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Romeo Busuego vs. Court of Appeals: G.R NO. 95326 MARCH 11, 1999

The Monetary Board of the Central Bank of the Philippines adopted a resolution adding the names of officers of the PAL Employees Savings and Loan Association (PESALA) to a watchlist after an examination found irregularities in PESALA's books and records. The officers filed a petition to prevent their names from being added to the watchlist. The Supreme Court ruled that the Monetary Board has the authority to regulate and supervise savings and loan associations, conduct investigations into any irregularities, and impose sanctions such as adding names to a watchlist.

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63 views6 pages

Romeo Busuego vs. Court of Appeals: G.R NO. 95326 MARCH 11, 1999

The Monetary Board of the Central Bank of the Philippines adopted a resolution adding the names of officers of the PAL Employees Savings and Loan Association (PESALA) to a watchlist after an examination found irregularities in PESALA's books and records. The officers filed a petition to prevent their names from being added to the watchlist. The Supreme Court ruled that the Monetary Board has the authority to regulate and supervise savings and loan associations, conduct investigations into any irregularities, and impose sanctions such as adding names to a watchlist.

Uploaded by

Ching
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ROMEO BUSUEGO

vs.
COURT OF APPEALS
G.R NO. 95326
MARCH 11, 1999

BY: CHERYL D. AÑALUCAS


FACTS:
• The 16th regular examination of the books and records of PAL Employees Savings and Loan Association
(PESALA) was conducted by a team of CB Examiners.
• Several irregularities were found to have been committed by the PESALA officers. Hence, CB sent a letter to
petitioners for them to be present at a meeting specifically for the purpose of investigating said anomalies.
Petitioners did not respond.
Hence, the Monetary Board adopted a resolution including
the names of the officers of PESALA in the watchlist to
prevent them from holding responsible

positions in any institution under CB supervision.


• Petitioners filed a petition for injunction against the MB in order to prevent their names from being added in
the said watchlist. RTC issued the TRO. The MB appealed to the CA which reversed RTC. Hence, this
petition for certiorari with the SC.
• Petitioners contend that the MB resolution was null and void for being violative of their right to due process
by imposing administrative sanctions where the MB is not vested with authority to disqualify persons from
occupying positions in institutions under the supervision of CB.
ISSUE:
• Whether or not the MB resolution was null and void?
RULING:
• NO. The CB, through the MB, is the government agency charged with the responsibility of administering
the monetary, banking and credit system of the country and is granted the power of supervision and
examination over banks and non-bank financial institutions performing quasibanking functions of which
savings and loan associations, such as PESALA, form part of.
• The special law governing savings and loan associations is R.A. 3779, the Savings and Loan Association
Act. Said law authorizes the MB to conduct regular yearly examinations of the books and records of
savings and loan associations, to suspend a savings and loan association for violation of law, to decide
any controversy over the obligations and duties of directors and officers, and to take remedial measures.
Hence, the CB, through the MB, is empowered to conduct investigations and examine the records of
savings and loan associations. If any irregularity is discovered in the process, the MB may impose
appropriate sanctions, such as suspending the offender from holding office or from being employed with
the CB, or placing the names of the offenders in a watchlist.

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