PCGG V SANDIGANBAYAN case at bar is “advising the Central Bank, on how
to proceed with the said bank’s liquidation and even filing
FACTS the petition for its liquidation in CFI of Manila. The Court held that the advice given by respondent Mendoza on the procedure to liquidate GENBANK is not the “matter” In 1976 the General Bank and Trust Company (GENBANK) contemplated by Rule 6.03 of the Code encountered financial difficulties. GENBANK had extended of Professional Responsibility. ABA Formal Opinion No. 342 considerable financial support to is clear in stressing that “drafting, enforcing or interpreting Filcapital Development Corporation causing it to incur daily government or agency procedures, regulations and laws, or overdrawings on its current account with Central Bank. briefing abstract principles of law are acts which do not fall Despite the mega loans GENBANK failed to recover from its within the scope of the term “matter” and cannot financial woes. The Central Bank issued a resolution disqualify. Respondent Mendoza had nothing to do with the declaring GENBANK insolvent and unable to decision of the Central Bank to liquidate GENBANK. He also resume business with safety to its depositors, creditors and did not participate in the sale of GENBANK to Allied Bank. the general public, and ordering its liquidation. A public The legality of the liquidation of GENBANK is not an issue in bidding of GENBANK’s assets was held where Lucio Tan the sequestration cases. Indeed, the jurisdiction of the group submitted the winning bid. Solicitor General Estelito PCGG does not include the dissolution and liquidation of Mendoza filed a petition with the CFI praying for banks. Thus, the Code 6.03 of the Code the assistance and supervision of the court in GENBANK’s of Professional Responsibility cannot apply to respondent liquidation as mandated by RA 265. After EDSA Revolution I Mendoza because his alleged intervention while SolGen is Pres Aquino established the PCGG to recover the alleged ill- an intervention on a matter different from the matter gotten wealth of former Pres Marcos, his family and involved in the Civil case of sequestration. In the metes and cronies. Pursuant to this mandate, the PCGG filed with the bounds of the “intervention”. The applicable meaning as Sandiganbayan a complaint for reversion, reconveyance, the term is used in the Code of Professional Ethics is that it restitution against respondents Lucio Tan, at.al. PCGG is an act of a person who has the power to influence the issued several writs of sequestration on properties allegedly subject proceedings. The evil sought to be remedied by the acquired by them by taking advantage of their close Code do not exist where the government lawyer does not relationship and influence with former Pres. Marcos. The act which can be considered as innocuous such as “ drafting, abovementioned respondents Tan, et. al are represented as enforcing, or interpreting government or agency their counsel, former Solicitor General Mendoza. PCGG filed procedures, regulations or laws or briefing abstract motions to disqualify respondent Mendoza as counsel for principles of law.” The court rules that the intervention of respondents Tan et. al. with Sandiganbayan. It Mendoza is not significant and substantial. He merely was alleged that Mendoza as then Sol Gen and counsel petitions that the court gives assistance in the liquidation of to Central Bank actively intervened in the liquidation of GENBANK. The role of court is not strictly as a court of GENBANK which was subsequently acquired by justice but as an agent to assist the Central Bank in respondents Tan et. al., which subsequently became determining the claims of creditors. In such a proceeding Allied Banking Corporation. The motions to disqualify the role of the SolGen is not that of the usual court litigator invoked Rule 6.03 of the Code of Professional Responsibility protecting the interest of government. which prohibits former government lawyers from accepting Petition assailing the Resolution of the Sandiganbayan is “engagement” or employment in connection with any denied. matter in which he had intervened while in the said service. Relevant Dissenting Opinion of Justice Callejo: The Sandiganbayan issued a resolution denyting PCGG’s Rule 6.03 is a restatement of Canon 36 of motion to disqualify respondent Mendoza. It failed to prove the Canons of Professional Ethics: “ A lawyer, having once the existence of an inconsistency between respondent held public office or having been in the public employ, Mendoza’s former function as SolGen and his present should not after his retirement accept employment in employment as counsel of the Lucio Tan group. PCGGs connection with any matter which he has investigated or recourse to this court assailing the Resolutions of the passed upon while in such office or employ.” Sandiganbayan. Indeed, the restriction against a public official from using his public position as a vehicle to promote or advance his ISSUE private interests extends beyond his tenure on certain matters in which he intervened as a public official. Rule 6.03 Whether Rule 6.03 of the Code makes this restriction specifically applicable to lawyers who of Professional Responsibility applies to respondent once held public office.” A plain reading shows that the Mendoza. The prohibition states: “A lawyer shall not, after interdiction 1. applies to a lawyer who once served in the leaving government service, accept engagement or government and 2. relates to his accepting “engagement or employment in connection with any matter in which he had employment” in connection with any matter in which he intervened while in the said service.” had intervened while in the service.
HELD
The case at bar does not involve the “adverse interest”
aspect of Rule 6.03. Respondent Mendoza, it is conceded, has no adverse interest problem when he acted as SOlGen and later as counsel of respondents et.al. before the Sandiganbayan. However there is still the issue of whether there exists a “congruent-interest conflict” sufficient to disqualify respondent Mendoza from representing respondents et. al. The key is unlocking the meaning of “matter” and the metes and bounds of “intervention” that he made on the matter. Beyond doubt that the “matter” or the act of respondent Mendoza as SolGen involved in the