Cited Laws
TL;DR — Ruling
WHEREFORE , in view of all the foregoing premises, the petition for injunction is hereby GRANTED . The respondent PDIC is restrained from further conducting investigations or examination on petitioners-banks without the requisite approval from the Monetary Board. SO ORDERED . [1] In a resolution dated January 25, 2007, the CA-Cebu denied petitioner's motion for reconsideration for "lack of merit.
WHEREFORE , in view of all the foregoing premises, the petition for injunction is hereby GRANTED . The respondent PDIC is restrained from further conducting investigations or examination on petitioners-banks without the requisite approval from the Monetary Board. SO ORDERED . [1] In a resolution dated January 25, 2007, the CA-Cebu denied petitioner's motion for reconsideration for "lack of merit." [2] THE FACTS On March 9, 2005, the Board of Directors of the PDIC (PDIC Board) adopted Resolution No. 2005-03- 032 [3] approving the conduct of an investigation, in accordance with Section 9(b-l) of Republic Act (R.A.) No. 3591, as amended, on the basis of the Reports of Examination of the Bangko Sentral ng Pilipinas (BSP) on ten (10) banks, four (4) of which are respondents in this petition for review. The said resolution also created a Special Investigation Team to conduct the said investigation, with the authority to administer oaths, to examine, take and preserve testimony of any person relating to the subject of the investigation, and to examine pertinent bank records. On May 25, 2005, the PDIC Board adopted another resolution, Resolution No. 2005-05-056, [4] approving the conduct of an investigation on PCRBI based on a Complaint-Affidavit filed by a corporate depositor, the Philippine School of Entrepreneurship and Management (PSEMI) through its president, Jacinto L. Jamero. On June 3, 2005, in accordance with the two PDIC Board resolutions, then PDIC President and Chief Executive Officer Ricardo M. Tan issued the Notice of Investigation [5] to the President or The Highest Ranking Officer of PCRBI. On June 7, 2005, the PDIC Investigation Team personally served the Notice of Investigation on PCRBI at its Head Office in Pajo, Lapu-Lapu City. [6] According to PDIC, in the course of its investigation, PCRBI was found to have granted loans to certain individuals, which were settled by way of dacion of properties. These properties, however, had already been previously foreclosed and consolidated under the names of PRBI, BEAI and RBCI. [7] On June 15, 2005, PDIC issued similar notices of investigation to PRBI [8] and BEAI. [9] The notices stated that the investigation was to be conducted pursuant to Section 9 (b-1) of the PDIC Charter and upon authority of PDIC Board Resolution No. 2005-03-032 authorizing the twelve (12) named representatives of PDIC to conduct the investigation. [10] The investigation was sought because the Banks were found to be among the ten (10) banks collectively known as "Legacy Banks." The Reports of General and Special Examinations of the BSP as of June 30, 2004, disclosed, among others, that the Legacy Banks were commonly owned and/or controlled by Legacy Plans Inc. ( now Legacy Consolidated Plans, Inc. ), and Celso Gancayco delos Angeles, Jr. and his family. [11] The notice of investigation was served on PRBI the next day, June 16, 2005. [12] On June 25, 2005, a separate notice of investigation [13] was served on RBCI. The lat