Manila Prince Hotel vs GSIS

Facts: The controversy arose when respondent Government Service Insurance System (GSIS), pursuant to the
privatization program oI the Philippine Government under Proclamation No. 50 dated 8 December 1986, decided to
sell through public bidding 30 to 51 oI the issued and outstanding shares oI respondent Manila Hotel
Corporation. In a close bidding held on 18 September 1995 only two (2) bidders participated: petitioner Manila
Prince Hotel Corporation, a Filipino corporation, which oIIered to buy 51 oI the MHC or 15,300,000 shares at
P41.58 per share, and Renong Berhad, a Malaysian Iirm, with ITT-Sheraton as its hotel operator, which bid Ior the
same number oI shares at P44.00 per share, or P2.42 more than the bid oI petitioner.Pending the declaration oI
Renong Berhad as the winning bidder/strategic partner and the execution oI the necessary contracts, matched the bid
price oI P44.00 per share tendered by Renong Berhad. On 17 October 1995, perhaps apprehensive that respondent
GSIS has disregarded the tender oI the matching bid and that the sale oI 51 oI the MHC may be hastened by
respondent GSIS and consummated with Renong Berhad, petitioner came to this Court on prohibition and
mandamus. In the main, petitioner invokes Sec. 10, second par., Art. XII, oI the 1987 Constitution and submits that
the Manila Hotel has been identiIied with the Filipino nation and has practically become a historical monument
which reIlects the vibrancy oI Philippine heritage and culture. It is a proud legacy oI an earlier generation oI
Filipinos who believed in the nobility and sacredness oI independence and its power and capacity to release the Iull
potential oI the Filipino people. To all intents and purposes, it has become a part oI the national patrimony. 6
Petitioner also argues that since 51 oI the shares oI the MHC carries with it the ownership oI the business oI the
hotel which is owned by respondent GSIS, a government-owned and controlled corporation, the hotel business oI
respondent GSIS being a part oI the tourism industry is unquestionably a part oI the national economy.

Issue: Whether or Not the sale oI Manila Hotel to Renong Berhad is violative oI the Constitutional provision oI
Filipino First policy and is thereIore null and void.

Held: The Manila Hotel or, Ior that matter, 51 oI the MHC, is not just any commodity to be sold to the highest
bidder solely Ior the sake oI privatization. The Manila Hotel has played and continues to play a signiIicant role as an
authentic repository oI twentieth century Philippine history and culture. This is the plain and simple meaning oI the
Filipino First Policy provision oI the Philippine Constitution. And this Court, heeding the clarion call oI the
Constitution and accepting the duty oI being the elderly watchman oI the nation, will continue to respect and protect
the sanctity oI the Constitution. It was thus ordered that GSIS accepts the matching bid oI petitioner MANILA
PRINCE HOTEL CORPORATION to purchase the subject 51 oI the shares oI the Manila Hotel Corporation at
P44.00 per share and thereaIter to execute the necessary clearances and to do such other acts and deeds as may be
necessary Ior purpose.