BASECO vs. PCGG Digest

Facts

BASECO (Bataan Shipyard and Engineering Co. Inc.) challenged the PCGG sequestration orders issued in accordance with EOs 1 and 2 of President Cory Aquino. PCGG was directed to (1) sequester the BASECO and 8 other companies with minimum disruption, (2) produce certain documents, (3) terminate services to BASECO executives. BASECO contends, among others, that such sequestration is a violation against its right against self-incrimination and unreasonable searches and seizures.

Issue

Is PCGG’s sequestration order against BASECO a violation of BASECO’s right against self-incrimination and unreasonable searches and seizures?

Ruling

No.

1. Right against self-incrimination has no application to juridical persons.
   • Corporations cannot refuse incriminating questions because it is vested with special privileges and franchises by the government, and they must show their hand when charged.
   • Moreover, no search was undertaken by the PCGG, so BASECO cannot invoke its right against self-incrimination.
2. Corporations are a creation of the State, for public benefit
   • Its rights are only preserved to it so long as it obeys the laws of its creation.
   • It would be a strange anomaly to hold that a state could not inquire whether its franchises/privileges granted were abused, and cannot demand the production of the corporate books and papers for that purpose.

Please leave this field empty

Let's learn the law together

We don’t spam! Read our privacy policy for more info.

Thanks! Check your inbox or spam folder to confirm your subscription.