Republic of the Philippines

SUPREME COURT
Manila

proper Head of Department may direct that absence
during any period of disability thereby occasioned
shall be on full pay, though not more than six
months, and in such case he may in his discretion
also authorize the payment of the medical
attendance, necessary transportation, subsistence
and hospital fees of the injured person. Absence in
the case contemplated shall be charged first against
vacation leave, if any there be.

EN BANC
G.R. No. 103982 December 11, 1992
ANTONIO A. MECANO, petitioner,
vs.
COMMISSION ON AUDIT, respondent.

xxx xxx xxx
In case of sickness caused by or connected directly
with the performance of some act in the line of duty,
the Department head may in his discretion authorize
the payment of the necessary hospital fees.

CAMPOS, JR., J.:
Antonio A. Mecano, through a petition for certiorari, seeks to nullify
the decision of the Commission on Audit (COA, for brevity)
embodied in its 7th Indorsement, dated January 16, 1992, denying
his claim for reimbursement under Section 699 of the Revised
Administrative Code (RAC), as amended, in the total amount of
P40,831.00.

Director Lim then forwarded petitioner's claim, in a 1st Indorsement
dated June 22, 1990, to the Secretary of Justice, along with the
comment, bearing the same date, of Gerarda Galang, Chief, LED of
the NBI, "recommending favorable action thereof". Finding
petitioner's illness to be service-connected, the Committee on
Physical Examination of the Department of Justice favorably
recommended the payment of petitioner's claim.

Petitioner is a Director II of the National Bureau of Investigation
(NBI). He was hospitalized for cholecystitis from March 26, 1990 to
April 7, 1990, on account of which he incurred medical and
hospitalization expenses, the total amount of which he is claiming
from the COA.

However, then Undersecretary of Justice Silvestre H. Bello III, in a
4th Indorsement dated November 21, 1990, returned petitioner's
claim to Director Lim, having considered the statements of the
Chairman of the COA in its 5th Indorsement dated 19 September
1990, to the effect that the RAC being relied upon was repealed by
the Administrative Code of 1987.

On May 11, 1990, in a memorandum to the NBI Director, Alfredo S.
Lim (Director Lim, for brevity), he requested reimbursement for his
expenses on the ground that he is entitled to the benefits under
Section 699 1 of the RAC, the pertinent provisions of which read:

Petitioner then re-submitted his claim to Director Lim, with a copy
of Opinion No. 73, S. 1991 2 dated April 26, 1991 of then Secretary
of Justice Franklin M. Drilon (Secretary Drilon, for brevity) stating
that "the issuance of the Administrative Code did not operate to
repeal or abregate in its entirety the Revised Administrative Code,
including the particular Section 699 of the latter".

Sec. 699. Allowances in case of injury, death, or
sickness incurred in performance of duty. — When a
person in the service of the national government of a
province, city, municipality or municipal district is so
injured in the performance of duty as thereby to
receive some actual physical hurt or wound, the

1

On May 10, 1991, Director Lim, under a 5th Indorsement
transmitted anew Mecano's claim to then Undersecretary Bello for
favorable consideration. Under a 6th Indorsement, dated July 2,
1991, Secretary Drilon forwarded petitioner's claim to the COA
Chairman, recommending payment of the same. COA Chairman
Eufemio C. Domingo, in his 7th Indorsement of January 16, 1992,
however, denied petitioner's claim on the ground that Section 699
of the RAC had been repealed by the Administrative Code of 1987,
solely for the reason that the same section was not restated nor reenacted in the Administrative Code of 1987. He commented,
however, that the claim may be filed with the Employees'
Compensation Commission, considering that the illness of Director
Mecano occurred after the effectivity of the Administrative Code of
1987.

questions the applicability of the aforesaid opinion of the Secretary
of Justice in deciding the matter. Lastly, the COA contends that
employment-related sickness, injury or death is adequately covered
by the Employees' Compensation Program under P.D. 626, such
that to allow simultaneous recovery of benefits under both laws on
account of the same contingency would be unfair and unjust to the
Government.
The question of whether a particular law has been repealed or not
by a subsequent law is a matter of legislative intent. The
lawmakers may expressly repeal a law by incorporating therein a
repealing provision which expressly and specifically cites the
particular law or laws, and portions thereof, that are intended to be
repealed. 3 A declaration in a statute, usually in its repealing clause,
that a particular and specific law, identified by its number or title, is
repealed is an express repeal; all others are implied repeals. 4

Eventually, petitioner's claim was returned by Undersecretary of
Justice Eduardo Montenegro to Director Lim under a 9th
Indorsement dated February 7, 1992, with the advice that
petitioner "elevate the matter to the Supreme Court if he so
desires".

In the case of the two Administrative Codes in question, the
ascertainment of whether or not it was the intent of the legislature
to supplant the old Code with the new Code partly depends on the
scrutiny of the repealing clause of the new Code. This provision is
found in Section 27, Book VII (Final Provisions) of the Administrative
Code of 1987 which reads:

On the sole issue of whether or not the Administrative Code of 1987
repealed or abrogated Section 699 of the RAC, this petition was
brought for the consideration of this Court.

Sec. 27. Repealing Clause. — All laws, decrees,
orders, rules and regulations, or portions thereof,
inconsistent with this Code are hereby repealed or
modified accordingly.

Petitioner anchors his claim on Section 699 of the RAC, as
amended, and on the aforementioned Opinion No. 73, S. 1991 of
Secretary Drilon. He further maintains that in the event that a claim
is filed with the Employees' Compensation Commission, as
suggested by respondent, he would still not be barred from filing a
claim under the subject section. Thus, the resolution of whether or
not there was a repeal of the Revised Administrative Code of 1917
would decide the fate of petitioner's claim for reimbursement.

The question that should be asked is: What is the nature of this
repealing clause? It is certainly not an express repealing clause
because it fails to identify or designate the act or acts that are
intended to be repealed. 5 Rather, it is an example of a general
repealing provision, as stated in Opinion No. 73, S. 1991. It is a
clause which predicates the intended repeal under the condition
that substantial conflict must be found in existing and prior acts.
The failure to add a specific repealing clause indicates that the
intent was not to repeal any existing law, unless an irreconcilable
inconcistency and repugnancy exist in the terms of the new and old

The COA, on the other hand, strongly maintains that the enactment
of the Administrative Code of 1987 (Exec. Order No. 292) operated
to revoke or supplant in its entirety the Revised Administrative
Code of 1917. The COA claims that from the "whereas" clauses of
the new Administrative Code, it can be gleaned that it was the
intent of the legislature to repeal the old Code. Moreover, the COA

2

laws. 6 This latter situation falls under the category of an implied
repeal.

Section 699 was not restated in the Administrative Code of 1987
meant that the same section had been repealed. It further
maintained that to allow the particular provisions not restated in
the new Code to continue in force argues against the Code itself.
The COA anchored this argument on the whereas clause of the
1987 Code, which states:

Repeal by implication proceeds on the premise that where a statute
of later date clearly reveals an intention on the part of the
legislature to abrogate a prior act on the subject, that intention
must be given effect. 7 Hence, before there can be a repeal, there
must be a clear showing on the part of the lawmaker that the intent
in enacting the new law was to abrogate the old one. The intention
to repeal must be clear and manifest; 8 otherwise, at least, as a
general rule, the later act is to be construed as a continuation of,
and not a substitute for, the first act and will continue so far as the
two acts are the same from the time of the first enactment. 9

WHEREAS, the effectiveness of the Government will
be enhanced by a new Administrative Code which
incorporate
in
a unified
document the
major
structural, functional and procedural principles and
rules of governance; and
xxx xxx xxx

There are two categories of repeal by implication. The first is where
provisions in the two acts on the same subject matter are in an
irreconcilable conflict, the later act to the extent of the conflict
constitutes an implied repeal of the earlier one. The second is if the
later act covers the whole subject of the earlier one and is clearly
intended as a substitute, it will operate to repeal the earlier law. 10

It argues, in effect, that what is contemplated is only one Code —
the Administrative Code of 1987. This contention is untenable.
The fact that a later enactment may relate to the same subject
matter as that of an earlier statute is not of itself sufficient to cause
an implied repeal of the prior act, since the new statute may merely
be cumulative or a continuation of the old one. 12 What is necessary
is a manifest indication of legislative purpose to repeal. 13

Implied repeal by irreconcilable inconsistency takes place when the
two statutes cover the same subject matter; they are so clearly
inconsistent and incompatible with each other that they cannot be
reconciled or harmonized; and both cannot be given effect, that is,
that one law cannot be enforced without nullifying the other. 11

We come now to the second category of repeal — the enactment of
a statute revising or codifying the former laws on the whole subject
matter. This is only possible if the revised statute or code was
intended to cover the whole subject to be a complete and perfect
system in itself. It is the rule that a subsequent statute is deemed
to repeal a prior law if the former revises the whole subject matter
of the former statute. 14 When both intent and scope clearly
evidence the idea of a repeal, then all parts and provisions of the
prior act that are omitted from the revised act are deemed
repealed. 15 Furthermore, before there can be an implied repeal
under this category, it must be the clear intent of the legislature
that the later act be the substitute to the prior act. 16

Comparing the two Codes, it is apparent that the new Code does
not cover nor attempt to cover the entire subject matter of the old
Code. There are several matters treated in the old Code which are
not found in the new Code, such as the provisions on notaries
public, the leave law, the public bonding law, military reservations,
claims for sickness benefits under Section 699, and still others.
Moreover, the COA failed to demonstrate that the provisions of the
two Codes on the matter of the subject claim are in an
irreconcilable conflict. In fact, there can be no such conflict because
the provision on sickness benefits of the nature being claimed by
petitioner has not been restated in the Administrative Code of
1987. However, the COA would have Us consider that the fact that

According to Opinion No. 73, S. 1991 of the Secretary of Justice,
what appears clear is the intent to cover only those aspects of
government that pertain to administration, organization and

3

J. Chapter II. C. expressly provides that "the payment of compensation under this Title shall not bar the recovery of benefits as provided for in Section 699 of the Revised Administrative Code . or unless the reason for the earlier act is beyond peradventure renewed. The second sentence of Article 173. the Court resolves to GRANT the petition. the later act will not operate as a repeal of the earlier. unless the repugnancy between the two is not only irreconcilable. Cruz.. Bellosillo and Melo. vs. Feliciano. FE LEVERIZA. L-66614 January 25. unless the later act fully embraces the subject matter of the earlier. 21 Gutierrez. 1921. SO ORDERED. but also clear and convincing. . As laws are presumed to be passed with deliberation with full knowledge of all existing ones on the subject. The COA challenges the weight that this opinion carries in the determination of this controversy inasmuch as the body which had been entrusted with the implementation of this particular provision has already rendered its decision. . Narvasa. concur in the result. No costs. This will not hold water. the same cannot be upheld. 18 It has been held that Opinions of the Secretary and Undersecretary of Justice are material in the construction of statutes in pari materia.respondents. 20The presumption is against inconsistency and repugnancy for the legislature is presumed to know the existing laws on the subject and not to have enacted inconsistent or conflicting statutes. Griño-Aquino. INTERMEDIATE APPELLATE COURT. 1988 PRIMITIVO LEVERIZA. Title II (dealing on Employees' Compensation and State Insurance Fund). whose benefits are administered by the system (meaning SSS or GSIS) or by other agencies of the government. Administrative decisions may be reviewed by the courts upon a showing that the decision is vitiated by fraud. and will not be decreed unless it is manifest that the legislature so intended. This Court. the Court would be loathe to substitute its own judgment for that of the administrative agency entrusted with the enforcement and implementation of the law. No. Lastly. Jr. premises considered.. concur. every effort must be used to make all acts stand and if. JJ. imposition or mistake..D. The COA relied on the rule in administrative law enunciated in the case of Sison vs. understandably because of the many changes that transpired in the government structure since the enactment of the RAC decades of years ago. 19 Compensation Program. by any reasonable construction. they can be reconciled. petitioners.Pangramuyen 17 that in the absence of palpable error or grave abuse of discretion. Romero. VASCO. it is a well-settled rule of statutory construction that repeals of statutes by implication are not favored. Bidin. explains the principle in detail as follows: "Repeals by implication are not favored. Nocon. This principle is subject to limitations. MOBIL OIL PHILIPPINES & CIVIL AERONAUTICS ADMINISTRATION. and flowing necessarily from the language used. it is but reasonable to conclude that in passing a statute it was not intended to interfere with or abrogate any former law relating to some matter. Padilla.procedure. J. Jr. Regalado." WHEREFORE. PARUNGAO & ANTONIO C. Book IV of the Labor Code... Regarding respondent's contention that recovery under this subject section shall bar the recovery of benefits under the Employees' 4 . in a case. as amended by P.R. Davide. respondent is hereby ordered to give due course to petitioner's claim for benefits. Hence. 22 Republic of the Philippines SUPREME COURT Manila THIRD DIVISION G.

000 square meters. represented by Defendant CIVIL AERONAUTICS ADMINISTRATION. Primitivo Leveriza Parungao. over the same parcel of land. at a monthly rental of P450. Third Division * dated February 29. as lessee. for 25 years. — For purposes of easy reference and brevity. 1976. Inc. over a certain parcel of land at the MIA area. — For purposes of easy reference and brevity. Contract B — a lease contract (in effect a sublease) of May 21. Psu 2031). and Contract C. the area has been reduced to 3. This is a "LEASE AGREEMENT". this contract shall be referred to hereinafter as Contract A. in Contract B and Contract C. at a monthly rental of P1. Vasco and Civil Aeronautics Administration. This is a "CONTRACT OF LEASE". containing an area of 3.. at a monthly rental of P. INC.. and plaintiff MOBIL OIL PHILIPPINES. CV No. the area leased is 4. this contract shall be referred to hereinafter as Contract C. J.R.BIDIN. on June 1. as lessor. this contract shall be referred to hereinafter as Contract B. Contract A — a lease contract of April 2. 1984 in AC-G. 1965. as lessee.000 square meters of that SAME Parcel of land subject of Contract A above mentioned.20 per square meter for the rest. and Second Contracts.00. for a period of 29 (sic) years. for a period of 25 years. as lessor.500. and ROSARIO C.502 square meters. Exhibit "I-CAA"). consisting of approximately 4. affirming in toto the decision of the trial court dated April 6. Exhibit 4-Leverizas' ).20. These three contracts are as follows: First Contract. is the same parcel of land. on April 2. over 3. To summarize: Around three contracts of lease resolve the basic issues in the instant case. LEVERIZA. cross-defendant. (Exhibit "A". executed between the REPUBLIC OF THE PHILIPPINES.502 square meters. as lessee on May 21. on plan being a portion of Parcel. Contract A. As found by the trial court and adopted by the Intermediate Appellate Court. Leveriza over a parcel of land containing an area of 4.25 per square meter for the second 200 square meters.000 square meters more or less. represented by Defendant Civil Aeronautics Administration and Rosario C. Contract B. Primitive Leveriza. and Plaintiff MOBIL OIL PHILIPPINES. Inc. This is a "LEASE AGREEMENT". Exhibit "I-Leverizas". as lessor. INC. 1968 between defendant Civil 5 . Fe Leveriza Parungao and Antonio C. Antonio C. No. and P. 1965 between the Republic of the Philippines. 1968 over that SAME parcel of land (Lot A.000 square meters for 25 years. This is a Petition for Review on certiorari seeking the reversal of the decision of the Intermediate Appellate Court. 61705 entitled Mobil Oil Philippines. the facts of this case are as follows: There is no dispute among the parties that the subject matter of the three contracts of lease above mentioned. Contract C — a lease contract of June 1. executed between Defendant CIVIL AERONAUTICS ADMINISTRATION. 1965. defendantsappellants. — For purposes of easy references and brevity. for a period of 25 years (Exhibit 'B'. with the noted difference that while in Contract A.502 square meters. plaintiff-appellee vs. LEVERIZA.. Leveriza. Leveriza and plaintiff Mobil Oil Philippines. but reduced to 3. executed between ROSARIO C. (Exhibit "C").: Third Contract. 1965 between defendant Rosario C.

for a clear understanding of the issues involved. maintains that Contract C with the defendant CAA is the only valid and subsisting contract insofar as the parcel of land. after having thus considered the evidence of all the parties. xxx xxx xxx Rosario C. Plaintiff in this case seeks the rescission or cancellation of Contract A and Contract B on the ground that Contract A from which Contract B is derived and depends has already been cancelled by the defendant Civil Aeronautics Administration and 2. namely: Defendants Primitive Leveriza. (now also deceased). to wit: (1) defendant Rosario C.. 6 . Leveriza. 1966 because of the cancellation of Contract A. her daughter by her second husband.. After trial. defendants Leverizas' claim that Contract A which is their contract with CAA has never been legally cancelled and still valid and subsisting. and Antonio C. over the same parcel of land. the lower court render judgment on April 6. Leveriza. that it is Contract C between plaintiff and defendant CAA which should be declared void. On the other hand. that it appears that defendant Civil Aeronautics Administration as LESSOR. for durations of time that overlapped to two lessees. this Court hereby renders judgment: 1. Inc. (pp. and that plaintiff Mobil Oil Philippines. and their memoranda and replymemoranda. subject to the present litigation is concerned.. Defendant CAA asserts that Exhibit "A" is still valid and subsisting because its cancellation by Guillermo Jurado was ineffective and asks the court to annul Contract A because of the violation committed by defendant Leveriza in leasing the parcel of land to plaintiff by virtue of Contract B without the consent of defendant CAA. her son by her first husband. . to wit: (1) Defendant Rosario C.000 square meters. but reduced to 3. Record on Appeal). Declaring that Contract B has likewise ceased to have any effect as of June 28. leased the same parcel of land. leased the same parcel of land from two lessors. 95-99. as LESSEE.. 1976 the dispositive part of which reads: WHEREFORE. for 25 years. these defendants shall be referred to hereinafter as Defendants Leveriza. and has therefore ceased to have any effect as of that date. testimonial and documentary. her second husband. the lessee in Contract A and the lessor in Contract B. shall be referred to hereinafter simply as the Plaintiff.Aeronautics Administration and plaintiff Mobil Oil Philippines. are sued. her heirs. for durations of time that also overlapped. Vasco.. Leveriza and (2) defendant Civil Aeronautics Administration. Declaring Contract A as having been validly cancelled on June 28. For purposes of brevity defendant Civil Aeronautics Administration shall be referred to hereinafter as defendant CAA. 1966. Inc. This is the reason why her successor-in-interest. It is important to note. Inc.. For purposes of brevity. Defendant CAA further asserts that Contract C not having been approved by the Director of Public Works and Communications is not valid. Fe Leveriza Parungao. Inc. Plaintiff Mobil Oil Philippines. is now deceased.

and that it is still valid and subsisting. 9. lack of jurisdiction of the court over the case and lack of evidentiary support of the decision which was denied in the order of November 12. 4. Declaring that Contract C was validly entered into on June 1. On appeal. The petitioners raised the following assignment of errors: 7. Dismissing defendants Leverizas' four counterclaims against plaintiff. the same is hereby affirmed in toto. 18). BY THE SECRETARY. 1976 (Rollo. finding no reversible error in the decision of the lower court dated April 6. WHEREFORE.30 with 6% per annum until fully paid. the CAA filed a Motion for Reconsideration. the dispositive part of which reads: 5. TO CANCEL A LEASE CONTRACT OVER REAL PROPERTY OWNED BY THE REPUBLIC OF THE PHILIPPINES. Ordering defendants Leverizas to refund to plaintiff the amount of P48. p.1976 (Rollo. THE INTERMEDIATE APPELLATE COURT ERRED IN HOLDING THAT THE ADMINISTRATOR OF THE CIVIL AERONAUTICS ADMINISTRATION HAD STATUTORY AUTHORITY. Ordering defendant CAA to refund to defendants Leverizas the amount of P32. rendered a decision on February 29. that the Airport General Manager has no 7 . averring that because the lot lease was properly registered in the name of the Republic of the Philippines. I CAA's THE INTERMEDIATE APPELLATE COURT ERRED IN HOLDING THAT THE ADMINISTRATOR OF THE CIVIL AERONAUTICS ADMINISTRATION (CAA) HAD THE STATUTORY AUTHORITY TO LEASE. Dismissing defendants Leverizas' cross-claim against defendant CAA. II On June 2. 17).189. AS REQUIRED BY LAW. Hence. WHICH CONTRACT WAS APPROVED. the Intermediate Appellate Court. authority to cancel Contract A. EVEN WITHOUT APPROVAL OF THE THEN SECRETARY OF PUBLIC WORKS AND COMMUNICATIONS. No pronouncements as to costs. and that Contract C between the CAA and Mobil was void for not having been approved by the Secretary of Public Works and Communications. 1984.00 with 6% interest per annum until fully paid. 567 of the Revised Administrative Code. Said motion was however denied on November 12. On July 27. this petition. being in full accord with the trial court. 1976. it was only the President of the Philippines or an officer duly designated by him who could execute the lease contract pursuant to Sec. the contract entered into between the CAA and Leveriza. p. 1976. Dismissing defendant CAA's counterclaim against defendant Leverizas.000. REAL PROPERTY BELONGING TO THE REPUBLIC OF THE PHILIPPINES. 1976.3. Dismissing defendant counterclaim against plaintiff. 1968. defendant Leveriza filed a motion for new trial on the ground of newly discovered evidence. 8. WITHOUT THE APPROVAL OF THE THEN SECRETARY OF PUBLIC WORKS AND COMMUNICATIONS. 6.

is not valid (Rollo. Rollo. There is no dispute that Contract "A" at the time of its execution was a valid contract. Petitioners anchor their position on Sections 567 and 568 of the Revised Administrative Code which require among others. the CAA made a complete turnabout adopting the interpretation and ruling made by the trial court which was affirmed by the Intermediate Appellate Court (Court of Appeals). such transfer of rights shall have to respect the terms and conditions of this agreement. WAS WITHOUT THE CONSENT OF THE ADMINISTRATOR OF THE CIVIL AERONAUTICS ADMINISTRATION. to serve vehicles going in and out of the airport. The petition is devoid of merit. THE INTERMEDIATE APPELLATE COURT ERRED WHEN IT RULED THAT THE CONTRACT OF SUBLEASE (CONTRACT B) ENTERED INTO BETWEEN PETITIONERS' PREDECESSOR-IN-INTEREST AND RESPONDENT MOBIL OIL PHILIPPINES. Contract "A" was entered into by CAA as the lessor and the Leverizas as the lessee specifically "for the purpose of operating and managing a gasoline station by the latter. while Contract "C". 15-16). In any event. 83). paragraph (24) of Republic Act 776. At the other extreme. The issue therefore is whether or not said contract is still subsisting after its cancellation by CAA on the ground of a sublease executed by petitioners with Mobil Oil Philippines without the consent of CAA and the execution of another contract of lease between CAA and Mobil Oil Philippines (Contract "C"). respondent Civil Aeronautics Administration took the middle ground with its view that Contract "A" is still subsisting as its cancellation is ineffective without the approval of the Department Head but said contract is not enforceable because of petitioners' violation of its terms and conditions by entering into Contract "B" of sublease without the consent of CAA. the consent of the Party of the First Part shall first be secured. However. Accordingly. that subject contracts should be executed by the President of the Philippines or by an officer duly designated by him." As regards prior consent of the lessor to the transfer of rights to the leased premises. a subsequent lease agreement between CAA and Mobil Oil Philippines is null and void. respondent Mobil Oil Philippines asserts that Contract "A" was validly cancelled on June 28. 1966 and so was Contract "B" which was derived therefrom. it maintains that Contract "C" is the only valid contract insofar as the parcel of land in question is concerned and that approval of the Department Head is not necessary under Section 32 (par. INC. 24) of the Republic Act 776 which expressly vested authority to enter into such contracts in the Administrator of CAA (Comment.III On its part. Paragraph 8 provides the sanction for the violation of the abovementioned terms and conditions of the contract. the provision of paragraph 7 of said Contract reads in full: 7. The CAA further asserts that Contract "C" not having been approved by the Secretary of Public Works and Communications. for lack of approval by the Department Secretary. 43). unless authority to execute the same is by law vested in some other officer (Petition. in its comment filed with the Supreme Court. The Party of the Second part may transfer her rights to the leased premises but in such eventuality. The issue narrows down to whether or not there is a valid ground for the cancellation of Contract "A. p. Said paragraph reads: 8 . Rollo. p. that the CAA Administrator has the power to execute the deed or contract of lease involving real properties under its administration belonging to the Republic of the Philippines without the approval of the Department Head as clearly provided in Section 32." Petitioners contend that Contract "A" is still subsisting because Contract "B" is a valid sublease and does not constitute a ground for the cancellation of Contract "A". pp.

in effect. have already been specifically provided for in Contract "A" which has already been approved by the Department Head. Ancheta (105 SCRA 391. 422). after the cancellation of Contract "A" is obviously an error. 108-110). there is no question that such act enjoys the presumption of regularity. The cancellation of the contract was made in a letter dated June 28. and also as a general policy to protect the government and the people. it has been held that as a matter of law rooted in the protection of public interest. however. errors of government personnel in the performance of their duties should never deprive the people of the JURADO Respondent Leverizas and the CAA assailed the validity of such cancellation. acting for the President." Under the circumstances. However. or by delegation of power. They do admit. In San Mauricio Mining Company v. Jurado. this Court has already ruled that the mistakes of government personnel should not affect public interest. not to mention the unassailable fact that such act was subsequently affirmed or ratified by the Director of the CAA himself (Record on Appeal. It is evident that in the implementation of aforesaid contract. mainly based on the violation of its terms and conditions. a subsequent billing by the Accounting Department of the CAA has in effect waived or nullified the rescission of Contract "A. It is not disputed that the Leverizas (lessees) entered into a contract of sublease (Contract "B") with Mobil Oil Philippines without the consent of CAA (lessor). 1966 of Guillermo P. pp. only the Secretary of Public Works and Communications. Airport General Manager It will be recalled that the questioned cancellation of Contract "A" was among others. the sublease of the property by the lessee without the consent of the lessor.8. I would like to inform you that even without having sublet the said property the said contract would have been cancelled as per attached communication GUILLERMO P. Failure on the part of the Party of the Second Part to comply with the terms and conditions herein agreed upon shall be sufficient for revocation of this contract by the Party of the First Part without need of judicial demand. as follows: Petitioners argue that cancelling or setting aside a contract approved by the Secretary is. specifically. and it is evident from the records that the Airport General Manager signed "For the Director. the approval of said Department Head is no longer necessary if not redundant. The terms and conditions under which such revocation or cancellation may be made. June 28. They maintain that it is 9 . Airport General Manager of CAA addressed to Rosario Leveriza. claiming that the Airport General Manager had no legal authority to make the cancellation. your lease contract is hereby cancelled because of the violation of the stipulations of the contract. the Director of Civil Aeronautics Administration who could validly cancel the contract. 1966 Mrs. The billing of the petitioners by the Accounting Department of the CAA if indeed it transpired. repealing an act of the Secretary which is beyond the authority of the Administrator. Rosario Leveriza Manila International Airport Madam: It is further contended that even granting that such cancellation was effective." It has been found out by the undersigned that you have sublet the property of the CAA leased to you and by virtue of this. (Letterhead) Such argument is untenable.

it must be understood that after the expiration of the lease contract. said deed or contract shall be executed on behalf of said government by the President of the Philippines or by an officer duly designated by him. a valid contract of lease over real property owned by the Republic of the Philippines. p. be executed. reader thereof. 151)." (San Mauricio Mining Company v. Inc. Ancheta. In Contract "A". The fact that Mobil Oil was mentioned in that contract was clearly not intended to give approval to a sublease between petitioners and said company but rather to insure that in the arrangements to be made between them. p. 568. Thus. there is absolutely no room for interpretation or construction anymore. 567. respondent CAA avers that the CAA Administrator has the authority to lease real property belonging to the Republic of the Philippines under its administration even without the approval of the Secretary of Public Works and Communications. In the case at bar. Citing Article 1650 of the Civil Code. Petitioners likewise argued that it was contemplated by the parties to Contract "A" that Mobil Oil Philippines would be the owner of the gasoline station it would construct on the leased premises during the period of the lease. whatever improvements have been constructed in the leased premises shall be relinquished to CAA.necessity for a prior consent interprets the first sentence of paragraph 7 of Contract "A" to refer to an assignment of lease under Article 1649 of the Civil Code and not to a mere sublease. — Written contracts not within the purview of the preceding section shall. Authority of the President of the Philippines to execute contracts relative to real property. deal or transaction concerned. — When the Republic of the Philippines is party to a deed conveying the title to real property or is party to any lease or other contract relating to real property belonging to said government. this Court held that "the primary and elementary rule of construction of documents is that when the words or language thereof is clear and plain or readily understandable by any ordinary On the other hand. in the absence of special provision. and requires no prior consent of CAA to perfect the same. A careful scrutiny of said paragraph of Contract "A" clearly shows that it speaks of transfer of rights of Rosario Leveriza to the leased premises and not to assignment of the lease (Rollo. or if there is no such chief. 152). which authority is expressly vested in it by law. (Emphasis supplied) As correctly found by the Court of Appeals. it was categorically stated that it is the lessee (petitioner) who will manage and operate the gasoline station. petitioners in asserting the non. 48-49). pp. which provide as follows: Petitioners further assail the interpretation of Contract "A". claiming that Contract "B" was a mere sublease to respondent Mobil Oil Philippines. citing Sections 567 and 568 of the Revised Administrative Code. it is understood that it must be given a right to use and occupy the lot in question in the form of a sub-lease (Rollo. by the proper Department Head himself or the President of the Philippines as the case may require. with the approval of the proper Department Head. more particularly Section 32 (24) of Republic Act 776. Authority of national officials to make contract. by the Chief of the Bureau or Office having control of the appropriation against which the contract would create a charge. Finally. petitioners contend that the administrator of CAA cannot execute without approval of the Department Secretary. supra). ordered the CAA to refund to the petitioners the amount of rentals which was not due from them with 6% interest per annum until fully paid. hence. which reads: 10 . SEC. the lower court in its decision which has been affirmed by the Court of Appeals. unless authority to execute the same is by law expressly vested in some other officer.right to rectify such error and recover what might be lost or be bartered away in any actuation. SEC. they assert that the prohibition to sublease must be expressed and cannot be merely implied or inferred (Rollo.

" xxx xxx xxx (24) To administer. right of ways and easements which may be proper or necessary. and generally be so interpreted as to embrace only cases in which the special provisions are not applicable (Sto. that no real property thus acquired and any other real property of the Civil Aeronautics Administration shall be sold without the approval of the President of the Philippines. operate. Inc. 96 SCRA 139). the one designed therefor specially should prevail (Wil Wilhensen. administers properties belonging to the Republic of the Philippines and it is on these properties that the Administrator must exercise his vast power and discharge his duty to enter into. Fernan. WHEREFORE. 83 SCRA 38) There is no dispute that the Revised Administrative Code is a general law while Republic Act 776 is a special law nor in the fact that the real property subject of the lease in Contract "C" is real property belonging to the Republic of the Philippines. 32. . Gutierrez.. and easements which may be proper or necessary: Provided. firm. J took no part. De los Angeles. however. right of ways.. v. maintain and develop the Manila International Airport and all government aerodromes except those controlled or operated by the Armed Forces of the Philippines including such power and duties as: . Jr. the Administrator shall have. the Administrator (Director) of the Civil Aeronautics Administration by reason of its creation and existence.. such contract of lease must be executed: (1) by the President of the Philippines. that specific statute prevails over a general statute (De Jesus v. or lease any personal or real property. ruled that another basic principle of statutory construction mandates that general legislation must give way to special legislation on the same subject. Feliciano and Cortes. In this regard. the following powers and duties: Under the above-cited Section 32 (par. People. or public or private corporation or entity and to acquire. this Court. control. or lease any personal or real property. firm. the Civil Aeronautics Administration has the authority to enter into Contracts of Lease for the government under the third category. the Civil Aeronautics Administration has the power to execute the deed or contract involving leases of real properties belonging to the Republic of the Philippines. 120 SCRA 760) and that where two statutes are of equal theoretical application to a particular case. make and execute contracts of any kind with any person.. or public or private corporation or entity. JJ. The Court of appeals took cognizance of the striking absence of such proviso in the other transactions contemplated in paragraph (24) and is convinced as we are. 11 . Under 567 of the Revised Administrative Code. is the sale of properties acquired by CAA or any other real properties of the same which must have the approval of the President of the Philippines. purchase. SO ORDERED.. the petition is DISMISSED for lack of merit and the decision of the Court of Appeals appealed from is AFFIRMED in toto. Baluyot. manage.Sec.. by law expressly vested in it. hold. The exception. Powers and Duties of the Administrator. Thus. hold. or (2) by an officer duly designated by him or (3) by an officer expressly vested by law. concur. among others. It is readily apparent that in the case at bar. 24) of Republic Act 776. as correctly ruled by the Court of Appeals. that the Director of the Civil Aeronautics Administration does not need the prior approval of the President or the Secretary of Public Works and Communications in the execution of Contract "C. not because it is an entity duly designated by the President but because the said authority to execute the same is. Domingo v. (b) to enter into.. — Subject to the general control and supervision of the Department Head. (c) to acquire. purchase. make and execute contract of any kind with any person.

12 .

such that once an award has been rendered by an arbitrator. After all. finding is hereby made that the Bank has not adhered to the Collective Bargaining Agreement provision nor the Memorandum of Agreement on promotion. without LDB's Position Paper. arbitration awards are supposed to be complied with by both parties without delay. 1995. Pursuant thereto. ROMERO. Ester S. As of May 23. On May 24. in her capacity as Voluntary Arbitrator. this petition for certiorari and prohibition seeking to set aside the decision of the Voluntary Arbitrator and to prohibit her from enforcing the same. to an impartial third person for a final and binding resolution. EN BANC Hence. as either compulsory or voluntary. 2Ideally. J. 120319 October 6. on the other hand. ASSOCIATION OF LUZON DEVELOPMENT BANK EMPLOYEES and ATTY. Arbitration may be classified. 1995. GARCIA in her capacity as VOLUNTARY ARBITRATOR. ESTER S.R. they have chosen a mutually acceptable arbitrator who shall hear and decide their case. Under voluntary arbitration. Compulsory arbitration is a system whereby the parties to a dispute are compelled by the government to forego their right to strike and are compelled to accept the resolution of their dispute through arbitration by a third party. No. vs.: From a submission agreement of the Luzon Development Bank (LDB) and the Association of Luzon Development Bank Employees (ALDBE) arose an arbitration case to resolve the following issue: Whether or not the company has violated the Collective Bargaining Agreement provision and the Memorandum of Agreement dated April 1994. respondents. 1994. the Voluntary Arbitrator rendered a decision disposing as follows: 13 . on the basis of the obligation on which it is based. on the other hand. LUZON DEVELOPMENT BANK. on promotion. petitioner. arbitration is the reference of a labor dispute to an impartial third person for determination on the basis of evidence and arguments presented by such parties who have bound themselves to accept the decision of the arbitrator as final and binding. the parties agreed on the submission of their respective Position Papers on December 1-15. but in compulsory arbitration. such a third party is normally appointed by the government. 1995 In labor law context. they have mutually agreed to de bound by said arbitrator's decision. Above all.Republic of the Philippines SUPREME COURT Manila WHEREFORE. LDB. Garcia. 1The essence of arbitration remains since a resolution of a dispute is arrived at by resort to a disinterested third party whose decision is final and binding on the parties. received ALDBE's Position Paper on January 18. referral of a dispute by the parties is made. pursuant to a voluntary arbitration clause in their collective agreement. G. Atty. failed to submit its Position Paper despite a letter from the Voluntary Arbitrator reminding them to do so. they are presumed to have freely chosen arbitration as the mode of settlement for that particular dispute. At a conference. 1995 no Position Paper had been filed by LDB. nothing is left to be done by both parties but to comply with the same.

et al." 5 while the "(d)ecision. v. Article 262 authorizes them. If accompanied with a claim for reinstatement. exemplary and other forms of damages arising from the employeremployee relations. or orders. the following cases involving all workers. 7 in effect equating the voluntary arbitrator with the NLRC or the Court of Appeals. 8 on the settled premise that the judgments of courts and awards of quasi-judicial agencies must become final at some definite time. involving an amount exceeding five thousand pesos (P5. elevated to the Supreme Court itself on a petition for certiorari.In the Philippine context. 14 . Social Security. xxx xxx xxx It will thus be noted that the jurisdiction conferred by law on a voluntary arbitrator or a panel of such arbitrators is quite limited compared to the original jurisdiction of the labor arbiter and the appellate jurisdiction of the National Labor Relations Commission (NLRC) for that matter. even in the absence of stenographic notes. including questions involving the legality of strikes and lockouts. hours of work and other terms and conditions of employment. In the view of the Court. rates of pay. 3. awards. this Court ruled that the awards of voluntary arbitrators determine the rights of 4. . but only upon agreement of the parties. Cases arising from any violation of Article 264 of this Code. (a) Except as otherwise provided under this Code the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide. awards.. 3 For this purpose. 6715 is silent with respect to an appeal from the decision of a voluntary arbitrator. In Volkschel Labor Union. within thirty (30) calendar days after the submission of the case by the parties for decision without extension. this is illogical and imposes an unnecessary burden upon it. all other claims. . et al. . Unfair labor practice cases. On the other hand. the parties to a Collective Bargaining Agreement (CBA) are required to include therein provisions for a machinery for the resolution of grievances arising from the interpretation or implementation of the CBA or company personnel policies. . arising from employer-employee relations. Except claims for Employees Compensation. a labor arbiter under Article 217 of the Labor Code has jurisdiction over the following enumerated cases: . whether agricultural or nonagricultural: 1.000. to exercise jurisdiction over other labor disputes. parties to a CBA shall name and designate therein a voluntary arbitrator or a panel of arbitrators. 4 The state of our present law relating to voluntary arbitration provides that "(t)he award or decision of the Voluntary Arbitrator . Yet. Republic Act No. including those of persons in domestic or household service. more often than not. while there is an express mode of appeal from the decision of a labor arbiter. 2. 6. NLRC. or include a procedure for their selection. preferably from those accredited by the National Conciliation and Mediation Board (NCMB). 5. Termination disputes. moral. or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt of such decisions. Article 261 of the Labor Code accordingly provides for exclusive original jurisdiction of such voluntary arbitrator or panel of arbitrators over (1) the interpretation or implementation of the CBA and (2) the interpretation or enforcement of company personnel policies. shall be final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties.00) regardless of whether accompanied with a claim for reinstatement. those cases that workers may file involving wages. Medicare and maternity benefits." 6 Hence. Claims for actual. past practice shows that a decision or award of a voluntary arbitrator is.

1-95. This would be in furtherance of. 129. their decisions have the same legal effect as judgments of a court. in line with the procedure outlined in Revised Administrative Circular No. Blg. instrumentalities. or by which a certain government act or function is performed. enjoys in law the status of a quasijudicial agency but independent of. 1-91. and consistent with. 129. 13 The word "instrumentality. within the contemplation of the term "instrumentality" in the aforequoted Sec. the Employees Compensation Commission and the Civil Service Commission. just like those of the quasi-judicial agencies. orders or awards of Regional Trial Courts and quasi-judicial agencies. 10 was An "instrumentality" is anything used as a means or agency. et al. 9 this Court ruled that "a voluntary arbitrator by the nature of her functions acts in a quasi-judicial capacity. laid down the procedure for the appealability of its decisions to the Court of Appeals under the foregoing rationalization." Under these rulings. provides that the Court of Appeals shall exercise: xxx xxx xxx (B) Exclusive appellate jurisdiction over all final judgments. 7902.P." with respect to a state. 12 Thus. 15 in the same manner that a sub-agent appointed by a bankruptcy court is an instrumentality of the court. and apart from. and this was later adopted by Republic Act No. 1-91 to provide a uniform procedure for the 15 . 7902 in amending Sec. is a judicial instrumentality in the settling of an estate. contemplates an authority to which the state delegates governmental power for the performance of a state function. 16 and a trustee in bankruptcy of a defunct corporation is an instrumentality of the state. and of subparagraph (1) of the third paragraph and subparagraph (4) of the fourth paragraph of Section 17 of the Judiciary Act of 1948. 9 of B.Commission. the NLRC since his decisions are not appealable to the latter. as amended. hence. as well as the subsequent arbitrator/arbitral tribunal operating under the Construction Industry Arbitration A fortiori. including the Securities and Exchange Commission. The voluntary arbitrator no less performs a state function pursuant to a governmental power delegated to him under the provisions therefor in the Labor Code and he falls. It will be noted that. the original purpose of Circular No. it follows that the voluntary arbitrator. resolutions. parties.. still both he and the panel are comprehended within the concept of a "quasi-judicial instrumentality. the terms governmental "agency" or "instrumentality" are synonymous in the sense that either of them is a means by which a government acts. board or commission. boards or commissions. which is the forerunner of the present Revised Administrative Circular No. 9 since he is a quasi-judicial instrumentality as contemplated therein. the Labor Code of the Philippines under Presidential Decree No. et al. decisions.P. 129. 14 An individual person." It may even be stated that it was to meet the very situation presented by the quasi-judicial functions of the voluntary arbitrators here. In Oceanic Bic Division (FFW). the decision or award of the voluntary arbitrator or panel of arbitrators should likewise be appealable to the Court of Appeals. The fact that his functions and powers are provided for in the Labor Code does not place him within the exceptions to said Sec. whether acting solely or in a panel. the provisions of this Act. boards and commissions enumerated therein. v. 9 of B. therefore. except those falling within the appellate jurisdiction of the Supreme Court in accordance with the Constitution. as amended by Republic Act No. like an administrator or executor. xxx xxx xxx Assuming arguendo that the voluntary arbitrator or the panel of voluntary arbitrators may not strictly be considered as a quasijudicial agency. 1-95.P. although the Employees Compensation Commission is also provided for in the Labor Code. Circular No. Romero. 442. 11 that the broader term "instrumentalities" purposely included in the above-quoted provision. 17 Section 9 of B.

shall have jurisdiction. As a matter of policy. A party to the controversy may.P. 129 by either the Constitution or another statute. precisely. 19 In effect. also known as the Arbitration Law. or in which the arbitration is held. In the same vein. 16 . Consequently. SO ORDERED. 9 of B. 876. apply to the court having jurisdiction for an order confirming the award and the court must grant such order unless the award is vacated. it is worth mentioning that under Section 22 of Republic Act No. at any time within one (1) month after an award is made. or if none be specified. this equates the award or decision of the voluntary arbitrator with that of the regional trial court. arbitration is deemed a special proceeding of which the court specified in the contract or submission. modified or corrected. the Regional Trial Court for the province or city in which one of the parties resides or is doing business. Nor will it run counter to the legislative intendment that decisions of the NLRC be reviewable directly by the Supreme Court since. the Court resolved to REFER this case to the Court of Appeals. the Court of Appeals must be deemed to have concurrent jurisdiction with the Supreme Court. this Court shall henceforth remand to the Court of Appeals petitions of this nature for proper disposition. in a petition for certiorari from that award or decision.appellate review of adjudications of all quasi-judicial entities 18 not expressly excepted from the coverage of Sec. ACCORDINGLY. the cases within the adjudicative competence of the voluntary arbitrator are excluded from the jurisdiction of the NLRC or the labor arbiter.

) No. generally. 2. The list of powers and functions of the ISA included the following: FELICIANO. THIRD DIVISION (d) to promote full utilization of the existing capacity of the industry. Powers and Functions.D. petitioner. Objectives — The Authority shall have the following objectives: (a) to strengthen the iron and steel industry of the Philippines and to expand the domestic and export markets for the products of the industry. — The authority shall have the following powers and functions: xxx xxx xxx (j) to initiate expropriation of land required for basic iron and steel facilities for subsequent resale and/or lease to the companies involved if it is shown that such use of the State's power is necessary to implement the construction of capacity which is needed for the attainment of the objectives of the Authority. and the public at large.D. No. 1995 IRON AND STEEL AUTHORITY. to develop and promote the iron and steel industry in the Philippines. Sec. 1 When ISA's original term (c) to rationalize the marketing and distribution of steel products in order to achieve a balance between 17 . 102976 October 25. 4.Republic of the Philippines SUPREME COURT Manila demand and supply of iron and steel products for the country and to ensure that industry prices and profits are at levels that provide a fair balance between the interests of investors. THE COURT OF APPEALS and MARIA CRISTINA FERTILIZER CORPORATION. (e) to assist the industry in securing adequate and low-cost supplies of raw materials and to reduce the excessive dependence of the country on imports of iron and steel. J. with appropriate government agencies to encourage capital investment in priority areas of the industry. respondents. G. The objectives of the ISA are spelled out in the following terms: Sec.: Petitioner Iron and Steel Authority ("ISA") was created by Presidential Decree (P. (b) to promote the consolidation. and in coordination. vs. consumers suppliers. 272 dated 9 August 1973 in order. 272 initially created petitioner ISA for a term of five (5) years counting from 9 August 1973.R. to discourage investment in excess capacity. integration and rationalization of the industry in order to increase industry capability and viability to service the domestic market and to compete in international markets. xxx xxx xxx (Emphasis supplied) P. No.

Pursuant to the expansion program of the NSC. for and on behalf of the Government.789." LOI No. the statutory existence of petitioner ISA expired on 11 August 1988.D. being the real party-in-interest. 555 dated 31 August 1979. Accordingly. Letter of Instruction (LOI). 1277. The Philippine National Bank. and reserving that land for the use and immediate occupancy of NSC. as mortgagee of the plant facilities and The property to be expropriated is not for public use or benefit [__] but for the use and benefit [__] of NSC. was issued directing the NSC to "negotiate with the owners of MCFC. a writ of possession was issued by the trial court in favor of ISA. 2 Petitioner ISA moved for reconsideration of the trial court's Order. 2239 were occupied by a non-operational chemical fertilizer plant and related facilities owned by private respondent Maria Cristina Fertilizer Corporation ("MCFC"). improvements involved in the expropriation proceedings. On 17 September 1983. was also impleaded as party-defendant.expired on 10 October 1978.25 hectares in area) located in Iligan City. petitioner ISA urged that the Republic of the Philippines. its term was extended for another ten (10) years by Executive Order No. embarked on an expansion program embracing. petitioner ISA commenced eminent domain proceedings against private respondent MCFC in the Regional Trial Court. The case proceeded to trial. The construction of such a steel mill was considered a priority and major industrial project of the Government. In an Order dated 9 November 1988. also dated 16 November 1982. MCFC then filed a motion to dismiss. No. petitioner ISA was to exercise its power of eminent domain under P. a government controlled private corporation engaged in private business and for profit. Rule 3 of the Rules of Court. The National Steel Corporation ("NSC") then a wholly owned subsidiary of the National Development Corporation which is itself an entity wholly owned by the National Government. among other things. Branch 1. contending that despite the expiration of its term.760. for the compensation of MCFC's present occupancy rights on the subject land. In the alternative.69 representing ten percent (10%) of the declared market values of that property. 4 Since certain portions of the public land subject matter Proclamation No. should be allowed to be substituted for petitioner ISA. ISA referred to a letter from the Office of the President dated 28 September 1988 which especially directed the Solicitor General to continue the expropriation case. the construction of an integrated steel mill in Iligan City. In this connection. While the trial was ongoing. 272 and to initiate expropriation proceedings in respect of occupancy rights of private respondent MCFC relating to the subject public land as well as the plant itself and related facilities and to cede the same to the NSC. on 18 August 1983. the trial court granted MCFC's motion to dismiss and did dismiss the case. according to newspaper reports. The trial court denied the motion for reconsideration. is offering for sale to the public its [shares of stock] in 18 . contending that no valid judgment could be rendered against ISA which had ceased to be a juridical person. among other things that: Negotiations between NSC and private respondent MCFC did fail. praying that it (ISA) be places in possession of the property involved upon depositing in court the amount of P1. of Iligan City. 1277. specially now that the government. No. its juridical existence continued until the winding up of its affairs could be completed. Proclamation No. ISA in turn placed NSC in possession and control of the land occupied by MCFC's fertilizer plant installation. 2239 was issued by the President of the Philippines on 16 November 1982 withdrawing from sale or settlement a large tract of public land (totalling about 30. The dismissal was anchored on the provision of the Rules of Court stating that "only natural or juridical persons or entities authorized by law may be parties in a civil case." 3 The trial court also referred to noncompliance by petitioner ISA with the requirements of Section 16. 1277 also directed that should NSC and private respondent MCFC fail to reach an agreement within a period of sixty (60) days from the date of LOI No. Petitioner ISA filed its opposition to this motion. however. stating.

No. on the one hand. had become ineffective as a result of the delegate's dissolution. 272. however.the National Steel Corporation in line with the pronounced policy of the present administration to disengage the government from its private business ventures." Petitioner went on appeal to the Court of Appeals.D..e. contains express authorization to ISA to commence expropriation proceedings like those here involved: 19 . with the result that upon expiration of its term on 11 August 1987. it will be seen that those who can be parties to a civil action may be broadly categorized into two (2) groups: At the same time. the Solicitor General argues that since ISA initiated and prosecuted the action for expropriation in its capacity as agent of the Republic of the Philippines. is entitled to be substituted and to be made a party-plaintiff after the agent ISA's term had expired. 5 (Brackets supplied) Private respondent MCFC. 1. It is our considered opinion that under the law. Examination of the statute which created petitioner ISA shows that ISA falls under category (b) above. and In this Petition for Review. and could not be continued in the name of Republic of the Philippines. Who May Be Parties. i. P. on the other hand. unlike corporations organized under the Corporation Code." and that the authorization issued by the Office of the President to the Solicitor General for continued prosecution of the expropriation suit could not prevail over such negative intent." did not have the same rights as an ordinary corporation and that the ISA. represented by the Solicitor General: The principal issue which we must address in this case is whether or not the Republic of the Philippines is entitled to be substituted for ISA in view of the expiration of ISA's term. Rule 3. upon the other hand. and therefore. As will be made clear below. It is also contended that the exercise of the eminent domain by ISA or the Republic is improper. Section 1 of the Rules of Court specifies who may be parties to a civil action: Sec. argues that the failure of Congress to enact a law further extending the term of ISA after 11 August 1988 evinced a "clear legislative intent to terminate the juridical existence of ISA. "a government regulatory agency exercising sovereign functions." The Court of Appeals went on to say that the action for expropriation could not prosper because the basis for the proceedings. (b) entities authorized by law to institute actions. the Court of Appeals held that it was premature for the trial court to have ruled that the expropriation suit was not for a public purpose. the complaint cannot prosper. was not entitled to a period for winding up its affairs after expiration of its legally mandated term. In a Decision dated 8 October 1991. ISA was "abolished and [had] no more legal authority to perform governmental functions. the ISA's exercise of its delegated authority to expropriate. since that power would be exercised "not on behalf of the National Government but for the benefit of NSC. has to be dismissed without prejudice to the refiling of a new complaint for expropriation if the Congress sees it fit. (a) those who are recognized as persons under the law whether natural. considering that the parties had not yet rested their respective cases. — Only natural or juridical persons or entities authorized by law may be parties in a civil action. as principal of ISA. The Court of Appeals held that petitioner ISA. this is really the only issue which we must resolve at this time. or juridical person such as corporations. biological persons. the Court of Appeals affirmed the order of dismissal of the trial court. as already noted. the Republic." (Emphases supplied) Under the above quoted provision.

10 Public Estates Authority. Among such incorporated agencies or instrumentalities are: National Power Corporation. (1) Government of the Republic of the Philippines refers to the corporate governmental entity through which the functions of government are exercised throughout the Philippines. 2. It is common knowledge that other agencies or instrumentalities of the Government of the Republic are cast in corporate form. 7 National Housing 8 9 Authority. or a particular statute. save as the contrary appears from the context. — The Authority shall have the following powers and functions: of the Government. the provincial. and accordingly vested with a juridical personality distinct from the personality of the Republic. municipal or barangay subdivisions or other forms of local government. no provision in P. 272 recognizing ISA as possessing general or comprehensive juridical personality separate and distinct from that xxx xxx xxx 20 . ISA was vested with some of the powers or attributes normally associated with juridical personality. whether pertaining to the autonomous regions. the various arms through which political authority is made effective in the Philippines. No. The Republic itself is a body corporate and juridical person vested with the full panoply of powers and attributes which are compendiously described as "legal personality. 12 and so forth. however. 11 Philippine Virginia Tobacco Administration. General Terms Defined. 6 Philippine Ports Authority. city. Philippine National Railways. — Unless the specific words of the text. xxx xxx xxx (Emphasis supplied) We consider that the ISA is properly regarded as an agent or delegate of the Republic of the Philippines. It is worth noting that the term "Authority" has been used to designate both incorporated and nonincorporated agencies or instrumentalities of the Government. and to maintain inventories of such materials in order to insure a continuous and adequate supply thereof and thereby reduce operating costs of such sector. xxx xxx xxx (Emphasis supplied) Clearly. Powers and Functions. that is to say.D.Sec. including. to enter into contracts for and in behalf of the government. and when necessary. xxx xxx xxx (j) to initiate expropriation of land required for basic iron and steel facilities for subsequent resale and/or lease to the companies involved if it is shown that such use of the State's power is necessary to implement the construction of capacity which is needed for the attainment of the objectives of the Authority. are incorporated agencies or instrumentalities. The ISA in fact appears to the Court to be a non-incorporated agency or instrumentality of the Republic of the Philippines. Philippine National Oil Company. supplies or services for any sectors in the industry. or more precisely of the Government of the Republic of the Philippines. or the context as a whole." The relevant definitions are found in the Administrative Code of 1987: It should also be noted that the enabling statute of ISA expressly authorized it to enter into certain kinds of contracts "for and in behalf of the Government" in the following terms: xxx xxx xxx Sec. There is. sometimes with and at other times without capital stock. require a different meaning: (i) to negotiate. 4. for the bulk purchase of materials.

in the provisions of the Corporation Code. The Rules of Court at the same time expressly recognize the role of representative parties: xxx xxx xxx (10) Instrumentality refers to any agency of the National Government. an executor or administrator. . (Rule 3. or a party authorized by statute may sue or be sued without joining the party for whose benefit the action is presented or defended. vested with special functions or jurisdiction by law. e. urgently needs the subject parcels of land for the construction and installation of iron and steel manufacturing facilities that are indispensable to the integration of the iron and steel making industry which is vital to the promotion of public interest and welfare. office. having been explicitly authorized by its enabling statute to institute expropriation proceedings. spelled out in the Rules of Court. Sec. in the charter of that agency and. This term includes regulatory agencies. and are re-assumed by. devolution or transmission of such powers. not integrated within the department framework. 3. to some other identified successor agency or instrumentality of the Republic of the Philippines. The general rule is. at the commencement of the expropriation proceedings. and enjoying operational autonomy.(4) Agency of the Government refers to any of the various units of the Government. usually through a charter. or a local government or a distinct unit therein. instrumentality. etc. The Government. (Emphasis supplied) xxx xxx xxx In the instant case. functions.g. or government-owned or controlled corporation. in the first instance. ISA is a non-incorporated agency or instrumentality of the Republic. in the absence of special provisions of law specifying some other disposition thereof such as. . (Emphasis supplied) The principal or the real party in interest is thus the Republic of the Philippines and not the National Steel Corporation. the consequences of such expiry must be looked for. duties. . a guardian. by way of supplementation. the powers. assets and liabilities are properly regarded as folded back into the Government of the Republic of the Philippines and hence assumed once again by the Republic. Paragraph 7 of the complaint stated: (Emphases supplied) When the statutory term of a non-incorporated agency expires. bureau. duties. No. Since. Section 2) Petitioner ISA was. the Republic of the Philippines. order such beneficiary to be made a party. at least in part. . 272. in the instant case. that an action must be prosecuted and defended in the name of the real party in interest. even though the latter may be an ultimate user of the properties involved should the condemnation suit be eventually successful. functions. 7. Representative Parties. including a department. ISA instituted the expropriation proceedings in its capacity as an agent or delegate or representative of the Republic of the Philippines pursuant to its authority under P.. endowed with some if not all corporate powers.D. at any stage of the proceedings. When the expiring agency is an incorporated one. a real party in interest. of course. administering special funds. thru the plaintiff ISA. but the court may. — A trustee of an expressed trust. chartered institutions and government-owned or controlled corporations. 21 . its powers. no special statutory provision having been shown to have mandated succession thereto by some other entity or agency of the Republic. The present expropriation suit was brought on behalf of and for the benefit of the Republic as the principal of ISA. duties and functions as well as the assets and liabilities of that agency revert back to. The procedural implications of the relationship between an agent or delegate of the Republic of the Philippines and the Republic itself are.

B. as we see it. the expiration of ISA's statutory term did not by itself require or justify the dismissal of the eminent domain proceedings. the power of eminent domain on behalf of the Government of the Republic of the Philippines. a government agency vested with a separate juridical personality. which was in effect at the time of the commencement of the present expropriation proceedings before the Iligan Regional Trial Court. as the trial court and Court of Appeals had required. 15 (Emphasis supplied) In E. The 1917 Revised Administrative Code. . we believe and so hold that no new legislative act is necessary should the Republic decide. vested primarily in the legislative department of the government. was to generate unwarranted delay and create needless repetition of proceedings: Sec. the Republic of the Philippines acted as principal of the Philippine Ports Authority. Marcha. it follows that the Republic of the Philippines is entitled to be substituted in the expropriation proceedings as party-plaintiff in lieu of ISA. the powers and functions of ISA have reverted to the Republic of the Philippines upon the termination of the statutory term of ISA. the Court of Appeals declined to permit the substitution of the Republic of the Philippines for the ISA upon the ground that the action for expropriation could not prosper because the basis for the proceedings. the Republic has precisely moved to take over the proceedings as party-plaintiff. suits. in particular. 16 (Emphasis supplied) As noted earlier. . Marcha Transport Company. 14 the Court recognized that the Republic may initiate or participate in actions involving its agents. v. There the Republic of the Philippines was held to be a proper party to sue for recovery of possession of property although the "real" or registered owner of the property was the Philippine Ports Authority. Put a little differently. Since. — In addition to his general supervisory authority. was not a ground for dismissal of such proceedings since a party may be dropped or added by order of the court. dismissing the complaint on the ground that the Republic of the Philippines is not the proper party would result in needless delay in the settlement of this matter and also in derogation of the policy against multiplicity of 22 . on motion of any party or on the court's own initiative at any stage of the action and on such terms as are just.From the foregoing premises. provided that: It can be said that in suing for the recovery of the rentals. the Court also stressed that to require the Republic to commence all over again another proceeding. enacted a continuing or standing delegation of authority to the President of the Philippines to exercise. 13 In the instant case. the President of the Philippines shall have such other specific powers and duties as are expressly conferred or imposed on him by law. or cause the exercise of. the ISA's exercise of its delegated authority to expropriate. had become legally ineffective by reason of the expiration of the statutory term of the agent or delegated i.e. Intermediate Appellate Court. More importantly. . directly exercising the commission it had earlier conferred on the latter as its agent. Particular powers and duties of the President of the Philippines. in fact to continue to prosecute the expropriation proceedings. 64.. In E. Such a decision would require the Philippine Ports Authority to refile the very same complaint already proved by the Republic of the Philippines and bring back as it were to square one. the statutory term of ISA having expired. ISA. a long time ago. For the legislative authority. the powers and duties set forth in this Chapter. It is also relevant to note that the non-joinder of the Republic which occurred upon the expiration of ISA's statutory term.B. Inc. the question should be addressed whether fresh legislative authority is necessary before the Republic of the Philippines may continue the expropriation proceedings initiated by its own delegate or agent. and also. in principle. upon being substituted for ISA. The Court said: While the power of eminent domain is. as we have held above.

because Congress after becoming once more the depository of primary legislative power. though not limited to. accorded an opportunity to determine whether or not. or to what extent. In the present case. the proceedings should be continued in view of all the subsequent developments in the iron and steel sector of the country including. are premature and are appropriately addressed in the proceedings before the trial court. as a pragmatic matter. (h) To determine when it is necessary or advantageous to exercise the right of eminent domain in behalf of the Government of the Philippines. the Republic is. and direct the Solicitor General. 17 SO ORDERED. the Decision of the Court of Appeals dated 8 October 1991 to the extent that it affirmed the trial court's order dismissing the expropriation proceedings. since trial was still on going at the time the Regional Trial Court precipitously dismissed the expropriation proceedings. where such act is deemed advisable. and that the indispensable element of just compensation is also absent. the partial privatization of the NSC. had not enacted a statute extending the term of ISA. Those proceedings have yet to produce a decision on the merits. that the constitutional requirement of "public use" or "public purpose" is not present in the instant case. to cause the condemnation proceedings to be begun in the court having proper jurisdiction. is hereby REVERSED and SET ASIDE and the case is REMANDED to the court a quo which shall allow the substitution of the Republic of the Philippines for petitioner Iron and Steel Authority and for further proceedings consistent with this Decision. for all the foregoing. 12. Moreover. We find this argument much too speculative. it rests too much upon simple silence on the part of Congress and casually disregards the 23 . such non-enactment must be deemed a manifestation of a legislative design to discontinue or abort the present expropriation suit. xxx xxx xxx Other contentions are made by private respondent MCFC. which were adopted and set out by the Regional Trial Court in its order of dismissal. the President. by such substitution as partyplaintiff. whenever he deems the action advisable. (Emphasis supplied) WHEREFORE. It is argued by private respondent MCFC that. — The President shall determine when it is necessary or advantageous to exercise the power of eminent domain in behalf of the National Government.Among such special powers and duties shall be: existence of Section 12 of the 1987 Administrative Code already quoted above. and to direct the Secretary of Justice. (Emphasis supplied) The Revised Administrative Code of 1987 currently in force has substantially reproduced the foregoing provision in the following terms: Sec. No pronouncement as to costs. We agree with the Court of Appeals in this connection that these contentions. Power of eminent domain. such as. to institute expopriation proceedings in the proper court. exercising the power duly delegated under both the 1917 and 1987 Revised Administrative Codes in effect made a determination that it was necessary and advantageous to exercise the power of eminent domain in behalf of the Government of the Republic and accordingly directed the Solicitor General to proceed with the suit.

A. J. the Court finds the accused. The informations alleged that he appropriated for himself a bahay kubo. 13. the Circuit Criminal Court of Manila rendered judgment acquitting petitioner of the charges against him. CONVERTING THE PHILIPPINE COLLEGE OF COMMERCE INTO A POLYTECHNIC UNIVERSITY. not guilty of the violations charged in all these three cases and hereby acquits him therefrom.* DECISION MENDOZA. 1979. No. No. No. CRISOSTOMO. which was intended for the College. No. Jr. 1978.SECOND DIVISION Charges of violations of R. Petitioner was also accused of using a driver of the College as his personal and family driver. having been appointed to that position by the President of the Philippines on July 17. otherwise known as The Anti-Graft and Corrupt Practices 24 . 1977. 3 (e) and R. The administrative cases. Crisostomo.D. No. he was appointed Acting President and on March 28. 1341 was issued by then President Ferdinand E. During his incumbency as president of the PCC. Marcos. and construction materials worth P250. grave misconduct. with costs de oficio. Pablo T. WHEREFORE.A. the present petition is partially granted. 3019. were subsequently referred to the Office of the Solicitor General for investigation. more or less. respondents. petitioner was preventively suspended from office pursuant to R. The background of this case is as follows: On July 11. 1976.R. DEFINING ITS OBJECTIVES. THE COURT OF APPEALS and the PEOPLE OF THE PHILIPPINES. the dispositive portion of which reads: WHEREFORE. Accordingly. No.00. are hereby set aside. Mateo. The dispositive portion of the decision reads: Petitioner Isabelo Crisostomo was President of the Philippine College of Commerce (PCC). nepotism and dishonesty. Mateo continued as the head of the new University. This is a petition to review the decision of the Court of Appeals dated July 15. AND EXPANDING ITS CURRICULAR OFFERINGS. 3019. 1974. 1996] On June 14. 1980. Crisostomo to the position of President of the Polytechnic University of the Philippines.A. July 5.A.[1] ISABELO T. ORGANIZATIONAL STRUCTURE AND FUNCTIONS. 106296. 3 (e) of the Anti-Graft and Corrupt Practices Act (R. No. No. 3019. was designated as officer-in-charge on November 10. 3019. and (2) payment of salaries and benefits which said respondent failed to receive during his suspension insofar as such payment includes those accruing after the abolition of the PCC and its transfer to the PUP. misappropriation of construction materials belonging to the college. [G. R. 1976. P. as amended. On April 3. as amended) were filed against him. oppression and harassment.: On October 22. and then as Acting President on May 13. The bail bonds filed by said accused for his provisional liberty are hereby cancelled and released.A. further proceedings consistent with this decision may be taken by the court a quo to determine the correct amounts due and payable to said respondent by the said university. 733. 1980. The questioned Orders and writs directing (1) reinstatement of respondent Isabelo T. vs.000. petitioner. two administrative cases were filed against petitioner for illegal use of government vehicles. 14 were likewise filed against him with the Office of Tanodbayan. 1992. Isabelo T. On April 1. Pursuant to the provisions of Section 13. three (3) informations for violation of Sec. 20-21 and R. 1976. as President for a term of six (6) years. In his place Dr. 992.A. which were filed with the Office of the President. as amended.

did not abolish the PCC. and under which the accused has been suspended by this Court in an Order dated October 22. it would have specified that the PCC was being abolished rather than converted and that if the PUP was intended to be a new institution. On February 12.[2] the dispositive portion of which is set forth at the beginning of this opinion. Nemesio Prudente. A writ of execution. Gellor did not vacate the office as he wanted to consult with the President of the Philippines first. ordering the sheriff to implement the order of reinstatement. now known as the Polytechnic University of the Philippines. the Regional Trial Court. and enjoining further proceedings in Criminal Cases Nos. the Court of Appeals issued a temporary restraining order. On May 18. the law would have said it was being created. Petitioner claims that the PUP is merely a continuation of the existence of the PCC. 1992. 1992. 1992. issued another order. 1992. particularly the part ordering his reinstatement to the position of president of the PUP and the payment of his salaries and other benefits during the period of suspension. was issued. Said decision set aside the orders and writ of reinstatement issued by the trial court. On March 26. hence. 1992. VI-2329-2331. On the other hand. On May 5. Culture and Sports Secretary Isidro Cario in contempt of court. The payment of salaries and benefits to petitioner accruing after the conversion of the PCC to the PUP was disallowed. although Dr. unless in the meantime administrative proceedings have been filed against him. Jaime Gellor as acting president of the PUP. from which he has been suspended. The motion was granted and a partial writ of execution was issued by the trial court on March 6. which converted the PCC into the PUP. therefore. 1341. who had succeeded Dr. Aquino appointed Dr. 25 . President Corazon C. No. he is entitled to receive the salaries and other benefits which he failed to receive during suspension. The bail bonds filed by the accused for his provisional liberty in these cases are hereby cancelled and released. following the expiration of the term of office of Dr. assailing the two orders and the writs of execution issued by the trial court. He contends that if the law had intended the PCC to lose its existence. 1992. Gellor. reiterating her earlier order for the reinstatement of petitioner to the position of PUP president. the administrative cases were dismissed for failure of the complainants to prosecute them. the sheriff stated that he had executed the writ by installing petitioner as President of the PUP. enjoining petitioner to cease and desist from acting as president of the PUP pursuant to the reinstatement orders of the trial court. 1992.D. No.Recovery of salaries and benefits was limited to those accruing from the time of petitioners suspension until the conversion of the PCC to the PUP. On July 15. A hearing was set on May 7. he could be reinstated to his former position as president. Petitioner argues that P. It also asked for a temporary restraining order. 1992.Act. 1976. through respondent Judge Teresita Dy-Liaco Flores. SO ORDERED. Petitioner assumed the office of president of the PUP. On April 24. and. Petitioner was one of the five nominees considered by the President of the Philippines for the position. This led to a contempt citation against Dr. 1992. The cases filed before the Tanodbayan (now the Ombudsman) were likewise dismissed on August 8. said accused is hereby ordered reinstated to the position of President of the Philippine College of Commerce. petitioner filed with the Regional Trial Court a motion for execution of the judgment.R. petitioner also moved to cite Department of Education. The case was remanded to the trial court for a determination of the amounts due and payable to petitioner. By virtue of said reinstatement. In his return dated April 28. Hence this petition. the People of the Philippines filed a petition for certiorari and prohibition (CA G. 27931). On June 25. 1992. Mateo. the Seventh Division of the Court of Appeals rendered a decision. however. 1991 on the ground that they had become moot and academic.

when the purpose is to abolish a department or an office or an organization and to replace it with another one.Upon the effectivity of this Act. hereinafter referred to as the Ministry. xxx xxx xxx As petitioner correctly points out. Status of Present NAPOLCOM. Philippines. 778 earlier provided: 1. P. . not in its corporate life. 721 as amended. The Integrated National Police. and all other entities within their supervision and control. shall cease to be a major service of the Armed Forces of the Philippines. which is the nucleus of the integrated Philippine Constabulary-Integrated National Police. . 6975: 13. and the changes in its structure and organization. No. and the existing Ministry of Public Highways established pursuant to Presidential Decree No. E. provides: 1. He cites the following examples: 90. is hereby created for the purpose of effectively discharging the functions prescribed in the Constitution and provided in this Act.A. What took place was a change in academic status of the educational institution. but only changed. regional offices. bureaus and similar agencies. No. It shall be composed of a Chairman and four (4) regular commissioners.D. There is hereby created a Ministry of Trade and Industry. No.A National Police Commission. but also four-year 26 . the former Philippine College of Commerce into what is now the Polytechnic University of the Philippines. . In contrast.A. shall cease to be the national police force and in lieu thereof. Hence the change in its name. 1978.D. reinstatement is no longer possible because of the promulgation of P. and the existing Ministry established pursuant to Presidential Decree No. The present Philippine School of Commerce. E. . 1437 by the President of the Philippines on June 10. regional offices.O. PC-INP. in the same way that earlier in 1952. 709: 1. is hereby granted full college status and converted into the Philippine College of Commerce. hereinafter referred to as the Ministry. As already noted. which will offer not only its present one-year and two-year vocational commercial curricula. the expansion of its curricular offerings. . hereinafter referred to as the Commission. No. 546 as amended. The present Philippine College of Commerce is hereby converted into a university to be known as the Polytechnic University of the Philippines.O. located in the City of Manila. The existing Ministry of Public Works established pursuant to Executive Order No. No. which is the civilian component of the Philippine Constabulary-Integrated National Police. R. 1341. bureaus and similar agencies. The Philippine Constabulary. 488 as amended. 1341 did not abolish. and the Philippine Constabulary-Integrated National Police shall cease to exist. Creation and Composition. No. but. the lawmaking authority says so. The Secretary of the Department shall be the ex-officio Chairman of the Commission. No. No. as will presently be explained. . P. . the present National Police Commission. 710: 1.A. one (1) of whom shall be designated as Vice-Chairman by the President. hereinafter referred to in this Decree as the University. the latter leading to the titles of Associate in Business Education and/or Associate in Commerce. and all other entities under their supervision and control. 778 had converted what was then the Philippine School of Commerce into the Philippine College of Commerce. a new police force shall be established and constituted pursuant to this Act. R. R. The Commission shall be a collegial body within the Department. There is hereby created a Ministry of Public Works and Highways. are abolished together with their services. The existing Ministry of Trade established pursuant to Presidential Decree No. . while the Vice-Chairman shall act as the executive officer of the Commission. 458 as amended. are abolished together with their services.In part the contention is well taken.D.

(section 2). 1341 (entitled CONVERTING THE PHILIPPINE COLLEGE OF COMMERCE INTO A POLYTECHNIC UNIVERSITY. . that the PUP and the PCC are not one and the same institution but two different entities and that since petitioner Crisostomos term was coterminous with the legal existence of the PCC. and five-year courses leading to the degrees of Master of Arts in Business Education and Master of Arts in Commerce. among others. 1341 as allegedly implying the abolition of the PCC and the creation of a new one the PUP in its stead: 12. that said national schools shall continue to receive their corresponding shares from the special education fund of the municipal/provincial/city government concerned as are now enjoyed by them in accordance with existing laws and/or decrees. . however. that lands transferred to the PCC were to be understood as transferred to the PUP as the new name of the institution. The law does not state that the lands. Stand transferred simply means. buildings and equipment owned by the PCC were being transferred to the PUP but only that they stand transferred to it. Only an express declaration to that effect by the lawmaking authority will. owned by the Philippine College of Commerce and such other National Schools as may be integrated . Chamber of Commerce of the Philippines). No. All parcels of land. This decree explicitly provides that PUPs objectives and purposes cover not only PCCs offering of programs in the field of commerce and business administration but also programs in other polytechnic areas and in other fields such as agriculture. buildings. 12. Nor will changes in its existing structure and organization bring about its abolition and the creation of a new one. P. But these are hardly indicia of an intent to abolish an existing institution and to create a new one. PUP was conceived as a bigger institution absorbing. . The President of PCC. . petitioners term expired upon the abolition of the PCC. including their obligations and appropriations thereof. Whereas. Being a university. 1978. . ORGANIZATIONAL STRUCTURE AND FUNCTIONS. merging and integrating the entire PCC and other national schools as may be transferred to this new state university. DEFINING ITS OBJECTIVES. P. 1341).courses leading to the degrees of Bachelor of Science in Business in Education and Bachelor of Science in Commerce. The appellate court ruled. on the other hand. (Sec. P. provided. 778). including their obligations and appropriations . R. In reaching this conclusion. the Secretary of Industry and the Secretary of Labor are members of the PUP Board of Regents. . . . AND EXPANDING ITS CURRICULAR OFFERINGS) was issued on April 1. respectively. New course offerings can be added to the curriculum of a school without affecting its legal existence. the NEDA Director-General. 1341). equipment and facilities owned by the Philippine College of Commerce and such other national schools as may be integrated by virtue of this decree.D. however. b) The manner of selection and appointment of the university head is substantially different from that provided by the PCC Charter.D. Italics supplied). No. The PUP President shall be appointed by the President of the Philippines upon recommendation of the Secretary of Education and Culture after consultation with the University Board of Regents (section 4. .D. shall stand transferred to the Polytechnic University of the Philippines. the Court of Appeals took into account the following: d) The decree moreover transferred to the new university all the properties including equipment and facilities: a) After respondent Crisostomos suspension. arts and trades and fisheries .D. (Section 6. for example.A.[3] The Court of Appeals also cites the provision of P. was appointed by the President of the Philippines upon recommendation of the Board of Trustees (Section 4. c) The composition of the new universitys Board of Regents is likewise different from that of the PCC Board of Trustees (which included the chairman of the Senate Committee on Education and the chairman of the House Committee on Education. the President of the PCC Alumni Association as well as the President of the 27 .

he shall be entitled to one month pay for every year of service. the decision of the Court of Appeals is MODIFIED by SETTING ASIDE the questioned orders of the Regional Trial Court directing the reinstatement of the petitioner Isabelo T. No. Dr. 1980. renewable for another term of six (6) years. The incumbent president of a chartered state college or university whose term may be terminated according to this Decree. and authorizing the President of the Philippines to terminate the terms of incumbents who were not reappointed. petitioner became entitled only to retirement benefits or the payment of separation pay. 6. 1437 provides: Aquino to consider him for appointment to the same position after it had become vacant in consequence of the retirement of Dr. The head of the university or college shall be known as the President of the university or college. Further proceedings in accordance with this decision may be taken by the trial court to determine the amount due and payable to petitioner by the university up to March 28. 1980. in addition to those specifically provided for in this Decree shall be those usually pertaining to the office of the president of a university or college. 1980 when petitioner Crisostomos term was terminated. that is why in 1992 he asked then President 28 . He shall be qualified for the position and appointed for a term of six (6) years by the President of the Philippines upon recommendation of the Secretary of Education and Culture after consulting with the Board which may be renewed for another term upon recommendation of the Secretary of Education and Culture after consulting the Board. was appointed president of PUP for a term of six (6) years on March 28. SO ORDERED.But the reinstatement of petitioner to the position of president of the PUP could not be ordered by the trial court because on June 10. In accordance with 7 of the law. 1978. In this case. No.D. absence or resignation. WHEREFORE. shall be entitled to full retirement benefits: provided that he has served the government for at least twenty (20) years. the Secretary of Education and Culture shall have the authority to designate an officer in charge of the college or university pending the appointment of the President. P. Crisostomo to the position of president of the Polytechnic University of the Philippines and the payment to him of salaries and benefits which he failed to receive during his suspension in so far as such payment would include salaries accruing after March 28. with the result that petitioners term was cut short. 1979. In case of vacancy by reason of death.Petitioner must have recognized this fact. further that in case the number of years served is less than 20 years. who had been acting president of the university since April 3. therefore. P. The powers and duties of the President of the university or college. Prudente. 1437 had been promulgated fixing the term of office of presidents of state universities and colleges at six (6) years. Pablo T. 7. and provided.D.. Mateo Jr.

petitioner. Angat. The National Liga shall directly elect the following officers and directors to constitute the National Liga Board of Directors namely: CESAR G. vs. The Municipal.7 Auditor 2. RAFAEL M. second and third vice presidents and for auditors for the National Liga ng mga Barangay and its chapters. Zone 15. namely: 1. President. §1. No. respondents. Manila. Alunan III. president/secretary general of the National Liga ng mga Barangay. David. ALUNAN III. Metropolitan and Provincial Chapters shall directly elect the following officers and directors to constitute their respective Board of Directors. §493 of which mentions as elective positions only those of 1.3 First Vice-President 29 . President/Secretary General.5 Third Vice-President EN BANC 1. National Liga ng mga Barangay. Chairman. District II. City. Local Liga Chapters. to restrain them from carrying out the elections for the questioned positions on July 3. No.2 Executive Vice-President 2.8 Five (5) Directors Petitioner Cesar G.1 President 2. Manila against then Secretary of Interior and Local Government Rafael M. J.4 Second Vice-President 1.3 First Vice-President 2. District II. DAVID.5 Third Vice-President This is a petition for prohibition challenging the validity of Art.: 2. 167. and Leonardo L. Secretary DILG. §§ 1-2 of the Revised Implementing Rules and Guidelines for the General Elections of the Liga ng mga Barangay Officers so far as they provide for the election of first.6 Secretary General 2. Viola brought this action as barangay chairman of Brgy. The provisions in question read: 2.R. HON. VIOLA. 1994.Republic of the Philippines SUPREME COURT Manila 1.2 Executive Vice-President Petitioner's contention is that the positions in question are in excess of those provided in the Local Government Code (R. LEONARDO L. president of the City of Manila Liga ng mga Barangay. City of Manila.7 Five (5) Directors G. 167.6 Auditor 1. Liga ng mga Barangay. 115844 August 15. III. Alex L. Zone 15. Brgy.4 Second Vice-President MENDOZA. National Liga. 7160). 2.1 President 1. ANGAT.A. 1997 §2. ALEX L.

namely. This Constitution and By-laws provide in pertinent parts: ARTICLE VI OFFICERS AND DIRECTORS Sec. Organization of Board of Directors of the National Liga. second and third vice presidents and auditor for each chapter. and third vice president. 1. and the metropolitan chapter who shall directly elect their respective officers. Pending elections of the president of the municipal. — The National Liga shall be composed of the presidents of the provincial Liga chapters. For one thing. with the rest serving as Directors of Board. and public relations officer from among the five (5) members. Although the elections are now over. The Board may create such other positions as it may deem necessary for the management of the National Liga. executive vice president.president. secretary and public relations officers from among the five (5) members with the rest serving as directors of the Board. the Board shall appoint a treasurer. auditor. 1994. executive vice president. the incumbent president of the Pambansang Katipunan ng mga Barangay (PKB) shall act as the Secretary-General. the incumbent presidents of the ABCs of the municipality. Pending election of Secretary-General. provincial and metropolitan chapters of the Liga. The incumbent members of the Board of the PKB. Thereafter. auditor. and five (5) members to constitute the Board of Directors of their respective chapter. The Board may create such other The post of executive vice president is in reality that of the vice president in §493 of the LGC. namely. a president. To begin with. Organization of Board of Directors of Local Chapters. a president. treasurer. city. second." 1 Sec. doubt may be cast on the validity of the acts of those elected. headed by the Secretary-General who continue to be presidents of the respective chapters of the Liga to which they belong. Petitioner argues that. which was adopted by the First Barangay National Assembly on January 11. provincial. second. highly urbanized and independent component city chapters. 2. positions as it may deem necessary for the management of the chapter. For another. subject to the provisions of the Local Government Code of 1991. first. and national levels. metropolitan political subdivision. so that the only additional positions 30 . city province and Metropolitan Manila shall continue to act as presidents of the corresponding Liga chapters. yet evading review. Thereafter. secretary general. the Board shall appoint a secretary. and five members of the board of directors in each chapter at the municipal. this comes within the rule that courts will decide a question which is otherwise moot and academic if it is "capable of repetition. Petitioner's contention that the additional positions in question have been created without authority of law is untenable. in providing for the positions of first. §§1-2 of the Implementing Rules expand the number of positions authorized in §493 of the Local Government Code in violation of the principle that implementing rules and regulations cannot add or detract from the provisions of the law they are designed to implement. the creation of these positions was actually made in the Constitution and By-laws of the Liga ng Mga Barangay. city. the issues raised in this case are likely to arise again in future elections of officers of the Liga ng mga Barangay. and five (5) members to constitute the Board of Directors of the National Liga. — The chapters shall directly elect their respective officers. shall constitute a committee to exercise the powers and duties of the National Liga and with the primordial responsibility of drafting a Constitution and By-Laws needed for the organization of the Liga as a whole pursuant to the provisions of the Local Government Code of 1991. first. vice president. We will therefore proceed to the merits of this case. and third vice presidents.

The Barangay National Assembly is actually the Pambansang Katipunan ng mga Barangay (PKB) referred to in Art. city. Metropolitan political subdivision. The incumbent members of the board of the pambansang katipunan ng mga barangay. there is no showing that the Barangay National Assembly was authorized to draft the Constitution and By-laws because he is unable to find any creating it. shall constitute a committee to exercise the powers and duties of the national liga and draft or amend the constitution and by-laws of the national liga to conform to the provisions of this Rule. secretary. administrative discretion may be "canalized within proper banks that keep it from overflowing. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter. who continue to be presidents of the respective chapters of the liga to which they belong. Pending election of a secretary-general under this rule. It will be helpful to quote these provisions: This provision in fact requires — and not merely authorizes the board of directors to "create such other positions as it may deem necessary for the management of the chapter" and belies petitioner's claim that said provision (§493) limits the officers of a chapter to the president. (emphasis added) Justice Davide contends in dissent. and national levels directly elect a president. There is no undue delegation of power by Congress. the incumbent president of the pambansang katipunan ng mga barangay shall act as the secretary-general. Statutory provisions authorizing the President of the Philippines to make reforms and changes in government owned or controlled corporations for the purpose of promoting "simplicity. in making a delegation of this power to the board of directors of each chapter of the Liga ng Mga Barangay." 3 (2) A secretary-general shall be elected from among the members of the national liga who shall be responsible for the overall operation of the liga. The board shall coordinate the activities of the chapters of the liga. in any case. a vicepresident." embodies a fairly intelligible standard. (Emphasis added) 31 . economy and efficiency" 4 in their operations and empowering the Secretary of Education to prescribe minimum standards of "adequate and efficient instruction" 5 in private schools and colleges have been (3) The board of directors shall coordinate the activities of the various chapters of the liga. five members of the board of directors. That Congress can delegate the power to create positions such as these has been settled by our decisions upholding the validity of reorganization statutes authorizing the President of the Philippines to create. A secretary-general shall be elected form among the members of the national liga and shall be charged with the overall operation of the liga on the national level. second and third vice presidents and auditor. in the phrase of Justice Cardozo. Congress provided a sufficient standard so that.created for each chapter in the Constitution and By-laws are those of first. abolish or merge officers in the executive department. and five (5) members of the board of directors. and treasurer. Contrary to petitioner's contention. Organization. headed by the secretary-general. vice president. however. §493. which Justice Davide's dissent cites. the creation of the additional positions is authorized by the LGC which provides as follows: found to be sufficient for the purpose of valid delegation. 2 The question is whether. Judged by these cases. we hold that §493 of the Local Government Code. that "only the Board of Directors — and not any other body — is vested with the power to create other positions as may be necessary for the management of the chapter" and that. in directing the board of directors of the liga to "create such other positions as may be deemed necessary for the management of the chapter[s]. 210(f)(2)(3) of the Rules and Regulations Implementing the Local Government Code of 1991. provincial. The liga at the municipal.

The Barangay National Assembly was actually the Pambansang Katipunan ng mga Barangay or PKB. But it is contended in the dissent that "Section 493 of the LGC . provincial and metropolitan political subdivision levels. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter. — Every barangay shall be represented in said liga by the punong barangay." The implication seems to be that the board of the directors at the national level did not have that power. Pending the organization of the Liga ng mga Barangay. The duly elected presidents of highly-urbanized cities. There would then be only so many local chapters without a national one. when what is contemplated in the above-quoted provisions of the LGC is that there should be one Liga ng mga Barangay with local chapters at all levels of local government units. or in his absence or incapacity. The fact is that §493 grants the power to create positions not only to the boards of the local chapters but to the board of the Liga at the national level as well. The dissent. The municipal and city chapters of the liga shall be composed of the barangay representatives of 32 . a vicepresident. . pending the organization of the Liga ng mga Barangay. city. headed by the PKB president. provincial and metropolitan political subdivision levels. and national levels directly elect a president. city. the board of directors of the National Liga must be deemed to have the power to create additional positions not only for its management but also for that of all the chapters at the municipal. respectively. The board shall coordinate the activities of the chapters of the liga. provincial chapters. would reduce such board to a board of a local chapter. and five (5) members of the board of directors. Representation. Organization. provincial. to create additional positions which it deemed necessary for the management of a chapter. it served as the Liga. — The liga at the municipal.Pursuant to these provisions. who acted as secretary general. §493. §492." The board of directors of the PKB. the board of directors of the PKB was constituted into a committee. Otherwise the National Liga would be no different from the local chapters. The duly elected presidents of component municipal and city chapters shall constitute the provincial chapter or the metropolitan political subdivision chapter. A secretary-general shall be elected from among the members of the national liga and shall be charged with the overall operation of the liga on the national level. as follows: (Emphasis added) While the board of directors of a local chapter can create additional positions to provide for the needs of the chapter. There is therefore no basis for the claim that because the power to create additional positions in the Liga on its chapters is vested only in the board of directors the exercise of this power by the Barangay National Assembly is unauthorized and illegal and positions created are void. by denying to the board of directors at the National Liga the power to create additional positions in the local chapters. the Metropolitan Manila chapter and metropolitan political subdivision chapters shall constitute the National Liga ng mga Barangay. It is necessary to consider the organizational structure of the Liga ng mga Barangay as provided in the LGC. namely. . National Liga. Chapters. The liga shall have chapters at the municipal. municipal and city barangays. functioning in place of the board of directors of the National Liga ng mga Barangay. metropolitan political subdivision. with a two-fold mandate: "[I] exercise the powers and duties of the national liga and [2] draft or amend the constitution and by-laws of the national liga to conform to the provisions of this Rule. city. vests the power to create additional positions in the Board of Directors of the chapter. exercised one of these powers of the National Liga board. by a sangguniang member duly elected for the purpose among its members. who shall attend all meetings or deliberations called by the different chapters of the liga.

provincial. city. Nor is it correct to say that §493. can be expected to be involved in the general administration or management of the chapter. SO ORDERED. But what we are dealing with in this case is the creation of additional positions. Separate Opinions DAVIDE. whether national or local. Melo. but they must have the same major elective officers. Jr. In light of the disclosure in the revised ponencia that the creation of the questioned additional positions of Executive Vice-President. JR. The rule might apply if what is involved is the appointment of other officers. second and third vice presidents. without however precluding the boards of directors of the chapters as well as that of the national liga from creating other positions for their peculiar needs. The liga at the municipality. metropolitan political subdivision. The dissent further argues that.. Regalado. embodied in Article III of the Revised Implementing Rules and Guidelines for the General Elections of Liga ng Mga Barangay Officers was made by way of the Constitution and By Laws adopted by the First Barangay National Assembly on 11 January 1994. 210(g)(2) of the Rules and Regulations Implementing the Local Government Code of 1991 to the Barangay National Assembly to "formulate uniform constitution and by-laws applicable to the national liga and all local chapters. meaning to say. Section 493 actually gives the board the power to "[1] appoint its secretary and treasurer and [2] create such other positions as it may deem necessary for the management of the chapter. Padilla. Francisco and Hermosisima. and national levels directly elect a president. the ultimate issue then to be resolved is whether or not the Barangay Assembly is empowered to create said additional positions. JJ." contemplates only appointive positions. J. is on leave... Narvasa. and five (5) members of the board of directors. Torres. such as the president and vice-president. A secretary-general shall be elected from among the members of the national liga and shall be charged with the overall operation of the liga on the national level. Elective officers. J. C. (Emphasis supplied). Bellosillo. Puno. WHEREFORE.. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter.. following the rule of ejusdem generis. Hence. The board shall coordinate the activities of the chapters of the liga. Kapunan. what may be created as additional positions can only be appointive ones because the positions of secretary and treasurer are appointive positions. dissenting.. First." The various chapters could have different minor officers depending on their local needs. and Auditor. The creation by the board of the National Liga of the positions of first. concur. auditors and public relations officers was intended to provide uniform officers for the various chapters in line with the mandate in Art. Jr.Indeed what was done in the Constitution and By-laws of their liga was to create additional positions in each chapters. Section 493 of the Local Government Code of 1991 (LGC) specifically provides as follows: §493.J. Management positions are not necessarily limited to appointive positions. the creation of other elective positions which may be deemed necessary for the management of the chapter is within the purview of §493. in providing that additional positions to be created must be those which are "deemed necessary for the management of the chapter." The additional positions to be created need not therefore be appointive positions. a vicepresident.. 33 . the additional vice-presidents and auditors. the petition for prohibition is DISMISSED for lack of merit. Second and Third Vice-Presidents. Organization.

5 Third Vice-President 1. executive vice president. — The chapter shall directly elect their respective officers.4 Second Vice-President 1. and the metropolitan chapter who shall directly elect their respective officers. a president. the incumbent president of the Pambansang Katipunan ng mga Barangay (PKB) shall act as the Secretary-General who continue to be presidents of the respective chapters of the Liga to which they belong. The Board may create such other positions as 1. second. second. the incumbent presidents of the ABCs of the municipality.2 Executive Vice-President Sec. The Municipal City Metropolitan and Provincial Chapters shall directly elect the following officers and directors to constitute their respective Board of Directors. first.7 Five (5) Directors §2. Organization of Board of Directors of Local Chapters. the Board shall appoint a secretary.3 First Vice-President 1. first. subject to the provisions of the Local Government Code of 1991. VI Sec. and third vicepresidents. auditor. highly urbanized and independent component city chapters. the Board shall appoint a treasurer. Thereafter. Thereafter.Article VI of the Constitution and By-Laws of the Liga ng Mga Barangay provides as follows: ARTICLE OFFICERS AND DIRECTORS it may deem necessary for the management of the National Liga. Sections 1 and 2 of Article III of the Revised Implementing Rules and Guidelines for the General Elections of Liga ng Mga Barangay Officers read as follows: §1. 2. with rest serving as Directors of Board. The Board may create such other positions as it may deem necessary for the management of the chapter. city.6 Auditor 1. 1. and third vice presidents. province and Metropolitan Manila shall continue to act as presidents of the corresponding Liga chapters. namely: 1. executive vice president. Pending elections of the president of the municipality. city. provincial and metropolitan chapters of the Liga. auditor. secretary and public relations officers from among the five (5) members with the rest serving as directors of the Board. National Liga. — The National Liga shall be composed of the presidents of the provincial Liga chapters. Local Liga Chapters. and five (5) members to constitute the Board of Directors of the National Liga. and five (5) members to constitute the Board of Directors of their respective chapter. and public relations officers from among the five (5) members. treasurer. secretary general. shall constitute a committee to exercise the powers and duties of the National Liga and with the primordial responsibility of drafting a Constitution and By-Laws needed for the organization of the Liga as a whole pursuant to the provisions of the Local Government Code of 1991. namely a president. The National Liga shall directly elect the following officers and directors to constitute the National Liga Board of Directors namely: 34 .1 President 1. (Emphasis supplied). namely. Pending election of Secretary-General. Organization of Board of Directors of the National Liga.

7 Auditor (2) A secretary-general shall be elected from among the members of the national liga who shall be responsible for the overall operation of the liga. and Metropolitan Manila shall continue to act as presidents of the corresponding chapters under this Rule.6 Secretary General 2.2. shall constitute a committee to exercise 2.1 President metropolitan chapters of the liga. and five (5) members of the board of directors.8 Five (5) Directors To implement Section 493 of the Local Government Code. the incumbent presidents of the association of barangay councils in the municipality. province. 2. who continue to be presidents of the respective chapters of the liga to which they belong. Article 211(f) of the Rules and Regulations Implementing the Local Government Code of 1991 provides: (f) Organizational Structure — (1) The national liga and its local chapters shall directly elect their respective officers. namely: a president.5 Third Vice-President 2.4 Second Vice-President 2. the incumbent president of the pambansang katipunan ng mga barangay shall act as the secretary-general. Pending election of a secretarygeneral under this rule. (Emphasis supplied). vice president. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter. This incumbent members of the board of the pambansang katipunan ng mga barangay.2 Executive Vice-President 2. city. and 35 . headed by the secretary-general. provincial. Pending election of presidents of the municipal.3 First Vice-President 2. city.

unequivocally clear that only the Board of Directors — and not any other body — which is vested with the power to create other positions as may be necessary for the management of the chapter. provincial and 36 . (2) Vice President and (3) five (5) members of the Board of Directors. rules and regulations. Second. The ponencia maintains that since the questioned positions were provided for in the Constitution and By-Laws of the Liga ng Mga Barangay adopted during its First Barangay National Assembly on 11 January 1994. the National Liga Ng Mga Barangay is composed of the duly elected presidents of highly urbanized city chapters. through the constitution and by-laws of their liga. limits the power of this committee." It is. therefore. created the additional positions without precluding the boards of directors of the chapters as well as that of the national liga from creating other positions. I am unable to find any provision of the LGC creating or establishing the Barangay National Assembly. metropolitan subdivision levels (Sec. city. 211[e][4]). even assuming that the committee was the so-called First Barangay National Assembly of 11 January 1994. were constituted into a committee to exercise the powers and duties of the national liga and draft or amend the Constitution and By-Laws of the Liga. (3) The board of directors shall coordinate the activities of the various chapters of the liga. In the first place. There is at all no showing that this committee was the so-called First Barangay National Assembly which convened on 11 January 1994. it is the Board of Directors which appoints the secretary and treasurer and is empowered to "create such other positions as it may deem necessary for the management of the chapter concerned. The aforementioned Article 211(g).the powers and duties of the national liga and draft or amend the constitution and by-laws of the national liga to conform to the provisions of this Rule. headed by the Secretary-General. What the LGC has created is the Liga ng Mga Barangay (Sec. It may readily be observed that Section 493 of the LGC and Article 211(f) of the Implementing Rules are clear that the officers of the national liga and its local chapters are: (1) the President. said committee was not authorized to create. then such additional positions "were as much the creations of the local chapters as of the national league. provincial chapters and metropolitan chapters. unless inconsistent with the Constitution and applicable laws." (2) The committee created in this Article shall formulate uniform constitution and by-laws applicable to the national liga and all local I beg to differ. 491) with local chapters at the municipal. In turn. as follows: (g) Constitution and By-Laws of the Liga — (1) All other matters not provided under this Rule affecting the internal organization of the liga shall be governed by its constitution and by-laws. by virtue of the Constitution and ByLaws it enacted additional positions for the national liga and the liga at the local levels. Under the Implementing Rules of the LGC (Art. Pursuant to Article 211[f][2] of the Implementing Rules. The barangay themselves. 492). the members of the Board of the Pambansang Katipunan ng Mga Barangay.

public relations officer. then the chapters are barred from creating additional positions other than those created in the Constitution and By-Laws of the Liga ng Mga Barangay. Note that the constitution and by-laws which the committee may enact must not be inconsistent with . second and third vice-presidents. Further.chapters. rules and regulations. for lack of legislative authority Sections 1 and 2 of Article III of the Implementing Rules and Guidelines for the General Elections of the Liga ng Mga Barangay Officers.. For the foregoing reasons. "were as much the creations of the local chapters and the league" and the further justification proferred that the creation of the national positions "was intended to provide uniform officers for the various chapters and the national liga was Romero. Finally. the new positions which may be created are those "deemed necessary for the management of the chapter. It goes without saying that the LGC and its Implementing Rules must perforce be heeded." Of course. and auditor. Vice-President and Board of Directors." This runs afoul of Section 493 of the LGC which vests the power to create additional positions only in the Board of Director of the chapter. The committee shall convene the national liga to ratify the constitution and by-laws within six (6) months from issuance of these Rules. JR. APPOINTIVE. assistant treasurer. The latter then appoints a secretary and a treasurer and may create such other positions as it may deem necessary for the management of the chapter. in line with the mandate of the assembly to "formulate uniform constitution and by-laws applicable to the national liga and all local chapters. viz. first. Following the rule of ejusdem generis in statutory construction." in light of the clause preceding the grant of the power. to create additional positions. it may likewise be observed that Section 493 merely allows the creation of other appointive positions "as it may deem necessary for the management of the chapter. . the section does not empower the local liga to create elective positions other than that of President. The claim in the ponencia that the creation of additional positions in the Constitution and By-Laws does not preclude the board of directors of the chapter as well as that of the national liga from creating other positions. JJ. under Section 493. or information officer. I vote to declare void. . Vice President and the board of directors composed of five (5) members. or even a sergeant-at-arms. neither the LGC nor the Implementing Rules authorizes any person or entity. J. one of the laws that come to mind is the LGC of 1991 and the rules and regulations could nothing be than the Rules Implementing the Local Government Code of 1991. Section 493 of the LGC and Article 211 (f) of the Implementing Rules limit the officers to the: President. other than the Board of Directors. it would be a clear case of judicial legislation to declare that since the additional positions were created in the Constitution and By-Laws of the Liga ng Mga Barangay. It bears repeating that as they stand.. concur. Plainly.. Separate Opinions DAVIDE. then they "were as much as the creations of the local chapters as of the national league. Third. and not to policy formulation which may be exercised the executive officers and Board of Directors. auditor. which reads: "The board shall appoint its secretary and treasurer. Vitug and Panganiban." If this were so. and Sections 1 and 2 of Article VI of the Constitution and By-Laws of the Liga ng Mga Barangay. as that of secretary and treasurer. the "other positions" which may be created must be of the same category. is inconsistent with the earlier proposition that such new positions." which may only pertain to the day-to-day business and affairs of the liga chapter. insofar as they relate to the creation of the positions of executive vice president. dissenting. 37 ." I lay stress on the term "appointive. "applicable laws.. These other positions may then be that of an assistant secretary. In short.

(Emphasis supplied). and five (5) members to constitute the Board of Directors of the National Liga. first. the Board shall appoint a treasurer. namely. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter. second. and the metropolitan chapter who shall directly elect their respective officers. secretary and public relations officers from among the five (5) members with the rest serving as directors of the Board. secretary general. auditor. The Board may create such other positions as it may deem necessary for the management of the chapter. second. province and Metropolitan Manila shall continue to act as presidents of the corresponding Liga chapters. (Emphasis supplied). first. and third vicepresidents. city. and third vice presidents. a vicepresident. Thereafter. subject to the provisions of the Local Government Code of 1991. Second and Third Vice-Presidents. auditor. a president. and Auditor. treasurer. executive vice president. the incumbent presidents of the ABCs of the municipality. provincial and metropolitan chapters of the Liga. highly urbanized and independent component city chapters. and national levels directly elect a president.In light of the disclosure in the revised ponencia that the creation of the questioned additional positions of Executive Vice-President. metropolitan political subdivision. 2. and public relations officers 38 . the ultimate issue then to be resolved is whether or not the Barangay Assembly is empowered to create said additional positions. city. The liga at the municipality. embodied in Article III of the Revised Implementing Rules and Guidelines for the General Elections of Liga ng Mga Barangay Officers was made by way of the Constitution and By Laws adopted by the First Barangay National Assembly on 11 January 1994. and five (5) members to constitute the Board of Directors of their respective chapter. First. and five (5) members of the board of directors. Organization. shall constitute a committee to exercise the powers and duties of the National Liga and with the primordial responsibility of drafting a Constitution and By-Laws needed for the organization of the Liga as a whole pursuant to the provisions of the Local Government Code of 1991. Pending election of Secretary-General. Section 493 of the Local Government Code of 1991 (LGC) specifically provides as follows: Sec. 1. The Board may create such other positions as it may deem necessary for the management of the National Liga. A secretary-general shall be elected from among the members of the national liga and shall be charged with the overall operation of the liga on the national level. city. executive vice president. with rest serving as Directors of Board. Article VI of the Constitution and By-Laws of the Liga ng Mga Barangay provides as follows: ARTICLE OFFICERS AND DIRECTORS VI Sec. Pending elections of the president of the municipality. namely a president. the Board shall appoint a secretary. — The chapter shall directly elect their respective officers. §493. Organization of Board of Directors of the National Liga. Thereafter. the incumbent president of the Pambansang Katipunan ng mga Barangay (PKB) shall act as the Secretary-General who continue to be presidents of the respective chapters of the Liga to which they belong. provincial. from among the five (5) members. Organization of Board of Directors of Local Chapters. The board shall coordinate the activities of the chapters of the liga. — The National Liga shall be composed of the presidents of the provincial Liga chapters.

and metropolitan chapters of the liga.1 President 2.4 Second Vice-President 1.7 Five (5) Directors §2.8 Five (5) Directors §1. namely: a president.5 Third Vice-President 2. vice president. and five (5) members of the board of directors. provincial.Sections 1 and 2 of Article III of the Revised Implementing Rules and Guidelines for the General Elections of Liga ng Mga Barangay Officers read as follows: 2.7 Auditor 2. The National Liga shall directly elect the following officers and directors to constitute the National Liga Board of Directors namely: 2. city.5 Third Vice-President 1. Article 211(f) of the Rules and Regulations Implementing the Local Government Code of 1991 provides: (f) Organizational Structure — 1.6 Secretary General 39 . Local Liga Chapters. namely: To implement Section 493 of the Local Government Code. province.2 Executive Vice-President 1. city.6 Auditor 1.1 President (1) The national liga and its local chapters shall directly elect their respective officers. National Liga. The board shall appoint its secretary and treasurer and create such other positions as it may deem necessary for the management of the chapter.3 First Vice-President 2. the incumbent presidents of the association of barangay councils in the municipality. Pending election of presidents of the municipal.3 First Vice-President 1.2 Executive Vice-President 2.4 Second Vice-President 2. The Municipal City Metropolitan and Provincial Chapters shall directly elect the following officers and directors to constitute their respective Board of Directors. and Metropolitan Manila shall continue to act as presidents of the corresponding chapters 1.

the members of the Board of the Pambansang Katipunan ng Mga Barangay. 211[e][4]). the incumbent president of the pambansang katipunan ng mga barangay shall act as the secretary-general. unequivocally clear that only the Board of Directors — and not any other body — which is vested with the power to create other positions as may be necessary for the management of the chapter. city. This incumbent members of the board of the pambansang katipunan ng mga barangay. therefore." It is. The ponencia maintains that since the questioned positions were provided for in the Constitution and By-Laws of the Liga ng Mga Barangay adopted during its First Barangay National Assembly on 11 January 1994. The barangay themselves. In the first place. What the LGC has created is the Liga ng Mga Barangay (Sec. (2) Vice President and (3) five (5) members of the Board of Directors. headed by the Secretary-General. were constituted into a committee to exercise the powers and duties of the national liga and draft or amend the Constitution and By-Laws of the Liga. In turn. (2) A secretary-general shall be elected from among the members of the national liga who shall be responsible for the overall operation of the liga. then such additional positions "were as much the creations of the local chapters as of the national league. Under the Implementing Rules of the LGC (Art. It may readily be observed that Section 493 of the LGC and Article 211(f) of the Implementing Rules are clear that the officers of the national liga and its local chapters are: (1) the President. the National Liga Ng Mga Barangay is composed of the duly elected presidents of highly urbanized city chapters. shall constitute a committee to exercise the powers and duties of the national liga and draft or amend the constitution and by-laws of the national liga to conform to the provisions of this Rule." I beg to differ. Pursuant to Article 211[f][2] of the Implementing Rules. headed by the secretary-general. of the various chapters of the liga. provincial and metropolitan subdivision levels (Sec. There (3) The board of directors shall coordinate the activities 40 . who continue to be presidents of the respective chapters of the liga to which they belong.under this Rule. 492). created the additional positions without precluding the boards of directors of the chapters as well as that of the national liga from creating other positions. (Emphasis supplied). provincial chapters and metropolitan chapters. through the constitution and by-laws of their liga. I am unable to find any provision of the LGC creating or establishing the Barangay National Assembly. it is the Board of Directors which appoints the secretary and treasurer and is empowered to "create such other positions as it may deem necessary for the management of the chapter concerned. Pending election of a secretarygeneral under this rule. 491) with local chapters at the municipal.

even assuming that the committee was the so-called First Barangay National Assembly of 11 January 1994. The aforementioned Article 211(g). Second. Section 493 of the LGC and Article 211 (f) of the Implementing Rules limit the officers to the: President. unless inconsistent with the Constitution and applicable laws. Finally. other than the Board of Directors. LGC of 1991 and the rules and regulations could nothing be than the Rules Implementing the Local Government Code of 1991. limits the power of this committee. Third. as follows: (g) Constitution and By-Laws of the Liga — (1) All other matters not provided under this Rule affecting the internal organization of the liga shall be governed by its constitution and by-laws. to create additional positions. . rules and regulations. "were as much the creations of the local chapters and the league" and the further justification proferred that the creation of the national positions "was intended to provide uniform officers for the various chapters and the national liga was in line with the mandate of the assembly to "formulate uniform constitution and by-laws applicable to the national liga and all local chapters. by virtue of the Constitution and ByLaws it enacted additional positions for the national liga and the liga at the local levels. It goes without saying that the LGC and its Implementing Rules must perforce be heeded. it would be a clear case of judicial legislation to declare that since the additional positions were created in the Constitution and By-Laws of the Liga ng Mga Barangay. one of the laws that come to mind is the 41 ." If this were so. said committee was not authorized to create. rules and regulations. "applicable laws. . It bears repeating that as they stand." in light of the clause preceding the grant of the power. neither the LGC nor the Implementing Rules authorizes any person or entity. then they "were as much as the creations of the local chapters as of the national league. is inconsistent with the earlier proposition that such new positions.is at all no showing that this committee was the so-called First Barangay National Assembly which convened on 11 January 1994." Of course. The committee shall convene the national liga to ratify the constitution and by-laws within six (6) months from issuance of these Rules. then the chapters are barred from creating additional positions other than those created in the Constitution and By-Laws of the Liga ng Mga Barangay. which reads: "The board shall appoint its secretary and Note that the constitution and by-laws which the committee may enact must not be inconsistent with ." I lay stress on the term "appointive. it may likewise be observed that Section 493 merely allows the creation of other appointive positions "as it may deem necessary for the management of the chapter. (2) The committee created in this Article shall formulate uniform constitution and by-laws applicable to the national liga and all local chapters. The claim in the ponencia that the creation of additional positions in the Constitution and By-Laws does not preclude the board of directors of the chapter as well as that of the national liga from creating other positions." This runs afoul of Section 493 of the LGC which vests the power to create additional positions only in the Board of Director of the chapter. Vice President and the board of directors composed of five (5) members. Plainly. The latter then appoints a secretary and a treasurer and may create such other positions as it may deem necessary for the management of the chapter.

the new positions which may be created are those "deemed necessary for the management of the chapter. and auditor. the section does not empower the local liga to create elective positions other than that of President. viz." which may only pertain to the day-to-day business and affairs of the liga chapter. I vote to declare void. assistant treasurer. 42 . and Sections 1 and 2 of Article VI of the Constitution and By-Laws of the Liga ng Mga Barangay. first. or even a sergeant-at-arms. as that of secretary and treasurer.treasurer. For the foregoing reasons. for lack of legislative authority Sections 1 and 2 of Article III of the Implementing Rules and Guidelines for the General Elections of the Liga ng Mga Barangay Officers. JJ. second and third vice-presidents. insofar as they relate to the creation of the positions of executive vice president.. In short. These other positions may then be that of an assistant secretary. or information officer. Vitug and Panganiban. the "other positions" which may be created must be of the same category. Following the rule of ejusdem generis in statutory construction. under Section 493. Romero. APPOINTIVE. public relations officer. and not to policy formulation which may be exercised the executive officers and Board of Directors.. Further. auditor. concur. Vice-President and Board of Directors.

SR. C. Respondent. and by which these powers are CORONA. must defer.R. JR. matter what may be the tides of time.[4] PEREZ. x-----------------------x REP. JR. Laurel[1] The role of the Constitution cannot be overlooked. distributed among the several departments.x DECISION The first case is G. sway and accommodate the call of situations and much more tailor DEL CASTILLO. Petitioner. x -------------------------------------------------------------------------------------. No.[3] Constitutional doctrines must remain steadfast no BRION. RODOLFO B. It is through the G. 2010.. 193036 Constitution that the fundamental powers of government are Present: established.versus - EXECUTIVE SECRETARY PAQUITO N. it does not assert any superiority over the other departments. 1. --. No. 192935. Petitioners. LEONARDO-DE CASTRO.J.EN BANC LOUIS BAROK C.Justice Jose P. FUA. of which essentially assail the validity and entitled Creating the Philippine Truth Commission of 2010. but only asserts the solemn and sacred obligation assigned to it by the Constitution to determine conflicting claims of authority under the Constitution and to establish for the parties in an actual controversy the rights which that instrument secures and guarantees to them. No. For consideration before the Court are two consolidated Promulgated: cases[5] both December 7. REP. and to which all persons.: prohibition instituted by petitioner Louis Biraogo (Biraogo) in his capacity as a citizen and taxpayer.R. JJ. SIMEON A. It cannot be simply made to PERALTA. ALBANO. OCHOA. EDCEL C. LAGMAN. J. JR. BERSAMIN. Respondents. JR. a special civil action for MENDOZA. and REP.. BIRAOGO. ORLANDO B. DATUMANONG. 192935 . REP.. run it. Biraogo assails Executive Order When the judiciary mediates to allocate constitutional boundaries. dated July 30.. VILLARAMA. ABAD.R. 1 for being violative of the legislative power of Congress under 43 . limited and defined. NACHURA. MENDOZA.. it does not in No. itself to the whims and caprices of government and the people who ABAD. CARPIO MORALES. reality nullify or invalidate an act of the legislature. including the highest officials of the land. and SERENO. 2010 constitutionality of Executive Order No. the basic and paramount law to which all other laws must conform VELASCO.versus THE PHILIPPINE TRUTH COMMISSION OF 2010. . G. [2] The Constitution is CARPIO. and DEPARTMENT OF BUDGET AND MANAGEMENT SECRETARY FLORENCIO B.

Pertinent provisions of said executive order read: EXECUTIVE ORDER NO. Datumanong. Article XI. loyalty and efficiency. when then Senator Benigno Simeon Aquino III declared his staunch condemnation of graft and corruption with his slogan. and lead modest lives. Representatives. Kung walang corrupt. catapulted the good senator to the presidency. is a special civil action for certiorari and prohibition filed by petitioners Edcel C. economic. if warranted.CREATING THE PHILIPPINE TRUTH COMMISSION OF 2010 Section 1. the marginalized and underprivileged sector of society. walang mahirap expresses a solemn pledge that if elected. who are servants of the people. WHEREAS. (petitioners-legislators) as incumbent members of the House of WHEREAS. and to deter others from committing the evil.[7] The second case. The genesis of the foregoing cases can be traced to the events prior to the historic May 2010 elections. of 1 establishing 2010 (Truth Commission). convinced of his sincerity and of his ability to carry out this noble objective. mahirap. 2010.R. To transform his campaign slogan into reality. corruption in the Philippines has reached very alarming levels. there is an urgent call for the determination of the truth regarding certain reports of large scale graft and corruption in the government and to put a closure to them by the filing of the appropriate cases against those involved. WHEREAS. and 44 . in a very special way it inflicts untold misfortune and misery on the poor. the Presidents battlecry during his campaign for the Presidency in the last elections kung walang corrupt. Article VI of the Constitution [6] as it usurps the constitutional authority of the legislature to create a public office WHEREAS. and to appropriate funds therefor. serve them with utmost responsibility. walang WHEREAS. Thus. at the dawn of his administration. there is a need for a separate body dedicated solely to investigating and finding out the truth concerning the reported cases of graft and corruption during the previous administration. must at all times be accountable to the latter. 193036. Simeon A. and Orlando B. President Aquino found a need for a special body to investigate reported cases of graft and corruption allegedly committed during the previous administration. corruption is an evil and scourge which seriously affects the political. he would end corruption and the evil it breeds. signed the Philippine Truth Executive Order Commission No. and social life of a nation. No. the President on July 30. G. 1 WHEREAS. Albano Jr. Rodolfo B. act with patriotism and justice. The Filipino people. integrity. Sr. Lagman. Section 1 of the 1987 Constitution of the Philippines solemnly enshrines the principle that a public office is a public trust and mandates that public officers and employees. WHEREAS. restore the peoples faith and confidence in the Government and in their public servants.. corruption is among the most despicable acts of defiance of this principle and notorious violation of this mandate. and undermined the peoples trust and confidence in the Government and its institutions. Fua.

do hereby order: c) Upon proper request or representation. BENIGNO SIMEON AQUINO III. The Commission shall be composed of a Chairman and four (4) members who will act as an independent collegial body. accomplices or accessories. otherwise known as the Revised Administrative Code of the Philippines. their co-principals. involving third level public officers and higher. In particular. obtain information and documents from the Senate and the House of Representatives records of investigations conducted by committees thereof relating to matters or subjects being investigated by the Commission. during the previous administration. NOW. and to this end require any agency. is primarily tasked to conduct a thorough fact-finding investigation of reported cases of graft and corruption referred to in Section 1. information or documents in respect to corruption cases filed with the Sandiganbayan or the regular courts. committed by public officers and employees. review and evaluate evidence related to or regarding the cases of large scale corruption which it has chosen to investigate. b) Collect. that such person who qualifies as a state witness under the Revised Rules of Court of the Philippines be admitted for that purpose. in cases where there is a need to utilize any person as a state witness to ensure that the ends of justice be fully served. and thereafter recommend the appropriate action or measure to be taken thereon to ensure that the full measure of justice shall be served without fear or favor. including the Sandiganbayan and the Office of the Court Administrator. accomplices and accessories from the private sector. Powers and Functions. receive. by means of a special or interim report and recommendation. Section 31 of Executive Order No. 292. administer oaths or affirmations as the case may be. THEREFORE. as the case may be. which shall primarily seek and find the truth on. h) Call upon any government investigative or prosecutorial agency such as the Department of 45 . Book III. Book I of the Administrative Code of 1987. hereinafter referred to as the COMMISSION. President of the Republic of the Philippines. official or employee of the Executive Branch. SECTION 2. d) Upon proper request and representation. by virtue of the powers vested in me by law. if any. if any. accomplices and accessories from the private sector. There is hereby created the PHILIPPINE TRUTH COMMISSION. investigate reports of graft and corruption of such scale and magnitude that shock and offend the moral and ethical sensibilities of the people. a) Identify and determine the reported cases of such graft and corruption which it will investigate. obtain information from the courts. gives the President the continuing authority to reorganize the Office of the President. records and other papers. I. when in the course of its investigation the Commission finds that there is reasonable ground to believe that they are liable for graft and corruption under pertinent applicable laws.which will recommend the prosecution of the offenders and secure justice for all. f) Recommend. to produce documents. if any. Chapter 10. including government-owned or controlled corporations. Congress and the Ombudsman. for expeditious prosecution. e) Invite or subpoena witnesses and take their testimonies and for that purpose. it shall: g) Turn over from time to time. and toward this end. their coprincipals. WHEREAS. books. Creation of a Commission. all evidence on corruption of public officers and employees and their private sector co-principals. Chapter 9. to the appropriate prosecutorial authorities. during the previous administration and thereafter submit its finding and recommendations to the President. which shall have all the powers of an investigative body under Section 37. SECTION 1. The Commission.

AQUINO III By the President: (SGD. The Commission shall accomplish its mission on or before December 31. Effectivity. fails to appear upon subpoena issued by the Commission or who. JR. SECTION 3. the same shall not affect the validity and effectivity of the other provisions hereof. x x x. Duty to Extend Assistance to the Commission. (SGD. x x x.) BENIGNO S. Take Oath or Give Testimony. DONE in the City of Manila. SECTION 9. Any private person who does the same may be dealt with in accordance with law. SECTION 15. including the presentation of evidence. The Office of the President shall provide the necessary funds for the Commission to ensure that it can exercise its powers. and responsibilities as effectively. Conduct of Proceedings. SECTION 17. without lawful excuse. Executive Secretary 46 .) PAQUITO N. j) Promulgate its rules and regulations or rules of procedure it deems necessary to effectively and efficiently carry out the objectives of this Executive Order and to ensure the orderly conduct of its investigations. SECTION 10. Special Provision Concerning Mandate. Detail of Employees. Protection of Witnesses/Resource Persons. SECTION 14. SECTION 16. x x x. If and when in the judgment of the President there is a need to expand the mandate of the Commission as defined in Section 1 hereof to include the investigation of cases and instances of graft and corruption during the prior administrations. this 30 th day of July 2010. give testimony or produce documents for inspection. shall be subject to administrative disciplinary action. 2012. x x x. OCHOA. and expeditiously as possible. efficiently. Staffing Requirements.Justice or any of the agencies under it. Term of the Commission. professionals and other personnel determined by it as necessary to carry out its mandate. SECTION 11. when required. such mandate may be so extended accordingly by way of a supplemental Executive Order. SECTION 12. x x x. execute its functions. for such assistance and cooperation as it may require in the discharge of its functions and duties. SECTION 7. Engagement of Experts. x x x. Budget for the Commission. If any provision of this Order is declared unconstitutional. k) Exercise such other acts incident to or are appropriate and necessary in connection with the objectives and purposes of this Order. Right to Counsel of Witnesses/Resource Persons. x x x. and the Presidential Anti-Graft Commission. This Executive Order shall take effect immediately. appearing before the Commission refuses to take oath or affirmation. x x x SECTION 6. Separability Clause. Transfer of Records and Facilities of the Commission. Any government official or personnel who. x x x. SECTION 4. SECTION 8. Philippines. i) Engage or contract the services of resource persons. x x x. x x x. Refusal to Obey Subpoena. Office. Furniture/Equipment. and perform its duties SECTION 18. Publication of Final Report. SECTION 13. proceedings and hearings. SECTION 19. SECTION 5.

of past violence and to prevent future conflict by providing a The PTC is different from the truth commissions in other cathartic experience for victims. settle. their main goals range from retribution to make recommendations. civil strife or authoritarianism to serve as mechanisms for transitional justice. civil or administrative penalties or sanctions. Although it is a fact-finding body. Though it has been described as an that finish their work with the submission of a report containing independent collegial body. however. the principal function of which was to heal the wounds criminal. it is essentially an entity within the conclusions and recommendations. Chapter 9.Nature of the Truth Commission serious violations of human rights or of international humanitarian law in a countrys past. the emerging Philippine Truth Commission (PTC) is a mere ad hoc body formed from periods of internal unrest. sanctioned. their co-principals. [10] Commissions it constitutes a public office. and (4) they are officially Office of the President Proper and subject to his control.[9] They are usually established by states As can be gleaned from the above-quoted provisions. It may have subpoena powers but it has reconciliation. They may aim to prepare the way for body as it cannot adjudicate. it cannot determine from punish those responsible for crimes against humanity. or render prosecutions and recommend institutional reforms. [8] members are usually empowered to conduct research. Congress as opposed to a particular event. (3) they are temporary bodies and the Ombudsman. the PTC shall have all the powers of and propose policy recommendations to prevent recurrence of crimes. accomplices and the following characteristics: (1) they examine only past events. arbitrate. Book I of the may aim to discover and learn more about past abuses. All it can do is gather. A form of a such facts if probable cause exists as to warrant the filing of an reconciliatory tribunal is the Truth and Reconciliation Commission of information in our courts of law. transitory and nonjudicial fact-finding bodies to establish the facts and context of 47 . a quasi-judicial acknowledge them. Needless to state. Through their investigations. countries which have been created as official. it cannot impose South Africa. The Nuremburg and Tokyo war crime tribunals are no power to cite people in contempt. much less order their examples of a retributory or vindicatory body set up to try and arrest. resolve. To accomplish its task. the commissions an investigative body under Section 37. or formally Administrative Code of 1987. under the Office of the President with the primary task to investigate reports of graft and corruption committed by third-level Truth commissions have been described as bodies that share public officers and employees.[11] awards in disputes between contending parties. support victims. and thereafter to they investigate patterns of abuse committed over a period of time. It is not. (2) accessories during the previous administration. Doubtless. submit its finding and recommendations to the President. as an ad hoc body is one. collect and assess evidence of graft and corruption and Thus. authorized or empowered by the State.

if they mean that they would like us to simply forget about the wrongs that they have committed in the past.O. an adventure in partisan hostility. The Thrusts of the Petitions Barely a month after the issuance of Executive Order No. No. Section 31 of the Administrative Code of 1987 cannot legitimize E. we give consent to their occurring over and over again. who may be indictable. A perusal of the arguments of the petitioners in both cases shows that they are (f) The creation of the Truth Commission is an exercise in futility.O. (d) E. No. It translated the Draconian code spelled out by Aquino in his inaugural speech: To those who talk about reconciliation. Chapter 10. 1. In their Consolidated Comment.[14] the respondents. we have this to say: There can be no reconciliation without justice. The PTC is a far cry from South Africas model. 1 illegally amended the Constitution and pertinent statutes when it vested the Truth Commission with quasi-judicial powers duplicating.O. a launching pad for trial/conviction by publicity and a mere populist propaganda to mistakenly impress the people that widespread poverty will altogether vanish if corruption is eliminated without even addressing the other major causes of poverty. 1 because the delegated authority of the President to structurally reorganize the Office of the President to achieve economy. simplicity and efficiency does not include the power to create an entirely new public office which was hitherto inexistent like the Truth Commission. (g) The mere fact that previous commissions were not constitutionally challenged is of no moment because neither laches nor estoppel can bar an eventual question on the constitutionality and validity of an executive issuance or even a statute. (e) The creation of the Philippine Truth Commission of 2010 violates the consistent and general international practice of four decades wherein States constitute truth commissions to exclusively investigate human rights violations. No. essentially questioned the 48 . No. When we allow crimes to go unpunished. The latter placed more emphasis on reconciliation than on judicial retribution.O. the petitioners asked the Court to declare it unconstitutional and to enjoin the PTC from performing its functions. 1 violates the equal protection clause as it selectively targets for investigation and prosecution officials and personnel of the previous administration as if corruption is their peculiar species even as it excludes those of the other administrations. As one writer[12] puts it: The order ruled out reconciliation. through the Office of the Solicitor General (OSG). which customary practice forms part of the generally accepted principles of international law which the Philippines is mandated to adhere to pursuant to the Declaration of Principles enshrined in the Constitution. while the marching order of the PTC is the identification and punishment of perpetrators. The petitioners-legislators summarized them in the following manner: (a) E. essentially the same. 1 violates the separation of powers as it arrogates the power of the Congress to create a public office and appropriate funds for its operation.(c) E. if not superseding. past and present.[13] (b) The provision of Book III. those of the Office of the Ombudsman created under the 1987 Constitution and the Department of Justice created under the Administrative Code of 1987.

1 does not usurp the power of Congress to appropriate funds because there is no appropriation but a mere allocation of funds already appropriated by Congress.because it is a fact-finding body and not a quasi-judicial body and its functions do not duplicate. 9970. No.legal standing of petitioners and defended the assailed executive Agency order with the following arguments: on Reform and Government President Ferdinand E. the following are the principal issues to be resolved: 1.O. Essential requisites for judicial review Magsaysay. transcripts. Presidential Committee on Administrative Performance Before proceeding to resolve the issue of the constitutionality Efficiency (PCAPE)by President Carlos P. 2] E. [17] and settled jurisprudence that authorize the President to create or form such bodies. R. No. and memoranda. Marcos. 1416[16] (as amended by P. 2. 4] The Truth Commission does not violate the equal protection clause because it was validly created for laudable purposes. Operations (PARGO) by [18] From the petitions. 1 does not arrogate the powers of Congress to create a public office because the Presidents executive power and power of control necessarily include the inherent power to conduct investigations to ensure that laws are faithfully executed and that. Whether or not Executive Order No. No. in any event. No. 1772).) No. and commissions.O. 1. Whether or not petitioners are entitled to of other executive orders and presidential issuances creating similar injunctive relief. No. Revised Administrative Code of 1987 (E. 1. Whether or not the petitioners have the legal standing to file their respective petitions and question Executive Order No. the Court needs to ascertain whether the 49 .D. 3. Whether or not Executive Order No.D. 1] E. 1 violates the equal protection clause. and The OSG then points to the continued existence and validity 5. the Constitution. supplant or erode the latters jurisdiction. Whether or not Executive Order No. 1 supplants the powers of the Ombudsman and the DOJ.A.O. pleadings. [15] Presidential Decree (P. Garcia and Presidential of Executive Order No. agencies 3] The Truth Commission does not duplicate or supersede the functions of the Office of the Ombudsman (Ombudsman) and the Department of Justice (DOJ). 1 violates the principle of separation of powers by usurping the powers of Congress to create and to appropriate funds for public offices. 4. 292). bodies to justify the creation of the PTC such as Presidential Complaint and Action Commission (PCAC) by President Ramon B.

As held in Philippine Constitution Association v. the OSG argues that. Legal Standing of the Petitioners Indeed.[22] danger of sustaining any personal injury attributable to the creation of the PTC. which can be questioned by a member of Congress. to wit: (1) there must be an members. direct injury as a result To the extent the powers of Congress are impaired. In such a case. (3) the question of constitutionality must be raised at the earliest opportunity. legislators have a legal standing to see to it that the The OSG attacks the legal personality of the petitioners- prerogative. Not claiming to be the subject of the With regard to Biraogo. 50 . the power of power of the Congress as a body to which they belong as judicial review is subject to limitations. Thus. Evidently. to their mind. This certainly justifies their resolve to take the cudgels actual case or controversy calling for the exercise of judicial power. as a taxpayer. 1. commissions investigations. or will sustain. since his office confers a right to participate in the exercise of the powers of that institution. their petition primarily invokes usurpation of the Like almost all powers conferred by the Constitution. they are allowed to question the personal stake in the outcome of the case. he must have a personal and substantial interest in the case Enriquez. of its enforcement. Among all these limitations. Thus. and (4) the issue of constitutionality must be the very lis mota of the case. for Congress as an institution and present the complaints on the (2) the person challenging the act must have the standing to usurpation of their power and rights as members of the legislature question the validity of the subject act or issuance.requisites for a valid exercise of its power of judicial review are The Court disagrees with the OSG in questioning the legal present. infringes on their petitioners have not shown that they have sustained or are in prerogatives as legislators. powers and privileges vested by the Constitution in legislators to file their petition for failure to demonstrate their their office remain inviolate.[19] An act of the Executive which injures the institution of Congress causes a derivative but nonetheless substantial injury. only the legal standing of the petitioners has been put at issue. otherwise before the Court. so is the power of each member thereof. petitioners will not sustain injury in its he has no standing to question the creation of the PTC and the creation or as a result of its proceedings. standing of the petitioners-legislators to assail Executive Order No. stated. It argues that the validity of any official action which. [20] budget for its operations.[23] It emphasizes that the funds to be used for the creation and operation of the commission are to be taken from those funds already appropriated by Congress.[21] such that he has sustained. any member of Congress can have a resort to the courts.

Nowhere in his petition is an assertion of a clear right that may justify his clamor for the Court to exercise judicial power and to wield the axe over presidential issuances in defense of the Constitution. the United State Supreme Court laid down the more stringent direct injury test in Ex Parte Levitt. where it was held that the plaintiff in a taxpayers suit is in a different category from the plaintiff in a citizens suit. The difficulty of determining locus standi arises in public suits. while in the latter. it held that the person who impugns the validity of a statute must have a personal and substantial interest in the case such that he has sustained. or in the category of a citizen. or taxpayer. and that a public grievance be remedied. and thus hinders the activities of governmental agencies engaged in public service. if not the duty. the real-party-in interest is the party who stands to be benefited or injured by the judgment in the suit or the party entitled to the avails of the suit. howeverthe people are the real partiesIt is at least the right. the plaintiff who asserts a public right in assailing an allegedly illegal official action. 1. The distinction was first laid down in Beauchamp v. Terr v. Thus: Locus standi is defined as a right of appearance in a court of justice on a given question. Ullman. He may be a person who is affected no differently from any other person. It provides that every action must be prosecuted or defended in the name of the real party in interest. In People v. The same Court ruled that for a private individual to invoke the judicial power to determine the validity of an executive or legislative action. With respect to taxpayers suits. Custodio v. Pascual v. any personal and direct injury attributable to the implementation of Executive Order No. In either case. he must show that he has sustained a direct injury as a result of that action.the allocation and disbursement of funds for the commission will Case law in most jurisdictions now allows both citizen and taxpayer standing in public actions. As held by the New York Supreme Court in People ex rel Case v. to prevent just about any person from seeking judicial interference in any official policy or act with which he disagreed with. and it is not sufficient that he has a general interest common to all members of the public. Vera. he is but the mere instrument of the public concern. The case of David v. Rule 3 of the 1997 Rules of Civil Procedure. such as. Arroyo[24] explained the deepseated rules on locus standi. or is in danger of sustaining. Collins: In matter of mere public right. Accordingly. Biraogo has not shown that he sustained.Succinctly put. De la Fuente. does so as a representative of the general public. Manila Race Horse Trainers Association v. standing is governed by the real-parties-in interest rule as contained in Section 2. of every citizen to interfere and see that a public offence be properly pursued and punished. Silk. Here. Jordan held that the right of a citizen and a taxpayer to maintain an action in courts to restrain the unlawful use of public funds to his injury cannot be denied. He could be suing as a stranger. as amended. The Vera doctrine was upheld in a litany of cases. In private suits. the plaintiffs standing is based on his own right to the relief sought. he has to adequately show that he is entitled to seek judicial protection. President of the Senate. In other words. As correctly pointed out by the OSG. In the former. Secretary of Public 51 . later reaffirmed in Tileston v. he has to make out a sufficient interest in the vindication of the public order and the securing of relief as a citizen or taxpayer. not entail congressional action but will simply be an exercise of the Presidents power over contingent funds. This Court adopted the direct injury test in our jurisdiction. or will sustain direct injury as a result. However. the plaintiff is affected by the expenditure of public funds.

consolidate. cannot The OSG claims that the determinants of transcendental serve as basis for the creation of a truth commission considering importance[28] laid down in CREBA v. The Court. Biraogo asserts that the Court held that in cases of paramount importance where the Truth Commission is a public office and not merely an adjunct serious constitutional questions are involved. of judicial review. such power cannot be presumed [32] since the there is no provision in the Constitution or any specific law that constitutionality of several executive orders although they had only authorizes the President to create a truth commission. and perform its constitutional duty to settle legal controversies with legislators when the public interest so requires. in order that the requirements may be relaxed and a suit may be allowed to prosper President may create a public office he must be empowered by the even where there is no direct injury to the party claiming the right Constitution. granting the President the continuing authority to reorganize his office. Where the issues are of transcendental and paramount thereof. merge. Torres.[31]Thus. Felix. they should be resolved for the guidance of all.R. [30] Undoubtedly. v. matter is of transcendental importance. In the first Emergency Powers Cases.[25] [26] Power of the President to Create the Truth Commission Thus. that Section 31 of the Administrative Code of 1987. In his memorandum in G. such as when the overreaching significance to society. No. Inc. ERC and Meralco[29] are non- the aforesaid provision merely uses verbs such as reorganize.[34] Insofar as it vests in assertion that the petition covers matters of transcendental the President the plenary power to reorganize the Office of the importance to justify the exercise of jurisdiction by the Court. and abolish.[35] importance not only to the public but also to the Bench and the Bar. novelty and weight as the Constitution and must be deemed repealed upon the effectivity precedents. in Coconut Oil Refiners Association. or of paramount public interest. citizens and taxpayers were allowed to [27] ordinary question According to petitioner. taxpayers. [33] He adds an indirect and general interest shared in common with the public. the Court leans on the doctrine that the overwhelming political undertones that clothe the issue in the eyes rule on standing is a matter of procedure. of overreaching significance to society. hence. 192935. finds reason in Biraogos transfer.Works and Anti-Chinese League of the Philippines v. Citations omitted] the Filipino people are more than interested to know the status of the Presidents first effort to bring about a promised change to the country. but because the Court stands firm in its oath to nontraditional plaintiffs like ordinary citizens. There President to the extent of creating a public office. The Court takes cognizance of the petition not due to Notwithstanding. can be relaxed for of the public. Section 31 is are constitutional issues in the petition which deserve the attention inconsistent with the principle of separation of powers enshrined in of this Court in view of their seriousness. however. existent in this case. a statute or an authorization vested in him by law. 52 . the standing body of the Office of the President. [Emphases included.

193036. and by on matters which he is entitled to know. as the OSG government. or interfere with the discretion of his officials. the Executive.R.[39] creation of the PTC fall within the ambit of the power to reorganize as expressed in Section 31 of the Revised Administrative Code? 53 . put a performance of its constitutionally mandated functions and in the closure to the reported large scale graft and corruption in the exercise of its administrative functions. and 4) only to power to discipline subordinates. it argues that the authority of the President to under existing statutes. achieve simplicity.Similarly. [44] The OSG counters that there is nothing where it was held that the President has the power to reorganize exclusively the offices and agencies in the executive department in line with legislative about the creation by the President of a fact-finding body his constitutionally granted power of control and by virtue of a valid such as a truth commission. is but an adjunct of the plenary powers wielded by the President under Section 1 and his power of control under Section The question. No. the OSG concludes that the power of control like the other two branches of government. Pointing to numerous offices created delegation of the legislative power to reorganize executive offices by past presidents.[41] his power for rule making. economy and efficiency. For the OSG. They ensure that all laws are enforced by public officials and employees maintain that the delegated authority of the President to reorganize of his department and in the exercise of his authority to assume under Section 31 of the Revised Administrative Code: 1) does not directly the functions of the executive department. transfer of functions and transfer of agencies. the President overstepped the limits of this delegated authority. 3) is limited to the power of control over his subordinates in the executive branch. [38] This power. The OSG also cites the recent case of Banda v. just Thus. create public offices within the Office of the President Proper has long been recognized. 2) is limited to the reorganization of the administrative the President to investigate is not limited to the exercise of his structure of the Office of the President. petitioners-legislators argue It contends that the President is necessarily vested with the that the creation of a public office lies within the province of power to conduct fact-finding investigations. 1. before the Court is this: Does the 17. the authority to create fact-finding committees to assist it in the President may create the PTC in order to. in G. pursuant to his duty to Congress and not with the executive branch of government. much less a truth office. such as his Proper. bureau and permit the President to create a public office. [36] Such continuing adjudication and licensing purposes [42] and in order to be informed authority of the President to reorganize his office is limited. but restructuring of the internal organs of the Office of the President extends further in the exercise of his other powers. Ermita.[43] issuing Executive Order No. [40] The power of commission. possesses the inherent necessarily includes the power to create offices.[45] explains it. therefore.[37]According to the OSG. both of Article VII of the Constitution. among others.

to the policy in the Executive Office and in order to
achieve simplicity, economy and efficiency, shall
have the continuing authority to reorganize the
administrative structure of the Office of the
President." For this purpose, he may transfer the
functions of other Departments or Agencies to the
Office of the President. In Canonizado v. Aguirre [323
SCRA 312 (2000)], we ruled that reorganization
"involves the reduction of personnel, consolidation of
offices, or abolition thereof by reason of economy or
redundancy of functions." It takes place when
there is an alteration of the existing structure
of government offices or units therein,
including the lines of control, authority and
responsibility between them. The EIIB is a bureau
attached to the Department of Finance. It falls under
the Office of the President. Hence, it is subject to the
Presidents continuing authority to reorganize.
[Emphasis Supplied]

Section 31 contemplates reorganization as limited by the following
functional and structural lines: (1) restructuring the internal
organization of the Office of the President Proper by abolishing,
consolidating or merging units thereof or transferring functions
from one unit to another; (2) transferring any function under the
Office of the President to any other Department/Agency or vice
versa; or (3) transferring any agency under the Office of the
President to any other Department/Agency or vice versa.Clearly,
the provision refers to reduction of personnel, consolidation of
offices, or abolition thereof by reason of economy or redundancy of
functions. These point to situations where a body or an office is
already existent but a modification or alteration thereof has to be
effected. The creation of an office is nowhere mentioned, much less
envisioned in said provision. Accordingly, the answer to the

In the same vein, the creation of the PTC is not justified by

question is in the negative.

the Presidents power of control. Control is essentially the power to
alter or modify or nullify or set aside what a subordinate officer had

To say that the PTC is borne out of a restructuring of the

done in the performance of his duties and to substitute the

Office of the President under Section 31 is a misplaced supposition,

judgment of the former with that of the latter. [47] Clearly, the power

even in the plainest meaning attributable to the term restructure an

of control is entirely different from the power to create public

alteration of an existing structure. Evidently, the PTC was not part

offices. The former is inherent in the Executive, while the latter

of the structure of the Office of the President prior to the enactment

finds basis from either a valid delegation from Congress, or his

of Executive Order No. 1. As held in Buklod ng Kawaning EIIB v.

inherent duty to faithfully execute the laws.

Hon. Executive Secretary,[46]

The question is this, is there a valid delegation of power

But of course, the list of legal basis
authorizing the President to reorganize any
department or agency in the executive branch does
not have to end here. We must not lose sight of the
very source of the power that which constitutes an
express grant of power. Under Section 31, Book III of
Executive Order No. 292 (otherwise known as the
Administrative Code of 1987), "the President, subject

from Congress, empowering the President to create a public office?

According to the OSG, the power to create a truth
commission pursuant to the above provision finds statutory basis

54

under P.D. 1416, as amended by P.D. No. 1772. [48] The said law

Article XVIII of the 1987 Constitution. In fact, even the Solicitor

granted the President the continuing authority to reorganize the

General agrees with this view. Thus:

national government, including the power to group, consolidate
bureaus and agencies, to abolish offices, to transfer functions, to

ASSOCIATE JUSTICE CARPIO: Because P.D. 1416 was
enacted
was
the
last
whereas clause
of P.D. 1416
says
it
was
enacted
to
prepare
the
transition from
presidential to
parliamentary.
Now,
in
a
parliamentary
form
of
government,
the
legislative
and
executive
powers
are
fused, correct?

create and classify functions, services and activities, transfer
appropriations, and to standardize salaries and materials. This
decree, in relation to Section 20, Title I, Book III of E.O. 292 has
been invoked in several cases such as Larin v. Executive Secretary.
[49]

The Court, however, declines to recognize P.D. No. 1416 as a
justification for the President to create a public office. Said decree is
already stale, anachronistic and inoperable. P.D. No. 1416 was a
delegation to then President Marcos of the authority to reorganize
the administrative structure of the national government including
the power to create offices and transfer appropriations pursuant to
one of the purposes of the decree, embodied in its last Whereas

SOLICITOR GENERAL CADIZ: Yes, Your Honor.

clause:

ASSOCIATE JUSTICE CARPIO: That is why, that P.D.
1416
was
issued.
Now
would
you
agree with me
that P.D. 1416
should not be
considered
effective
anymore upon
the
promulgation,
adoption,
ratification
of
the
1987
Constitution.

WHEREAS,
the transition towards
the parliamentary
form
of
government will
necessitate flexibility in the organization of the
national government.

Clearly, as it was only for the purpose of providing
manageability and resiliency during the interim, P.D. No. 1416, as
amended

by

P.D.

No.

1772, became functus

oficioupon

the

convening of the First Congress, as expressly provided in Section 6,

55

SOLICITOR GENERAL CADIZ: Not the whole of P.D.
[No.] 1416, Your
Honor.

Executive.

ASSOCIATE

explicitly mentioned in the Constitution or in statutes does not

JUSTICE

CARPIO: The

That

the

authority

of

the

President

to

conduct

investigations and to create bodies to execute this power is not

power of the
President
to
reorganize the
entire National
Government is
deemed
repealed,
at
least, upon the
adoption of the
1987
Constitution,
correct.

mean that he is bereft of such authority. [51] As explained in the
landmark case of Marcos v. Manglapus:[52]
x x x. The 1987 Constitution, however,
brought back the presidential system of government
and restored the separation of legislative, executive
and judicial powers by their actual distribution
among three distinct branches of government with
provision for checks and balances.
It would not be accurate, however, to state
that "executive power" is the power to enforce the
laws, for the President is head of state as well as
head of government and whatever powers inhere in
such positions pertain to the office unless the
Constitution itself withholds it. Furthermore, the
Constitution itself provides that the execution of the
laws is only one of the powers of the President. It also
grants the President other powers that do not involve
the execution of any provision of law, e.g., his power
over the country's foreign relations.

SOLICITOR GENERAL CADIZ: Yes, Your Honor.[50]

While the power to create a truth commission cannot pass muster
on the basis of P.D. No. 1416 as amended by P.D. No. 1772, the
creation of the PTC finds justification under Section 17, Article VII of
the Constitution, imposing upon the President the duty to ensure
that the laws are faithfully executed. Section 17 reads:

On these premises, we hold the view that
although the 1987 Constitution imposes limitations
on the exercise of specific powers of the President, it
maintains intact what is traditionally considered as
within the scope of "executive power." Corollarily, the
powers of the President cannot be said to be limited
only to the specific powers enumerated in the
Constitution. In other words, executive power is more
than the sum of specific powers so enumerated.

Section 17. The President shall have control of
all the executive departments, bureaus, and
offices. He shall ensure that the laws be
faithfully executed. (Emphasis supplied).

As correctly pointed out by the respondents, the allocation
of power in the three principal branches of government is a grant of

It has been advanced that whatever power
inherent in the government that is neither legislative
nor judicial has to be executive. x x x.

all powers inherent in them. The Presidents power to conduct
investigations to aid him in ensuring the faithful execution of laws
in this case, fundamental laws on public accountability and
transparency is inherent in the Presidents powers as the Chief

56

Thus. This flows from the obvious changed. It flows from the faithful- hoc investigating bodies to exist is to allow an inquiry into matters execution clause of the Constitution under Article VII. 298. Such validity is not affected by the fact that the investigating team and the PCAGC had the same composition.[56] As the Chief Executive. the Melo Commission and the Zenarosa President are not limited to those specific powers under the Commission. With AO 298 as mandate. PCAPE. the powers of the Feliciano Commission. As stated above. Having been constitutionally granted full control of the Executive Department. it was ruled: there is no need to specify the amount to be earmarked for the The Chief Executives power to create the Ad hoc Investigating Committee cannot be doubted. He has the authority to be revisited. whatever funds the Congress has provided for the Office of the President will be the very source of the funds for the commission. And if history is the officials and employees of his department. or that the former used the offices and facilities of the latter in conducting the inquiry. in Department of Health v. Further. PARGO. the president represents the advised and guided in the performance of his duties relative to the government as a whole and sees to it that all laws are enforced by execution and enforcement of the laws of the land. since the amount that would be allocated to the PTC shall be subject to existing auditing rules and regulations.[54] the power of Congress to appropriate funds for the operation of a public authority of the President to issue Administrative Order No. [Emphasis supplied] operation of the commission because. There being no changes in the government structure. suffice it to say that there will be no appropriation but only creating an investigative committee to look into the administrative an charges filed against the employees of the Department of Health allotment or allocations of existing funds already appropriated.Indeed. there is no usurpation on the part of the for the anomalous purchase of medicines was upheld. this was also the objective of the investigative to directly assume the functions of the executive department. [53] One of the recognized powers of the President the Court is not inclined to declare such executive power as non- granted pursuant to this constitutionally-mandated duty is the existent just because the direction of the political winds have power to create ad hoc committees. Section 17 which the President is entitled to know so that he can be properly thereof. Executive of the power of Congress to appropriate funds. the President has the obligation to ensure that all executive officials and employees faithfully comply with the law. the laws are faithfully executed. office. Camposano.[55] Moreover. Power of the Truth Commission to Investigate The Presidents power to conduct investigations to ensure that laws It should be stressed that the purpose of allowing ad are faithfully executed is well recognized.[57] 57 . the legality of the investigation is sustained. Accordingly. need to ascertain facts and determine if laws have been faithfully On the charge that Executive Order No. 1 transgresses the executed. there is no impropriety in the funding. the Executive is given much leeway in ensuring that our bodies created in the past like the PCAC. In said case. to which respondents belong. in the words of the Solicitor General. Constitution.

search into. To determine finally. The dictionary definition of "investigate" is "to observe or study closely: inquire into systematically: "to search or inquire into: x x to subject to an official probe x x: to conduct an official inquiry. The function of receiving evidence and ascertaining therefrom the facts of a controversy is not a judicial function. the exercise of which ordinarily does not require a hearing."[Italics included. deciding or resolving a controversy involved in the facts inquired into by application of the law to the facts established by the inquiry. rule on.[58] In simpler terms. the taking of evidence. inquire or delve or probe into. 2 Am J2d Adm L Sec." commonly understood. "adjudicate" means: "To settle in the exercise of judicial authority. Nowhere included or intimated is the notion of settling." "to inquire. or to sentence or condemn. To trace or track. of course. means to adjudge. Implies a judicial determination of a fact. Fact-finding is not adjudication and it cannot be likened to the judicial function of a court of justice. x x an inquiry." and "adjudge" means: "To pass on judicially. or even a quasi-judicial agency or office. the act of receiving evidence and arriving at factual conclusions in a controversy must be accompanied by the authority of applying the law to the factual conclusions to the end that the controversy may be decided or The legal meaning of "investigate" is essentially the same: "(t)o follow up step by step by patient inquiry or observation. for the discovery and collection of facts concerning a certain matter or matters. examination. and the entry of a judgment. Commission on Human Rights. to find out. It has been said that Quasi-judicial powers involve the power to hear and determine "Adjudicate. to find out by careful inquisition." commonly or popularly understood. judge. to make an investigation." Invoking this authority. Synonymous with adjudge in its strictest sense. 257. such that it is exclusively vested in the judiciary and must be clearly authorized by the legislature in the case of administrative agencies. decide. Citations Omitted] questions of fact to which the legislative policy is to apply and to decide in accordance with the standards laid down by law itself in enforcing and administering the same law. To be considered as such. The distinction between the power to investigate and the power to adjudicate was delineated by the Court in Cario v. arbitrate. subject to appeals 58 . to examine and inquire into with care and accuracy. no quasijudicial powers have been vested in the said body as it cannot adjudicate rights of persons who come before it. settle. explore. study. a legal inquiry. resolve. means to examine. settle or decree. judicial or otherwise. is to discover. to resolved authoritatively. determine. The dictionary defines the term as "to settle finally (the rights and duties of the parties to a court case) on the merits of issues raised: x x to pass judgment on: settle judicially: x x act as judge. obtain information." "investigation" being in turn described as "(a)n administrative function." The purpose of investigation.[59] Thus: "Investigate. As previously stated. x x. to learn. judicial discretion is involved in the exercise of these quasi-judicial power." In the legal sense." And "adjudge" means "to decide or rule upon as a judge or with judicial or quasi-judicial powers: x x to award or grant judicially in a case of controversy x x. research on. the President constituted the PTC to primarily investigate reports of graft and corruption and to recommend the appropriate action. to decide. finally and definitively.

guide the President in the performance of his duties relative to the [65] execution and enforcement of the laws of the land. from any investigatory agency of government. office or agency. [63] is certainly not a function given to the commission. the Ombudsmans power to investigate under R. [Emphases supplied] task of the commission to conduct a fact-finding investigation. Despite the passage of the Local Government Code in 1991. Thus. No. which states: recommendation to prosecute is but a consequence of the overall (1) Investigate and prosecute on its own or on complaint by any person. at any stage.Justice. 1 cannot contravene the power of the the investigative function of the commission will complement those Ombudsman to investigate criminal cases under Section 15 (1) of of the two offices. any act or omission of any public officer or employee. thus. unjust. The act of investigation by the Ombudsman as enunciated [64] above contemplates the conduct of a preliminary investigation or the determination of the existence of probable cause. Executive Order No.A. Also. it may take over. when in the course of its investigation. If at all. highlights this fact and gives credence to a contrary interpretation from that of the petitioners. Its authority under Section 3 (2). when such act or omission appears to be illegal. Chapter 1.[61] Contrary to petitioners apprehension. improper or inefficient. much less adjudication on the merits of the charges against them. in the case of Ombudsman v. 6770. The same holds true with respect to the DOJ. The function of determining probable cause for the filing of the appropriate complaints before the courts remains to be with the DOJ and the Ombudsman. The power to conduct preliminary investigation on charges against public employees and officials is likewise concurrently shared with the Department of primordial duties. can be 59 . [60] Even respondents themselves admit that the commission is bereft of any quasijudicial power. Galicia. The phrase. the investigation of such cases. the PTC will not supplant the Ombudsman or the DOJ or erode their respective powers. [62] The actual prosecution of suspected offenders. It has primary jurisdiction over cases cognizable by the Sandiganbayan and. under Section 2(g). In this regard. the R. This is At any rate. the Ombudsman retains concurrent jurisdiction with the Office of the President and the local Sanggunians to investigate complaints against local elective officials. [Emphasis supplied].A. categorically out of the PTCs sphere of functions. Its power to 6770 is not exclusive but is shared with other similarly authorized investigate is limited to obtaining facts so that it can advise and government agencies. As pointed out by the Solicitor General. Title III. No. in the exercise of its primary jurisdiction. or modes of review as may be provided by law. Book IV in the Revised Administrative Code is by no means exclusive and. it was written: the PTC commits no act of usurpation of the Ombudsmans This power of investigation granted to the Ombudsman by the 1987 Constitution and The Ombudsman Act is not exclusive but is shared with other similarly authorized government agencies such as the PCGG and judges of municipal trial courts and municipal circuit trial courts.

therefore. the Davide Commission. [70] Section 1. 1 because it is identifies the previous administration as the initial subject of the violative of this constitutional safeguard. [66] Thus.[67] and the Zenarosa Commission.[69] In order to attain constitutional in permission. the Ombudsman and the The petitioners argue that the search for truth behind the DOJ have a wider degree of latitude to decide whether or not to reported cases of graft and corruption must encompass acts reject the recommendation. 1 The petitioners assail Executive Order No. They assail the classification formulated by the respondents as it does not fall Violation of the Equal Protection Clause under the recognized exceptions because first. there is no substantial distinction between the group of officials targeted for Although the purpose of the Truth Commission falls within investigation by Executive Order No. and second. the upholding the constitutionality of Executive Order No. the Court finds difficulty in who abused their public office for personal gain. be recommendatory in nature. are not committed not only during the administration of former President deprived of their mandated duties but will instead be aided by the Arroyo but also during prior administrations where the same reports of the PTC for possible indictments for violations of graft magnitude of controversies and anomalies[68] were reported to have laws. Much like its reports of graft and corruption in virtually all administrations predecessors. the Feliciano Commission previous to that of former President Arroyo. at best. the PTC will not confine 60 . They contend that it does investigation.shared with a body likewise tasked to investigate the commission of not apply equally to all members of the same class such that the crimes. 1 can it be inferred that the to be accorded with validity. the petitioners advocate that the commission should Section 1. Section 1 reads: deal with graft and grafters prior and subsequent to the Arroyo administration with the strong arm of the law with equal force. the commission must also cover findings of the PTC are to be accorded conclusiveness. intent of singling out the previous administration as its sole object makes the PTC an adventure in partisan hostility. 1 to end corruption. Position of respondents According to respondents. Article III (Bill of Rights) of the 1987 Constitution. These offices. 1 in view of selective classification is not germane to the purpose of Executive its apparent transgression of the equal protection clause enshrined Order No. No person shall be deprived of life. or property without due process of law. And being so. in order Finally. 1 and other groups or persons the investigative power of the President. following Section 17 thereof. its findings would. while Executive Order No. nowhere in Executive Order No. nor shall any person be denied the equal protection of the laws. been committed against the Filipino people. liberty.

to provide for a more specific guaranty against any form of undue favoritism or hostility from the government. an urgent call for the determination of the truth regarding certain reports of large scale graft and corruption in the government and to put a closure to them by the filing of the appropriate cases against those involved.[71] Assuming arguendo that confine its proceedings to officials the of Fourth. the evidence that could lead to recovery of public monies illegally dissipated. the current administration will most likely bear the immediate consequence of the policies of the previous administration. Arbitrariness in general may be challenged on the basis of the due process clause. The equal protection of the laws is embraced in the concept of due process. The classification of the previous administration as a separate class for investigation lies in the reality that the evidence of possible criminal activity. Many administrations subject the transactions of their predecessors to investigations to provide closure to issues that are pivotal to national life or even as a routine measure of due diligence and good housekeeping by a nascent administration like the Presidential Commission on Good Government (PCGG).itself to cases of large scale graft and corruption solely during the said would administration. are more easily established in the regime that immediately precede the current administration. particular act assailed partakes of an unwarranted partiality or prejudice. and to deter others from committing the evil. and the Saguisag Commission created by former President Joseph Estrada under Administrative Order No.[73] [Emphases supplied] commission the previous administration. the policy lessons to be learned to ensure that anticorruption laws are faithfully executed. Aquino under Executive Order No. equal protection simply requires that all persons or things similarly situated should be 61 . former President Fidel V.[74] According to a long line of decisions. however. the petitioners argue that no offense is committed against the equal protection clause for the segregation of the transactions of public officers during the previous administration as possible subjects of investigation is a valid classification based on substantial distinctions and is germane to the evils which the Executive Order seeks to correct. But if the Third. E. created by the late President Corazon C. restore the peoples faith and confidence in the Government and in their public servants. as every unfair discrimination offends the requirements of justice and fair play. therefore. Article III of the 1987 Constitution. It Second. 1 was issued in view of widespread reports of large scale graft and corruption in the previous administration which have eroded public confidence in public institutions. to form an ad-hoc and independent citizens committee to investigate all the facts and circumstances surrounding Philippine Centennial projects of his predecessor. No. the sharper weapon to cut it down is the equal protection clause. Ramos. it recited the following: First.[72] To distinguish the Arroyo administration from past administrations. The segregation of the preceding administration as the object of fact-finding is warranted by the reality that unlike with administrations long gone.O. Concept of the Equal Protection Clause One of the basic principles on which this government was founded is that of the equality of right which is embodied in Section 1. if warranted. 53. 1 to pursue the recovery of ill-gotten wealth of her predecessor former President Ferdinand Marcos and his cronies. has been embodied in a separate clause. There is.

not just those of the legislature. [79] classification are to be treated equally. a requirement. that every man. as the departments of the government including the political and long as that class is substantially distinguishable from all others. [75] (4) It applies equally to all members of the same class. to be valid must pass in Victoriano v. both as to rights conferred and responsibilities imposed. it must include or embrace all persons who whether occasioned by the express terms of a statue or by its naturally belong to the class. or so constituted as to preclude addition to the It. and as long as this is achieved. The mere fact that an Its inhibitions cover all individual belonging to a class differs from the other members. (3) It is not limited to existing conditions only. It is not requires the state to govern impartially. in order to avoid the constitutional prohibition against inequality. therefore. The test has four requisites: (1) The long line of cases. the concept of equal justice under the law both as to rights conferred and obligations imposed. It must not leave out or underinclude those that valid classification.treated alike. It is not. (2) It is germane to the purpose of the law. [76] The purpose of the equal protection clause is to secure every person within a For a classification to meet the requirements of states jurisdiction against intentional and arbitrary discrimination. and it may not draw necessary that the classification be made with absolute symmetry. does not require the universal application of the number included in the class. It must be of such a nature as to laws to all persons or things without distinction. distinctions between individuals solely on differences that are in the sense that the members of the class should possess the irrelevant to a legitimate governmental objective. [82] similarly situated individuals in a similar manner. and extend to all actions of a state denying does not justify the non-application of the law to him. What it simply embrace all those who may thereafter be in similar circumstances requires is equality among equals as determined according to a and conditions. As elucidated classification. Indeed. [80] The classification must not be based on existing circumstances only. constitutionality. Substantial similarity will suffice.[86] The guaranty of equal protection of the laws is not a guaranty of equality in the application of the laws upon all citizens of the state. woman and child should be affected alike by a classification rests on substantial distinctions.[78] same characteristics in equal degree. [81] It requires public bodies and institutions to treat Superficial differences do not make for a valid classification. [84] equal protection of the laws. Such classification. [77] In other words. executive departments. Elizalde Rope Workers' Union [85] and reiterated in a the test of reasonableness.[83] The classification will be regarded improper execution through the states duly constituted authorities. however. through whatever agency or whatever guise is taken. all those covered by the The equal protection clause is aimed at all official state actions. and 62 . however. the equal protection clause permits should otherwise fall into a certain classification. as invalid if all the members of the class are not similarly treated.

The administration is but just a member of a class. that it must be germane to the purpose of the law. during the previous administration. and which will recommend the prosecution of the offenders and secure justice for all. if any. is primarily tasked to conduct a thorough fact-finding investigation of reported cases of graft and corruption referred to in Section 1. that it must not be limited to existing conditions only. It guarantees equality. The Constitution does not require that things which are different in fact be treated in law as though they were the same. It is not a class of its own. and thereafter recommend the appropriate action or measure to be taken thereon to ensure that the full measure of justice shall be served without fear or favor. Mention of it has been made in at least three portions of the questioned executive order. and toward this end. Specifically. committed by public officers and employees. that is. This Court has held that the standard is satisfied if the classification or distinction is based on a reasonable foundation or rational basis and is not palpably arbitrary. Chapter 9. accomplices and accessories from the private sector. accomplices and accessories from the private sector. their coprincipals. SECTION 1. there is a need for a separate body dedicated solely to investigating and finding out the truth concerning the reported cases of graft and corruption during theprevious administration. which shall primarily seek and find the truth on. but on persons according to the circumstances surrounding them. A law is not invalid because of simple inequality. patent and past administrations. if any. involving third level public officers and higher. Powers and Functions. [Citations omitted] SECTION 2. it must be borne in mind that the Arroyo graft and corruption during the previous administration[87] only. Creation of a Commission. All that is required of a valid classification is that it be reasonable. Equality of operation of statutes does not mean indiscriminate operation on persons merely as such. and that it must apply equally to each member of the class. not identity of rights. these are: WHEREAS. hereinafter referred to as the COMMISSION. manifest. investigate reports of graft and corruption of such scale and magnitude that shock and offend the moral and ethical sensibilities of the people. a class of intent to single out the previous administration is plain. 1 should be struck down as violative of the equal protection clause. Executive Order No. which shall have all the powers of an investigative body under Section 37. as in the other departments of knowledge or practice. Congress and the Ombudsman. The very idea of classification is that of inequality. so that it goes without saying that the mere fact of inequality in no manner determines the matter of constitutionality. [Emphases supplied] Applying these precepts to this case. is the grouping of things in speculation or practice because they agree with one another in certain particulars. The clear mandate of the envisioned truth commission is to investigate and find out the truth concerning the reported cases of In this regard. The equal protection of the laws clause of the Constitution allows classification. Book I of the Administrative Code of 1987. It does not prohibit legislation which is limited either in the object to which it is directed or by the territory within which it is to operate. The Commission. There is hereby created the PHILIPPINE TRUTH COMMISSION. The equal protection clause does not forbid discrimination as to things that are different. their co-principals. Not to include past administrations similarly situated constitutes arbitrariness which 63 . during the previous administration and thereafter submit its finding and recommendations to the President.statute. Classification in law. which means that the classification should be based on substantial distinctions which make for real differences.

the authority to investigate all past administrations. it Superficial differences do not make for a valid classification. may unnecessarily Though the law itself be fair on its face and impartial in appearance. The Court. material to their rights. however.[91] Though the OSG enumerates several differences between the Arroyo administration and other past administrations. As Justice Isagani Cruz put it. is of the Obviously. While reasonable prioritization is permitted. must not administrations which were also blemished by similar widespread exclude the other past administrations. these Given the foregoing physical and legal impossibility. The PTC must. Such discriminating Neither is the PTC expected to conduct simultaneous investigations differentiation clearly reverberates to label the commission as a of previous administrations. The PTC. if applied and administered by public authority with an evil eye and an unequal hand. 1 suffers from arbitrary classification. [89] The reason given is specious. so as practically to make unjust and illegal discriminations between persons in similar circumstances. the fact remains that widespread corruption in the Arroyo administration cannot be taken as basis for distinguishing said administration from Executive Order No.[92] 1 chooses to limit the scope of the intended investigation to the previous administration only. However. given the bodys limited time and vehicle for vindictiveness and selective retribution.[90] The probability that there would be difficulty in unearthing evidence or that the earlier reports involving the earlier It could be argued that considering that the PTC is an ad administrations were already inquired into is beside the point. The public needs to be enlightened why Executive Order No. the Arroyo administration. They are not inherent in. earlier to be true to its mandate of searching for the truth. and do not inure have solely to. yet. The OSG ventures to opine that to include other past administrations. reports of impropriety. [Emphasis supplied] overburden the commission and lead it to lose its effectiveness.the equal protection clause cannot sanction. resources. at least. the denial of equal justice is still within the prohibition of the constitution. the . [88] should not be arbitrary lest it be struck down for being unconstitutional. deceased presidents and cases which have already considered prescribed can no longer be the subjects of inquiry by the PTC. The reports of centurys worth of graft cases. Hopkins. It is without doubt irrelevant to the legitimate and noble objective of the PTC to stamp out or end corruption and the evil it breeds. In the often quoted language of Yick Wo v. the distinctions are not substantial enough to merit the restriction of Court logically recognizes the unfeasibility of investigating almost a the investigation to the previous administration only. its scope is limited. at this point. constitutional guarantee of equal protection under the laws should 64 view that although its focus is restricted. The law does not require the impossible (Lex non cogit ad impossibilia). hoc body.

The equal and protection circumstances which are relative to the discriminatory legislation clause discrimination. national origin. union legislature does not run the risk of losing the entire remedial activity or membership in a labor union. The Constitution is the class must be brought under the influence of the law and treated by it in the same way as are the members of the class. In the case of US v. Furthermore.not in any way be circumvented. Cyprian. embracing and does not include all the evils within its reach. it must include or embrace all conditions. the that the subject executive order is only an adventure in partisan underinclusiveness was not considered a valid reason to strike hostility. event or report to be focused on unlike and the investigative commissions created in the past. [99] It 1. [98] for investigation of acts of graft and corruption. there is a no order. those include: race. That the previous administration was picked out was persons who naturally belong to the class. [96] Such a classification may process. [100] In several instances. Executive Order No. in order for a classification to meet the In requirements of constitutionality. [95] Legislation is not unconstitutional merely because it is not all- it was written: A rather down a law or regulation where the purpose can be attained in limited number of such classifications have routinely been held or future legislations or regulations. To exclude the earlier administrations in the guise of protection clause is not devoid of a rational predicate simply substantial distinctions would only confirm the petitioners lament because it happens to be incomplete. step gender. and which are indistinguishable from those of the members of the 65 [103] is violated by purposeful and intentional . exercise of first amendment rights.[94] While the thrust of the PTC is specific. or more generally the scheme simply because it fails. claims. protection however.[101] With mention any particular act. [102] To reiterate. must be read together with the provisions of the has been written that a regulation challenged under the equal Constitution. These cases refer to the step by assumed to be arbitrary. [93] Laws that do The Court is not unaware that mere underinclusiveness is not conform to the Constitution should be stricken down for being not fatal to the validity of a law under the equal protection clause.[97] fundamental and paramount law of the nation to which all other laws must conform and in accordance with which all private rights determined and all public authority administered. or so thereafter Executive regard inadvertence. all similar who are circumstances in situations 1. It must be noted that Executive Order No. but must be of such a nature as to embrace all those who in No. unconstitutional. that is. equal was underscored at least three times in the assailed executive constituted as to preclude additions to the number included within be Order to deliberate and intentional as can be gleaned from the fact that it must not be based on existing circumstances only. through inadvertence or otherwise. political activity or membership in a political party. to survive. 1 does not even a class. to cover every evil that might conceivably have been attacked.

1. but it seems that the present political situation calls for it to other past administrations. such mandate may be so extended accordingly by way of a supplemental Executive Order. 1. is vested with Judicial Power petitioners that the Executive Order No. The Court tried to seek guidance from the pronouncement in the case of Virata v. however. which provides: of action. then be meaningless. was devoid of confine itself to cases of large scale graft and corruption committed any discussion on how such conclusory statement was arrived at. The decision. If and when in the judgment of the President there is a need to expand the mandate of the Commission as defined in Section 1 hereof to include the investigation of cases and instances of graft and corruption during the prior administrations. A final word SECTION 17. If he would decide not to include them. itself guilty of The Court is not convinced. and to determine whether or not there has been a grave of abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the government. this issue has been addressed by the PTC so as to include the acts of graft and corruption committed in Court. covered in the future. 1 was crafted to tailor-fit that includes the duty of the courts of justice to settle actual the prosecution of officials and personalities of the Arroyo controversies involving rights which are legally demandable and administration.[105] enforceable. is exercising undue interference. the OSG clarifies that the commission does not only the equal protection clause.To disprove petitioners contention that there is deliberate (composed of Executive Orders Nos. according to Article VIII. Is the Highest Tribunal. The issue that seems to take center stage at present is whether or not the Supreme Court. This will only fortify the fears of the Section 1 of the 1987 Constitution. 2 and 14) does not violate discrimination. [104] The OSG points to Section the principal issue in said case being only the sufficiency of a cause 17 of Executive Order No. Although Section 17 allows the violating fundamental tenets like the doctrine of separation of President the discretion to expand the scope of investigations of the powers? Time and again. in the exercise of its constitutionally mandated power of Judicial Review with respect to recent initiatives of the legislature and the executive department. during the previous administration. Such expanded mandate of the commission will still depend on the whim and caprice of the President.[106] that the PCGG Charter 66 . it does not guarantee that they would once again explain the legal basis of its action lest it continually be be accused of being a hindrance to the nations thrust to progress. Sandiganbayan. Special Provision Concerning Mandate. the section would The Philippine Supreme Court. which is expected to be the protector of the Constitution.

proclamation.[108] The Court cannot just turn a blind eye and other simply let it pass. be emphasized that the search for sort. in Section 4(2) thereof. it has no more authority of proscribing the actions under the truth must be within constitutional bounds for ours is still a government of laws and not of men. but if the means to be employed in accomplishing it is of conflict between the Supreme Court. the Court will not be deterred to pronounce said power of judicial review which is the power to declare a treaty.[107] as to include the earlier past administrations would allow it Thus. And. It must. the Court finds no constitutional violations of any attainment. however. Many times the Court has been accused of asserting superiority over the still be allowed. on the other. it is the making sure that any act of government is done in consonance with judiciary which is the most interested in knowing the truth and so it the authorities and rights allocated to it by the Constitution.[110] 67 . But then again. To answer this accusation. No matter how noble and worthy of admiration the purpose regulations. it does not in reality nullify or invalidate an act of the legislature. All must bow to the mandate of this law. is to pass the test of reasonableness and not be an affront to not imposing its own will upon a co-equal body but rather simply the Constitution. Expediency must not be allowed to sap its strength nor greed for power debase its rectitude. on one hand. and the two simply irreconcilable with constitutional parameters. then it cannot co-equal bodies of government. order. instruction. to wit: And when the judiciary mediates to allocate constitutional boundaries. however. all geared towards the betterment of unconstitutional. This power also includes the duty to rule on the the nation and its people. or operation of presidential remember this ethical principle: The end does not justify the decrees.[109] be a good source of enlightenment. it is important to constitutionality of the application. proclamations. then. Otherwise. These provisions. if will not allow itself to be a hindrance or obstacle to its after said review. the words of Justice Laurel would The Constitution must ever remain supreme. and other means. instructions. the Court. It will continue to uphold the Constitution and its departments. have been fertile grounds of an act. international or executive agreement. act as void and unconstitutional. ordinance. but only asserts the solemn and sacred obligation assigned to it by the Constitution to Lest it be misunderstood. this is not the death knell for a determine conflicting claims of authority under the Constitution and truth to establish for the parties in an actual controversy the rights which commission as nobly envisioned by the present administration.Furthermore. Perhaps a revision of the executive issuance so that instrument secures and guarantees to them. ordinances. presidential decree. in exercising its power of judicial review. or It cannot be denied that most government actions are regulation inspired with noble intentions. orders. Of all the branches of the government. enshrined principles. it does not assert any superiority over the other departments. law. it is vested with the review.

the respondents are hereby ordered to are GRANTED. violative of the equal protection clause of the Constitution.WHEREFORE. the petitions As also prayed for. SO ORDERED. Executive cease and desist from carrying out the provisions of Executive Order No. 1 is hereby declared UNCONSTITUTIONAL insofar as it is Order No. 1. 68 .