LIBAN ET AL., vs.

GORDON

G.R. No. 175352 (July 19, 2009)

CARPIO, J.

(Topic: Section 13, Art. 6)

FACTS:

 Petitioners, who were officers of the Board of Directors of the Quezon City Red Cross Chapter,
filed with the Supreme Court what they styled as “Petition to Declare Richard J. Gordon as
Having Forfeited His Seat in the Senate” against respondent Gordon, who was elected Chairman
of the Philippine National Red Cross (PNRC) Board of Governors during his incumbency as
Senator.
 Petitioners alleged that by accepting the chairmanship of the PNRC Board of Governors,
respondent Gordon ceased to be a member of the Senate pursuant to Sec. 13, Article VI of the
Constitution, which provides that:

“no Senator . . . may hold any other office or employment in the Government, or any
subdivision, agency, or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries, during his term without forfeiting his seat.”

 Petitioners cited the case of Camporedondo vs. NLRC, decided August 6, 1999, which held that
the PNRC is a GOCC, in supporting their argument that respondent Gordon automatically
forfeited his seat in the Senate when he accepted and held the position of Chairman of the
PNRC Board of Governors.
 Respondent Sen. Gordon insists, among other things, that the PNRC is not a government-owned
or controlled corporation and that the prohibition under Section 13, Article VI of the
Constitution does not apply in the present case since volunteer service to the PNRC is neither an
office nor an employment.

ISSUE:

WON the Philippine National Red Cross (PNRC) is a GOCC

WON Section 13, Article VI of the Philippine Constitution applies to the case of respondent who is
Chairman of the PNRC and at the same time a Member of the Senate

WON respondent should be automatically removed as a Senator pursuant to Section 13, Article VI of
the Philippine Constitution

RULINGS:

PNRC is a private organization performing public functions. The PNRC was established through a
charter (RA 95) by President Roxas as a non-profit, donor-funded, voluntary, humanitarian organization,
whose mission is to bring timely, effective, and compassionate humanitarian assistance for the most
vulnerable without consideration of nationality, race, religion, gender, social status, or political
affiliation, the PNRC must not only be, but must also be seen to be, autonomous, neutral and
independent in order to conduct its activities in accordance with the Fundamental Principles [of the
Red Cross/Crescent Movement]. The PNRC must not appear to be an instrument or agency that
implements government policy; otherwise, it cannot merit the trust of all and cannot effectively carry
out its mission as a National Red Cross Society. It is imperative that the PNRC must be autonomous,
neutral, and independent in relation to the State.

To ensure and maintain its autonomy, neutrality, and independence, the PNRC cannot be owned or
controlled by the government. Indeed, the Philippine government does not own the PNRC. The PNRC
does not have government assets and does not receive any appropriation from the Philippine
Congress. The PNRC is financed primarily by contributions from private individuals and private entities
obtained through solicitation campaigns organized by its Board of Governors, as provided under Section
11 of the PNRC Charter.

Additionally, although the PNRC is created by a special charter, it cannot be considered a government-
owned or controlled corporation in the absence of the essential elements of ownership and control by
the government. In creating the PNRC as a corporate entity, Congress was in fact creating a private
corporation. However, the constitutional prohibition against the creation of private corporations by
special charters provides no exception even for non-profit or charitable corporations…since the PNRC
Charter is void insofar as it creates the PNRC as a private corporation, the PNRC should incorporate
under the Corporation Code and register with the Securities and Exchange Commission if it wants to be
a private corporation.

Thus, because of its status as a private corporation, the Court declared that the office of the Chairman
of the Philippine National Red Cross is not a government office or an office in a government-owned or
controlled corporation for purposes of the prohibition in Section 13, Article VI of the 1987
Constitution, and therefore, respondent Sen. Gordon CANNOT BE SUBJECT to the aforementioned
provision in Article VI of the Constitution.