Iglesias, Kristel Joy M.

Bataan Shipyard and Engineering constitutional right against self-incrimination,

Corporation v. PCG, G.R. No. 75885, May 27, and unreasonable search and seizure.
1987

SUMMARY ISSUE

The case involves the sequestration and Whether or not there was a violation of the
takeover of BASECO by the PCGG right against self-Incrimination.
(Presidential Commission on Good
Government) in the Philippines. The PCGG's
actions were part of their efforts to recover RULING
ill-gotten wealth amassed by President
Marcos. BASECO, challenged the No. The right against self-incrimination has no
constitutionality of Executive Orders application to juridical persons. While an
Numbered 1 and 2, as well as the specific individual may lawfully refuse to answer
orders and acts of the PCGG. The PCGG incriminating questions unless protected by an
issued a sequestration order on April 7, 1986, immunity statute, it does not follow that a
which directed the sequestration of BASECO corporation, vested with special privileges and
and other companies. The PCGG also issued franchises, may refuse to show its hand when
orders for the production of documents, charged with an abuse of such privileges.
termination of contracts, operation of a
quarry, disposal of scrap, and the takeover of
BASECO. The court upheld the
constitutionality of the PCGG's actions. The
court explained that the PCGG was
authorized by law to sequester, freeze, and
provisionally take over assets and properties
believed to be ill-gotten. The court
emphasized that the PCGG was not acting as
a judge, but rather as an investigative agency
tasked with collecting evidence and filing
cases in court.

FACTS

The corporation known as BASECO was owned

or controlled by President Marcos during his
administration. BASECO had taken over the
business and assets of the National Shipyard
and Engineering Co., Inc., and other
government-owned or controlled entities.

In accordance with Executive Orders Numbers 1

and 2 promulgated by President Corazon
Aquino, PCGG through its commissioners and
agent ordered sequestration of BASECO. On the
strength of the above sequestration order, Mr.
Jose M. Balde, acting for the PCGG, addressed a
letter to the officers of BASECO, reiterating a
request for the production of certain
documents and records from 1973 to 1986.

BASECO argues that the order to produce

corporate records from 1973 to 1986, which has
been apparently already complied with, was
issued without court authority and infringed its