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FACTS:
In 199S, the Philippine Chaiity Sweepstakes 0ffice ueciueu to put up an on-
line lotteiy system which will establish a national netwoik system that will in
tuin expanu PCS0's souice of income.
A biuuing was maue. Philippine uaming Nanagement Coipoiation (PuNC)
won it. A contiact of lease was awaiueu in favoi of PuNC.
Kilosbayan opposeu the saiu agieement between PCS0 anu PuNC as it
allegeu that:
PuNC uoes not meet the nationality iequiiement because it is 7S% foieign
owneu (owneu by a Nalaysian fiim Beijaya uioup Beihau);
PCS0, unuei Section 1 of its chaitei (RA 1169), is piohibiteu fiom holuing
anu conuucting lotteiies "in collaboiation, association oi joint ventuie with
any peison, association, company oi entity";
The netwoik system sought to be built by PuNC foi PCS0 is a
telecommunications netwoik. 0nuei the law (Act No. S846), a fianchise is
neeueu to be gianteu by the Congiess befoie any peison may be alloweu to
set up such;
PuNC's aiticles of incoipoiation, as well as the Foieign Investments Act (R.A.
No. 7u42) uoes not allow it to install, establish anu opeiate the on-line lotto
anu telecommunications systems.
PuNC anu PCS0, thiough Teofisto uuingona, }i. anu Renato Coiona,
Executive Secietaiy anu Asst. Executive Secietaiy iespectively, allegeu that
PuNC is not a collaboiatoi but meiely a contiactoi foi a piece of woik, i.e.,
the builuing of the netwoik; that PuNC is a meie lessoi of the netwoik it will
builu as eviuenceu by the natuie of the contiact agieeu upon, i.e., Contiact of
Lease.

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1. Whethei oi not the petitioneis have locus stanui;
2. Whethei oi not the Contiact of Lease in the light of Section 1 of R.A. No. 1169, as
amenueu by B.P. Blg. 42, which piohibits the PCS0 fiom holuing anu conuucting
lotteiies "in collaboiation, association oi joint ventuie with any peison, association,
company oi entity, whethei uomestic oi foieign." is legal anu valiu.

2/#").1
As to the pieliminaiy issue, the Couit iesolveu to set asiue the pioceuuial
technicality in view of the impoitance of the issues iaiseu. The Couit auopteu the
libeial policy on locus stanui to allow the oiuinaiy taxpayeis, membeis of Congiess,
anu even association of planteis, anu non-piofit civic oiganizations to initiate anu
piosecute actions to question the valiuity oi constitutionality of laws, acts, uecisions,
oi iulings of vaiious goveinment agencies oi instiumentalities.
As to the substantive issue, the Couit agiees with the petitioneis whethei the
contiact in question is one of lease oi whethei the PuNC is meiely an inuepenuent
contiactoi shoulu not be ueciueu on the basis of the title oi uesignation of the
contiact but by the intent of the paities, which may be gatheieu fiom the piovisions
of the contiact itself. Animus homini est anima sciipti. The intention of the paity is
the soul of the instiument.
Theiefoie the instant petition is gianteu anu the challengeu Contiact of Lease is
heieby ueclaieu contiaiy to law anu invaliu.