SC acquits Imelda Marcos in graft case over Swiss foundations

The Supreme Court has overturned the graft conviction of former First Lady Imelda Marcos, acquitting her in a case involving alleged financial interests in seven Swiss foundations. The decision, dated June 10, 2026, was made public on Wednesday, September 9. Marcos was accused of having pecuniary interests and participation in the management of several non-government organizations in Switzerland from 1978 to 1984, during her tenure as Minister of Human Settlements, Metro Manila Governor, and interim member of the Batasan Pambansa. In November 2018, the Sandiganbayan (anti-graft court) found her guilty of seven counts of graft, sentencing her to six to 11 years in prison for each count, ruling that the foundations were established primarily for the benefit of the Marcos family. However, the Supreme Court's First Division, through Associate Justice Rodil Zalameda, found the prosecution's testimonial and documentary evidence inadmissible and lacking in probative value. The SC stated that the act of opening bank accounts, transferring funds, and earning interest or investment profits does not, by itself, make an entity a commercial enterprise. Such activities are no different from maintaining a bank deposit or an investment portfolio, the Court explained. "Bank depositors lend banks their money in exchange for the payment of interest," the SC noted, adding that this does not make depositors business operators. Similarly, placing investments and earning income from them do not necessarily constitute carrying on a trade or business, as these could simply be activities of a passive investor. The Court concluded that absent a showing that the subject foundations regularly offered goods or services for the main purpose of earning profit, they cannot be considered businesses. "All told, the prosecution failed to establish that the subject foundations are businesses as the term is ordinarily understood. Any financial or pecuniary interest in the subject foundations is not covered by Section 3(h) of Republic Act No. 3019 and Article IX, Section 7 (then Section 8) of the 1973 Constitution. Doubts on the coverage of the term 'business' should be resolved against the State and in favor of the accused-appellant," the SC stated, granting Marcos' appeal. This Supreme Court ruling could mark a significant turn in judicial decisions related to the Marcos family, a prominent figure in Philippine politics and society. Cases concerning alleged ill-gotten wealth during the Marcos regime have often been protracted and garnered significant public attention. The acquittal underscores the strict burden of proof required in graft cases and the critical importance of evidence authentication. Information Source: GMA News Philippines