Lex Rex Ph

BASECO vs. PCGG Digest


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.


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



  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.

Other Content You May Be Interested In:

ABS-CBN vs. Hilario

July 10, 2019 Facts Mr. Edmund Ty incorporated CCI to engage in the business of making props for TV programs et al. Honorato and Banting were hired as employees. In June 2003,

Read More »

Jurisdiction and its Types

Means “the power to hear and decide cases” (Herrera vs. Barreto) and execute judgment thereon (Echegaray vs. Sec. of Justice) “The authority to resolve cases, and determine the rights and obligations of

Read More »


Export Processing Zone Authority vs. CHRG.R. No. 101476, 14 April 1992 Facts Certain parcels of land in Cavite were designated as Export Processing Zones by PD 1980. It was later sold to

Read More »


is the person who delivers a non-consumable thing for the use of a bailee in a certain period of time without compensation for its use. (Art. 1935 of New Civil Code) The

Read More »