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    1.) Ejercito v. Sandiganbayan

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    seymour
    The document discusses whether trust accounts are covered by a law protecting bank secrecy. It analyzes a case where subpoenas were issued for bank records as part of an investigation into alleged plunder by a former president. The court held that two exceptions applied allowing disclosure of the records for the investigation and litigation.

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    1.) Ejercito v. Sandiganbayan

    Uploaded by

    seymour
    10 views2 pages
    The document discusses whether trust accounts are covered by a law protecting bank secrecy. It analyzes a case where subpoenas were issued for bank records as part of an investigation into alleged plunder by a former president. The court held that two exceptions applied allowing disclosure of the records for the investigation and litigation.

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    The document discusses whether trust accounts are covered by a law protecting bank secrecy. It analyzes a case where subpoenas were issued for bank records as part of an investigation into alleged plunder by a former president. The court held that two exceptions applied allowing disclosure of the records for the investigation and litigation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views2 pages

    1.) Ejercito v. Sandiganbayan

    Uploaded by

    seymour
    The document discusses whether trust accounts are covered by a law protecting bank secrecy. It analyzes a case where subpoenas were issued for bank records as part of an investigation into alleged plunder by a former president. The court held that two exceptions applied allowing disclosure of the records for the investigation and litigation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Facts: Joseph Victor G. Ejercito is the owner of Trust Account No.

    858 which was originally opened at


    Urban Bank but which is now maintained at Export and Industry Bank, which is the purchaser and owner
    now of the former Urban Bank and Urbancorp Investment, Inc.  He is also the owner of Savings Account
    No. 0116-17345-9 which was originally opened at Urban Bank but which is now maintained at Export and
    Industry Bank, the purchaser and owner of the former Urban Bank and Urbancorp Investment, Inc.

    Estrada was subsequently charged with Plunder.  The Sandiganbayan a Request for Issuance of
    Subpoena Duces Tecum for the issuance of a subpoena directing the President of Export and Industry
    Bank (EIB, formerly Urban Bank) or his/her authorized representative to produce various document
    related to the investigation. 

    The Special Prosecution Panel also filed a Request  for Issuance of Subpoena Duces Tecum/Ad
    Testificandum directed to the authorized representative of Equitable-PCI Bank to produce statements of
    account pertaining to certain accounts in the name of “Jose Velarde” and to testify thereon. 

    The Sandiganbayan granted both requests by Resolution and subpoenas were accordingly issued. The
    Special Prosecution Panel filed still another Request for Issuance of Subpoena Duces  Tecum/Ad
    Testificandum for the President of EIB or his/her authorized representative to produce the same
    documents subject of the first Subpoena Duces Tecum and to testify thereon on the hearings scheduled
    and subsequent dates until completion of the testimony.  The request was likewise granted by the
    Sandiganbayan.  A Subpoena  Duces Tecum/Ad Testificandum was accordingly issued. Ejercito filed
    various motions to quash the various Subpoenas Duces Tecum/Ad Testificandum previously issued.  In
    his Motion to Quash, he claimed that his bank accounts are covered by R.A. No. 1405 (The Secrecy of
    Bank Deposits Law) and do not fall under any of the exceptions stated therein.   He further claimed that
    the specific identification of documents in the questioned subpoenas, including details on dates and
    amounts, could only have been made possible by an earlier illegal disclosure thereof by the EIB and the
    Philippine Deposit Insurance Corporation (PDIC) in its capacity as receiver of the then Urban Bank.   The
    disclosure being illegal, he concluded, the prosecution in the case may not be allowed to make use of the
    information.   Before the motion was resolved by the Sandiganbayan, the prosecution filed another

    Issue:   Whether or not a Trust Account is covered by the term “deposit” as used in R.A. 1405;

    Held:  R.A. 1405 is broad enough to cover Trust Account No. 858.  However, the protection afforded by
    the law is not absolute.  There being recognized exceptions thereto, as above-quoted Section 2 provides. 
    In the present case, two exceptions apply, to wit:  (1) the examination of bank accounts is upon order of a
    competent court in cases of bribery or dereliction of duty of public officials, and (2) the money deposited
    or invested is the subject matter of the litigation. Ejercito contends that since plunder is neither bribery nor
    dereliction of duty, his accounts are not excepted from the protection of R.A. 1405. 

    Cases of unexplained wealth are similar to cases of bribery or dereliction of duty and no reason is seen
    why these two classes of cases cannot be excepted from  the rule making bank deposits confidential. The
    policy as to one cannot be different from the policy as to the other. This policy expresses the notion that a
    public office is a public trust and any person who enters upon its discharge does so with the full
    knowledge that his life, so far as relevant to his duty, is open to public scrutiny. Undoubtedly, cases for
    plunder involve unexplained wealth.  The crime of bribery and the overt acts constitutive of plunder are
    crimes committed by public officers, noble idea that “a public office is a public trust and any person who
    enters upon its discharge does so with the full knowledge that his life, so far as relevant to his duty, is
    open to public scrutiny” applies with equal force.

    Also, the plunder case now pending with the Sandiganbayan necessarily involves an inquiry into the
    whereabouts of the amount purportedly acquired illegally by former President Joseph Estrada.  Republic
    Act No. 1405 allows  the  disclosure of bank deposits in cases where the money deposited is the subject
    matter of the litigation.  Hence, these accounts are no longer protected by the Secrecy of Bank Deposits
    Law, there being two exceptions to the said law applicable in  this case, namely: (1)the examination of
    bank accounts is upon order of a competent court in cases of bribery or dereliction of duty of public
    officials, and (2)the money deposited or invested is the subject matter of the litigation. Exception (1)
    applies since the plunder case pending against former President Estrada is analogous to bribery or
    dereliction of duty, while exception (2) applies because the money deposited in Ejercito’s bank accounts
    is said to form part of the subject matter of the same plunder case. The “fruit of the poisonous tree”
    doctrine or the exclusionary rule is inapplicable in cases of unlawful examination of bank accounts.

    RA 1405 does not provide for the application of this rule.  At all events, the Ombudsman is not
    barred from requiring the production of documents based solely on information obtained by it
    from sources independentof its previous inquiry.

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