In a one-page decision handed down by the Third Division of the High Tribunal and dated July 26, 2004, former banker Teodoro Borlongan’s appeal for certiorari review was effectively denied.
According to the SC, Borlongan had failed to show that the Court of Appeals had committed "irreversible error" when it overturned a decision suspending Buenaventura and other top officials of the BSP.
Buenaventura’s suspension stemmed from the closure of the defunct Urban Bank of the Philippines in 2002.
Borlongan alleged that the BSP, specifically Buenaventura and Deputy Governor Alberto Reyes, abused their authority.
The case is the last and most controversial in a long string of lawsuits filed by Borlongan against Buenaventura and various BSP officials.
The suspension was not actually implemented pending the resolution of the BSP’s appeal but it had caused uncertainty among investors and was even cited as a major factor when the Philippines was dropped from the investment list of the California Public Employees Retirement System (CalPERS).
The CA ruling was seen by banking industry leaders as a signal that the BSP could be similarly punished for "performing their duties and protecting the interest of depositors."
The CA originally ordered Buenaventura’s suspension along with BSP Deputy Governor Alberto V. Reyes, head of the BSP’s Supervision and Examination Department.
However, this decision was later reversed by the Court of Appeals when the BSP filed for reconsideration.
In the SC decision, the tribunal upheld the amended decision of the CA which ruled that the dismissal of the administrative charges against Buenaventura et al was "final and unappealable".