221, 198974, and 203592
Tan, on the other hand, was conspicuously evasive and guarded by the
way he depicted his acquaintance with President FM. He presented himself
as a victim of the former President's intimidation, yet, offered no
explanation on how this was so or came about. As it stands, there were
apparent gaping holes in his story and attempts to understate his relationship
with President FM. But as aptly laid down by the Republic in its
Memorandum, in so many words, there were far too many pieces of
information relayed in Tan's Written Disclosure that only a business
associate would be privy to.
In particular, citing the excerpt from Tan's Written Disclosure anent

Asia Brewery, the Republic observed:
[I]t is clear that respondent [Tan] viewed the Marcos-[Tan] partnership as

mutually beneficial. Respondent [Tan] utilized [President FM]'s stem
intervention in organizing Asia Brewery which, in tum, paved the way for
Marcos to penetrate SMC.
245. Further, the [Written Disclosure] reveals respondent

[Tan)'s close personal relationship with [President FM] such that: (a)
he knew of [President FM)'s interest in SMC; (b) he broached the idea
of having a second brewery - respondent Asia Brewery - to former
[President FM] to compete with SMC and this pleased the former
President because it gave him the opportunity to gain control of SMC;
and (c) he had unrestricted access to [President FM] so that when the
[BOI] supported SMC's position that the industry was overcrowded,
he automatically went directly to [President FM] and sought his help
in the organization of a second brewery, the Asia Brewery.
246. Respondents [Tan] and. [President FM]'s close personal

relations is made more manifest by respondent [Tan]'s knowledge that
former [President FM] ordered GSIS and SSS to buy SMC shares on the
occasion of which Ramon Cruz, Jr. became a Director of SMC.
Eventually, when the BOI approved [Asia Brewery]'s application, upon
former [President FM]'s directives, the latter eventually obtained full
control of SMC through Danding Cojuangco. Respondent [Tan] had
knowledge also of the mega-businesses offom1er [President FM]'s closest
cronies whom he named to be Disini, Silverio and Cuenca. 122 (Emphasis
supplied)
Indeed, Tan's Written Disclosure, no matter how craftily drafted,

gives away crucial details of his business relationship with President FM that
dovetail with the narrations of Imelda and BBM in their Amended Answer
and Testimony, respectively. Whether it was true ·that he was merely
intimidated or coerced into forging a business partnership with President FM
is, as regards this issue, beside the point - neither does it matter if he later
succeeded in misleading him. The fact remains that under the language of
the law, it can legitimately be said that Tan was able to unduly benefit from
his close business relationship with President FM. Stated differently, the
procurement of such undue benefit would appear to fall squarely within the
scope of the second mode of acquiring ill-gotten wealth and gives basis to
122
Id. at 3942-3943.
198221, 198974, and 203592
the Republic's right of recovery under EO Nos. 1 and 2.
The case must be remanded

for determination of the
amount to be recovered by the
Republic
As the Republic's right of recovery in this particular case solely

proceeds from the grant of Asia Brewery's license on account of President
FM's close business relationship with Tan, the amount which the Republic
may recover herein must be based on the amount of ill-gotten wealth derived
therefrom.
Here, the records are bereft of any evidence which would allow the
Court to determine the precise amount of said ill-gotten wealth so acquired.
Despite this, the Civil Code 123 permits the Republic to recover
temperate and exemplary damages. Specifically, Article 2224 of the Civil
Code provides that temperate damages may be recovered "when the court
finds that some pecuniary loss has been suffered but its amount cannot, from
the nature of the case, be provided with certainty." On the other hand,
Article 2229 of the same statute permits the recovery of exemplary damages
"by way of example or correction for the public good", when either moral,
temperate, liquidated, or compensatory damages are awarded.
The award of temperate and exemplary damages in actions for

recovery of ill-gotten wealth is not novel.
In Tuvera, the Court recognized that while the Republic therein failed
to prove the exact amount to be recovered, it was nevertheless entitled to·
temperate and exemplary damages. The Court held:
If only the Court's outrage were quantifiable in sums of money,

respondents are due for significant pecuniary hurt. Instead, the Court is
forced to explain in the next few paragraphs why respondents could not be
forced to [compensate] the Filipino people in appropriate financial terms.
The fault lies with those engaged by the government to litigate this case in
behalf of the State.
It bears to the most primitive of reasons that an action for recovery

of sum of money must prove the amount sought to be recovered. In the
case at bar, the Republic rested its case without presenting any evidence,
documentary or testimonial, to establish the amount that should be
r~stituted to the State by reason of the illegal acts committed by the
r~spondents. There is the bare allegation in the complaint that the State is
entitled to [l"48 million] by way of actual damages, but no single proof
presented as to why the State i, entitled to such amount.
123 Republic Act No. 386 also known as "An Act to Ordain and Institute the Civil Code of the Philippines,"
approved on June I 8, 1949.
Concurring and Dissenting Opinion 52. G.R. Nos. 195837,
198221, 198974,and203592
Actual damages must be proven, not presumed. The Republic

failed to prove damages. It is not enough for the Republic to have
established, as it did, the legal travesty that led to the wrongful
obtention by Twin Peaks of the TLA. It should have established the
degree of injury sustained by the State by reason of such wrongful act.
[T]here is sufficient basis for an award of temperate damages, also sought

by the Republic notwithstanding the fact that a claim for both actual and
temperate damages is internally inconsistent. Temperate or moderate
damages avail when "the court finds that some pecuniary loss has been
suffered but its amount cannot from the nature of the case, be proved with
certainty." The textual language might betray an intent that temperate
damages do not avail when the case, by its nature, is susceptible to proof
of pecuniary loss; and certainly the Republic could have proved pecuniary
loss herein. Still, jurisprudence applying Article 2224 is clear that
temperate damages may be awarded even in instances where pecuniary
loss could theoretically have been proved with certainty.
In a host of criminal cases, the Court has awarded temperate

damages to the heirs of the victim in cases where the amount of actual
damages was not proven due to the inadequacy of the evidence presented
by the prosecution. These cases include People v. O/iano, People v.
Suplito, People v. De la Tongga, People v. Briones, and People v. Plaza.
In Viron Transportation Co., Inc. v. Delos Santos, a civil action for
damages involving a vehicular collision, temperate damages were awarded
for the resulting damage sustained by a cargo truck, after the plaintiff had
failed to submit competent proof of actual damages.
We cannot discount the heavy influence of common law, and its

reliance on judicial precedents, in our law on tort and damages.
Notwithstanding the language of Article 2224, a line of jurisprudence has
emerged authorizing the award of temperate damages even in cases where
the amount of pecuniary loss could have been proven with certainty, if no
such adequat~ proof was presented. The allowance of temperate damages
when actual damages were not adequately proven is ultimately a rule
dravm from equity, the principle affording relief to those definitely injured
who are unable to prove how definite the injury. There is no impediment
to apply this doctrine to the case at bar, which involves one of the
most daunting and noble undertakings of our young democracy the
recoverv of ill-gotten wealth salted away during the Marcos years. If
the doctrine can be justified to answer for the unlawful damage to a
cargo truck, it is a compounded wrath if it cannot answer for the
unlawful exploitation of our forests, to the injury of the Filipino
people. The amount of [1"1,000,000.00] as temperate damages is
proper.
The allowance of temperate damages also paves the way for the
award of exemplary damages. Under Article 2234 of the Civil Code, a
showing that the plaintiff is entitled to temperate damages allows for the
award of exemplary damagrs. Even as exemplary damages cannot be
recovered as a matter of rigl:t, :he courts are empowered to decide whether
or not they should be adjudicated. Ill-gotten wealth cases are hornbook
demonstrations where damages by way of example or correction for
the public good should be awarded. Fewer causes of action deserve the
stigma left by exemplary damages, which "serve as a deterrent against j
i
Concurring and Dissenting Opinion · 53 G.R. Nos. 195837,
198221, 198974, and 203592
or as a negative incentive to curb socially deleterious actions." The

obtention of the [Timber License Agreement] by Twin Peaks through
fraudulent and illegal means was highlighted by Juan Tuvera' s abuse of
his position as Presidential Executive Assistant. The consequent
exploitation of 26 hectares of forest land benefiting all respondents is a
grave case of unjust enrichment at the expense of the Filipino people and
of the environment which should never be countenanced. Considering the
expanse of forest land exploited by respondents, the volume of timber that
was necessarily cut by virtue of their abuse and the estimated wealth
acquired by respondents through grave abuse of trust and public office, it
is only reasonable that petitioner be granted the amount of
[Pl,000,000.00] as exemplary damages.
The imposition of exemplary damages is a means by which the

State, through its judicial arm, can send the clear and unequivocal
signal best expressed in the pithy but immutable phrase, "never
again." It is severely unfortunate that the Republic did not exert its best
efforts in the full recovery of the actual damages caused by the illegal
grant of the Twin Peaks TLA. To the best of our ability, through the
appropriate vehicle of exemplary damages, the Court will try to fill in that
deficiency. For if there is a lesson that should be learned from the national
trauma of the rule of Marcos, it is that kleptocracy cannot pay. As those
dark years fade into the backburner of the collective memory, and a new
generation emerges without proximate knowledge of how bad it was then,
it is useful that the Court serves a reminder here and now. 124 (Emphasis
and underscoring supplied)
As well, in the more recent case of Disini, the Court resolved to award
temperate and exemplary damages in favor of the Republic, notwithstanding
its failure to prove the total amount of ill-gotten wealth acquired by
respondent therein in the form of commissions arising from the BNPP,
hence:
Despite the failure of the Republic to prove the total amount of

commissions received by [Herminio], the Court fully recognizes its
right to recover the ill-gotten wealth. [Herminio] is not at all entitled
to these commissions as he illegally acquired them through the use of
his influen~e and close relationship with [President FM] without
rendering any service for the benefit of the Republic's BNPP project.
Evidently, [Henninio] unjustly enriched himself by receiving

substantial commissions from Westinghouse and B&R and acting as the
SSR in order to ensure the award of the [BNPP] project to the said
companies by taking undue advantage of his close relationship with
[Presiderrl FM]. Article 22 of the Civil Code provides that "[ e]very person
who through an act or performance by another, or any other means,
acquires or comes·into possession of something at the expense of the latter
without just or legal ground, sha]] return the same to him."
There is unjcist·exichment wr,en a person unjustiy retains a benefit

to the loss• of another, or when a person retains money or property of
another against the fundamental principles of justice, equity and good
conscience. The principle of unjust enrichment essentially contemplates
iz4 Republic v. Tuvera, supra note 34, at 149-153. Citations omitted.

Concurring and bissenting Opinion 54 G.R. Nos. 195837,
198221, 198974, and 203592
payment when there is no duty to pay, and the person who receives the
payment has no right to receive it.
In fine, the Republic's failure to particularly prove the actual

amount of commissions received by [Herminio] should not override its
right to recover the illegally-acquired commissions considering the
fact that it has satisfactorily established, by preponderance of
evidence, [Herminio]'s receipt thereof. Necessarily, public funds were
released for the construction of the BNPP project. [Herminion] indirectly
amassed a portion of these public funds through commissions paid by
Westinghouse and B&R. These commissions or "kickbacks" are not only
illegal or fraudulent but detrimental to the Republic and highly unfair and
prejudicial to ordinary Filipino taxpayers.
However, actual damages to be recoverable must be supported by

evidence on record and cannot be left merely to the discretion of the court.
While We affirm the Republic's entitlement to recover [Herminio]'s ill-
gotten wealth, no other evidence was presented to show the definite
amount thereof. The Republic failed to substantiate its claim for actual
pecuniary loss or damages sustained by reason of [Herminio]'s acquisition
of ill-gotten wealth.
\Vhile it is true that the Republic failed to prove the amount of

commissions received, this does not mean, however, that [Herminio] is
free from any liability under this civil action for reconveyauce,
reversion, accounting, restitution and damages. Thus, under the
principle of unjust enrichment, We uphold the Republic's right to
recover these commissions in favor of the Filipino people. No one
should unjustly enrich himself by receiving commissions iu connection
with a government project when clearly he has no right for it nor
entitled to retain the same.
Nonetheless, since recovery thereof cannot be effected due to the

absence of a definite amount, We deem it proper to award the Republic
temperate damages for the pecuniary loss and the Filipino people suffered
on account of [Herminio ]' s illegal acquisitions of substantial commissions
from Westinghouse and B&R, albeit the amount thereof not being proven
with certainty. Under Article 2224 of the Civil Code, temperate or
moderate damages, which are more than nominal but less than
compensatory damages, may be recovered when the court finds that some
pecuniary loss has been suffered but its amount cannot, from the nature of
the case, be determined with certainty ...
Here, the Republic is entitled to recover temperate damages as

there is no doubt that [Herminio] trampled on the rights of the
Filipino people to benefit from, and make good use of, these ill-gotten
wealth, i.e., substantial commissions or kickbacks he acquired; and
that the whole n'.ltion significantly suffered pecuniary loss due to
[Herminio]'s illegal acquisition of these public funds.
Considering the relevant circumstances of this case, the

198221, 198974, and 203592
amount of One Billion Pesos [('Pl,000,000,000.00)] as temperate

damages is reasonable and justified. It bears stressing that this is not just
an ordinary civil action for recovery of property and damages. This is an
action for recovery of ill-gotten wealth which is imbued with public
interest and concerns not only the government but every Filipino citizen,
then and now. As part of the healing process of this nation, the Freedom
Constitution specifically mandates the President to prioritize the recovery
of these ill-gotten wealth. Hence, the loss or injury suffered by every
Filipino due to [Herminia]' s acquisition of ill-gotten wealth must be duly
recognized and compensated.
Further, We note that the Filipino people have not at all benefited
from the BNPP as it has remained inoperable as of this writing, a
proverbial White Elephant. Obviously, a considerable amount of public
funds had been invested and allocated for the construction of the BNPP,
which funds came from the blood, sweat and tears of the Filipino
taxpayers. The ill-gotten wealth should have been used and spent for and
by the rightful owner thereof and not just by one person or a select group
of people in power.
Also, the Republic was unduly deprived of its rights over these
substantial commissions as part of public funds, and was compelled to
litigate for their recovery for more than three decades. We cannot
overemphasize that [Herminia] received these ill-gotten wealth starting in
1976 when the construction of the BNPP began. Consequently, he had
profited immensely from these commissions for a significant portion of his
lifetime at the expense of the Filipinos.
Taking into consideration the inflation rate and the Philippine

Peso's purchasing power at that time, these substantial commissions, if
recovered, would have been greatly valued now and could have been used
for the betterment of the Philippines. In addition, the Republic would have
been entitled to recover legal interest on the total amount of commissions
received had it proved such.
Undeniably, the recovery of these illegally acquired public

funds, properties and assets has great impact on every Filipino's life.
Hence, the award of One Billion Pesos [('Pl,000,000,000.00)]
temperate damages is reasonable under the circumstances taking into
consideration the rights of all Filipino citizens encroached upon by
(Herminio] 's acquisition of ill-gotten wealth and the damage caused to
the Republic for its failure to make good use of the same.
With the grant of temperate damages, this allows the imposition of

exemplary damages by way of example or correction for the public good.
Exemplary damages cannot be recovered as a matter of right and are only
considered when moral, temperate, liquidated or compensatory damages
are granted. "Exemplar1 damages are designed by our civil law to pennit
the courts to reshap!" behavior that is socially deleterious in its
consequence by creating negative incentives or deterrents against such
behavior." Its purpose is to serve as a deterrent to serious wrong doings
and as a vindication of 1mdue sufferings and wanton invasion of the rights
of an injured or a punishment for those guilty of outrageous conduct.
There is no doubt that [Herminio]'s receipt of [these] substantial

commissions from Westinghouse and B&R is illegal and despicable which
is no less than abhorred by our Freedom Constitution as its mandate
198221, 198974, and 203592
includes eradication of graft and corruption, punishment of those guilty

thereof and recovery of ill-gotten wealth. Verily, [Herminio]'s conduct
should be corrected and deterred as his use of influence or power for his
own personal benefit to the detriment of the Republic caused substantial
injury not only to public funds but to the morale, trust and confidence of
Filipinos in the government and its projects. Hence, this Court finds it
reasonable under the circumstances to award One Million Pesos
[(Pl,000,000.00)] as exemplary damages. 125 (Emphasis and underscoring
supplied)
It bears noting, however, that in the foregoing cases, the Court's

award for temperate and exemplary damages had been based on specific
monetary values. In Tuvera, the Pl,000,000.00 award for temperate and
exemplary damages drew upon the assertion that the undue award of a TLA
in favor of therein respondents Juan, Victor, and Twin Peaks resulted in
revenues amounting to "approximately P45,000,000.00." On the other hand,
in Disini, the Court based its award of temperate and exemplary damages on
the price of the government contracts established to have been awarded in
favor of contractors Westinghouse and B&R through Herminia's influence.
In this case, no similar metric exists.
To reiterate, the 60-40 arrangement cannot serve as the Court's basis

to determine the damages which may be assessed in favor of the Republic as
its right to recover in this case is anchored not on said arrangement, but on
the undue influence exerted by Tan in order to secure Asia Brewery's
license. Thus, the damages due the Republic must be assessed based on the
portion of the latter's revenue which may be deemed ill-gotten.
In the absence of proof respecting these material facts, the Court is

precluded from making a reasonable determination as to the monetary
damage sustained by the Republic and its people on account of the un:due
benefit granted in favor of Tan. Thus, the Court cannot assess damages,
whether temperate or exemplary, in favor of the Republic at this stage in the
proceedings, considering that these damages have not been reasonably
established in appropriate financial terms. 126 To do otherwise would
inequitably and unfairly disregard the reality that the growth and
success of Asia Brewery did not rest solely on the undue benefit granted
by President FM in the form of its license.
The Court can surely take judicial notice of the fact that it has been 40
years since Asia Brewery was. established following the grant of its BOI
license, and that it has since continued to operate 37 years after President
FM's ouster.
As Tan's Written Disclosure reveals, he managed to secure Asia

Brewery's license by pitching it as a possible competitor for SMC. In turn,
25
i Disini v. Republic, supra note 37. Citations omitted.
126
See Tuvera v. Republic, supra note 34.
198221, 198974, and 203592
President FM' s motive in allowing for the establishment of Asia Brewery.

was in order that a competitor would disrupt SMC's monopoly and drive
down the prices of its shares to allow his then ally, Danding Cojuangco,
to gain control. 127
Notably, the records of the case are bereft of any evidence to show
that President FM granted Asia Brewery any other benefit or
concession apart from its initial brewery license. In fact, Tan's Written
Disclosure indicates that President FM was not satisfied with Asia
Brewery's profitability. It was precisely Asia Brewery's unsatisfactory
performance which prompted President FM to demand a 60% share in all
corporations 128 under the SHI umbrella, in addition to the 25% share in Asia
Brewery which he initially asked for. 129 It would thus appear that instead of
enjoying additional benefits or concessions to augment its profitability, Asia
Brewery had been placed at a disadvantage due to President PM's
subsequent takeover threats.
More, at the time Asia Brewery began its operations in 1982, the beer
market was monopolized by industry giant SMC. 130 In tum, competing with.
SMC proved to be difficult for Asia Brewery, as SMC appeared to have
exerted efforts to maintain its dominance in the local beer market. In 1988,
SMC filed a complaint against Asia Brewery for infringement of trademark
and unfair competition on account of the latter's Beer Pale Pilsen or Beer na
Beer product which competed with SMC's San Miguel Pale Pilsen for a
share in the local beer market. In a 1993 Decision rendered in Asia Brewery,
Inc. v. Court of Appeals, 131 the Court found no basis to support SMC's
assertions and held that Asia Brewery neither infringed SMC's trademark
nor committed unfair competition with respect to the latter's San Miguel
Pale Pilsen product. 132
As well, the Court can take judicial notice of the fact that Asia
Brewery filed an action against SMC in 1997, claiming that the latter
committed "unfair trade practices" by hoarding, smashing, and illegally
removing Asia Brewery's empty beer bottles and plastic crates from
circulation. 133 The CA later directed SMC to pay Asia Brewery
!'68,000,000.00 in damages to compensate the latter for its unfair trade
practices. 134
127
See rollo (G.R. No. 203592, Vol. IV), p. 3498.
128
Fortune Tobacco, Foremost Farm,s, Himmel Industries, Grandspan Developmtnt, and Qornlnium
Realty. · · • ··
129 See ro/lo (G.R. No. 203592) (Vol. IV), pp. 3496--3502.
130 See A bout Us. (n.d). Asia Brewery [we bsite]. Last accessed October 14, 20J3, from
<https://asiabre-Nery .com/i:ages/about-us>.
131 G.R. No. 103543, July 5, H93, 224 SCRA 437.
132
See id at 456.
133 ABS-CBN News. (2008, November 24). Asia Brewery Wins First Round in Unfair Trade Practices
Case Vs San Miguel. Last accessed October 14, 2023, from <https://news.abs-
cbn.com/business/11/24/08/asia-brewery-wins-first-round-unfair-trade-practices-case-vs-san-miguel>.
134
Philippine Daily Inquirer. (201 I, October 5). Asia Brewery Wins Bottle Case Vs San Miguel Corp. Last
accessed October 14, 2023, from <https://business.inquirer.net/23021/asia-brewery-wins-bottle-case-
198221, 198974, and 203592
Despite such heavy political and market pressure, Asia Brewery

thrived through the years and has managed to remain in business due in large
part to the industry of its own officers and employees. It bears noting that
beyond sustaining its business operations, Asia Brewery has since managed
to raise its share in the Philippine beer market to 38% as of 2013. 135 Despite
being known as a beer company, Asia Brewery now dominates the drinking
water, soy milk, energy drink, and alco-mix categories. 136 The company has
also been a reliable contributor to the net profit of the Lucio Tan Group, Inc.
(LT Group), albeit in a comparatively smaller way than the other big
companies in the LT Group. For the first half of 2023, Asia Brewery reportedly
accounted for P340 million or 3% of the total net income of the LT Group. This
is 16% higher than the P294 million last year, as revenues were 3% higher at
PS.41 billion from i>S.14 billion. 137
As such, the peg from which the damages to be awarded here must not
carelessly include income that has been honestly and legitimately earned by
Asia Brewery. To borrow the words of Justice Jose P. Laurel, "the
administration of justice is not a matter of guess work." 138
On this basis, I submit, as I did at the outset, that the remand of the
Petition docketed as G.R. No. 203592 is necessary so that the temperate and
exemplary damages due the Republic may be assessed and determined with
some measure of certaintv.
Indeed, as what has been emphasized by the Court in the past, the
factual premises of the EOs governing the recovery of ill-gotten wealth
cannot simply be assumed. They will have to be duly established by
adequate proof in each case, in a proper judicial proceeding, so that the
recovery of the ill-gotten wealth may be validly and properly adjudged and
consummated. 139 The desire to be less than this methodical may be all too
real, considering that it is a matter of "extensive notoriety" that "an immense
fortune" and "vast resources of the government have been amassed by
former [President FM], his immediate family, relatives, and close associates
both here and abroad" through "all sorts of clever schemes and
manipulations to disguise and hide their illicit acquisitions," and hence, may
already be well within the realm of judicial notice as to dispense with proof
thereof. 140 Be this as it may, the requirement of evidentiary substantiation
has been expressly acknowledged, and the procedure to be followed
explicitly laid down, in EO No. 14. 141
vs-san-miguel-corp>. There is no publidy available data confirming that a subsequer.t appeal had been
lodged. .
5
D Philippine Daily inquirer.(2013, J;muary 28). Asia Brewery to Expand Throughout Asia. Last accessed
June 8, 2023, from <https://business.inquirer.net/104639/as!a-brewery-to-expand-throughout-asia>.
136 Id
m Manila Bulletin. (2023, August 11). LT Group ·s Profi!s Decline to P 13B. Last accessed October 14.
2023, from < h1ttps://mb.com.ph/2023/8/' 1/lt-group-s-profits-decline-to-p 13-b>.
138
Go Occo & Co. v. De la Costa. 63 Phil. 445, 449 (1936).
139
See Republic v. Reyes-Bakunawa, supra note 40, citing Bataan Shipyard & Engineering Co., inc.
(Baseco) v. Presidential Commission on Good Government, supra note 23.
140
SeeRepublicv. Reyes--Bakunawa, id. at 187.
141 Id.
198221, 198974, and 203592
While my submission to remand here seems, at first blush, a backslide

from Tuvera and Disini, this is but an imperative one to be taken in step with
the rule of law. While the long-running remedial efforts of the Republic to
recover ill-gotten wealth from the Marcoses and their cronies should never
be brought to naught, especially in the face of an alarmingly proliferating
historical denialism of late, these efforts must be done fairly and judiciously.
Inasmuch as the injustice that the former regime of kleptocracy had inflicted
on our nation should be fought relentlessly, it should not be through means
that are as equally unjust.
In view of the foregoing, I vote that the Court:
1. AFFIRM the Sandiganbayan's Resolutions dated December

22, 2010 and February 25,201 lin G.R. No. 195837;
2. AFFIRM the Sandiganbayan's Order dated June 9, 2011

and Resolution dated August 2, 2011 in G.R. No. 198221;
as well as the Sandiganbayan's Resolutions dated May 3,
2011 and July 4, 2011 dismissing the Republic's Motion for
Voluntary Inhibition;
3. AFFIRM the Sandiganbayan's Resolutions dated July 8,

2011 and August 23, 2011 in G.R. No. 198974 which
denied the Republic's Motion to Admit Third Amended
Complaint; and
4. REVERSE the Sandiganbayan's Decision dated June 11,

2012 and Resolution dated September 26, 2012 in G.R. No.
203592.
Further, the I vote that the case be REMANDED to the

Sandiganbaym1 to (i) allow the Republic to present additional evidence that
will permit the proper assessment of such ill-gotten wealth with some
measure of ce1tainty; and (ii) afford Tan the opportunity to present
controverting evidence, if any, as to the proper quantification of damages.

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EN BANC

G.R. No. 195837 - REPUBLIC OF THE PHILIPPINES, petitioner,

G.R. No. 198221 - REPUBLIC OF THE PHILIPPINES, petitioner,

G.R. No. 198974 - REPUBLIC OF THE PHILIPPINES, petitioner,

GREGORIO LICAROS, CESAR ZALAMEA, SHAREHOLDINGS

G.R. No. 203592 - REPUBLIC OF THE PHILIPPINES, petitioner,

On July 17, 1987, the Republic of the Philippines (Republic) filed a

The Republic subsequently filed a Second Amended Complaint to

1. The Sandiganbayan's Resolutions dated December 22, 2010 and

2. The Sandiganbayan's Order dated June 9, 2011 and Resolution dated

4. The Sandiganbayap's Decision (Assailed Decision) dated June 11,

The ponencia resolves the consolidated petitions, as follows:

WHEREFORE, premises considered, this Court rules on the

(1) In G.R. No. 195837, the Petition for Review on

(2) In G.R. No. 198221, the Petition for Certiorari filed

The Sandiganbayan Resolutions dated 3 May 2011 and 4

(3) In G.R. No. 198974, the Petition for Certiorari filed

(4) In G.R. No. 203592, the Sandiganbayan Decision

AFFIRMED. Consequently, the Petition for

I concur with the disposition of the petitions docketed as G.R. Nos.

Moreover, as opposed to the ponencia, I find the evidence, offered

Under prevailing law and jurisprudence, the grant of the brewery

Strikingly however, there is nothing in the records which would

reason, I submit that the Second Amended Complaint should be remanded

To this end, I submit this Opinion to explain the foregoing

The concept of ill-gotten wealth

The resolution of G.R. No. 203592 centers on the concept of ill-

As the Court found in the much later case of Republic v.

Verily, just three days after her inauguration in 1986, former

EO No. 1 created the Presidential Commission on Good Government

Subsequently, President Aquino issued EO No. 2, 21 further

properties amassed by President FM, his immediate family, relatives, and

WHEREAS, vast resources of the government have been amassed by

WHEREAS, there is an urgent need to recover all ill-gotten wealth[.]

WHEREAS, the Government of the Philippines is in possession of

SEC. 1. Definition. - (A) "lll-gotten wealth" is hereby defined as

( 1) Through misappropriation, conversion, misuse or

(2) Through the receipt, directly or indirectly, of any

(3) By the illegal or fraudulent conveyance or disposition

subdivisions, agencies or instrumentalities or

( 4) By obtaining, receiving or accepting directly or

(5) Through the establishment of agricultural, industrial or

(6) By taking undue advantage of official pos1t10n,

Thereafter, EO No. 14 was issued on May 7, 1986, empowering the

In Bataan Shipyard & Engineering Co., Inc. (Baseco) v. Presidential

The situations envisaged and sought to be governed are self-evident,

I) that "(i)ll-gotten properties (were) amassed by the

a) more particularly, that (i)ll-gotten

b) otherwise stated, that "there are

relatives, subordinates, business

c) that "said assets and properties are in

2) that certain "business enterprises and properties (were)

From the foregoing, two fundamental points become apparent.

Foremost, ill-gotten wealth does not only pertain to assets and

As well, the Court affirmed in several cases 25 that ill-gotten wealth

Republic of the Philippines" (second mode of acquisition).

As keenly observed by the ponencia, the second mode of acquisition

On this score, I agree that the Sandiganbayan unduly restricted the

The broad construction of ill-gotten wealth is reinforced by