PEOPLE OF THE PHILIPPINES Petitioner,

vs.
JOSE C. GO, AIDA C. DELA ROSA, and FELECITAS D.
NECOMEDES, Respondents.
G.R. No. 191015
August 6, 2014

Philippine Deposit Insurance Corporation (PDIC), the private

complainant, moved for reconsideration, which was denied. PDIC
transmitted copies of the CA decision to the OSG resulting to the filing of
the instant petition. The OSG contended, among others, that the People,
who is the petitioner in this case, was neither impleaded nor served a copy
of the petition, thereby violating its right to due process of law, hence,
rendering the CA without authority to promulgate its issuances.

DEL CASTILLO, J.:

NATURE OF THE CASE
Petition for review on certiorari
BRIEF OF THE CASE
This Petition for Review on Certiorari seeks to set aside the
September 30, 2009 Decision of the Court of Appeals (CA) in CA-G.R. SP
No. 101823, entitled "People of the Philippines, Petitioner, versus Hon.
Concepcion Alarcon-Vergara et al., Respondents," as well as its January 22,
2010 Resolution denying reconsideration of the assailed judgment.
FACTS
On September 28, 2000, 7 informations were filed before the RTC
charging various accused, including Go and Dela Rosa, of Estafa through
Falsification of Commercial Documents for allegedly defrauding
Oriental Commercial Banking Corporation (OCBC)of the amount of P159,
000, 000. 00.
The arraignment underwent several postponements before trial on
the merits ensued. However, the trial also underwent series of
postponements/ cancellations caused mainly by the prosecution, leading to
its failure to present its evidence despite the lapse of 5 years. This
prompted the respondents to file a Motion to Dismiss for failure to
prosecute and for violation of their right to speedy trial.
On January 9, 2008, the RTC dismissed the case, ruling that the
respondents right to speedy trial was violated. The prosecution filed a
Motion for Reconsideration, which the RTC granted, resulting to the
reinstatement of the case. The respondents, thereafter, moved for
reconsideration but was denied.
The respondents, then, filed a Petition for Certiorari before the CA
but failed to implead the People as party to the case. The CA, without first
ordering respondents to implead the People, annulled and set aside the
RTC order, resulting to the dismissal of the case.

COURT RATIONALE ON THE ABOVE FACTS

Criminal Case Nos. 00-187318 and 00-187319 for estafa through
falsification of commercial documents against the respondents are based
on the theory that in 1997, fictitious loans in favor of two entities
Timmys, Inc. and Asia Textile Mills, Inc. were approved, after which two
managers checks representing the supposed proceeds of these fictitious
loans were issued but made payable to two different entities Philippine
Recyclers Inc. and Zeta International without any documents issued by
the supposed borrowers Timmys, Inc. and Asia Textile Mills, Inc. assigning
the supposed loan proceeds to the two payees. Thereafter, these two
managers checks together with several others totalling 120,819,475.00
were encased, and then deposited in the OCBC Savings Account No.
00810-00108-0 of Go. Then, several automatic transfer deposits were
made from Gos savings account to his OCBC Current Account No. 008-00000015-0 which were then used to fund Gos previously dishonoured
personal checks.
The testimonial and documentary evidence of the prosecution
indicate that OCBC, a commercial bank, was ordered closed by the BSP
sometime in October 1998. PDIC was designated as OCBC receiver, and it
took over the banks affairs, assets and liabilities, records, and collected
the banks receivables.
During efforts to collect OCBCs past due loan receivables, PDIC as
receiver sent demand letters to the banks debtor-borrowers on record,
including Timmys, Inc. and Asia Textile Mills, Inc. which appeared to have
obtained unsecured loans of P10 million each, and which apparently
remained unpaid. In response to the demand letters, Timmys, Inc. and
Asia Textile Mills, Inc. denied having obtained loans from OCBC. Timmys,
Inc., through its designated representative, claimed that while it is true
that it applied for an OCBC loan, it no longer pursued the application after
it was granted a loan by another bank. When the OCBC loan documents
were presented to Timmys, Inc.s officers, it was discovered that the
signatures therein of the corporate officers were forgeries.
In their defense and to clarify matters, Timmys, Inc.s corporate
officers executed affidavits and furnished official documents such as their
passports and the corporations Articles of Incorporation containing their

respective signatures to show PDIC that their purported signatures in the

OCBC loan documents were forgeries.
After its investigation into the matter, PDIC came to the conclusion
that the signatures on the Timmys, Inc. loan documents were indeed
falsified. On the other hand, in a written reply to PDICs demand letter, Asia
Textile Mills, Inc. vehemently denied that it applied for a loan with OCBC.
On this basis, PDIC concluded that the Asia Textile Mills, Inc. loan was
likewise bogus.
Moreover, PDIC discovered other bogus loans in OCBC. Through the
falsified loan documents, the OCBC Loan Committee composed of Go,
who was likewise OCBC President, respondent Dela Rosa (OCBC Senior Vice
President, or SVP, and Chief Operating Officer, or COO), Arnulfo Aurellano
and Richard Hsu approved a P10 million unsecured loan purportedly in
favor of Timmys, Inc. After deducting finance charges, advance interest
and taxes, Dela Rosa certified a net loan proceeds amounting to
P9,985,075.00 covered by Managers Check No. 000000334727 dated
February 5, 1997.28 The face of the check bears the notation "Loan
proceeds of CL-484," the alpha numeric code ("CL-484")of which refers to
the purported loan of Timmys, Inc. However, the payee thereof was not
the purported borrower, Timmys, Inc., but a certain "Zeta International".
Likewise, on even date, Managers Check No. 000000334030 for
P9,985,075.00 was issued, and on its face is indicated "Loan proceeds of
CL-477", which alpha numeric code ("CL-477") refers to the purported loan
of Asia Textile Mills, Inc. Managers Check No. 0000003340 was made
payable not to Asia Textile Mills, Inc., but to "Phil. Recyclers Inc."
On the same day that the subject managers checks were issued,
or on February 5, 1997, it appears that the two checks together with
other managers checks totalling P120,819,475.00 were encashed; on the
face of the checks, the word "PAID" was stamped, and at the dorsal portion
thereof there were machine validations showing that Managers Check No.
0000003347 was presented at 6:16 p.m., while Managers Check No.
0000003340 was presented at 6:18 p.m.
After
presentment
and
encashment,
the
amount
of
P120,819,475.00 which among others included the P9,985,075.00
proceeds of the purported Timmys, Inc. loan and the P9,985,075.00
proceeds of the supposed Asia Textile Mills, Inc. loan was deposited in
Gos OCBC Savings Account No. 00810-00108-0 at OCBC Recto Branch,

apparently on instructions of respondent Dela Rosa. The deposit is covered

by OCBC Cash Deposit Slip dated February 5, 1997, with the corresponding
machine validation thereon indicating that the deposit was made at 6:19
p.m. The funds were credited to Gos savings account. It appears that
previously, or on February 4, 1997, seven OCBC checks issued by Go from
his personal Concurrent Account No. 008-00-000015-0 totaling
P145,488,274.48 were dishonored for insufficiency of funds.
After Managers Check Nos. 0000003340 and 0000003347, along
with several other managers checks, were encashed and the proceeds
thereof deposited in Gos OCBC Savings Account No. 00810-00108-0 with
automatic transfer feature to his OCBC Current Account No. 008-00000015-0, funds were automatically transferred from the said savings
account to the current account, which at the time contained only a total
amount of P26,332,303.69. Gos OCBC Current Account No. 008-00000015-0 was credited with P120,819,475.00, and thereafter the account
registered a balance of P147,151,778.69. The seven previously
dishonoured personal checks were then presented for clearing, and were
subsequently cleared that same day, or on February 5, 1997.
Apparently,
they
were
partly
funded
by
the
P120,819,475.00managers check deposits which include Managers
Check Nos. 0000003340 and 0000003347.
During the examination and inquiry into OCBCs operations, or on
January 28, 1998, Go issued and sent a letter to the BSP, through Maria
Dolores Yuviengco, Director of the Department of Commercial Banks,
specifically requesting that the BSP refrain from sending any
communication to Timmys, Inc. and Asia Textile Mills, Inc., among others.
He manifested that he was "willing to assume the viability and full
payment"of the accounts under investigation and examination, including
the Timmys, Inc. and Asia Textile Mills, Inc. accounts.
SUPREME COURT RULING:
WHEREFORE, the Petition is GRANTED. The September 30, 2009
Decision and January 22, 2010 Resolution of the Court of Appeals are
REVERSED and SET ASIDE. The July 2, 2007 and October 19, 2007 Orders
of the Regional Trial Court of Manila, Branch 49 in Criminal Case Nos. 00187318 and 00-187319 are declared null and void, and the said cases are
ordered REINSTATED for the continuation of proceedings.
SO ORDERED.