G.R. No. 186717 -

Ruling

Accordingly, the AMLC issued Resolution No. 90 [21] finding probable cause to believe that these 70 accounts were related to the fertilizer fund scam. It said that the scam may constitute violations of Section 3(e) [22] of Republic Act No. (R.A.) 3019 (Anti-Graft and Corrupt Practices Act) and R.A. 7080 (An Act Defining and Penalizing the Crime of Plunder). The AMLC therefore authorized the filing of a petition for the issuance of an order allowing an inquiry into these 70 accounts. [23] On 14 February 2008, this Court promulgated Republic v. Eugenio . [24] We ruled that when the legislature crafted Section 11 [25] of R.A. 9160 (Anti­-Money Laundering Act of 2001), as amended, it did not intend to authorize ex parte proceedings for the issuance of a bank inquiry order by the CA. Thus, a bank inquiry order cannot be issued unless notice is given to the account holders. [26] That notice would allow them the opportunity to contest the issuance of the order. In view of this development, the AMLC issued Resolution No. 40. [27] It authorized the filing of a petition for the issuance of a freeze order against the 70 accounts found to be related to the fertilizer fund scam. Hence, the Republic filed an Ex Parte Petition [28] docketed as CA-G.R. AMLC No. 00014 before the CA, seeking the issuance of a freeze order against the 70 accounts. The CA issued a freeze order effective for 20 days. [29] The freeze order required the covered institutions of the 70 accounts to desist from and not allow any transaction involving the identified monetary instruments. It also asked the covered institutions to submit a detailed written return to the CA within 24 hours from receipt of the freeze order. The CA conducted a summary hearing of the application, [30] after which the parties were ordered to submit their memoranda, manifestations and comments/oppositions. [31] The freeze order was later extended for a period of 30 days until 19 August 2008. [32] Finding that there existed probable cause that the funds transferred to and juggled by LIVECOR, Molugan, and AGS formed part of the P728 million fertilizer fund, the CA extended the effectivity of the freeze order for another four months, or until 20 December 2008. [33] The extension covered only 31 accounts, [34] which showed an existing balance based on the returns of the covered institutions. In the meantime, the Republic filed an Ex Parte Application [35] docketed as AMLC Case No. 07-001 before the RTC. Drawing on the authority provided by the AMLC through Resolution No. 90, the ex parte application sought the issuance of an order allowing an inquiry into the 70 accounts. The RTC found probable cause and issued the Order prayed for. [36] It allowed the AMLC to inquire into and examine the 70 bank deposits or investments and the related web of accounts. On 20 October 2008, this Court denied with finality the motion for reconsideration filed by the Republic in Eugenio . [37] The Court reiterated that Section 11 [38] of R