Manila Prince Hotel vs GSIS

Facts:

GSIS held a public bidding for the sale of 30% to 51% of the issued and outstanding
shares of the Manila Hotel Corporation (MHC).

Manila Prince Hotel Corporation (Manila Prince), a Filipino corporation, bid to buy
51% of the shares at P41.58 per share. Renong Berhad, a Malaysian firm, bid to buy
the same shares at P44.00.

Pending the declaration of Renong Berhad as the winner, Manila Prince matched its
bid at P44.00 per share. Manila Prince sent a managers check but GSIS refused to
accept.

Manila Prince came to the Supreme Court with a petition for prohibition and
mandamus. The Supreme Court issued a TRO enjoining GSIS from perfecting the
sale to Renong Berhad.

Manila Prince argues that it should be given preferential right to buy the shares of
MHC since the Manila Hotel is part of the national patrimony given its history and
Manila Prince is a Filipino corporation while Renong Berhad is a foreign one, and that
Section 10, Article XII of the Constitution is a self-executing provision guaranteeing
such right.

Issue:

Whether or not Section 10, Article XII of the Constitution is a self-executing

provision.

Held:

Yes, it is.

Section 10 says:

In the grant of rights, privileges, and concessions covering national economy and
patrimony, the State shall give preference to qualified Filipinos.

In awarding a contract to a Filipino corporation which had a lower bid than

that of a Malaysian firm, the Supreme Court said that the command of
Section 10 is a mandatory, positive command which is complete in itself
and which needs no further guidelines or implementing laws or rules for
its enforcement. From its very words, the provision does not require any
legislation to put in operation. It is per se judicially enforceable.