CA junks gov’t bid to go after ex-AFP budget officer’s assets

MANILA, Philippines - The Court of Appeals (CA) has junked the government’s bid to run after the assets of retired military budget officer Lt. Col. George Rabusa, his wife and father-in-law, which are believed to be ill-gotten.

In a 10-page ruling, the ninth division of the appellate court cited as basis the general rule on secrecy of bank deposits.

The CA held that the examination of the bank accounts of Rabusa, his wife Ma. Debbie and their children was made only for the purpose of fishing expedition to be used against them.

It stressed that there was no court order authorizing the examination of their bank accounts, which was in violation of Section 55.1 of Republic Act 8791 or the General Banking Act.

The provision states that “no director, officer, employer or agent shall, without order of a court of competent jurisdiction, disclose to any unauthorized person any information relative to the funds of properties in the custody of the bank belonging to private individuals, corporations, or any entity.”

As to Rabusa’s dollar deposits, the CA cited the lack of consent from the depositor, which is required under Section 8 of Republic Act 6426 or the Foreign Currency Deposit Act.

“The raison d’ etre of the law prohibiting disclosure of or inquiry into deposits with any banking institution is to give encouragement to the people to deposit their money in banking institutions and to discourage private hoarding so that the same may be properly utilized by banks in authorized loans to assist in the economic development of the country,” read the ruling penned by Associate Justice Socorro Inting.

“Owing to this piece of legislation, the confidentiality of bank deposits remains to be a basis state policy in the Philippines,” it pointed out.