MANILA PRINCE HOTEL vs.

GOVERNMENT SERVICE INSURANCE SYSTEM, MANILA

HOTEL CORPORATION, COMMITTEE ON PRIVATIZATION and OFFICE OF THE GOVERNMENT
CORPORATE COUNSEL
G.R. NO. 122156 February 3, 1997
BELLOSILLO, J.

Facts:
Petitioner Manila Prince Hotel Corporation, a Filipino corporation, and Renong Berhad, a Malaysian
firm, participated in the selling of respondent Government Service Insurance System (GSIS) through
public bidding 30% to 51% of the issued and outstanding shares of respondent Manila Hotel
Corporation (MHC). Pending the declaration of Renong Berhad as the winning bidder, petitioner in a
letter to respondent GSIS matched the bid price of P44.00 per share tendered by Renong Berhad.
Issue:
(1) WON Sec. 10, second par., Art. XII, of the 1987 Constitution is not self-executing
(2) WON the selling of the share to Renong Berhad is allowed by the law
Ruling:
(1) No. Sec. 10, second par., Art. XII of the of the 1987 Constitution 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 it in operation.

(2) No. Sec. 10, second par., Art. XII of the 1987 Constitution provides that:

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

The Court ruled that Government Service Insurance System, Manila Hotel Corporation, Committee
on Privatization and Office of the Government Corporate Counsel are directed to cease and desist
from selling 51% of the shares of the Manila Hotel Corporation to Renong Berhad, and to accept the
matching bid of petitioner Manila Prince Hotel Corporation to purchase the subject 51% of the
shares of the Manila Hotel Corporation at P44.00 per share and thereafter to execute the necessary
clearances and to do such other acts and deeds as may be necessary for purpose.