476 Phil. 536
CARPIO, J.:
In petitioner’s Reply, he alleged that respondents concealed the names and terms of the directors before them. Petitioner theorized that respondents’ failure to disclose their predecessors’ names “makes them participants in the crime, giving aid and comfort to their co-offenders.” Petitioner argued that under Republic Act No. 6770 or The Ombudsman Act of 1989 (“RA 6770”),[4] the Ombudsman can demand information on the names and terms of directors who approved the CAMEC loan in 1986.
- Roberto F. De Ocampo, presently Secretary of Finance, used to be a Director and Chairman of the Bank’s Board commencing on 9 March 1989;
- Alfredo C. Antonio, representing the shares/interest of the National Government commenced his Directorship on 9 March 1989;
- Farouk A. Carpizo, representing the shares/interest of the National Government commenced his Directorship some time in March 1981;
- Bernice Syquia, representing the shares/interest of the Asset Privatization Trust commenced her Directorship on 31 March 1990;
- Ibrahim Mamao, representing the shares/interest of the National Government commenced his Directorship on 14 June 1993;
- Reynaldo Palmiery, representing the shares/interest of the Social Security System commenced his Directorship on 9 March 1989;
- Gerardo Taruc, representing the shares/interest of the Government Service Insurance System commenced his Directorship on 13 December 1993.[3]
Respondents maintain that they were not yet even members of the Board of Directors of the Islamic Bank when the CAMEC transaction came about in 1986. Even if we are to assume “arguendo” that the CAMEC transaction started during the term of the respondents as chairman and directors of the Islamic Bank, the complainant and his cohorts by their individual and collective misconduct and omission, had thereby unduly exposed the Islamic Bank’s Board from approving the CAMEC loan transaction predicated upon the false reports presented to the Board. The Board could not reasonably be expected to personally go out in the field and check the minute details of the loan application, much less, the personal whereabouts and identities of the applicants nor the physical location and legal status of the collaterals. Having received all the favorable reports from the subordinate officials of the bank and after going through with the merits of the loan application, the Board could not reasonably be expected to do anything more but determine the merits of the recommendations submitted to them by the subordinate officials of the Islamic Bank. Thus, assuming that there were discrepancies, errors or failures in the appraisal, assessment and legal status of the collaterals and credit investigation of the borrowers and the responsible subordinate official, such as the complainant, must be held accountable for the end result.On 22 March 1995, petitioner filed a Motion for Reconsideration or Reinvestigation. Petitioner denied that he was the officer-in-charge of the Islamic Bank’s Makati Branch responsible for screening loan applications in 1986. Petitioner alleged that when Islamic Bank approved the CAMEC loan in 1986, Tupaan A. Datu-Imam (“Datu-Imam”) was the Makati branch manager while Michael O. Mastura (“Mastura”) was the Islamic Bank president. In the Order of 17 April 1995, the Ombudsman denied petitioner’s motion for these reasons:
After a careful and judicious evaluation of the facts of the case, the complaint filed by Kara-an against the Board is doomed to be dismissed from the very beginning. While he was the Officer-in-Charge of the Makati Branch of the Islamic Bank, he was the one directly responsible in screening the qualifications of the various applicants for loan. He cannot delegate this responsibility to the higher up because this is his main duty as the officer-in-charge of the said branch.[6]
Complainant reiterates that the particular incident or mortgage transactions he is complaining of in this case took place between the dates of inscription of the entries referred to by the complainant between March 22, 1982 and May 17, 1986. Except for Farouk Carpizo, all the respondents herein were appointed after the 1986 EDSA Revolution.Hence, the present recourse.
He likewise maintains that he is not yet the officer-in-charge of the Islamic Bank, Makati Branch during that period. The Branch Manager then was Tupaan A. Datu-Imam. The loan recommendation dated 28 April 1986 concerning CAMEC was signed by then Makati Branch Manager Tupaan A. Datu-Imam and Philippine Amanah Bank President Michael O. Mastura. He did not participate in the screening of said loan application, incidents or mortgage transaction in 1986.
Granting that he is not yet the officer-in-charge then of the Islamic Bank, Makati Branch when the said loan application in 1986 was approved is of no moment. The respondents did not either approve said loan application being appointed only beyond 1986. Hence, they could not be the proper parties in this case.[7]
The Solicitor General, on the Ombudsman’s behalf, and the Government Corporate Counsel, representing respondents, pray for the dismissal of the petition for lack of merit.
- WHETHER THE OMBUDSMAN OFFICIALS CONDUCTED APPROPRIATE INVESTIGATIONS ACCORDING TO THEIR CONSTITUTIONAL, STATUTORY AND ADMINISTRATIVE MANDATES, REQUIREMENTS AND THEIR SWORN DUTIES AS REQUESTED AND ENDORSED BY SENATOR MACEDA OF THE SENATE BLUE RIBBON COMMITTEE.
- WHETHER CRIMES HAVE BEEN COMMITTED.
- WHETHER TUPAAN A. DATU-IMAM, MICHAEL O. MASTURA, FAROUK A. CARPIZO AND THE OTHER FOUR MEMBERS OF THE PHILIPPINE AMANAH BANK BOARD OF DIRECTORS ARE GUILTY OR LIABLE.
- WHETHER THE OMBUDSMAN OFFICIALS ACTED WITH PATENTLY GRAVE ABUSE OF DISCRETION AMOUNTING TO EXCESS OR LACK OF JURISDICTION IN RENDERING THEIR RESOLUTION AND ORDER ASSAILED AS VOID.[8]
SEC. 27. Effectivity and Finality of Decisions. -- (1) All provisionary orders of the Office of the Ombudsman are immediately effective and executory.Under Section 27 of RA 6770, a decision of the Ombudsman in an administrative disciplinary action is appealable to this Court by petition for review under Rule 45. However, this does not include decisions of the Ombudsman in preliminary investigations of criminal cases. Neither does it include orders resolving incidents in preliminary investigations of criminal cases. In other words, the right to appeal under Rule 45 does not apply to orders and decisions of the Ombudsman in criminal cases. Such right is granted only from orders or decisions of the Ombudsman in administrative cases.[9] Even in administrative cases, appeals from decisions of the Ombudsman is first taken to the Court of Appeals under the provisions of Rule 43.[10]
A motion for reconsideration of any order, directive or decision of the Office of the Ombudsman must be filed within five (5) days after receipt of written notice and shall be entertained only on any of the following grounds:
(1) New evidence has been discovered which materially affects the order, directive or decision;
(2) Errors of law or irregularities have been committed prejudicial to the interest of the movant. The motion for reconsideration shall be resolved within three (3) days from filing: Provided, That only one motion for reconsideration shall be entertained.
Findings of fact by the Office of the Ombudsman when supported by substantial evidence are conclusive. Any order, directive, or decision imposing the penalty of public censure or reprimand, suspension of not more than one month salary shall be final and unappealable.
In all administrative disciplinary cases, orders, directives or decisions of the Office of the Ombudsman may be appealed to the Supreme Court by filing a petition for certiorari within ten (10) days from receipt of the written notice of the order, directive or decision or denial of the motion for reconsideration in accordance with Rule 45 of the Rules of Court.
The above rules may be amended or modified by the Office of the Ombudsman as the interest of justice may require. (Emphasis supplied)
Sec. 12. The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against public officials or employees of the Government, or any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations, and shall, in appropriate cases, notify the complainants of the action taken and the result thereof.The Ombudsman has the “sole power to investigate and prosecute on its own or on complaint by any person, any act or omission of any public officer or employee, office or agency, when such act or omission appears to be illegal, unjust, improper or inefficient.”[12] The consistent policy of the Court is not to interfere with the Ombudsman’s exercise of his investigatory and prosecutory powers. We held in Alba v. Nitorreda[13] that:
xxx this Court has consistently refrained from interfering with the exercise by the Ombudsman of his constitutionally mandated investigatory and prosecutory powers. Otherwise stated, it is beyond the ambit of this Court to review the exercise of discretion of the Ombudsman in prosecuting or dismissing a complaint filed before it. Such initiative and independence are inherent in the Ombudsman who, beholden to no one, acts as the champion of the people and preserver of the integrity of the public service.The Court explained the rationale underlying its policy of non-interference in this wise:
xxx The rule is based not only upon respect for the investigatory and prosecutory powers granted by the Constitution to the Office of the Ombudsman but upon practicality as well. Otherwise, the functions of the courts will be grievously hampered by innumerable petitions assailing the dismissal of investigatory proceedings conducted by the Office of the Ombudsman with regard to complaints filed before it, in much the same way that the courts would be extremely swamped if they would be compelled to review the exercise of discretion on the part of the fiscals or prosecuting attorneys each time they decide to file an information in court or dismiss a complaint by a private complainant.[14]Petitioner contends that the Ombudsman’s grave abuse of discretion lies in his failure to conduct the appropriate investigation in breach of constitutional, statutory and administrative mandates. Petitioner also points out that EPIB Head Arnau, in his 1st Indorsement/Letter dated 29 March 1994, named as respondents “the former chairman and incumbent board members of Islamic Bank” instead of those who processed and approved the anomalous P250,000 loan to CAMEC in 1986. Petitioner asserts that Arnau could have easily determined the directors who approved the CAMEC loan by issuing a subpoena duces tecum to Islamic Bank to produce a copy of the minutes of meeting of the Bank’s Board that approved the loan.
Section 2, Rule II of Administrative Order No. 07 of the Office of the Ombudsman, otherwise known as the “Rules of Procedure of the Office of the Ombudsman,”[15] states:Clearly, the Ombudsman does not have to conduct a preliminary investigation upon receipt of a complaint. The Ombudsman has discretion to determine whether a preliminary investigation is proper.[16] Should the investigating officer find the complaint devoid of merit, then he may recommend its outright dismissal.[17]
SEC. 2. Evaluation. – Upon evaluating the complaint, the investigating officer shall recommend whether it may be:
a) dismissed outright for want of palpable merit; b referred to respondent for comment; c) indorsed to the proper government office or agency which has jurisdiction over the case; d) forwarded to the appropriate officer or official for fact-finding investigation; e) referred for administrative adjudication; or f) subjected to a preliminary investigation.