Philippine Society for the Prevention of Cruelty Against Animals vs COA, Sept.

2007 FACTS: PSPCA was created in 1905 prior the establishment of the Securities and Exchange Commission and the existence of Corporation Law. During the time of President Manuel L. Quezon, the powers of PSPCA to impose penalties and get 1/2 of fines for violation of Animal Welfare act were revoked by virtue of CA 148. In 2003, COA informed PSPCA that they will conduct an audit survey. PSPCA refused to be audited contending that it is private corporation not subject under the authority of COA to audit. To support this claim, they contend that (1) No general law existed during the time it was created to say that PSPCA is a public corporation (2) PSPCA does not exercise governmental functions since the promulgation of COA 148 that stripped and limited its powers (3) it is not funded of the government (4) no government official sits on its board of trustees (5) its employees are covered by SSS and not by GSIS (6) as per reading of RA 1285, PSPCA is covered by the law on private corporations. COA"s contention: COA maintains that PSPCA is a "bodily politic" created by special law for government purpose. Thus, they have the authority to audit. PSPCA. ISSUE: Whether or not PSPCA is a public corporation and is therefore, subject to be audited by COA. HELD: Petition is partially granted. SC RULING: PSPCA is a quasi-public corporation which is a kind of private corporation imbued with public interest. The real test to determine whether the corporation is private or public to take into account the totality of its relations with the State. If it was created by the State as its own agency, it is a public corporation. Otherwise, it is private.