PADILLA v.

DIZON

Facts:

Respondent Baltazar R. Dizon acquitted, in his decision, the

tourist and accused, Lo Chi Fai, saying that Lo Chi Fai had no
willful intention to violate the law. He also directed the release to
Lo Chi Fai of at least the amount of US$3,000.00 under Central
Bank Circular No. 960.

Lo Chi Fai was caught by Customs guard at the Manila

International Airport while attempting to smuggle foreign currency
and foreign exchange instruments out of the country.

An information was filed against Lo Chi Fai with the RTC for
violation of Sec. 6, Central Bank Circular No. 960 with a penal
sanction provided by Sec. 1, PD NO. 1883.

Sec. 6, Central Bank Circular No. 960 provides that no person

shall take out or transmit or attempt to take out or transmit
foreign exchange in any form out of the Philippines without an
authorization by the Central Bank. Tourists and non-resident
visitors may take out or send out from the Philippine foreign
exchange in amounts not exceeding such amounts of foreign
exchange brought in by them. Tourists and non-resident
temporary visitors bringing with them more than US$3,000.00 or
its equivalent in other foreign currencies shall declare their
foreign exchange in the form prescribed by the Central Bank at
points of entries upon arrival in the Philippines.

Sec. 1, P.D. No. 1883 provides that any person who shall engage
in the trading or purchase and sale of foreign currency in violation
of existing laws or rules and regulations of the Central Bank shall
be guilty of the crime of blackmarketing of foreign exchange and
shall suffer the penalty of reclusion temporal (minimum of 12
years and 1 day and maximum of 20 years) and a fine of no less
than P50,000.00.

At the trial, Lo Chi Fai tried to establish that he was a

businessman from Hongkong, that he had come to the Philippines
9 to 10 times to invest in business in the country with his business
associates, and that he and his business associates declared all
the money they brought in and all declarations were handed to
and kept by him.

Because of the revolution taking place in Manila during that time,

Lo Chi Fai was urged by his business associates to come to Manila
to bring the money out of the Philippines.

Commissioner of Customs, Alexander Padilla, then filed a

complaint against Baltazar R. Dizon for acquitting Lo Chi Fai.

Issue:

Whether or not respondent Baltazar R. Dizon is guilty of gross

incompetence or gross ignorance of the law in holding that the
accused, Lo Chi Fai, for violation of Central Bank Circular No. 960,
the prosecution must establish that the accused had the criminal
intent to violate the law.

Held:

Yes.

Ratio:

Baltazar R. Dizon ignored the fact that the foreign currency and
foreign currency instruments found in the possession of Lo Chi Fai
when he was apprehended at the airport and the amounts of such
foreign exchange did not correspond to the foreign currency
declarations presented by Lo Chi Fai at the trial, and that these
currency declarations were declarations belonging to other
people.

In invoking the provisions of the Central Bank Circular No. 960 to

justify the release of US$3,000.00 to Lo Chi Fai, Baltazar R. Dizon
again diplayed gross incompetence and gross ignorance of law.
There is nothing in the Central Bank Circular which could be taken
as authority for the trial court to release the said amount of US
Currency to Lo Chi Fai.