Quimpo vs Tanodbayan GR No.

72553 December 2, 1986

“GOCC under Sandiganbayan”

Facts: Corporation X allege that they are a private corporation because they are covered by the
Labor Code and other labor laws and not by the civil service laws. Its operation is profit-
oriented, but it is also funded by the government.

Issue: Whether or not Corp. X is under the jurisdiction of the Sandiganbayan and Ombudsman?

Held: Employees of government-owned or controlled corporations are within the jurisdiction of

the Tanodbayan/Ombudsman and Sandiganbayan. While Corp. X was originally created as a
private corporation, it has since been acquired and funded by the Government to perform
functions related to government programs and policies.

It should make no substantial difference that it was not originally “created” as a government-
owned or controlled corporation. What is decisive is that it has since acquired by the
Government to perform functions related to government programs and policies on oil