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Facts: Petitioners are officers of the Board of Directors of the QC Red Cross Chapter while Respondent is the Chairman of the Philippine National Red Cross (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 - Sec. 13, Art. VI, 1987 Consti: No Senator or Member of the HoR may hold any other office/employment in the Gov’t, or any subdivision, agency, or instrumentality thereof, including gov’t-owned or controlled corporations or their subsidiaries, during his term w/o forfeiting his seat. Neither shall he be appointed to any office which may have been created or the emoluments thereof increased during the term for which he was elected). Petitioners cite Camporedondo v. NLRC which held that PNRC is a gov’t-owned or controlled corporation. Flores v. Drilon held that incumbent national legislators lose their elective posts upon their appointment to another government office. Respondent: • Petitioners have no standing to file petition w/c appears to be an action for quo warranto – they do not claim to be entitled to the Senate office of respondent. • Sec. 11, Rule 66, Rules of Civil Procedure: action should be commenced w/in 1 year after the cause of public officer’s forfeiture of office – respondent has been working as a Red Cross volunteer for 40 yrs • Petitioners cannot raise a constitutional question as taxpayers – no claim that they suffered some actual damage/threatened injury or illegal disbursement of public funds • If petition is for declaratory relief, SC has no jurisdiction original jurisdiction in RTC • PNRC is not a gov’t owned/controlled corporation • Sec. 13, Art. VI of Consti does not apply because volunteer service to PNRC is not an office/employment Petitioners: present petition is a taxpayer’s suit questioning unlawful disbursement of funds considering that respondent has been drawing his salaries and other compensation as a Senator even if he is no longer entitled to his office. Court has jurisdiction because it involves a legal/constitutional issue of transcendental importance. Issues, Holding & Ratio: WON petitioners have standing. SC: NO. The petition is an action for quo warranto (Sec. 1, Rule 66, Rules of Court – an action for the usurpation of a public office against a public officer who does or suffers an act which constitutes a ground for forfeiture of his office). See facts for petitioner’s allegations. Petitioners do not claim to be entitled to the Senate office of respondent. WON PNRC is a Private or GovernmentOwned or Controlled Corporation. SC: PNRC is a Private Corporation. May 22, 1947 – Pres. Manuel Roxas signed RA 95 (PNRC Charter) adhering to the Geneva Convention of July 27, 1929. PNRC is: - A non-profit, donor-funded, voluntary, humanitarian organization whose mission is to bring timely, effective, and compassionate humanitarian assistance for the most vulnerable w/o consideration of nationality, race, religion, gender, social status, or political affiliation. - A member of National Society of the International Red Cross and Red Crescent Movement. 7 Fundamental Principles: Humanity, Impartiality, Neutrality, Independence, Voluntary Service, Unity, Universality. - Must be autonomous, neutral and independent; not appear to be instrument/agency that implements gov’t policy to merit the trust of all and effectively carry out its mission – therefore, it cannot be owned/controlled by the gov’t The Philippine gov’t does not own the PNRC – does not have gov’t assets and does not receive any appropriation from the Congress. It is financed primarily by contributions from private individuals/entities obtained through solicitation campaigns organized by its Board of Governors (Sec. 11, PNRC Charter). The gov’t does not control the PNRC. Only 6 of the 30 members of the PNRC Board of Governors are appointed by the President of the Philippines (Sec. 6, PNRC Charter). A majority of 4/5 of the PNRC Board are elected/chosen by the private sector members of the PNRC. The PNRC Chairman is not appointed by the President or any subordinate gov’t official, therefore, he is not an official/employee of the Philippine Government. Sec. 16, Art. VII of Consti – President appoints all officials & employees in the Executive branch whose appointments are vested in the President by the Consti or by law. President also appoints those whose appointments are not otherwise provided by law. The law may also authorize the “heads of deparments, agencies, commissions, or boards”
The remedy sought is preventive and restrictive. J. a special law. *The PNRC Charter is Violative of the Constitutional Proscription against the Creation of Private Corporations by Special Law 1935 (Sec. Congress was in fact creating a private corporation. and in case of a stock corporation. 1947). The petition is one for prohibition and petitioners have legal standing as citizens and taxpayers. PNRC Charter insofar as it creates the PNRC as a private corporation and grants it corporate powers is void for being unconstitutional Sec. at least a majority of the members must be gov’t officials holding such membership by appointment/designation by the gov’t. Feliciano v. It therefore cannot be considered a gov’t-owned or controlled corporation. tax fees. reverse or modify the decisions/actions of the PNRC Chairman. It administers special funds – contributions of members. 13. at least a majority of its capital stock must be owned by the gov’t. however. 7 was in force when PNRC was created by special character on March 22. Other provisions remain valid as they can be considered as a recognition by the State that PNRC is the local National Society of the International Red Cross and Red Crescent Movement and thus entitled to the benefits. 16 of 1987 Consti bans private corporations to be created by special charters. Gov’t-owned or controlled corporations may be created/established by special charters in the interest of the common good and subject to the test of economic viability. 16 above) even as a non-profit/charitable corporation. The vast majority of the thousands of PNRC members are private individuals. except by general law. ANRC (precursor of PNRC) is considered a federal instrumentality – immunity from state taxation. or regulation of private corporations. VI of Consti. capital assets and operating funds from gov’t) are clearly lacking in the PNRC. Art. subjected to governmental supervision & regular financial audit. The President cannot review. Art. The use of Sec. CoA – Sec. 1 of PNRC Charter – PNRC is officially designated to assist the RP in discharging the obligations set forth in the Geneva Conventions – therefore. organization. 16) Constitutions provide that: The Congress shall not. exemptions and privileges set forth in the PNRC Charter. principal officer appointed by the President – but remains an . 5. which is not exempt from constitutional prohibition (Sec. XII of Consti. Sec.g. Gov’t’s treaty obligations based on the Geneva Conventions. In creating PNRC as a corporate entity. Only the PNRC Board can review. It merely declares that a GOCC may either be a stock or non-stock corporation. 1973 & 1987 (Sec. It submits annual reports receipts and disbursement to the President. They raise a constitutional issue. Its charter does not violate the constitutional proscription against creation of private corporations by special law. WON the office of the PNRC Chairman is a gov’t office or an office in a governmentowned or controlled corporation for purposes of the prohibition in Sec. 2(13) of Introductory Provisions of Administrative Code of 1987 by the ponencia to define a GOCC does not pronounce a definition of a GOCC that strays from Sec. etc. 16. PNRC is endowed w/ corporate powers. which historically gave individuals. 1-13 are void. an injunction against an alleged continuing violation of the fundamental law. The Court has full authority and bounden duty to assume jurisdiction to determine WON other branches of gov’t have kept themselves w/in the limits of the Consti & laws and have not abused discretion given them. It cannot be anything but a GOCC. the elements of gov’t ownership and control (e. PNRC Charter amended by PD 1264). In case of a non-stock corporation. SC: The office of the PNRC Chairman is a private office. PNRC was not impliedly converted into a private corporation simply because its charter was amended to vest in it authority to secure loans. be exempted from payment of all duties. including students and foreigners. aid given by gov’t. w/o claiming any entitlement to either the Senate seat or chairmanship of PNRC. PNRC was created through a special charter. They also implement the Phil. Sec. supported by PCSO and LGUs. PNRC is a gov’t-owned or controlled corporation (GOCC). it is engaged in the performance of the gov’ts public functions. PNRC was incorporated under RA 95. reverse or modify the decisions/actions of the PNRC Board and the PNRC Chairman.to appoint officers lower in rank. 2(13) of he Introductory Provisions of the Administrative Code of 1987: A gov’t-owned or controlled corporation must be owned by the gov’t. provide for the formation. families or groups special privileges denied to other citizens. Dissent: Nachura. Judgment: Office of the PNRC Chairman declared not a government office. those contribute to the annual fund campaign of the PNRC (Sec.
and cannot anymore be given support. XII). 1 – cannot stand independently – no separability clause. Considering that PNRC is a GOCC. There is no clear showing that the PNRC Charter runs counter to the consti. volunteer-led org. Art. 13. No basis to assume that it cannot merit the trust of all and cannot effectively carry out mission as a National Red Cross Society. . Sen. Gordon’s continuous occupancy of 2 incompatible positions is a clear violation of the Consti (Sec. Sec. A position held in an ex officio capacity (a second post held by virtue of the functions of the first office) does not violate such constitutional proscription.independent. by the National Gov’t. financial or otherwise. Vote to grant Petition. 16. Art. The language in the provision is unambiguous. To declare Sec. LGUs. and PCSO. requires no indepth construction. it can no longer be extended tax exemptions and official immunity. VI). The Court must not arbitrarily declare a law unconstitutional just to save a single individual from unavoidable consequences of his transgression of the Consti even if done in good faith. 2-17 of RA 95 are not separable from Sec. All reasonable doubts should be resolved in favor of the constitutionality of the statute. its charter does not violate the constitutional provision (Sec. Deleterious effects will result if PNRC is declared a private corporation – employees will no longer be covered by the GSIS. The chairmanship of the PNRC Board is not held in an ex officio capacity by a member of Congress. Separatists & insurgents do not consider them as the enemy but as the entity to turn to in the event of injury. 1 of PNRC Charter (creation and incorporation of the org) invalid and the rest valid is to reach an absurd situation in w/c obligations are imposed on and a framework for its operation is laid down for a legally nonexisting entity. Presumption of constitutionality of law is presumed.
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