Liban vs.

Gordon
G.R. No. 175352
July 15, 2009

FACTS: Petitioners Liban, Bernardo, and Viari filed with the Supreme Court a Petition
to Declare Richard J. Gordon as having forfeited his seat in the Senate. Petitioners are
officers of the Board of Directors of the Quezon City Red Cross Chapter while
respondent is Chairman of the Philippine National Red Cross (PNRC) Board of
Governors.

During respondent’s incumbency as a member of the Senate of the Philippines, he was

elected Chairman of the PNRC during the 23 February 2006 meeting of the PNRC Board
of Governors. Petitioners allege that by accepting the chairmanship of the PNRC Board
of Governors, respondent has ceased to be a member of the Senate as provided in
Section 13, Article VI of the 1987 Constitution.

Petitioners cite Camporedondo vs. NLRC, which held that the PNRC is a government-
owned or controlled corporation. Petitioners claim that in accepting and holding the
position of Chairman of the PNRC Board of Governors, respondent has automatically
forfeited his seat in the Senate, pursuant to Flores vs. Drilon, which held that incumbent
national legislators lose their elective posts upon their appointment to another
government office.

ISSUE/S: Whether or not the office of the PNRC Chairman is 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?

HELD: NO. The Court held that the office of the PNRC Chairman 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.

PNRC is not government-owned but is privately owned. 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.
However, 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 SEC if it wants to be a private corporation.