The Court of Appeals issued a temporary restraining order (TRO) to the SEC[4] while the Special 9th Division composed of Associate Justices Vicente Q. Roxas, Jose L. Sabio Jr. and Myrna Dimaranan Vidal heard the case.

Later, Sabio called a press conference and alleged that an emissary of Meralco tried to bribe him with ₱10 million to have a case transferred to another appeals court justice.

[5] Sabio did not mention any names, but businessman Francis de Borja stepped forward and claimed that he was the alleged emissary, accusing Sabio of asking for a ₱50 million bribe to side with Meralco, in response to De Borja's question “What will it take for you to resist the government’s offer?” The alleged government offer was a Supreme Court position.

The late admission of the allegedly unethical and criminal action called into doubt the innocence of Sabio in coming forward with his expose and the veracity of his entire story.

Vasquez was severely reprimanded “for his failure to act promptly and decisively in order to avert the incidence that damaged the image of the Court of Appeals,” Reyes was found guilty of simple misconduct with mitigating circumstance, and Vidal was found guilty of conduct unbecoming of a justice of the appellate court for being “too compliant" when she allowed herself to sign the decision without reading the parties’ memorandum.

The scandal originated from the Meralco and GSIS row after Sabio—in a letter-complaint against Justices Vicente Roxas and Bienvenido Reyes—complained of the circumstances that he was removed from the GSIS–Meralco case after a standard court reorganization, and an alleged bribe attempt by Manolo Lopez and Meralco in consideration for him giving way to Reyes' chairmanship of the CA's Special 9th Division[10] It catches nationwide attention when businessman Francis De Borja surfaces and accuses Sabio via sworn affidavit that the justice had asked for P50 million to back away from the case, to counter a government offer of money and a Supreme Court appointment in exchange for a ruling favorable to GSIS.

[11] In 1978, Meralco was fully controlled by the Marcos administration, but its ownership was finally returned to the Lopez family after the People Power Revolution by President Corazon Aquino.

[12] Gloria Macapagal Arroyo on May 2, 2008, announced plans to reduce Luzon high power rates, amid a “tough legal fight” with Meralco before state energy regulators.

Accordingly, GSIS, through its President Winston Garcia, on May 11, stated it "planned not only to buy out the Lopez family and other shareholders in Meralco but also to break up its concession to promote efficiency and transparency."

Oscar Lopez blamed the Arroyo administration's moves to take over Meralco in a “reverse privatization,” because of the Lopez-owned ABS-CBN's negative publicity against the government.

[13] During the May 27, 2008, stockholders’ meeting, GSIS' President Winston Garcia obtained an SEC “cease-and-desist order” to stop and defer the counting of proxy votes held by the Lopez group until questions on its validity were resolved.

The Court's 8th Division renders a 57-page judgment authored by Justice Vicente Roxas on July 24 against the GSIS, affirming Meralco's stance that the SEC has no jurisdiction over the issue.

[19][20][21] Businessman Francis de Borja emerges and reveals to the media a notarized and sworn affidavit that it was Justice Sabio who brought up a P50 million price for him to act in favor of Meralco in its dispute with the GSIS.

Mr. de Borja asserts that Mr. Sabio had told him a Supreme Court seat was being offered in exchange for a ruling in favor of the GSIS, which is trying to wrest control of Meralco from the Lopezes.

When Camilo called the first time, he informed Jose that he was going to be the acting chairman of the Special Ninth Division of the court; and that furthermore, a TRO against the Securities and Exchange Commission order that the GSIS desired was being prepared.

It explained why Justice Sabio would, in turn, on July 1, meet lawyer Francis de Borja to discuss a case he had every reason to know would be brought up by a party friendly to Meralco.

As an official of the Court, Justice Sabio is mandated under Article 208 of the Revised Penal Code to report any possible violation of the law, with negligence and tolerance as the offending act.

02-6-13-CA - 2005 RIRCA: SPECIFIC AMENDMENTS TO THE 2002 INTERNAL RULES OF THE COURT OF APPEALS)[35][37][38] Justice Romeo Callejo, Sr., member of the 3-man panel investigation, Senator Francis Pangilinan and Akbayan Rep. Risa Hontiveros stated that the applicable laws are the following:[39] The Revised Penal Code of 1930, now defines the felony of attempted bribery and corruption of public officials as follows: Act No.

Dismissal from the service, forfeiture of all or part of the benefits as the Court may determine, and disqualification from reinstatement or appointment to any public office, including government-owned or controlled corporations.

- Proceedings for disbarment, suspension or discipline of attorneys may be taken by the Supreme Court motu proprio, or by the Integrated Bar of the Philippines (IBP) upon the verified complaint of any person.

(b) Directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit, for himself or for any other person, in connection with any contract or transaction between the Government and any other part, wherein the public officer in his official capacity has to intervene under the law.

He knows that a lie detector test is not admissible as evidence so why is he asking for it?’’[49] De Borja was interviewed and appeared at ABS-CBN News Channel's (ANC) Dateline Philippines, and he repeated his media statements: "No definitely not...He [Sabio] says that Manolo was waiting for me in my car.

Sabio, on August 1, First Friday, held a press conference in his CA [hambers, and stated to media: ...I expect matters to get worse because I am up against the billions of the Lopezes.

I know that they will not stop at doing everything to discredit my integrity.”[63][64] The internal strife and open quarrel over signature space on a judgment pushed the appellate court to the edge and is now at the center of a maelstrom.

Vasquez reiterated that "Sabio’s 9th division, since it issued a temporary restraining order (TRO), and its members heard and participated in the June 23 hearing, should “sign and resolve” the case.

Reyes as chairman, Justice Roxas, as ponente, and Justice Bruselas, Jr. as the third member, the resolution of the pending incidents in the case will be participated by two (2) members who were not present and did not hear the arguments during the hearing on the injunctive relief...”[68][69] GSIS, on August 13, 2008, in 65-page certiorari petition, asked the Supreme Court to nullify the CA judgment that prevented the SEC from case intervention, "considering the SC probe is still ongoing."

[85] Meanwhile, 2 pro-administration congressmen, Masbate Rep. Antonio Kho and Nueva Ecija Rep. Joseph Gilbert Violago, on August 4 called for a House of Representatives probe on the bribery case.

[86] Accordingly, House Resolution 705 was filed by Manila Representative Bienvenido Abante Jr., petitioning Congress, through the committees on energy and justice, to probe the bribery case.

[91] He was only the 2nd Court of Appeals jurist to be dismissed, since the first firing in Philippine judicial history of CA Justice Demetrio G. Demetria, for interceding in theDOJ drug case of Yu Yuk Lai.

Reyes stated: “I will order a monthly or quarterly inventory of TROs, for transparency and to watch the movements of the so-called Dirty Dozen [the 12 most corrupt CA justices].” Reynato Puno said that Ombudsman Merceditas Gutierrez had not yet submitted the list and the Supreme Court was waiting for its delivery amid her formal investigation against the “Dirty Dozen.”[95] On February 1, 2008, the Court celebrated its 72nd Anniversary.