I.

SHORT TITLE:

BUSUEGO V. CA

II. FULL TITLE:

ROMEO P. BUSUEGO, CATALINO F. BANEZ and RENATO F. LIM,

petitioners, vs. THE HONORABLE COURT OF APPEALS and THE
MONETARY BOARD OF THE CENTRAL BANK OF THE
PHILIPPINES, respondents.
G.R. No. 95326. March 11, 1999

III. TOPIC:

Central Bank Act State Declared Policy Bangko Sentral ng Pilipinas

IV. STATEMENT OF FACTS:

The 16th regular examination of the books and records of PAL Employees Savings and Loan
Association (PESALA) was conducted by a team of Central Bank Examiners. Several
Irregularities were found to have been committed by the PESALA officers. Hence, Central Bank
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 including the names of the officers of PESALA in the watch list to prevent them from
holding responsible positions in any institution under Central Bank supervision.
V. STATEMENT OF THE CASE:
Petitioners filed a petition for injunction against the Monetary Board in order to prevent the
names from being added in the said watch list. RTC issued the TRO. The Monetary Board
appealed to the Court of Appeals which reversed RTC. Hence, this petition for certiorari with the
Supreme Court. Petitioners contend that the Monetary Board resolution was null and void for
being violative of their right to due process by imposting administrative sanctions where the
Monetary Board is not vested with authority to disqualify persons from occupying positions in
institutions under the supervision of Central Bank.
VI. ISSUE:
Whether or not the Monetary Board resolution was null and void.
VII. RULING:
No, the Central Bank through the Monetary Board, as 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 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 Monetary Board 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 Central Bank, through the
Monetary Board, is empowered to conduct investigations and examine the records of savings and

loan associations. If any irregularity is discover in the process, the Monetary Board may impose
appropriate sanctions, such as suspending the offender from holding office or from being
employed with the Central Bank, or placing the names of the offenders in a watch list.
VIII. DISPOSITIVE PORTION:
WHEREFORE, the petition is DENIED, and the assailed Decision dated September 14, 1990 of
the Court of Appeals AFFIRMED. No pronouncement as to costs.