EXECUTIVE ORDER NO. 1 February 28, 1986

CREATING THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT

WHEREAS, vast resources of the government have been amassed by former President Ferdinand E. Marcos, his immediate family, relatives, and close associates both here and abroad;

WHEREAS, there is an urgent need to recover all ill-gotten wealth;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order;

Sec. 1. There is hereby created a Commission, to be known as the Presidential Commission on Good Government, composed of Minister Jovito R. Salonga, as Chairman, Mr. Ramon Diaz, Mr. Pedro L. Yap, Mr. Raul Daza and Ms. Mary Conception Bautista as Commissioners.

Sec. 2. The Commission shall be charged with the task of assisting the President in regard to the following matters:

(a) The recovery of all ill-gotten wealth accumulated by former President Ferdinand E. Marcos, his immediate family, relatives, subordinates and close associates, whether located in the Philippines or abroad, including the takeover or sequestration of all business enterprises and entities owned or controlled by them, during his administration, directly or through nominees, by taking undue advantage of their public office and/or using their powers, authority, influence, connections or relationship.

(b) The investigation of such cases of graft and corruption as the President may assign to the Commission from time to time.

(c) The adoption of safeguards to ensure that the above practices shall not be repeated in any manner under the new government, and the institution of adequate measures to prevent the occurrence of corruption.

Sec. 3. The Commission shall have the power and authority:

(a) To conduct investigation as may be necessary in order to accomplish and carry out the purposes of this order.

(b) To sequester or place or cause to be placed under its control or possession any building or office wherein any ill-gotten wealth or properties may be found, and any records pertaining thereto, in order to prevent their destruction, concealment or disappearance which would frustrate or hamper the investigation or otherwise prevent the Commission from accomplishing its task.

(c) To provisionally take over in the public interest or to prevent its disposal or dissipation, business enterprises and properties taken over by the government of the Marcos Administration or by entities or persons close to former President Marcos, until the transactions leading to such acquisition by the latter can be disposed of by the appropriate authorities.

(d) To enjoin or restrain any actual or threatened commission of facts by any person or entity that may render moot and academic, or frustrate, or otherwise make ineffectual the efforts of the Commission to carry out its tasks under this order.

(e) To administer oaths, and issue subpoena requiring the attendance and testimony of witnesses and/or the production of such books, papers, contracts, records, statement of accounts and other documents as may be material to the investigation conducted by the Commission.

(f) To hold any person in direct or indirect contempt and impose the appropriate penalties, following the same procedures and penalties provided in the Rules of Court.

(g) To seek and secure the assistance of any office, agency or instrumentality of the government.

(h) To promulgate such rules and regulations as may be necessary to carry out the purpose of this order.

Sec. 4. (a) No civil action shall lie against the commission or any member thereof for anything done or omitted in the discharge of the task contemplated by this order.

(b) No member or staff of the commission shall be required to testify or produce in any judicial, legislative or administrative proceeding concerning matters within its official cognizance.

Sec. 5. It is hereby directed that, subject to the availability of funds, the amount of Fifty Million Pesos, or so much thereof as may be needed to carry out the purposes of this order, be set aside out of the funds of the National Treasury and made available for expenditure by the Commission.

Sec. 6. This Executive Order shall take effect immediately.

Done in the City of Manila, this twenty-eight day of February, in the year of Our Lord, nineteen hundred and eighty-six.

PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT

RULES AND REGULATIONS

Pursuant to the authority vested in the Commission under Executive Order No. 1, the following rules and regulations are hereby promulgated for the guidance of all concerned.

Sec. 1. Definition.

(A) "Ill-gotten wealth" is hereby defined as any asset, property, business enterprise or material possession of persons within the purview of Executive Orders Nos. 1 and 2, acquired by them directly, or indirectly thru dummies, nominees, agents, subordinates and/or business associates by any of the following means or similar schemes:

(1) Through misappropriation, conversion, misuse or malversation of public funds or raids on the public treasury;

(2) Through the receipt, directly or indirectly, of any commission, gift, share, percentage, kickbacks or any other form of pecuniary benefit from any person and/or entity in connection with any government contract or project or by reason of the office or position of the official concerned.

(3) By the illegal or fraudulent conveyance or disposition of assets belonging to the government or any of its subdivisions, agencies or instrumentalities or government-owned or controlled corporations;

(4) By obtaining, receiving or accepting directly or indirectly any shares of stock, equity or any other form of interest or participation in any business enterprise or undertaking;

(5) Through the establishment of agricultural, industrial or commercial monopolies or other combination and/or by the issuance, promulgation and/or implementation of decrees and orders intended to benefit particular persons or special interests; and

(6) By taking undue advantage of official position, authority, relationship or influence for personal gain or benefit.

(B) "Sequestration" means taking into custody or placing under the Commission's control or possession any asset, fund or other property, as well as relevant records, papers and documents, in order to prevent their concealment, destruction, impairment or dissipation pending determination of the question whether the said asset, fund or property is ill-gotten wealth under Executive Orders Nos. 1 and 2.

In the sequestration of an on-going enterprise, the Commission shall appoint a fiscal agent therein to prevent the transfer, syphoning or dissipation of funds and assets and to audit transactions. Sequestration shall not result in the take-over of the operations of the business, unless otherwise warranted by the exigencies of the situation or required in the national interest.

(C) "Freeze order" is an order intended to stop or prevent any act or transaction which may affect the title, possession, status, condition, integrity or value of the asset or property which is or might be the object of any action or proceeding under Executive Orders Nos. 1 and 2, with a view to preserving and conserving the same or to preventing its transfer, concealment, disposition, destruction or dissipation.

(D) "Hold order" means an order to temporarily prevent a person from leaving the country where his departure will prejudice, hamper or otherwise obstruct the task of the Commission in the enforcement of Executive Orders Nos. 1 and 2, because such person is known or suspected to be involved in the properties or transactions covered by said Executive Orders. A "hold order" shall be valid only for a maximum period of six months, unless for good reasons extended by the Commission en banc.

Sec. 2. Writ of sequestration, freeze, and hold orders. To enable the Commission to accomplish its task of recovering ill-gotten wealth, it may issue writs of sequestration and freeze and/or hold orders.

Sec. 3. Who may issue. A writ of sequestration or a freeze or hold order may be issued by the Commission upon the authority of at least two Commissioners, based on the affirmation or complaint of an interested party or motu proprio when the Commission has reasonable grounds to believe that the issuance thereof is warranted.

Sec. 4. How service made. Service of the writ of sequestration or freeze order shall be made in the same manner as service of summons under the Revised Rules of Court. Refusal of the party concerned to accept service shall not prevent the enforcement of the writ of order. Whenever necessary in the public interest, the Commission may order or authorize the break-in or forcible entry into the premises to locate and secure the properties to be sequestered.

A hold order shall be communicated to the appropriate governmental authorities for implementation.

Sec. 5. Who may contest. The person against whom a writ of sequestration or freeze or hold order is directed may request the lifting thereof in writing, either personally or through counsel within five (5) days from receipt of the writ of order, or in case of a hold order, from date of knowledge thereof.

Sec. 6. Procedure for review of writ or order. After due hearing or motu proprio for good cause shown, the Commission may lift the writ of order unconditionally or subject to such conditions as it may deem necessary, taking into consideration the evidence and the circumstance of the case. The resolution of the Commission may be appealed by the party concerned to the Office of the President of the Philippines within fifteen (15) days from receipt thereof.

Sec. 7. Conduct of investigations. The Commission may conduct a hearing, after due notice to the party or parties concerned within the purview of Executive Orders Nos. 1 and 2, to ascertain whether any particular asset, property or enterprise constitutes ill-gotten wealth and to determine the appropriate action to be taken in order to carry out the purposes of said Executive Orders.

If the party concerned is in the Philippines, it will be sufficient to serve notice of the hearing on him personally or by registered mail.

In case the party concerned is abroad or his whereabouts are unknown, the notice shall be published in two newspapers of general circulation in the Philippines. The notice shall state the date, time and place of hearing, which shall not be earlier than ten (10) days from the date of publication. A copy of the notice shall also be sent by registered mail to the party concerned at his address abroad, if known.

Sec. 8. Hearing. The Commission, in the exercise of its powers to investigate or hear cases within its jurisdiction shall act according to the requirements of due process and fairness, and shall not be strictly bound by the technical rules of evidence. The hearing shall be open to the public.

Sec. 9. Prima facie evidence. Any accumulation of assets, properties and other material possessions of these persons covered by Executive Orders Nos. 1 and 2, whose value is out of proportion to their known lawful income is prima facie deemed ill-gotten wealth.

Sec. 10. Findings of the Commission. Based on the evidence adduced, the Commission shall determine whether there is reasonable ground to believe that the asset, property or business enterprise in question constitute ill-gotten wealth as described in Executive Orders Nos. 1 and 2. In the event of an affirmative finding, the Commission shall certify the case to the Solicitor General for appropriate action in accordance with law. Businesses, properties, funds and other assets found to be lawfully acquired shall be immediately released and the writ of sequestration, hold/or freeze orders lifted accordingly.

Sec. 11. Date of Effectivity. The provisions of these Rules and Regulations shall be effective immediately. lawphi1.net

DONE in Pasig, Metro Manila, this 11th day of April, 1986.

EXECUTIVE ORDER NO. 2 March 12, 1986

REGARDING THE FUNDS, MONEYS, ASSETS, AND PROPERTIES ILLEGALLY ACQUIRED OR MISAPPROPRIATED BY FORMER PRESIDENT FERDINAND MARCOS, MRS. IMELDA ROMUALDEZ MARCOS, THEIR CLOSE RELATIVES, SUBORDINATES, BUSINESS ASSOCIATES, DUMMIES, AGENTS, OR NOMINEES.

WHEREAS, the Government of the Philippines is in possession of evidence showing that there are assets and properties purportedly pertaining to former President Ferdinand E. Marcos, and/or his wife, Mrs. Imelda Romualdez Marcos, their close relatives, subordinates, business associates, dummies, agents or nominees which had been or were acquired by them directly or indirectly, through or as a result of the improper or illegal use of funds or properties owned by the Government of the Philippines or any of its branches, instrumentalities, enterprises, banks or financial institutions, or by taking undue advantage of their office, authority, influence, connections or relationship, resulting in their unjust enrichment and causing grave damage and prejudice to the Filipino people and the Republic of the Philippines;

WHEREAS, said assets and properties are in the form of bank accounts, deposits, trust accounts, shares of stocks, buildings, shopping centers, condominium, mansions, residences, estates, and other kinds of real and personal properties in the Philippines and in various countries of the world;

WHEREAS, a Presidential Commission on Good Government has been established primarily charged with the responsibility of recovering the aforesaid assets and properties for the Philippine Government;

WHEREAS, any transfer, disposition, concealment or dissipation of said assets and properties would frustrate, obstruct or hamper the efforts of the Government of the Philippines to recover such assets and properties;

WHEREAS, the Presidential Commission on Good Government is further charged with the duty of investigating any claims with respect to these assets and properties;

WHEREAS, in accordance with the requirements of justice and due process, it is the position of the new democratic government that former President Marcos and his wife, Imelda Romualdez Marcos, their close relatives, subordinates, business associates, dummies, agents or nominees be afforded fair opportunity to contest these claims before appropriate Philippine authorities;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, hereby;

(1) Freeze all assets and properties in the Philippines in which former President Marcos and/or his wife, Mrs. Imelda Romualdez Marcos, their close relatives, subordinates, business associates, dummies, agents, or nominees have any interest or participation;

(2) Prohibit any person from transferring, conveying, encumbering or otherwise depleting or concealing such assets and properties or from assisting or taking part in their transfer, encumbrance, concealment, or dissipation under pain of such penalties as are prescribed by law.

(3) Require all persons in the Philippines holding such assets or properties, whether located in the Philippines or abroad, in their names as nominees, agents or trustees, to make full disclosure of the same to the Commission on Good Government within (30) days from publication of this Executive Order, or the substance thereof, in at least two (2) newspapers of general circulation in the Philippines.

(4) Prohibit former President Ferdinand Marcos and/or his wife, Imelda Romualdez Marcos, their close relatives, subordinates, business associates, dummies, agents, or nominees from transferring, conveying, encumbering, concealing or dissipating said assets or properties in the Philippines and abroad, pending the outcome of appropriate proceedings in the Philippines to determine whether any such assets or properties were acquired by them through or as a result of improper or illegal use of or the conversion of funds belonging to the Government of the Philippines or any of its branches, instrumentalities, enterprises, banks or financial institutions, or by taking undue advantage of their official position, authority, relationship, connection or influence to unjustly enrich themselves at the expense and to the grave damage and prejudice of the Filipino people and the Republic of the Philippines.

The Commission on Good Government is hereby authorized to request and appeal to foreign governments wherein any such assets or properties may be found to freeze them and otherwise prevent their transfer, conveyance, encumbrance, concealment or liquidation by former President Ferdinand E. Marcos and Mrs. Imelda Romualdez Marcos, their close relatives, subordinates, business associates, dummies, agents, or nominees, pending the outcome of appropriate proceedings in the Philippines to determine whether such assets or properties were acquired by such persons through improper or illegal use of funds belonging to the Government of the Philippines or any of its branches, instrumentalities, enterprises, banks, or financial institutions or by taking undue advantage of their office, authority, influence, connections or relationship.

DONE in the City of Manila, Philippines, this 12th day of March, in the year of Our Lord, Nineteen Hundred and Eighty-Six.

EXECUTIVE ORDER NO. 14, May 7, 1986, as amended by Executive Order No. 14-A

DEFINING THE JURISDICTION OVER CASES INVOLVING THE ILL-GOTTEN WEALTH OF FORMER PRESIDENT FERDINAND E. MARCOS, MRS. IMELDA R. MARCOS, MEMBERS OF THEIR IMMEDIATE FAMILY, CLOSE RELATIVES, SUBORDINATES, CLOSE AND/OR BUSINESS ASSOCIATES, DUMMIES, AGENTS AND NOMINEES

WHEREAS, the Presidential Commission on Good Government was created on February 28, 1986 by Executive Order No. 1 to assist the President in the recovery of ill-gotten wealth accumulated by former President Ferdinand E. Marcos, his immediate family, relatives, subordinates and close associates;

WHEREAS, the Presidential Commission on Good Government under Executive Order No. 2, dated March 12, 1986, has likewise been primarily charged with the responsibility of recovering the assets and properties illegally acquired or misappropriated by former President Ferdinand E. Marcos and/or Mrs. Imelda R. Marcos, their close relatives, subordinates, business associates, dummies, agents or nominees;

WHEREAS, Article II, Section 1 (D) of Proclamation No. 3, dated March 25, 1986, declaring a national policy to implement the reforms mandated by the people, protecting their basic rights, adopting a provisional constitution, and providing for an orderly transition to a government under a new constitution, states that: “The President shall give priority to measures to achieve the mandate of the people to recover ill-gotten properties amassed by the leaders and supporters of the previous regime and protect the interest of the people through orders of sequestration or freezing of assets or accounts”;

WHEREAS, the vital task of the Commission involves the just and expeditious recovery of such ill-gotten wealth in order that the funds, assets and other properties may be used to hasten national economic recovery;

WHEREAS, the overriding considerations of national interest and national survival require that the Presidential Commission on Good Government achieve its vital task efficiently and effectively, with due regard to the requirements of fairness and due process;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, hereby order:

SECTION 1. Any provision of the law to the contrary notwithstanding, the Presidential Commission on Good Government, with the assistance of the Office of the Solicitor General and other government agencies, is hereby empowered to file and prosecute all cases investigated by it under Executive Order No. 1, dated February 28, 1986, and Executive Order No. 2, dated March 12, 1986, as may be warranted by its findings.

SECTION 2. The Presidential Commission on Good Government shall file all such cases, whether civil or criminal, with the Sandiganbayan, which shall have exclusive and original jurisdiction thereof.

SECTION 3. The civil suits to recover unlawfully acquired property under Republic Act No. 1379 or for restitution, reparation of damages, or indemnification for consequential and other damages or any other civil actions under the Civil Code or other existing laws filed with the Sandiganbayan against Ferdinand E. Marcos, Imelda R. Marcos, members of their immediate family, close relatives, subordinates, close and/or business associates, dummies, agents and nominees, may proceed independently of any criminal proceedings and may be proved by a preponderance of evidence.

The technical rules of procedure and evidence shall not be strictly applied to the civil cases filed hereunder.

SECTION 4. A witness may refuse on the basis of his privilege against self-incrimination, to testify or provide other information in proceeding before the Sandiganbayan if the witness believes that such testimony or provision of information would tend to incriminate him or subject him to prosecution. Upon such refusal the Sandiganbayan may order the witness to testify or provide information.

The witness may refuse to comply with the order on the basis of his privilege against self-incrimination; but no testimony or other information compelled under the order (or any information directly or indirectly derived from such testimony, or other information) may be used against the witness in any criminal case, except a prosecution for perjury, giving a false statement, or otherwise failing to comply with the order.

SECTION 5. The Presidential Commission on Good Government is authorized to grant immunity from criminal prosecution to any person who provides information or testifies in any investigation conducted by such Commission to establish the unlawful manner in which any respondent, defendant or accused has acquired or accumulated the property or properties in question in any case where such information or testimony is necessary to ascertain or prove the latter's guilt or his civil liability. The immunity thereby granted shall be continued to protect the witness who repeats such testimony before the Sandiganbayan when required to do so by the latter or by the Commission.

SECTION 6. The time limitations provided for in Sections 2 and 6 of Republic Act No. 1379 regarding the filing of cases and the rendition of judgments thereon shall not apply to the cases filed hereunder.

SECTION 7. The provisions of this Executive Order shall prevail over any laws or parts thereof, or the Rules of Court as regards the investigation, prosecution, and trial of cases to recover the ill-gotten wealth accumulated by the persons mentioned in Executive Orders Nos. 1 and 2.

SECTION 8. This Executive Order shall take effect immediately.

Done in the City of Manila, this 7th day of May in the year of Our Lord, nineteen hundred and eighty-six.