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People V Sandiganbayan Digest

Respondents were charged with misappropriating over 250 million pesos from the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS). The Sandiganbayan dismissed the case for lack of jurisdiction, finding that the AFP-RSBS was a private entity as the government did not provide appropriations. However, the Supreme Court ruled that while the government had not appropriated funds, the enabling law allowed it to do so in the future, indicating the AFP-RSBS was a government entity with public funds. Therefore, the Sandiganbayan did have jurisdiction over the case.

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Joey Genovaña Dalanon
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152 views1 page

People V Sandiganbayan Digest

Respondents were charged with misappropriating over 250 million pesos from the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS). The Sandiganbayan dismissed the case for lack of jurisdiction, finding that the AFP-RSBS was a private entity as the government did not provide appropriations. However, the Supreme Court ruled that while the government had not appropriated funds, the enabling law allowed it to do so in the future, indicating the AFP-RSBS was a government entity with public funds. Therefore, the Sandiganbayan did have jurisdiction over the case.

Uploaded by

Joey Genovaña Dalanon
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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AUG 12, 2003 FACTS:

PEOPLE

SANDIGANBAYAN

Respondents were charged with Malversation through Falsification of Public Documents before the Sandiganbayan in Criminal Case No. 25741. The information alleged that respondents misappropriated and converted for their personal use the amount of Php 250,318,200 from the funds of the Armed Forces of the Philippines Retirement and Separation Benefits System (AFP-RSBS). AFP-RSBS was created by P.D. 261 as a system that manages the retirement and pension funds of those in the military service. For this purpose, the contribution by military officers and enlisted personnel to the System is compulsory. Respondents contended that the Sandiganbayan had no jurisdiction over the case because the AFP-RSBS is a private entity. The Sandiganbayan sustained this contention based on its findings that the Government does not provide appropriations to the System, except for the initial seed money. Hence, the prosecution filed the instant special civil action for certiorari on the ground that the Respondent court committed grave abuse of dicretion as it dismissed the case for lack of jurisdiction. ISSUE: Whether the AFP-RSBS is a government-owned or controlled corporation or a private corporation and whether its funds are public or private. HELD: While it may be true that there have been no appropriations for the contribution of funds to the AFPRSBS, the Government is not precluded from later on adding to the funds in order to provide additional benefits to the men in uniform. This is the clear import of Sec 2 P.D. 261, the enabling law of the System. It indicates that the character and operations of the AFP-RSBS are imbued with public interest. As such, we hold that the same is a government entity and its funds are in the nature of public funds. Wherefore, in view of the foregoing, the instant petition for certiorari is granted.

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