VICENTE B. CHUIDIAN, VS. SANDIGANBAYAN (FIFTH DIVISION) AND THE REPUBLIC OF THE PHILIPPINES.

Ruling

Accordingly, on December 12, 1985, L/C No. SSD-005-85 was issued for the said amount by the ... (PNB) . Subsequently, Chuidian was able to make two (2) monthly drawings .... With the advent of the Aquino administration, the ... (PCGG) exerted earnest efforts to search and recover [illegally acquired] money, ... and other assets .... Petitioner Chuidian was among those whose assets were sequestered .... On May 30, 1986, the PCGG issued a Sequestration Order directing the PNB to place under its custody, for and in behalf of the PCGG, the irrevocable L/C (No. SFD-005-85) .... In the meantime, Philguarantee filed a motion before the Superior Court of Santa Clara County of California in Civil Case Nos. 557867 and 577697 seeking [but eventually failing] to vacate the stipulated judgment containing the settlement between Philguarantee and Chuidian ... xxx. xxx xxx xxx Meanwhile, on February 27, 1987, a Deed of Transfer was executed between [the Republic thru] then Secretary of Finance Jaime V. Ongpin and then PNB President Edgardo B. Espiritu, to facilitate the rehabilitation of PNB, .... The said Deed ... provided for the transfer to the government of certain assets of PNB in exchange for which the government would assume certain liabilities of PNB. Among those liabilities ... assumed were ... [L/C] SSD-005-85 listed under Dynetics, [Inc.] in favor of Chuidian in the amount of ... (US$4,400,000.00). On July 30, 1987, the government filed before the Sandiganbayan Civil Case No. 0027 against the Marcos spouses ... Chuidian [et al.] ... [for] ... the reconveyance, ... and restitution of all forms of wealth allegedly procured illegally and stashed away by the defendants. xxx xxx xxx While the case was pending, .... the Republic .... filed a motion for [and eventually secured an order for the] issuance of a writ of attachment over ... L/C [No. SSD-005-85] .... xxx xxx xxx Accordingly, an order of attachment was issued ... on July 19, 1993, ordering the Sandiganbayan Sheriff to attach PNB L/C No. SSD-005-85 for safekeeping . . . as security for the satisfaction of judgment in Sandiganbayan Civil Case No. 0027. On August 11, 1997, ... Chuidian filed a motion to lift the attachment . . . xxx xxx xxx Subsequently, on August 20, 1997, Chuidian filed a motion to require the Republic to deposit the [dormant] L/C in an interest bearing account. xxx he proposed that it would be to the benefit of all if the Sandiganbayan requires PNB to deposit the full amount to a Sandiganbayan trust account at any bank in order to earn interest while awaiting judgment of the action. xxx xxx xxx In a Resolution promulgated on November 13, 1998 , the Sandiganbayan denied Chuidian's motion to lift attachment. On the same day, the Sandiganbayan issued another Resolution denying Chuidian's motion to require deposit of the attached L/C in an interest bearing account. xxx xxx xxx On July 13, 1999, the Sandiganbayan [acting on Chuidian's motion for reconsideration] gave due course to Chuid