G.R. No. 167173 December 27, 2007
FACTS:
SCB Phil Branch had criminal and civil charges against them before the courts in Metro Manila for selling unregistered foreign securities in violation of Securities Regulation Code (RA 8799). Enrile, in his privileged speech, urged the Senate to immediately conduct an inquiry in aid of legislation, to prevent the occurrences of a similar fraudulent in the future. The respondent Committee then set an initial hearing to investigate, in aid of legislation thereto. SCB stressed that there were cases allegedly involving the same issues subject of legislative inquiry, thus posting a challenge to the jurisdiction of respondent Committee to continue with the inquiry.
ISSUE:
Whether or not the respondent Committee, by aid of legislation, would encroach upon the judicial powers vested solely in the courts who took cognizance of the foregoing cases.
RULING:
Yes. The unmistakable objective of the investigation, as set forth in the resolution, as initiated in the privileged speech of Senate President Enrile, was simply "to denounce the illegal practices committed by a foreign bank in selling unregistered foreign securities xxx", and at the conclusion of the said speech "to immediately conduct an inquiry, in aid of legislation, so as to prevent the occurrence of a similar fraudulent in the future."
The mere filing of a criminal or administrative complaint before a court or a quasi-judicial body should not automatically bar the conduct of legislation. The exercise of sovereign legislative authority, of which the power of legislative inquiry is an essential component, cannot be made subordinate to a criminal or an administrative investigation.
The intent of legislative inquiries is to arrive at a policy determination, which may or may not be enacted into law. Except only when it exercises the power to punish for contempt, the committees of the Senate or the House of Representatives cannot penalize violators even there is overwhelmingly evidence of criminal culpability. Other than proposing or initiating amendatory or remedial legislation, respondent Committee can only recommend measures to address or remedy whatever irregularities may be unearthed during the investigation, although it may include in its Report a recommendation for criminal indictment of persons who may appear liable. At best, the recommendation, along with the evidence, contained in such Report would only be persuasive, but it is still up to the prosecutorial agencies and the courts to determine the liabilities of the offender.
