2. The penalty of prision correccional in its maximum
period or a fine ranging from 200 to 1,000 pesos, or
both, shall be imposed upon any appointive public
officer who, during his incumbency, shall directly
or indirectly become interested in any transaction
of exchange or speculation within the territory
subject to his jurisdiction.
3. Elements:
1. That the offender is an appointive public officer.
2. That he becomes interested, directly or indirectly, in any
transaction of exchange or speculation.
3. That the transaction takes place within the territory subject
to his jurisdiction.
4. That he becomes interested in the transaction during his
incumbency.
Appointive officer means an employee appointed to a position for a definite
and fixed term of office by official and duly recorded action of the governing
body of an employing unit.
4. Speculation
Making profits by buying and selling assets at a higher price
than they were bought for. Hedging against potential losses in
other areas of their portfolio. Increasing market liquidity by
buying and selling assets can make it easier for other traders
to enter or exit positions.
5. The transaction must be one of exchange or speculation.
It is sufficient under this article that the appointive officer has an
interest in any transaction of exchange or speculation, such as, buying
and selling stocks, commodities, land, etc., hoping to take advantage
of an expected rise or fall in price.
Purchasing of stocks or shares in a company is simply an
investment and is not a violation of the article.
An appointive public officer may, within the territory subject to
his jurisdiction, engage in the purchase of stocks or shares in any
company, because to do so does not mean taking part in a business for
gain or profit, but simply to invest funds at a legal interest.
6. But buying regularly securities for resale is speculation.
What he may not do is to buy regularly securities for the purpose of
profiting by a resale thereof.
In a word, the appointive public officer should not devote himself to
commerce. (Albert)
Examples of appointive public officer.
Under Art. 14 of the Code of Commerce, the following (among others)
may not engage in the commercial profession either in person or by proxy:
1. Justices, judges or fiscals.
2. Employees engaged in the collection and administration of
public funds.
Thus, a fiscal of Manila who engages in commerce in Manila is guilty
under this article.
