ROMEO P. BUSUEGO, CATALINO F.

BANEZ and FLOW:

RENATO F. LIM, petitioners,
vs. THE HONORABLE COURT OF APPEALS and
THE MONETARY BOARD OF THE CENTRAL BANK
OF THE PHILIPPINES, respondents.
RTC- issued TRO (Monetary Board Resolution
No. 805 as void and in existent)
CA- reversed RTC
SC- affirmed CA (upheld validity of MB 805)

FACTS:
• The 16th regular examination of the books and records of PAL Employees Savings and Loan Association
(PESALA) was conducted by a team of CB Examiners. Several irregularities were found to have been
committed by the PESALA officers. CB sent a letter to petitioners for them to be present at a meeting
specifically for the purpose of investigating said anomalies.
• Petitioners did not respond. Hence, the Monetary Board adopted a resolution ( MB Resolution No. 805)
including the names of the officers of PESALA in the watchlist to prevent them from holding responsible
positions in any institution under CB supervision.
• Petition for injunction against the MB is filed by petitioners in order to prevent their names from being
added in the said watchlist. RTC issued the Temporary Restraining Order.
• The MB appealed to the CA which reversed RTC. Hence, this petition for certiorari with the SC.
• Petitioners contend that the MB resolution was null and void for being violative of their right to due process
by imposing administrative sanctions where the MB is not vested with authority to disqualify persons from
occupying positions in institutions under the supervision of CB.

ISSUE: RULING: NO.

Whether or not the MB resolution
was null and void.
The Central Bank, through the Monetary Board, is the
government agency charged with the responsibility of administering
the monetary, banking and credit system of the country and is granted
the power of supervision and examination over banks and non-bank
financial institutions performing quasi-banking functions of which
savings and loan associations, such as PESALA, form part of.
The special law governing savings and loan associations is
R.A. 3779, the Savings and Loan Association Act. Said law authorizes
the MB to conduct regular yearly examinations of the books and
records of savings and loan associations, to suspend a savings and
loan association for violation of law, to decide any controversy over the
obligations and duties of directors and officers, and to take remedial
measures.
Hence, the CB, through the MB, is empowered to conduct
investigations and examine the records of savings and loan
associations. If any irregularity is discovered in the process, the MB
may impose appropriate sanctions, such as suspending the offender
from holding office or from being employed with the CB, or placing the
names of the offenders in a watchlist.

The CB, through the MB, is the government agency charged with the responsibility of administering the
monetary, banking and credit system of the country and is granted the power of supervision and examination
over banks and non-bank financial institutions performing quasi-banking functions of which savings and loan
associations, such as PESALA, form part of. If any irregularity is discovered in the process, the MB may
impose appropriate sanctions, such as suspending the offender from holding office or from being employed
with the CB, or placing the names of the offenders in a watchlist.