Why Sara Duterte's wealth case could hinge on her husband's finances

The legal battle surrounding Vice President Sara Duterte's alleged ill-gotten wealth took a sharp turn this week when a former anti-graft court justice explained a key legal principle: the law does not stop at the official's own bank accounts.

During the 24th day of her impeachment trial on September 14, prosecutor Chel Diokno asked former Sandiganbayan presiding justice Amparo Cabotaje-Tang about a provision in the Anti-Graft and Corrupt Practices Act that could open the door to examining the finances of the Vice President's husband, Mans Carpio.

Tang cited Section 8 of RA 3019, saying that properties in the name of other persons, and even the spouse and the children, may be considered in determining whether the official has acquired properties.

What the law says about a spouse's assets

Diokno's line of questioning was aimed at establishing a legal basis for looking into the financial records not just of Sara Duterte, but also of Carpio. The House of Representatives has been pushing this angle for months, and it has already led to a separate legal fight outside the impeachment court.

Carpio sued House justice committee officials in April for releasing his private financial records. The public learned from that disclosure that the Anti-Money Laundering Council (AMLC) flagged P6.7 billion in large and suspicious bank transactions involving the Vice President over the past two decades. That figure includes P2.9 billion that flowed through Carpio's own accounts.

Carpio's lawyers argued that the release of the AMLC report violated several laws, including the Anti-Money Laundering Act, the Bank Secrecy Law, and the Data Privacy Act. Quezon City prosecutors recently dismissed his complaint, but only because they lacked jurisdiction.

Supreme Court precedent supports the inquiry

Tang also pointed to the 2022 Supreme Court case Philippines v. Rabusa, which involved a forfeiture case against a military officer and his family. The Court ruled that the inquiry should extend to the spouse and dependents of the officer.

Such pervasiveness of the inquiry is clearly warranted, if only to prevent persons in government who illegally acquire property from evading investigation by simply placing property in the possession of or in the name of other persons.

The same ruling cited the 1990 decision in Mellon Bank, N.A. v. Magsino, which said that tracing illegally acquired funds requires examining bank records in the name of persons other than the one responsible for the illegal acquisition.

What about the SALN?

Diokno's questioning also touched on the Statement of Assets, Liabilities, and Net Worth (SALN). Tang explained that public officials must include the assets and business interests of their spouses in their SALN, citing the 2019 Supreme Court ruling in Abid-Babano v. Executive Secretary.

There is one exception, Tang said: if the spouses had a complete separation of property before the marriage, then the spouse's assets do not need to be included. Diokno noted that a prenuptial agreement or a judicial separation of properties could therefore allow officials to exclude their spouse's assets entirely.

But if a spouse fails to declare those assets, only the public official bears the liability.

Only the public official. It's only the government official who is required to file a SALN, and that public official is required to include the assets of her spouse.

Under RA 3019, a public official proven to have acquired unexplained wealth during their term can be dismissed from office. The trial continues, and the question of how far the investigation can reach remains at the center of the case.

Frequently asked questions

Can the government investigate a public official's spouse's bank accounts?

Yes, under Section 8 of RA 3019, properties in the name of a spouse or other persons can be considered when determining whether an official acquired ill-gotten wealth. The Supreme Court has affirmed this in cases like Philippines v. Rabusa.

Does a public official have to declare their spouse's assets in their SALN?

Generally, yes. The only exception is if the couple had a complete separation of property before the marriage, as established in Abid-Babano v. Executive Secretary.

What happens if a public official has unexplained wealth?

Under RA 3019, they can be dismissed from office. The law also allows the government to pursue forfeiture of the assets.