Liban Vs Gordon (Orig)

9/17/2016
G.R. No. 175352
TodayisSaturday,September17,2016
RepublicofthePhilippines
SUPREMECOURT
Manila
ENBANC
G.R.No.175352
DANTEV.LIBAN,REYNALDOM.BERNARDO,andSALVADORM.VIARI,Petitioners,
vs.
RICHARDJ.GORDON,Respondent.
DECISION
CARPIO,J.:
TheCase
ThisisapetitiontodeclareSenatorRichardJ.Gordon(respondent)ashavingforfeitedhisseatintheSenate.
TheFacts
PetitionersDanteV.Liban,ReynaldoM.Bernardo,andSalvadorM.Viari(petitioners)filedwiththisCourtaPetition
to Declare Richard J. Gordon as Having Forfeited His Seat in the Senate. Petitioners are officers of the Board of
DirectorsoftheQuezonCityRedCrossChapterwhilerespondentisChairmanofthePhilippineNationalRedCross
(PNRC)BoardofGovernors.
DuringrespondentsincumbencyasamemberoftheSenateofthePhilippines,1hewaselectedChairmanofthe
PNRCduringthe23February2006meetingofthePNRCBoardofGovernors.Petitionersallegethatbyaccepting
the chairmanship of the PNRC Board of Governors, respondent has ceased to be a member of the Senate as
providedinSection13,ArticleVIoftheConstitution,whichreads:
SEC.13.NoSenatororMemberoftheHouseofRepresentativesmayholdanyotherofficeoremploymentinthe
Government, or any subdivision, agency, or instrumentality thereof, including governmentowned or controlled
corporations or their subsidiaries, during his term without forfeiting his seat. Neither shall he be appointed to any
officewhichmayhavebeencreatedortheemolumentsthereofincreasedduringthetermforwhichhewaselected.
Petitioners cite Camporedondo v. NLRC,2 which held that the PNRC is a governmentowned or controlled
corporation. Petitioners claim that in accepting and holding the position of Chairman of the PNRC Board of
Governors,respondenthasautomaticallyforfeitedhisseatintheSenate,pursuanttoFloresv.Drilon,3whichheld
thatincumbentnationallegislatorslosetheirelectivepostsupontheirappointmenttoanothergovernmentoffice.
In his Comment, respondent asserts that petitioners have no standing to file this petition which appears to be an
action for quo warranto, since the petition alleges that respondent committed an act which, by provision of law,
constitutesagroundforforfeitureofhispublicoffice.PetitionersdonotclaimtobeentitledtotheSenateofficeof
respondent. Under Section 5, Rule 66 of the Rules of Civil Procedure, only a person claiming to be entitled to a
public office usurped or unlawfully held by another may bring an action for quo warranto in his own name. If the
petitionisoneforquowarranto,itisalreadybarredbyprescriptionsinceunderSection11,Rule66oftheRulesof
CivilProcedure,theactionshouldbecommencedwithinoneyearafterthecauseofthepublicofficersforfeitureof
office.Inthiscase,respondenthasbeenworkingasaRedCrossvolunteerforthepast40years.Respondentwas
alreadyChairmanofthePNRCBoardofGovernorswhenhewaselectedSenatorinMay2004,havingbeenelected
Chairmanin2003andreelectedin2005.
Respondentcontendsthatevenifthepresentpetitionistreatedasataxpayerssuit,petitionerscannotbeallowed
toraiseaconstitutionalquestionintheabsenceofanyclaimthattheysufferedsomeactualdamageorthreatened
injury as a result of the allegedly illegal act of respondent. Furthermore, taxpayers are allowed to sue only when
there is a claim of illegal disbursement of public funds, or that public money is being diverted to any improper
purpose, or where petitioners seek to restrain respondent from enforcing an invalid law that results in wastage of
publicfunds.
http://www.lawphil.net/judjuris/juri2009/jul2009/gr_175352_2009.html
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Respondent also maintains that if the petition is treated as one for declaratory relief, this Court would have no
jurisdictionsinceoriginaljurisdictionfordeclaratoryrelieflieswiththeRegionalTrialCourt.
Respondent further insists that the PNRC is not a governmentowned or controlled corporation and that the
prohibitionunderSection13,ArticleVIoftheConstitutiondoesnotapplyinthepresentcasesincevolunteerservice
tothePNRCisneitheranofficenoranemployment.
IntheirReply,petitionersclaimthattheirpetitionisneitheranactionforquowarrantonoranactionfordeclaratory
relief. Petitioners maintain that the present petition is a taxpayers suit questioning the unlawful disbursement of
funds,consideringthatrespondenthasbeendrawinghissalariesandothercompensationasaSenatorevenifheis
nolongerentitledtohisoffice.PetitionerspointoutthatthisCourthasjurisdictionoverthispetitionsinceitinvolves
alegalorconstitutionalissuewhichisoftranscendentalimportance.
TheIssues
Petitionersraisethefollowingissues:
1.WhetherthePhilippineNationalRedCross(PNRC)isagovernmentownedorcontrolledcorporation
2. Whether Section 13, Article VI of the Philippine Constitution applies to the case of respondent who is
ChairmanofthePNRCandatthesametimeaMemberoftheSenate
3.WhetherrespondentshouldbeautomaticallyremovedasaSenatorpursuanttoSection13,ArticleVIof
thePhilippineConstitutionand
4.Whetherpetitionersmaylegallyinstitutethispetitionagainstrespondent.4
ThesubstantialissueboilsdowntowhethertheofficeofthePNRCChairmanisagovernmentofficeoranofficeina
governmentowned or controlled corporation for purposes of the prohibition in Section 13, Article VI of the
Constitution.
TheCourtsRuling
Wefindthepetitionwithoutmerit.
PetitionersHaveNoStandingtoFilethisPetition
Acarefulreadingofthepetitionrevealsthatitisanactionforquowarranto.Section1,Rule66oftheRulesofCourt
provides:
Section 1. Action by Government against individuals. An action for the usurpation of a public office, position or
franchisemaybecommencedbyaverifiedpetitionbroughtinthenameoftheRepublicofthePhilippinesagainst:
(a)Apersonwhousurps,intrudesinto,orunlawfullyholdsorexercisesapublicoffice,positionorfranchise
(b)Apublicofficerwhodoesorsuffersanactwhichbyprovisionoflaw,constitutesagroundfortheforfeiture
ofhisofficeor
(c) An association which acts as a corporation within the Philippines without being legally incorporated or
withoutlawfulauthoritysotoact.(Emphasissupplied)
Petitionersallegeintheirpetitionthat:
4. Respondent became the Chairman of the PNRC when he was elected as such during the First Regular
LuncheonMeetingoftheBoardofGovernorsofthePNRCheldonFebruary23,2006,theminutesofwhich
isheretoattachedandmadeintegralparthereofasAnnex"A."
5. Respondent was elected as Chairman of the PNRC Board of Governors, during his incumbency as a
MemberoftheHouseofSenateoftheCongressofthePhilippines,havingbeenelectedassuchduringthe
nationalelectionslastMay2004.
6. Since his election as Chairman of the PNRC Board of Governors, which position he duly accepted,
respondenthasbeenexercisingthepowersanddischargingthefunctionsanddutiesofsaidoffice,despite
thefactthatheisstillasenator.
7. It is the respectful submission of the petitioner[s] that by accepting the chairmanship of the Board of
Governors of the PNRC, respondent has ceased to be a Member of the House of Senate as provided in
Section13,ArticleVIofthePhilippineConstitution,xxx
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xxxx
10. It is respectfully submitted that in accepting the position of Chairman of the Board of Governors of the
PNRC on February 23, 2006, respondent has automatically forfeited his seat in the House of Senate and,
therefore, has long ceased to be a Senator, pursuant to the ruling of this Honorable Court in the case of
FLORES,ETAL.VS.DRILONANDGORDON,G.R.No.104732,xxx
11.Despitethefactthatheisnolongerasenator,respondentcontinuestoactassuchandstillperformsthe
powers,functionsanddutiesofasenator,contrarytotheconstitution,lawandjurisprudence.
12.Unlessrestrained,therefore,respondentwillcontinuetofalselyactandrepresenthimselfasasenatoror
memberoftheHouseofSenate,collectingthesalaries,emolumentsandothercompensations,benefitsand
privilegesappertaininganddueonlytothelegitimatesenators,tothedamage,greatandirreparableinjuryof
theGovernmentandtheFilipinopeople.5(Emphasissupplied)
Thus, petitioners are alleging that by accepting the position of Chairman of the PNRC Board of Governors,
respondenthasautomaticallyforfeitedhisseatintheSenate.Inshort,petitionersfiledanactionforusurpationof
publicofficeagainstrespondent,apublicofficerwhoallegedlycommittedanactwhichconstitutesagroundforthe
forfeitureofhispublicoffice.Clearly,suchanactionisforquowarranto,specificallyunderSection1(b),Rule66of
theRulesofCourt.
QuowarrantoisgenerallycommencedbytheGovernmentastheproperpartyplaintiff.However,underSection5,
Rule66oftheRulesofCourt,anindividualmaycommencesuchanactionifheclaimstobeentitledtothepublic
officeallegedlyusurpedbyanother,inwhichcasehecanbringtheactioninhisownname.Thepersoninstituting
quo warranto proceedings in his own behalf must claim and be able to show that he is entitled to the office in
dispute,otherwisetheactionmaybedismissedatanystage.6Inthe presentcase, petitioners donotclaim to be
entitledtotheSenateofficeofrespondent.Clearly,petitionershavenostandingtofilethepresentpetition.
EveniftheCourtdisregardstheinfirmitiesofthepetitionandtreatsitasataxpayerssuit,thepetitionwouldstillfail
onthemerits.
PNRCisaPrivateOrganizationPerformingPublicFunctions
On 22 March 1947, President Manuel A. Roxas signed Republic Act No. 95,7 otherwise known as the PNRC
Charter. The PNRC is a nonprofit, donorfunded, 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,socialstatus,orpoliticalaffiliation.8ThePNRCprovidessixmajorservices:Blood
Services, Disaster Management, Safety Services, Community Health and Nursing, Social Services and Voluntary
Service.9
The Republic of the Philippines, adhering to the Geneva Conventions, established the PNRC as a voluntary
organizationforthepurposecontemplatedintheGenevaConventionof27July1929.10 The Whereas clauses of
thePNRCCharterread:
WHEREAS,therewasdevelopedatGeneva,Switzerland,onAugust22,1864,aconventionbywhichthenationsof
theworldwereinvitedtojointogetherindiminishing,sofarlieswithintheirpower,theevilsinherentinwar
WHEREAS, more than sixty nations of the world have ratified or adhered to the subsequent revision of said
convention, namely the "Convention of Geneva of July 29 [sic], 1929 for the Amelioration of the Condition of the
WoundedandSickofArmiesintheField"(referredtointhisCharterastheGenevaRedCrossConvention)
WHEREAS, the Geneva Red Cross Convention envisages the establishment in each country of a voluntary
organization to assist in caring for the wounded and sick of the armed forces and to furnish supplies for that
purpose
WHEREAS, the Republic of the Philippines became an independent nation on July 4, 1946 and proclaimed its
adherencetotheGenevaRedCrossConventiononFebruary14,1947,andbythatactionindicateditsdesireto
participatewiththenationsoftheworldinmitigatingthesufferingcausedbywarandtoestablishinthePhilippinesa
voluntaryorganizationforthatpurposeascontemplatedbytheGenevaRedCrossConvention
WHEREAS,thereexistedinthePhilippinessince1917aCharteroftheAmericanNationalRedCrosswhichmust
beterminatedinviewoftheindependenceofthePhilippinesand
WHEREAS, the volunteer organizations established in the other countries which have ratified or adhered to the
GenevaRedCrossConventionassistinpromotingthehealthandwelfareoftheirpeopleinpeaceandinwar,and
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throughtheirmutualassistanceandcooperationdirectlyandthroughtheirinternationalorganizationspromotebetter
understandingandsympathyamongthepeoplesoftheworld.(Emphasissupplied)
ThePNRCisamemberNationalSocietyoftheInternationalRedCrossandRedCrescentMovement(Movement),
which is composed of the International Committee of the Red Cross (ICRC), the International Federation of Red
Cross and Red Crescent Societies (International Federation), and the National Red Cross and Red Crescent
Societies(NationalSocieties).TheMovementisunitedandguidedbyitssevenFundamentalPrinciples:
1. HUMANITY The International Red Cross and Red Crescent Movement, born of a desire to bring
assistance without discrimination to the wounded on the battlefield, endeavors, in its international and
nationalcapacity,topreventandalleviatehumansufferingwhereveritmaybefound.Itspurposeistoprotect
life and health and to ensure respect for the human being. It promotes mutual understanding, friendship,
cooperationandlastingpeaceamongstallpeoples.
2. IMPARTIALITY It makes no discrimination as to nationality, race, religious beliefs, class or political
opinions.Itendeavorstorelievethesufferingofindividuals,beingguidedsolelybytheirneeds,andtogive
prioritytothemosturgentcasesofdistress.
3. NEUTRALITY In order to continue to enjoy the confidence of all, the Movement may not take sides in
hostilitiesorengageatanytimeincontroversiesofapolitical,racial,religiousorideologicalnature.
4. INDEPENDENCE The Movement is independent. The National Societies, while auxiliaries in the
humanitarianservicesoftheirgovernmentsandsubjecttothelawsoftheirrespectivecountries,mustalways
maintaintheirautonomysothattheymaybeableatalltimestoactinaccordancewiththeprinciplesofthe
Movement.
5.VOLUNTARYSERVICEItisavoluntaryreliefmovementnotpromptedinanymannerbydesireforgain.
6.UNITYTherecanbeonlyoneRedCrossoroneRedCrescentSocietyinanyonecountry.Itmustbe
opentoall.Itmustcarryonitshumanitarianworkthroughoutitsterritory.
7.UNIVERSALITYTheInternationalRedCrossandRedCrescentMovement,inwhichallSocietieshave
equal status and share equal responsibilities and duties in helping each other, is worldwide. (Emphasis
supplied)
The Fundamental Principles provide a universal standard of reference for all members of the Movement. The
PNRC, as a member National Society of the Movement, has the duty to uphold the Fundamental Principles and
idealsoftheMovement.InordertoberecognizedasaNationalSociety,thePNRChastobeautonomousandmust
operateinconformitywiththeFundamentalPrinciplesoftheMovement.11
The reason for this autonomy is fundamental. To be accepted by warring belligerents as neutral workers during
international or internal armed conflicts, the PNRC volunteers must not be seen as belonging to any side of the
armed conflict. In the Philippines where there is a communist insurgency and a Muslim separatist rebellion, the
PNRCcannotbeseenasgovernmentownedorcontrolled,andneithercanthePNRCvolunteersbeidentifiedas
government personnel or as instruments of government policy. Otherwise, the insurgents or separatists will treat
PNRCvolunteersasenemieswhenthevolunteerstendtothewoundedinthebattlefieldorthedisplacedciviliansin
conflictareas.
Thus,thePNRCmustnotonlybe,butmustalsobeseentobe,autonomous,neutralandindependentinorderto
conduct its activities in accordance with the Fundamental Principles. 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.12 It is imperative that the PNRC must be
autonomous,neutral,andindependentinrelationtotheState.
Toensureandmaintainitsautonomy,neutrality,andindependence,thePNRCcannotbeownedorcontrolledbythe
government. Indeed, the Philippine government does not own the PNRC. The PNRC does not have government
assetsanddoesnotreceiveanyappropriationfromthePhilippineCongress.13ThePNRCisfinancedprimarilyby
contributions from private individuals and private entities obtained through solicitation campaigns organized by its
BoardofGovernors,asprovidedunderSection11ofthePNRCCharter:
SECTION11.Asanationalvoluntaryorganization,thePhilippineNationalRedCrossshallbefinancedprimarilyby
contributionsobtainedthroughsolicitationcampaignsthroughouttheyearwhichshallbeorganizedbytheBoardof
GovernorsandconductedbytheChaptersintheirrespectivejurisdictions.Thesefundraisingcampaignsshallbe
conductedindependentlyofotherfunddrivesbyotherorganizations.(Emphasissupplied)
ThegovernmentdoesnotcontrolthePNRC.UnderthePNRCCharter,asamended,onlysixofthethirtymembers
ofthePNRCBoardofGovernorsareappointedbythePresidentofthePhilippines.Thus,twentyfourmembers,or
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fourfifths (4/5), of the PNRC Board of Governors are not appointed by the President. Section 6 of the PNRC
Charter,asamended,provides:
SECTION 6. The governing powers and authority shall be vested in a Board of Governors composed of thirty
members,sixofwhomshallbeappointedbythePresidentofthePhilippines,eighteenshallbeelectedbychapter
delegatesinbiennialconventionsandtheremainingsixshallbeselectedbythetwentyfourmembersoftheBoard
alreadychosen.xxx.
Thus,ofthetwentyfourmembersofthePNRCBoard,eighteenareelectedbythechapterdelegatesofthePNRC,
andsixareelectedbythetwentyfourmembersalreadychosenaselectgroupwheretheprivatesectormembers
have threefourths majority. Clearly, an overwhelming majority of fourfifths of the PNRC Board are elected or
chosenbytheprivatesectormembersofthePNRC.
ThePNRCBoardofGovernors,whichexercisesallcorporatepowersofthePNRC,electsthePNRCChairmanand
allotherofficersofthePNRC.TheincumbentChairmanofPNRC,respondentSenatorGordon,waselected,asall
PNRC Chairmen are elected, by a private sectorcontrolled PNRC Board fourfifths of whom are private sector
membersofthePNRC.ThePNRCChairmanisnotappointedbythePresidentorbyanysubordinategovernment
official.
Under Section 16, Article VII of the Constitution,14 the President appoints all officials and employees in the
ExecutivebranchwhoseappointmentsarevestedinthePresidentbytheConstitutionorbylaw.ThePresidentalso
appoints those whose appointments are not otherwise provided by law. Under this Section 16, the law may also
authorizethe"headsofdepartments,agencies,commissions,orboards"toappointofficerslowerinrankthansuch
heads of departments, agencies, commissions or boards.15 In Rufino v. Endriga,16 the Court explained
appointmentsunderSection16inthiswise:
UnderSection16,ArticleVIIofthe1987Constitution,thePresidentappointsthreegroupsofofficers.Thefirstgroup
referstotheheadsoftheExecutivedepartments,ambassadors,otherpublicministersandconsuls,officersofthe
armed forces from the rank of colonel or naval captain, and other officers whose appointments are vested in the
PresidentbytheConstitution.ThesecondgroupreferstothosewhomthePresidentmaybeauthorizedbylawto
appoint. The third group refers to all other officers of the Government whose appointments are not otherwise
providedbylaw.
UnderthesameSection16,thereisafourthgroupoflowerrankedofficerswhoseappointmentsCongressmayby
lawvestintheheadsofdepartments,agencies,commissions,orboards.xxx
xxx
InadepartmentintheExecutivebranch,theheadistheSecretary.ThelawmaynotauthorizetheUndersecretary,
acting as such Undersecretary, to appoint lowerranked officers in the Executive department. In an agency, the
power is vested in the head of the agency for it would be preposterous to vest it in the agency itself. In a
commission, the head is the chairperson of the commission. In a board, the head is also the chairperson of the
board. In the last three situations, the law may not also authorize officers other than the heads of the agency,
commission,orboardtoappointlowerrankedofficers.
xxx
TheConstitutionauthorizesCongresstovestthepowertoappointlowerrankedofficersspecificallyinthe"heads"
ofthespecifiedoffices,andinnootherperson.Theword"heads"referstothechairpersonsofthecommissionsor
boardsandnottotheirmembers,forseveralreasons.
The President does not appoint the Chairman of the PNRC. Neither does the head of any department, agency,
commissionorboardappointthePNRCChairman.Thus,thePNRCChairmanisnotanofficialoremployeeofthe
ExecutivebranchsincehisappointmentdoesnotfallunderSection16,ArticleVIIoftheConstitution.Certainly,the
PNRC Chairman is not an official or employee of the Judiciary or Legislature. This leads us to the obvious
conclusion that the PNRC Chairman is not an official or employee of the Philippine Government. Not being a
governmentofficialoremployee,thePNRCChairman,assuch,doesnotholdagovernmentofficeoremployment.
UnderSection17,ArticleVIIoftheConstitution,17thePresidentexercisescontroloverallgovernmentofficesinthe
Executivebranch.IfanofficeislegallynotunderthecontrolofthePresident,thensuchofficeisnotpartof
the Executive branch. In Rufino v. Endriga,18 the Court explained the Presidents power of control over all
governmentofficesasfollows:
Everygovernmentoffice,entity,oragencymustfallundertheExecutive,Legislative,orJudicialbranches,ormust
belongtooneoftheindependentconstitutionalbodies,ormustbeaquasijudicialbodyorlocalgovernmentunit.
Otherwise,suchgovernmentoffice,entity,oragencyhasnolegalandconstitutionalbasisforitsexistence.
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The CCP does not fall under the Legislative or Judicial branches of government. The CCP is also not one of the
independentconstitutionalbodies.NeitheristheCCPaquasijudicialbodynoralocalgovernmentunit.Thus,the
CCPmustfallundertheExecutivebranch.UndertheRevisedAdministrativeCodeof1987,anyagency"notplaced
bylaworordercreatingthemunderanyspecificdepartment"falls"undertheOfficeofthePresident."
Since the President exercises control over "all the executive departments, bureaus, and offices," the President
necessarily exercises control over the CCP which is an office in the Executive branch. In mandating that the
President"shallhavecontrolofallexecutive...offices,"Section17,ArticleVIIofthe1987Constitutiondoesnot
exemptanyexecutiveofficeoneperformingexecutivefunctionsoutsideoftheindependentconstitutionalbodies
fromthePresidentspowerofcontrol.ThereisnodisputethattheCCPperformsexecutive,andnotlegislative,
judicial,orquasijudicialfunctions.
ThePresidentspowerofcontrolappliestotheactsordecisionsofallofficersintheExecutivebranch.Thisistrue
whether such officers are appointed by the President or by heads of departments, agencies, commissions, or
boards. The power of control means the power to revise or reverse the acts or decisions of a subordinate officer
involvingtheexerciseofdiscretion.
In short, the President sits at the apex of the Executive branch, and exercises "control of all the executive
departments, bureaus, and offices." There can be no instance under the Constitution where an officer of the
Executive branch is outside the control of the President. The Executive branch is unitary since there is only one
President vested with executive power exercising control over the entire Executive branch. Any office in the
ExecutivebranchthatisnotunderthecontrolofthePresidentisalostcommandwhoseexistenceiswithoutany
legalorconstitutionalbasis.(Emphasissupplied)
AnoverwhelmingfourfifthsmajorityofthePNRCBoardareprivatesectorindividualselectedtothePNRCBoardby
theprivatesectormembersofthePNRC.ThePNRCBoardexercisesallcorporatepowersofthePNRC.ThePNRC
is controlled by private sector individuals. Decisions or actions of the PNRC Board are not reviewable by the
President. The President cannot reverse or modify the decisions or actions of the PNRC Board. Neither can the
PresidentreverseormodifythedecisionsoractionsofthePNRCChairman.ItisthePNRCBoardthatcanreview,
reverseormodifythedecisionsoractionsofthePNRCChairman.ThisprovesagainthattheofficeofthePNRC
Chairmanisaprivateoffice,notagovernmentoffice.
1avvphi1
Although the State is often represented in the governing bodies of a National Society, this can be justified by the
need for proper coordination with the public authorities, and the government representatives may take part in
decisionmakingwithinaNationalSociety.However,thefreelyelectedrepresentativesofaNationalSocietysactive
membersmustremaininalargemajorityinaNationalSocietysgoverningbodies.19
The PNRC is not governmentowned but privately owned. The vast majority of the thousands of PNRC members
are private individuals, including students. Under the PNRC Charter, those who contribute to the annual fund
campaign of the PNRC are entitled to membership in the PNRC for one year. Thus, any one between 6 and 65
years of age can be a PNRC member for one year upon contributing P35, P100, P300, P500 or P1,000 for the
year.20Evenforeigners,whetherresidentsornot,canbemembersofthePNRC.Section5ofthePNRCCharter,as
amendedbyPresidentialDecreeNo.1264,21reads:
SEC.5.MembershipinthePhilippineNationalRedCrossshallbeopentotheentirepopulationinthePhilippines
regardlessofcitizenship.AnycontributiontothePhilippineNationalRedCrossAnnualFundCampaignshallentitle
thecontributortomembershipforoneyearandsaidcontributionshallbedeductibleinfullfortaxationpurposes.
Thus,thePNRCisaprivatelyowned,privatelyfunded,andprivatelyruncharitableorganization.ThePNRCisnota
governmentownedorcontrolledcorporation.
Petitioners anchor their petition on the 1999 case of Camporedondo v. NLRC,22 which ruled that the PNRC is a
governmentowned or controlled corporation. In ruling that the PNRC is a governmentowned or controlled
corporation, the simple test used was whether the corporation was created by its own special charter for the
exercise of a public function or by incorporation under the general corporation law. Since the PNRC was created
underaspecialcharter,theCourtthenruledthatitisagovernmentcorporation.However,theCamporedondoruling
failedtoconsiderthedefinitionofagovernmentownedorcontrolledcorporationasprovidedunderSection2(13)of
theIntroductoryProvisionsoftheAdministrativeCodeof1987:
SEC.2.GeneralTermsDefined.xxx
(13) Governmentowned or controlled corporation refers to any agency organized as a stock or nonstock
corporation,vestedwithfunctionsrelatingtopublicneedswhethergovernmentalorproprietaryinnature,andowned
bytheGovernmentdirectlyorthroughitsinstrumentalitieseitherwholly,orwhereapplicableasinthecaseofstock
corporations,totheextentofatleastfiftyone(51)percentofitscapitalstock:Provided,Thatgovernmentownedor
controlledcorporationsmaybefurthercategorizedbytheDepartmentoftheBudget,theCivilServiceCommission,
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andtheCommissiononAuditforpurposesoftheexerciseanddischargeoftheirrespectivepowers,functionsand
responsibilitieswithrespecttosuchcorporations.(Boldfacingandunderscoringsupplied)
A governmentowned or controlled corporation must be owned by the government, and in the case of a stock
corporation, at least a majority of its capital stock must be owned by the government. In the case of a nonstock
corporation,byanalogyatleastamajorityofthemembersmustbegovernmentofficialsholdingsuchmembership
by appointment or designation by the government. Under this criterion, and as discussed earlier, the government
doesnotownorcontrolPNRC.
ThePNRCCharterisViolativeoftheConstitutionalProscriptionagainsttheCreationofPrivateCorporationsby
SpecialLaw
The 1935 Constitution, as amended, was in force when the PNRC was created by special charter on 22 March
1947.Section7,ArticleXIVofthe1935Constitution,asamended,reads:
SEC. 7. The Congress shall not, except by general law, provide for the formation, organization, or regulation of
private corporations, unless such corporations are owned or controlled by the Government or any subdivision or
instrumentalitythereof.
Thesubsequent1973and1987ConstitutionscontainsimilarprovisionsprohibitingCongressfromcreatingprivate
corporations except by general law. Section 1 of the PNRC Charter, as amended, creates the PNRC as a "body
corporateandpolitic,"thus:
SECTION 1. There is hereby created in the Republic of the Philippines a body corporate and politic to be the
voluntaryorganizationofficiallydesignatedtoassisttheRepublicofthePhilippinesindischargingtheobligationsset
forth in the Geneva Conventions and to perform such other duties as are inherent upon a National Red Cross
Society.ThenationalheadquartersofthisCorporationshallbelocatedinMetropolitanManila.(Emphasissupplied)
In Feliciano v. Commission on Audit,23 the Court explained the constitutional provision prohibiting Congress from
creatingprivatecorporationsinthiswise:
Webeginbyexplainingthegeneralframeworkunderthefundamentallaw.TheConstitutionrecognizestwoclasses
of corporations. The first refers to private corporations created under a general law. The second refers to
governmentownedorcontrolledcorporationscreatedbyspecialcharters.Section16,ArticleXIIoftheConstitution
provides:
Sec. 16. The Congress shall not, except by general law, provide for the formation, organization, or regulation of
private corporations. Governmentowned or controlled corporations may be created or established by special
chartersintheinterestofthecommongoodandsubjecttothetestofeconomicviability.
TheConstitutionemphaticallyprohibitsthecreationofprivatecorporationsexceptbygenerallawapplicabletoall
citizens.Thepurposeofthisconstitutionalprovisionistobanprivatecorporationscreatedbyspecialcharters,which
historicallygavecertainindividuals,familiesorgroupsspecialprivilegesdeniedtoothercitizens.
Inshort,Congresscannotenactalawcreatingaprivatecorporationwithaspecialcharter.Suchlegislationwould
be unconstitutional. Private corporations may exist only under a general law. If the corporation is private, it must
necessarilyexistunderagenerallaw.Stateddifferently,onlycorporationscreatedunderagenerallawcanqualify
asprivatecorporations.Underexistinglaws,thegenerallawistheCorporationCode,exceptthattheCooperative
Codegovernstheincorporationofcooperatives.
The Constitution authorizes Congress to create governmentowned or controlled corporations through special
charters.Sinceprivatecorporationscannothavespecialcharters,itfollowsthatCongresscancreatecorporations
withspecialchartersonlyifsuchcorporationsaregovernmentownedorcontrolled.24(Emphasissupplied)
In Feliciano, the Court held that the Local Water Districts are governmentowned or controlled corporations since
theyexistbyvirtueofPresidentialDecreeNo.198,whichconstitutestheirspecialcharter.Theseedcapitalassets
oftheLocalWaterDistricts,suchaswaterworksandseweragefacilities,werepublicpropertywhichweremanaged,
operatedbyorunderthecontrolofthecity,municipalityorprovincebeforetheassetsweretransferredtotheLocal
Water Districts. The Local Water Districts also receive subsidies and loans from the Local Water Utilities
Administration(LWUA).Infact,underthe2009GeneralAppropriationsAct,25theLWUAhasabudgetamountingto
P400,000,000foritssubsidyrequirements.26ThereisnoprivatecapitalinvestedintheLocalWaterDistricts.
The capital assets and operating funds of the Local Water Districts all come from the government, either through
transferofassets,loans,subsidiesortheincomefromsuchassetsorfunds.
The government also controls the Local Water Districts because the municipal or city mayor, or the provincial
governor, appoints all the board directors of the Local Water Districts. Furthermore, the board directors and other
personneloftheLocalWaterDistrictsaregovernmentemployeessubjecttocivilservicelawsandantigraftlaws.
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Clearly,theLocalWaterDistrictsareconsideredgovernmentownedorcontrolledcorporationsnotonlybecauseof
their creation by special charter but also because the government in fact owns and controls the Local Water
Districts.
Just like the Local Water Districts, the PNRC was created through a special charter. However, unlike the Local
WaterDistricts,theelementsofgovernmentownershipandcontrolareclearlylackinginthePNRC.Thus,although
thePNRCiscreatedbyaspecialcharter,itcannotbeconsideredagovernmentownedorcontrolledcorporationin
the absence of the essential elements of ownership and control by the government. In creating the PNRC as a
corporateentity,Congresswasinfactcreatingaprivatecorporation.However,theconstitutionalprohibitionagainst
the creation of private corporations by special charters provides no exception even for nonprofit or charitable
corporations.Consequently,thePNRCCharter,insofarasitcreatesthePNRCasaprivatecorporationandgrantsit
corporatepowers,27isvoidforbeingunconstitutional.Thus,Sections1,282,293,304(a),315,326,337,348,359,36
10,3711,3812,39and1340ofthePNRCCharter,asamended,arevoid.
Theotherprovisions41ofthePNRCCharterremainvalidastheycanbeconsideredasarecognitionbytheState
that the unincorporated PNRC is the local National Society of the International Red Cross and Red Crescent
Movement, and thus entitled to the benefits, exemptions and privileges set forth in the PNRC Charter. The other
provisionsofthePNRCCharterimplementthePhilippineGovernmentstreatyobligationsunderArticle4(5)ofthe
Statutes of the International Red Cross and Red Crescent Movement, which provides that to be recognized as a
National Society, the Society must be "duly recognized by the legal government of its country on the basis of the
GenevaConventionsandofthenationallegislationasavoluntaryaidsociety,auxiliarytothepublicauthoritiesin
thehumanitarianfield."
Insum,weholdthattheofficeofthePNRCChairmanisnotagovernmentofficeoranofficeinagovernmentowned
orcontrolledcorporationforpurposesoftheprohibitioninSection13,ArticleVIofthe1987Constitution.However,
since the PNRC Charter is void insofar as it creates the PNRC as a private corporation, the PNRC should
incorporateundertheCorporationCodeandregisterwiththeSecuritiesandExchangeCommissionifitwantstobe
aprivatecorporation.
WHEREFORE,wedeclarethattheofficeoftheChairmanofthePhilippineNationalRedCrossisnotagovernment
officeoranofficeinagovernmentownedorcontrolledcorporationforpurposesoftheprohibitioninSection13,
ArticleVIofthe1987Constitution.WealsodeclarethatSections1,2,3,4(a),5,6,7,8,9,10,11,12,and13ofthe
CharterofthePhilippineNationalRedCross,orRepublicActNo.95,asamendedbyPresidentialDecreeNos.
1264and1643,areVOIDbecausetheycreatethePNRCasaprivatecorporationorgrantitcorporatepowers.
SOORDERED.
ANTONIOT.CARPIO
AssociateJustice
WECONCUR:
REYNATOS.PUNO
ChiefJustice
LEONARDOA.QUISUMBING
AssociateJustice
CONSUELOYNARESSANTIAGO
AssociateJustice
RENATOC.CORONA
AssociateJustice
CONCHITACARPIOMORALES
AssociateJustice
MINITAV.CHICONAZARIO
AssociateJustice
PRESBITEROJ.VELASCO,JR.
AssociateJustice
ANTONIOEDUARDOB.NACHURA
AssociateJustice
ARTUROD.BRION
AssociateJustice
TERESITAJ.LEONARDODECASTRO
AssociateJustice
DIOSDADOM.PERALTA
AssociateJustice
LUCASP.BERSAMIN
AssociateJustice
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CERTIFICATION
PursuanttoSection13,ArticleVIIIoftheConstitution,IcertifythattheconclusionsintheaboveDecisionhadbeen
reachedinconsultationbeforethecasewasassignedtothewriteroftheopinionoftheCourt.
REYNATOS.PUNO
ChiefJustice
Footnotes
1RespondentwaselectedasaSenatorduringtheMay2004elections.
2370Phil.901(1999).
3G.R.No.104732,22June1993,223SCRA568.
4Rollo,p.181.
5Id.at35.
6TheSecretaryofJusticeCuevasv.Atty.Bacal,400Phil.1115(2000)Garciav.Perez,188Phil.43(1980).
7AnActtoIncorporatethePhilippineNationalRedCross,asamendedbyPresidentialDecreeNo.1264.
8PNRC Website,HYPERLINK "http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspx" HYPERLINK
"http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspx"
http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspxHYPERLINK
"http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspx"(visited25March2009).
9PNRC Website,HYPERLINK "http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspx" HYPERLINK
"http://www.redcross.org.ph/Site/PNRC/About.aspx"
(visited25March2009).
http://www.redcross.org.ph/Site/PNRC/About.aspx
10ConventionfortheAmeliorationoftheConditionoftheWoundedandSickinArmiesintheField.
11Article4oftheStatutesoftheInternationalRedCrossandRedCrescentMovementreads:
Article4
ConditionsforRecognitionofNationalSocieties
InordertoberecognizedintermsofArticle5,paragraph2b)asaNationalSociety,theSocietyshall
meetthefollowingconditions:
1. Be constituted on the territory of an independent State where the Geneva Convention for the
AmeliorationoftheConditionoftheWoundedandSickinArmedForcesintheFieldisinforce.
2. Be the only National Red Cross or Red Crescent Society of the said State and be directed by a
centralbodywhichshallalonebecompetenttorepresentitinitsdealingswithothercomponentsofthe
Movement.
3.BedulyrecognizedbythelegalgovernmentofitscountryonthebasisoftheGenevaConventions
and of the national legislation as a voluntary aid society, auxiliary to the public authorities in the
humanitarianfield.
4. Have an autonomous status which allows it to operation in conformity with the Fundamental
PrinciplesoftheMovement.
5.UseanameanddistinctiveembleminconformitywiththeGenevaConventionsandtheirAdditional
Protocols.
6.Besoorganizedastobeabletofulfillthetasksdefinedinitsownstatutes,includingthepreparation
inpeacetimeforitsstatutorytasksincaseofarmedconflicts.
7.ExtenditsactivitiestotheentireterritoryoftheState.
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8. Recruit its voluntary members and its staff without consideration of race, sex, class, religion or
politicalopinions.
9. Adhere to the present Statutes, share in the fellowship which unites the components of the
Movementandcooperatewiththem.
10.RespecttheFundamentalPrinciplesoftheMovementandbeguidedinitsworkbytheprinciplesof
internationalhumanitarianlaw.(Emphasissupplied)
12TheFundamentalPrinciplesoftheRedCrossandRedCrescent,ICRCPublication,p.17.
13Although under Section 4(c) of the PNRC Charter, as amended, the PNRC is allotted one lottery draw
yearlybythePhilippineCharitySweepstakesforthesupportofitsdisasterreliefoperations,inadditiontoits
existing lottery draws for the Blood Program, such allotments are donations given to most charitable
organizations.
14Section16,ArticleVIIoftheConstitutionprovides:
ThePresidentshallnominateand,withtheconsentoftheCommissiononAppointments,appointthe
heads of the executive departments, ambassadors, other public ministers and consuls, or officers of
thearmedforcesfromtherankofcolonelornavalcaptain,andotherofficerswhoseappointmentsare
vested in him in this Constitution. He shall also appoint all other officers of the Government whose
appointmentsarenototherwiseprovidedforbylaw,andthosewhomhemaybeauthorizedbylawto
appoint.TheCongressmay,bylaw,vesttheappointmentofotherofficerslowerinrankinthePresident
alone,inthecourts,orintheheadsofdepartments,agencies,commissions,orboards.
ThePresidentshallhavethepowertomakeappointmentsduringtherecessoftheCongress,whether
voluntary or compulsory, but such appointments shall be effective only until after disapproval by the
CommissiononAppointmentsoruntilthenextadjournmentoftheCongress.
15Endrigav.Rufino,G.R.Nos.139554&139565,21July2006,496SCRA13.
16Id.at5057.
17Section17,ArticleVIIoftheConstitutionprovides:
The President shall have control of all the executive departments, bureaus, and offices. He shall
ensurethatthelawsbefaithfullyexecuted.
18Supranote15at6365.
19Seenote12at20.
20PNRCWebsite,http://202.57.124.158/Site/PNRC/membershipInfo.aspx#5(visited15June2009).
21Issuedon15December1977.
22Supranote2.
23464Phil.439(2004).
24Id.at454455.
25RepublicActNo.9524.
26DBM
Website,HYPERLINK
"http://www.dbm.gov.ph/GAA09/bsgc/C1.pdf"
HYPERLINK
"http://www.dbm.gov.ph/GAA09/bsgc/C1.pdf" http://www.dbm.gov.ph/GAA09/bsgc/C1.pdf (visited 25 June
2009).
27Section36oftheCorporationCodeenumeratesthegeneralpowersofacorporation:
SEC. 36. Corporate powers and capacity. Every corporation incorporated under this Code has the
powerandcapacity:
1.Tosueandbesuedinitscorporatename
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2.Ofsuccessionbyitscorporatenamefortheperiodoftimestatedinthearticlesofincorporationand
thecertificateofincorporation
3.Toadoptanduseacorporateseal
4.ToamenditsarticlesofincorporationinaccordancewiththeprovisionsofthisCode
5.Toadoptbylaws,notcontrarytolaw,moralsorpublicpolicy,andtoamendorrepealthesamein
accordancewiththisCode
6. In case of stock corporations, to issue or sell stocks to subscribers and to sell treasury stocks in
accordancewiththeprovisionsofthisCodeandtoadmitmemberstothecorporationifitbeanon
stockcorporation
7.Topurchase,receive,takeorgrant,hold,convey,sell,lease,pledge,mortgageandotherwisedeal
with such real and personal property, including securities and bonds of other corporations, as the
transactionofthelawfulbusinessofthecorporationmayreasonablyandnecessarilyrequire,subjectto
thelimitationsprescribedbylawandtheConstitution
8.ToadoptanyplanofmergerorconsolidationasprovidedinthisCode
9. To make reasonable donations, including those for the public welfare or for hospital, charitable,
cultural,scientific,civic,orsimilarpurposes:Provided,Thatnocorporation,domesticorforeign,shall
givedonationsinaidofanypoliticalpartyorcandidateorforpurposesofpartisanpoliticalactivity
10.Toestablishpension,retirementandotherplansforthebenefitofitsdirectors,trustees,officersand
employeesand
11. To exercise such other powers as may be essential or necessary to carry out its purpose or
purposesasstatedinitsarticlesofincorporation.
28SECTION1.ThereisherebycreatedintheRepublicofthePhilippinesabodycorporateandpolitictobe
the voluntary organization officially designated to assist the Republic of the Philippines in discharging the
obligations set forth in the Geneva Conventions and to perform such other duties as are inherent upon a
nationalRedCrossSociety.ThenationalheadquartersofthisCorporationshallbelocatedinMetroManila.
29SEC.2.Thenameofthiscorporationshallbe"ThePhilippineNationalRedCross"andbythatnameshall
haveperpetualsuccessionwiththepowertosueandbesuedtoownandholdsuchrealandpersonalestate
asshallbedeemedadvisableandtoacceptbequests,donationsandcontributionsofpropertyofallclasses
forthepurposeofthisCorporationhereinaftersetforthtoadoptasealandtoalteranddestroythesameat
pleasureandtohavetherighttoadoptandtouse,incarryingoutitspurposeshereinafterdesignated,asan
emblemandbadge,aredGreekcrossonawhiteground,thesameashasbeendescribedintheGeneva
Conventions,andadoptedbytheseveralnationsratifyingoradheringtheretotoordainandestablishbylaws
andregulationsnotinconsistentwiththelawsoftheRepublicofthePhilippines,andgenerallytodoallsuch
actsandthingsasmaybenecessarytocarryintoeffecttheprovisionsofthisActandpromotethepurposes
ofsaidorganizationandthecorporationherebycreatedisdesignatedastheorganizationwhichisauthorized
toactinmattersofreliefundersaidConvention.InaccordancewiththeGenevaConventions,theissuanceof
thedistinctiveRedCrossemblemtomedicalunitsandestablishments,personnelandmaterialsneutralizedin
time of war shall be left to the military authorities. The red Greek cross on a white ground, as has been
describedbytheGenevaConventionsisnot,andshallnotbeconstruedasareligioussymbol,andshallhave
equalefficacyandapplicabilitytopersonsofallfaiths,creedsandbeliefs.Theoperationaljurisdictionofthe
PhilippineNationalRedCrossshallbeovertheentireterritoryofthePhilippines.
30SEC.3.ThatthepurposesofthisCorporationshallbeasfollows:
a.Toprovidevolunteeraidtothesickandwoundedofthearmedforcesintimeofwar,inaccordance
withthespiritofandundertheconditionsprescribedbytheGenevaConventionstowhichtheRepublic
ofthePhilippinesproclaimeditsadherence
b.Forthepurposesmentionedintheprecedingsubsection,toperformalldutiesdevolvinguponthe
CorporationasaresultoftheadherenceoftheRepublicofthePhilippinestothesaidConvention
c.Toactinmattersofvoluntaryreliefandinaccordancewiththeauthoritiesofthearmedforcesasa
medium of communication between the people of the Republic of the Philippines and their Armed
Forces, in time of peace and in time of war, and to act in such matters between similar national
societiesofothergovernmentsandtheGovernmentandpeopleandtheArmedForcesoftheRepublic
ofthePhilippines
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d.Toestablishandmaintainasystemofnationalandinternationalreliefintimeofpeaceandintimeof
war and apply the same in meeting the emergency needs caused by typhoons, flood, fires,
earthquakes, and other natural disasters and to devise and carry on measures for minimizing the
sufferingcausedbysuchdisasters
e. To devise and promote such other services in time of peace and in time of war as may be found
desirableinimprovingthehealth,safetyandwelfareoftheFilipinopeople
f.Todevisesuchmeansastomakeeverycitizenand/orresidentofthePhilippinesamemberofthe
RedCross.
31SEC.4.Infurtheranceofthepurposesmentionedintheprecedingsubparagraphs,thePhilippineNational
RedCrossshall:
a.Beauthorizedtosecureloansfromanyfinancialinstitutionwhichshallnotexceeditsbudgetofthe
previousyear.
32SEC. 5. Membership in the Philippine National Red Cross shall be open to the entire population in the
Philippines regardless of citizenship. Any contribution to the Philippine National Red Cross Annual Fund
Campaignshallentitlethecontributortomembershipforoneyearandsaidcontributionshallbedeductiblein
fullfortaxationpurposes.
33SEC.6.ThegoverningpowersandauthorityshallbevestedintheBoardofGovernorscomposedofthirty
members, six of whom shall be appointed by the President of the Philippines, eighteen shall be elected by
chapterdelegatesinbiennialconventionsandtheremainingsixshallbeselectedbythetwentyfourmembers
of the Board already chosen. At least one but not more than three of the Presidential appointees shall be
chosenfromtheArmedForcesofthePhilippines.
a.ThetermofofficeofallmembersoftheBoardshallbefouryears,includingthoseappointedbythe
PresidentofthePhilippines,renewableatthepleasureoftheappointingpowerorelectivebodies.
b.VacanciesintheBoardofGovernorscausedbydeathorresignationshallbefilledbyelectionbythe
BoardofGovernorsatitsnextmeeting,exceptthatvacanciesamongthePresidentialappointeesshall
befilledbythePresident.
34SEC. 7. The President of the Philippines shall be the Honorary President of the Philippine National Red
Cross.TheofficersshallconsistofaChairman,aViceChairman,aSecretary,aTreasurer,aCounselor,an
AssistantSecretaryandanAssistantTreasurer,allofwhomshallbeelectedbytheBoardofGovernorsfrom
amongitsmembershipforatermoftwoyearsandmaybereelected.Theelectionofofficersshalltakeplace
withinsixtydaysafterallthemembersoftheBoardofGovernorshavebeenchosenandhavequalified.
35SEC.8.TheBiennialmeetingofchapterdelegatesshallbeheldonsuchdateandsuchplaceasmaybe
specified by the Board of Governors to elect members of the Board of Governors and advice the Board of
Governors on the activities of the Philippine National Red Cross Provided, however, that during periods of
great emergency, the Board of Governors in its discretion may determine that the best interest of the
corporationshallbeservedbypostponingsuchbiennialmeeting.
36SEC. 9. The power to ordain, adopt and amend bylaws and regulations shall be vested in the Board of
Governors.
37SEC. 10. The members of the Board of Governors, as well as the officers of the corporation, shall serve
withoutcompensation.ThecompensationofthepaidstaffofthecorporationshallbedeterminedbytheBoard
ofGovernorsupontherecommendationoftheSecretaryGeneral.
38SEC.11.Asanationalvoluntaryorganization,thePhilippineNationalRedCrossshallbefinancedprimarily
bycontributionsobtainedthroughsolicitationcampaignsthroughouttheyearwhichshallbeorganizedbythe
Board of Governors and conducted by the Chapters in their respective jurisdictions. These fund raising
campaignsshallbeconductedindependentlyofotherfunddrivesbyotherorganizations.
39SEC.12.TheBoardofGovernorsshallpromulgaterulesandregulationsfortheorganizationoflocalunits
of the Philippine National Red Cross to be known as Chapters. Said rules and regulations shall fix the
relationshipoftheChapterstotheCorporation,definetheirterritorialjurisdictions,anddeterminethenumber
ofdelegatesforeachchapterbasedonpopulation,fundcampaignpotentialsandserviceneeds.
40SEC.13.TheCorporationshall,attheendofeverycalendaryearsubmittothePresidentofthePhilippines
anannualreportcontainingtheactivitiesoftheCorporationshowingitsfinancialcondition,thereceiptsand
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disbursements.
41ThevalidprovisionsareSections4(b)and(c),14,15,16,and17:
SEC. 4. In furtherance of the purposes mentioned in the preceding subparagraphs, the Philippine
NationalRedCrossshall:
xxx
b.Beexemptfrompaymentofallduties,taxes,fees,andotherchargesofallkindsonallimportations
and purchases for its exclusive use, on donations for its disaster relief work and other Red Cross
services,andinitsbenefitsandfundraisingdrivesallprovisionsoflawtothecontrarynotwithstanding.
c.BeallottedbythePhilippineCharitySweepstakesOfficeonelotterydrawyearlyforthesupportofits
disasterreliefoperationsinadditiontoitsexistinglotterydrawsfortheBloodProgram.
SEC.14.Itshallbeunlawfulforanypersontosolicit,collectorreceivemoney,materials,orpropertyof
anykindbyfalselyrepresentingorpretendinghimselftobeamember,agentorrepresentativeofthe
PhilippineNationalRedCross.
SEC.15.TheuseofthenameRedCrossisreservedexclusivelytothePhilippineNationalRedCross
and the use of the emblem of the red Greek cross on a white ground is reserved exclusively to the
PhilippineNationalRedCross,medicalservicesoftheArmedForcesofthePhilippinesandsuchother
medical facilities or other institutions as may be authorized by the Philippine National Red Cross as
providedunderArticle44oftheGenevaConventions.Itshallbeunlawfulforanyotherpersonorentity
tousethewordsRedCrossorGenevaCrossortousetheemblemoftheredGreekcrossonawhite
ground or any designation, sign, or insignia constituting an imitation thereof for any purpose
whatsoever.
SEC.16.AsusedinthisDecree,thetermpersonshallincludeanylegalperson,group,orlegalentity
whatsoevernature,andanypersonviolatinganysectionofthisArticleshall,uponconvictiontherefore
beliabletoafin[e]ofnotlessthanonethousandpesosorimprisonmentforatermnotexceedingone
year, or both, at the discretion of the court, for each and every offense. In case the violation is
committedbyacorporationorassociation,thepenaltyshalldevolveuponthepresident,directororany
otherofficerresponsibleforsuchviolation.
SEC.17.AllactsorpartsofactswhichareinconsistentwiththeprovisionsofthisDecreearehereby
repealed.
TheLawphilProjectArellanoLawFoundation
DISSENTINGOPINION
NACHURA,J.:
I am constrained to register my dissent because the ponencia does not only endorse an unmistakably flagrant
transgressionoftheConstitutionbutalsounwittinglyespousesthedestructionofthePhilippineNationalRedCross
(PNRC)asaninstitution.Withallduerespect,Idisagreewiththeprincipalargumentsadvancedintheponenciato
justifySenatorRichardJ.GordonsunconstitutionalholdingofthechairmanshipofthePNRCBoardofGovernors
whileconcurrentlysittingasamemberoftheSenateofthePhilippines.
Procedurally,Imaintainthatthepetitionisoneforprohibitionandthatpetitionershavestandingtofilethesame.On
themerits,IremainearnestlyconvincedthatPNRCisagovernmentownedorcontrolledcorporation(GOCC),ifnot
agovernmentinstrumentalitythatitscharterdoesnotviolatetheconstitutionalproscriptionagainstthecreationof
privatecorporationsbyspeciallawandthatSenatorGordonscontinuousoccupancyoftwoincompatiblepositions
isaclearviolationoftheConstitution.
Allowmetoelucidate.
I.
Thepetitionshouldbetreated
asoneforprohibitionand
petitionershavelocusstandi
Isubmitthatthepresentpetitionshouldbetreatedasoneforprohibitionratherthanforquowarranto.Inthemain,
thepetitionersseekfromthisCourtthedeclarationthatSenatorGordonhasforfeitedhisseatintheSenate,andthe
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consequent proscription from further acting or representing himself as a Senator and from receiving the salaries,
emoluments, compensations, privileges and benefits thereof.1 Hence, the remedy sought is preventive and
restrictiveaninjunctionagainstanallegedcontinuingviolationofthefundamentallaw.Furthermore,thepetitioners
raiseaconstitutionalissue,withoutclaiminganyentitlementtoeithertheSenateseatorthechairmanshipofPNRC.
Consideringthattheissueinvolvedisoffundamentalconstitutionalsignificanceandofparamountimportance,i.e.,
whethertheSenatorcontinuestocommitaninfringementoftheConstitutionbyholdingtwopositionsclaimedtobe
incompatible, the Court has full authority, nay the bounden duty, to treat the vaguely worded petition as one for
prohibitionandassumejurisdiction.2
Petitioners, as citizens of the Republic and by being taxpayers, have locus standi to institute the instant case.
Garcillano v. the House of Representatives Committees on Public Information, Public Order and Safety, National
DefenseandSecurity,InformationandCommunicationsTechnology,andSuffrageandElectoralReforms3echoes
the current policy of the Court, as laid down in Chavez v. Gonzales,4 to disallow procedural barriers to serve as
impediments to addressing and resolving serious legal questions that greatly impact on public interest. This is in
keeping with the Courts responsibility under the Constitution to determine whether or not other branches of
governmenthavekeptthemselveswithinthelimitsoftheConstitutionandthelaws,andthattheyhavenotabused
thediscretiongiventhem.5
Finally,asaforementioned,petitionersadvanceaconstitutionalissuewhichdeservestheattentionofthisCourtin
view of its seriousness, novelty and weight as precedent.6 Considering that Senator Gordon is charged with
continuously violating the Constitution by holding incompatible offices, the institution of the instant action by the
petitionersisproper.
II.
AbriefhistoryofthePNRC
AhistoricalaccountofthePNRCscreationisimperativeinordertocomprehendthenatureoftheinstitutionandto
putthingsintheirproperperspective.
Even before its incorporation in 1947, the Red Cross, as an organization, was already in existence in the
Philippines. Apolinario Mabini played an important role in the approval by the Malolos Republic, on February 17,
1899, of the Constitution of the National Association of the Red Cross. Appointed to serve as its president was
Hilario del Rosario de Aguinaldo. On August 29, 1900, International Delegate of Diplomacy Felipe Agoncillo met
withInternationalCommitteeoftheRedCross(ICRC)PresidentGustaveMoyniertolobbyfortherecognitionofthe
Filipino Red Cross Society and the application of the 1864 Geneva Convention to the country during the Filipino
Americanwar.7TheGenevaConventionofAugust22,1864dealtmainlyontherelieftowoundedsoldierswithout
anydistinctionastonationality,ontheneutralityandinviolabilityofmedicalpersonnelandmedicalestablishments
andunitsandontheadoptionofthedistinctivesignoftheredcrossonawhitegroundbyhospitals,ambulances
andevacuationpartiesandpersonnel.8
OnAugust30,1905,aPhilippinebranchoftheAmericanNationalRedCross(ANRC)wasorganized.Thiswaslater
officiallyrecognizedasanANRCchapteronDecember4,1917.In1934,PresidentManuelL.Quezoninitiatedthe
establishment of an independent Philippine Red Cross, but this did not materialize because the Commonwealth
Government at that time could not ratify the Geneva Convention. During the Japanese occupation, a Japanese
controlledPhilippineRedCrosswascreatedtotakecareofinternmentcampsinthecountry.Aftertheliberationof
Manilain1945,localRedCrossofficialsandtheANRCundertooktoreconstitutetheorganization.9TheRepublicof
the Philippines became an independent nation on July 4, 1946, and proclaimed its adherence to the Geneva
Convention on February 14, 1947. On March 22 of that year, the PNRC was officially created when President
ManuelA.RoxassignedRepublicAct(R.A.)No.95.10
PNRCisaGOCC
Section 16, Article XII, of the Philippine Constitution, provides the inflexible imperative for the formation or
organizationofprivatecorporations,asfollows:
Sec. 16. The Congress shall not, except by general law, provide for the formation, organization or regulation of
DelineatingthenatureofaGOCC,comparedtoaprivatecorporation,JusticeCarpioexplainsthisinviolablerulein
Felicianov.CommissiononAudit11inthiswise:
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Webeginbyexplainingthegeneralframeworkunderthefundamentallaw.TheConstitutionrecognizestwoclasses
of corporations. The first refers to private corporations created under a general law. The second refers to
governmentownedorcontrolledcorporationscreatedbyspecialcharters.Section16,ArticleXIIoftheConstitution
provides:
Section16.TheCongressshallnot,exceptbygenerallaw,providefortheformation,organization,orregulationof
The Constitution emphatically prohibits the creation of private corporations except by a general law applicable to
citizens.Thepurposeofthisconstitutionalprovisionistobanprivatecorporationscreatedbyspecialcharters,which
historicallygavecertainindividuals,familiesorgroupsspecialprivilegesdeniedtoothercitizens.
Inshort,Congresscannotenactalawcreatingaprivatecorporationwithaspecialcharter.Suchlegislationwould
be unconstitutional. Private corporations may exist only under a general law. If the corporation is private, it must
necessarilyexistunderagenerallaw.Stateddifferently,onlycorporationscreatedunderagenerallawcanqualify
asprivatecorporations.Underexistinglaws,thatgenerallawistheCorporationCode,exceptthattheCooperative
Codegovernstheincorporationofcooperatives.
The Constitution authorizes Congress to create governmentowned or controlled corporations through special
charters.Sinceprivatecorporationscannothavespecialcharters,itfollowsthatCongresscancreatecorporations
withspecialchartersonlyifsuchcorporationsaregovernmentownedorcontrolled.12
Reason dictates that since no private corporation can have a special charter, it follows that Congress can create
corporations with special charters only if such corporations are governmentowned or controlled.13 To hold
otherwisewouldrundirectlyagainstourfundamentallawor,worse,authorizeimpliedamendmenttoit,whichthis
Courtcannotallow.
ThePNRCwasincorporatedunderR.A.No95,aspeciallaw.FollowingthelogicinFeliciano,itcannotbeanything
butaGOCC.
R.A. No. 95 has undergone amendment through the years.14 Did the amendment of the PNRC Charter have the
effectoftransformingitintoaprivatecorporation?
InCamporedondov.NationalLaborRelationsCommission,15weansweredthisinthenegative.TheCourtsruling
inthatcase,reiteratedinBaluyotv.Holganza,16isdirect,definiteandclear,viz:
Resolvingtheissuesetoutintheopeningparagraphofthisopinion,werulethatthePhilippineNationalRedCross
(PNRC)isagovernmentownedandcontrolledcorporation,withanoriginalcharterunderRepublicActNo.95,as
amended. The test to determine whether a corporation is government owned or controlled, or private in nature is
simple. Is it createdbyitsowncharterfortheexerciseofapublicfunction,orby incorporation under the general
corporation law? Those with special charters are government corporations subject to its provisions, and its
employees are under the jurisdiction of the Civil Service Commission, and are compulsory members of the
GovernmentServiceInsuranceSystem.ThePNRCwasnot"impliedlyconvertedintoaprivatecorporation"simply
becauseitscharterwasamendedtovestinittheauthoritytosecureloans,beexemptedfrompaymentofallduties,
taxes,feesandotherchargesofallkindsonallimportationsandpurchasesforitsexclusiveuse,ondonationsforits
disasterreliefworkandotherservicesandinitsbenefitsandfundraisingdrivesandbeallottedonelotterydrawa
year by the Philippine Charity Sweepstakes Office for the support of its disaster relief operation in addition to its
existinglotterydrawsforbloodprograms.17
InanefforttoavoidtheinescapablecommandofCamporendondo,theponenciaassertsthatthedecisionhasfailed
toconsiderthedefinitionofaGOCCunderSection2(13)oftheIntroductoryProvisionsofExecutiveOrderNo.292
(AdministrativeCodeof1987),whichprovides:
SEC.2.GeneralTermsDefined.xxx
(13) Governmentowned or controlled corporation refers to any agency organized as a stock or nonstock
corporation,vestedwithfunctionsrelatingtopublicneedswhethergovernmentalorproprietaryinnature,andowned
bytheGovernmentdirectlyorthroughitsinstrumentalitieseitherwholly,or,whereapplicableasinthecaseofstock
corporations,totheextentofatleastfiftyone(51)percentofitscapitalstock:Provided,Thatgovernmentownedor
controlledcorporationsmaybefurthercategorizedbytheDepartmentoftheBudget,theCivilServiceCommission,
andtheCommissiononAuditforpurposesoftheexerciseanddischargeoftheirrespectivepowers,functionsand
responsibilitieswithrespecttosuchcorporations.18
Theponenciathenarguesthat,basedonthecriterioninthecitedprovision,PNRCisnotownedorcontrolledbythe
governmentand,thus,isnotaGOCC.
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I respectfully differ. The quoted Administrative Code provision does not pronounce a definition of a GOCC that
straysfromSection16,ArticleXIIoftheConstitution.AsexplainedinPhilippineNationalConstructionCorporationv.
Pabion,etal.,19itmerelydeclaresthataGOCCmayeitherbeastockornonstockcorporation,orthatit"maybe
furthercategorized,"20suggestingthatthedefinitionprovidedintheAdministrativeCodeisbroadenoughtoadmitof
otherdistinctionsastothekindsofGOCCs.21
Rather, crucial in this definition is the reference to the corporation being "vested with functions relating to public
needswhethergovernmentalorproprietary."WhenwerelatethistothePNRCCharter,asamended,wenotethat
Section1ofthecharterstartswiththephrase,"(T)hereisherebycreatedintheRepublicofthePhilippinesabody
corporateandpolitictobethevoluntaryorganizationofficiallydesignatedtoassisttheRepublicofthePhilippinesin
dischargingtheobligationssetforthintheGenevaConventionsxxx".22Itisbeyondcavilthattheobligationsofthe
Republic of the Philippines set forth in the Geneva Conventions are public or governmental in character. If the
PNRCis"officiallydesignatedtoassisttheRepublic,"thenthePNRCis,perforce,engagedintheperformanceof
thegovernmentspublicfunctions.
PNRCis,attheveryleast,
agovernmentinstrumentality
Further,applyingthedefinitionoftermsusedintheAdministrativeCodeof1987,asJusticeCarpiourgesthisCourt
todo,willleadtotheinescapableconclusionthatPNRCisaninstrumentalityofthegovernment.Section2(10)of
thesaidcodedefinesagovernmentinstrumentalityas:
(10) Instrumentality refers to any agency of the National Government not integrated within the department
framework, vested with special functions or jurisdiction by law, endowed with some if not all corporate powers,
administering special funds, and enjoying operational autonomy, usually through a charter. This term includes
regulatoryagencies,charteredinstitutionsandgovernmentownedorcontrolledcorporations.23
The PNRC is vested with the special function of assisting the Republic of the Philippines in discharging its
obligationsundertheGenevaConventions.Itisendowedwithcorporatepowers.Itadministersspecialfundsthe
contributionsofitsmembers,theaidgivenbythegovernment,thesupportextendedtoitbythePhilippineCharity
SweepstakesOffice(PCSO)intermsofallotmentoflotterydraws.24Itenjoysoperationalautonomy,asemphasized
byJusticeCarpiohimself.Andalltheseattributesexistbyvirtueofitscharter.
Significantly,intheUnitedStates,theANRC,theprecursorofthePNRCandlikewiseamemberoftheInternational
FederationofRedCrossandRedCrescentSocieties,25isconsideredasafederalinstrumentality.Addressingthe
issueofwhethertheANRCwasanentityexemptfrompayingunemploymentcompensationtax,theUSSupreme
Court,inDepartmentofEmploymentv.UnitedStates,26characterizedtheRedCrossasaninstrumentalityofthe
federalgovernmentnotcoveredbytheenforcementofthetaxstatuteandentitledtoarefundoftaxespaid
Onthemerits,weholdthattheRedCrossisaninstrumentalityoftheUnitedStatesforpurposesofimmunityfrom
state taxation levied on its operations, and that this immunity has not been waived by congressional enactment.
Althoughthereisnosimpletestforascertainingwhetheraninstitutionissocloselyrelatedtogovernmentalactivity
astobecomeataximmuneinstrumentality,theRedCrossisclearlysuchaninstrumentality.Seegenerally,Sturges,
TheLegalStatusoftheRedCross,56Mich.L.Rev.1(1957).CongresscharteredthepresentRedCrossin1905,
subjectingittogovernmentalsupervisionandtoaregularfinancialauditbytheDefense,thenWar,Department.33
Stat.599,asamended,36U.S.C.s1etseq.ItsprincipalofficerisappointedbythePresident,whoalsoappoints
seven(allgovernmentofficers)oftheremaining49Governors.33Stat.601,asamended,36U.S.C.s5.Bystatute
and Executive Order there devolved upon the Red Cross the right and the obligation to meet this Nation's
commitments under various Geneva Conventions, to perform a wide variety of functions indispensable to the
workings of our Armed Forces around the globe, and to assist the Federal Government in providing disaster
assistance to the States in time of need. Although its operations are financed primarily from voluntary private
contributions,theRedCrossdoesreceivesubstantialmaterialassistancefromtheFederalGovernment.Andtime
andtimeagain,boththePresidentandtheCongresshaverecognizedandactedinrelianceupontheRedCross'
status virtually as an arm of the Government. In those respects in which the Red Cross differs from the usual
governmentagencye.g.,inthatitsemployeesarenotemployeesoftheUnitedStates,andthatgovernmentofficials
do not direct its everyday affairsthe Red Cross is like other institutionse.g., national bankswhose status as tax
immuneinstrumentalitiesoftheUnitedStatesisbeyonddispute.27
ThesameconclusionwasreachedinR.A.Bartonv.AmericanRedCross.28Inthatcase,atransfusionrecipientand
herfamilybroughtactionagainstAmericanRedCrossanditsstatemedicaldirectorunderAlabamaMedicalLiability
Act as well as Alabama tort law for failing to properly test blood sample and failing to timely notify recipient that
donorhadtestedpositiveforhumanimmunodeficiencyvirus(HIV).TheUSDistrictCourtconcludedthattheRed
Crosswasafederalinstrumentalityandwassointertwinedwithandwasessentialtotheoperationofthefederal
government,bothinternationallyanddomestically29thus,itspersonnelwereexemptfromtortliabilityiftheconduct
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complainedofwerewithinthescopeofofficialdutiesandwerediscretionaryinnature.30TheUSCourtofAppeals
lateraffirmedthedecision,andtheUSSupremeCourtdeniedcertiorariandrehearingonthecase.31
Interestingly,whiletheUnitedStatesconsiderstheANRCasitsarmandtheUScourtsupholditsstatusasafederal
instrumentality, ANRC remains an independent, volunteerled organization that works closely with the ICRC on
matters of international conflict and social, political, and military unrest. There is, therefore, no sufficient basis for
JusticeCarpiotoassumethatifthisCourtwillconsiderPNRCasaGOCC,then"itcannotmeritthetrustofalland
cannoteffectivelycarryoutitsmissionasaNationalRedCrossSociety."
Letitbestressedthat,inmuchthesamewayastheANRC,thePNRChasbeencharteredandincorporatedbythe
PhilippineGovernmenttoaiditinthefulfillmentofitsobligationsundertheGenevaConvention.ThePresidentof
theRepublicappointssixofthe36PNRCgovernors.Thoughitdependsprimarilyonvoluntarycontributionsforits
funding,PNRCreceivesfinancialassistancenotonlyfromtheNationalGovernmentandthePCSObutalsothrough
the local government units. PNRC further submits to the President an annual report containing its activities and
showingitsfinancialcondition,aswellasthereceiptsanddisbursements.PNRChasfurtherbeenrecognizedbythe
PhilippineGovernmenttobeanessentialcomponentinitsinternationalanddomesticoperation.Thereisnodoubt
thereforethatPNRCisaGOCCor,ifnot,atleastagovernmentinstrumentality.
ThefactthatthePhilippineortheAmericanNationalRedCrossisagovernmentalinstrumentalitydoesnotaffectits
autonomyandoperationinconformitywiththeFundamentalPrinciplesoftheInternationalRedCross.ThePNRC,
like the ANRC, remains autonomous, neutral and independent from the Government, and vice versa, consonant
withtheprincipleslaiddownintheGenevaConvention.
AsimilarstandingobtainsinthecaseoftheCommissiononHumanRights(CHR).Whileitisagovernmentaloffice,
itisindependent.SeparatistsandinsurgentsdonotconsidertheCHR,orthePNRCinthiscase,astheenemy,but
ratherastheentitytoturntointheeventofinjurytotheirconstitutionalrights,fortheCHR,ortotheirphysicalbeing,
forthePNRC.
ThePNRCCharterdoesnotviolate
theconstitutionalproscription
againstthecreationofprivate
corporationsbyspeciallaw
Considering that the PNRC is not a private corporation, but a GOCC or a government instrumentality, then its
charterdoesnotviolatetheconstitutionalprovisionthatCongresscannot,exceptbyagenerallaw,provideforthe
formation, organization or regulation of private corporations, unless such corporations are owned or controlled by
theGovernment.32WehavealreadysettledthisissueinCamporedondoandinBaluyot.Letitbeemphasizedthat,
in those cases, this Court has found nothing wrong with the PNRC Charter. We have simply applied the
Constitution,andinFeliciano,thisCourthasexplainedthemeaningoftheconstitutionalprovision.
IrespectfullysubmitthatwearenotpreparedtoreversetherulingofthisCourtinthesaidcases.Toruleotherwise
willcreateanunsettlingrippleeffectinnumerousdecisionsofthisCourt,includingthosedealingwiththejurisdiction
oftheCivilServiceCommission(CSC)andtheauthorityoftheCommissiononAudit(COA),amongothers.
Furthermore,tosubscribetothepropositionthatSection1ofthePNRCCharter,whichdealswiththecreationand
incorporationoftheorganization,isinvalidforbeingviolativeoftheaforesaidconstitutionalproscription,buttherest
of the provisions in the PNRC Charter remains valid, is to reach an absurd situation in which obligations are
imposedonandaframeworkforitsoperationislaiddownforalegallynonexistingentity.IfSection1ofthePNRC
Charterwereimpulsivelyinvalidated,whatwillremainarethefollowingprovisions,whichwillhavenospecificframe
ofreference
SECTION2.Thenameofthiscorporationshallbe"ThePhilippineNationalRedCross"andbythatnameshallhave
perpetualsuccessionwiththepowertosueandbesuedtoownandholdsuchrealandpersonalestateasshallbe
deemedadvisableandtoacceptbequests,donationsandcontributionsofpropertyofallclassesforthepurposeof
thisCorporationhereinaftersetforthtoadoptasealandtoalteranddestroythesameatpleasureandtohavethe
righttoadoptandtouse,incarryingoutitspurposeshereinafterdesignated,asanemblemandbadge,aredGreek
crossonawhiteground,thesameashasbeendescribedintheGenevaConventions,andadoptedbytheseveral
nationsratifyingoradheringtheretotoordainandestablishbylawsandregulationsnotinconsistentwiththelaws
oftheRepublicofthePhilippines,andgenerallytodoallsuchactsandthingsasmaybenecessarytocarryinto
effecttheprovisionsofthisActandpromotethepurposesofsaidorganizationandthecorporationherebycreated
is designated as the organization which is authorized to act in matters of relief under said Convention. In
accordancewiththeGenevaConventions,theissuanceofthedistinctiveRedCrossemblemtomedicalunitsand
establishments,personnelandmaterialsneutralizedintimeofwarshallbelefttothemilitaryauthorities.Thered
Greek cross on a white ground, as has been described by the Geneva Conventions is not, and shall not be
construedasareligioussymbol,andshallhaveequalefficacyandapplicabilitytopersonsofallfaiths,creedsand
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beliefs. The operational jurisdiction of the Philippine National Red Cross shall be over the entire territory of the
Philippines.
SECTION3.ThatthepurposesofthisCorporationshallbeasfollows:
a.Toprovidevolunteeraidtothesickandwoundedofarmedforcesintimeofwar,inaccordancewiththe
spirit of and under the conditions prescribed by the Geneva Conventions to which the Republic of the
Philippinesproclaimeditsadherence
b. For the purposes mentioned in the preceding subsection, to perform all duties devolving upon the
CorporationasaresultoftheadherenceoftheRepublicofthePhilippinestothesaidConvention
c.Toactinmattersofvoluntaryreliefandinaccordancewiththeauthoritiesofthearmedforcesasamedium
ofcommunicationbetweenpeopleoftheRepublicofthePhilippinesandtheirArmedForces,intimeofpeace
andintimeofwar,andtoactinsuchmattersbetweensimilarnationalsocietiesofothergovernmentsandthe
GovernmentsandpeopleandtheArmedForcesoftheRepublicofthePhilippines
d.Toestablishandmaintainasystemofnationalandinternationalreliefintimeofpeaceandintimeofwar
and apply the same in meeting and emergency needs caused by typhoons, flood, fires, earthquakes, and
other natural disasters and to devise and carry on measures for minimizing the suffering caused by such
disasters
e.Todeviseandpromotesuchotherservicesintimeofpeaceandintimeofwarasmaybefounddesirable
inimprovingthehealth,safetyandwelfareoftheFilipinopeople
f. To devise such means as to make every citizen and/or resident of the Philippines a member of the Red
Cross.
SECTION4.Infurtheranceofthepurposesmentionedintheprecedingsubparagraphs,thePhilippineNationalRed
Crossshall:
a. Be authorized to secure loans from any financial institution which shall not exceed its budget of the
previousyear.
b.Beexemptfrompaymentofallduties,taxes,fees,andotherchargesofallkindsonallimportationsand
purchasesforitsexclusiveuse,ondonationsforitsdisasterreliefworkandotherRedCrossservices,andin
itsbenefitsandfundraisingdrivesallprovisionsoflawtothecontrarynotwithstanding.
c. Be allotted by the Philippine Charity Sweepstakes Office one lottery draw yearly for the support of its
disasterreliefoperationsinadditiontoitsexistinglotterydrawsfortheBloodProgram.
SECTION5.MembershipinthePhilippineNationalRedCrossshallbeopentoentirepopulationinthePhilippines
regardlessofcitizenship.AnycontributiontothePhilippineNationalRedCrossAnnualFundCampaignshallentitle
thecontributortomembershipforoneyearandsaidcontributionshallbedeductibleinfullfortaxationpurposes.
SECTION 6. The governing powers and authority shall be vested in a Board of Governors composed of thirty
delegatesinbiennialconventionsandtheremainingsixshallbeelectedbythetwentyfourmembersoftheBoard
alreadychosen.AtleastonebutnotmorethanthreeofthePresidentialappointeesshallbechosenfromtheArmed
ForcesofthePhilippines.
a.ThetermofofficeofallmembersoftheboardofGovernorsshallbefouryears.AnymemberoftheBoard
ofGovernorwhohasservedtwoconsecutivefulltermsoffouryearseachshallbeineligibleformembership
ontheBoardforatleasttwoyearsanytermservedtocoverunexpiredtermsofofficeofanygovernorwillnot
be considered in this prohibition in serving two consecutive full terms, and provided, however, that terms
servedformorethantwoyearsshallbeconsideredafullterm.
b.VacanciesintheBoardofGovernorscausedbydeathorresignationshallbefilledbyelectionbytheBoard
ofGovernorsatitsnextmeeting,exceptthatvacanciesamongthePresidentialappointeesshallbefilledby
thePresident.
SECTION7.ThePresidentofthePhilippinesshallbetheHonoraryPresidentofthePhilippineNationalRedCross.
The officers shall consist of a Chairman, a ViceChairman, a Secretary, a Treasurer, a Counselor, an Assistant
Secretary and an Assistant Treasurer, all of whom shall be elected by the Board of Governors from among its
membershipforatermoftwoyearsandmaybereelected.Theelectionofofficersshalltakeplacewithinsixtydays
afterallthemembersoftheBoardofGovernorshavebeenchosenandhavequalified.
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SECTION 8. The Biennial meeting of chapter delegates shall be held on such date and such place as may be
specified by the Board of Governors to elect members of the Board of Governors and advice the Board of
Governors on the activities of the Philippine National Red Cross Provided, however that during periods of great
emergency,theBoardofGovernorsinitsdiscretionmaydeterminethatthebestinterestofthecorporationshallbe
servedbypostponingsuchbiennialmeeting.
SECTION 9. The power to ordain, adopt and amend bylaws and regulations shall be vested in the Board of
Governors.
SECTION10.ThemembersoftheBoardofGovernors,aswellastheofficersofthecorporation,shallservewithout
compensation.ThecompensationofthepaidstaffofthecorporationshallbedeterminedbytheBoardofGovernors
upontherecommendationoftheSecretaryGeneral.
SECTION11.Asanationalvoluntaryorganization,thePhilippineNationalRedCrossshallbefinancedprimarilyby
contributionsobtainedthroughsolicitationcampaignsthroughouttheyearwhichshallbeorganizedbytheBoardof
GovernorsandconductedbytheChaptersintheirrespectivejurisdictions.Thesefundraisingcampaignsshallbe
conductedindependentlyofotherfunddrivesandserviceneeds.
SECTION12.TheBoardofGovernorsshallpromulgaterulesandregulationsfortheorganizationoflocalunitsof
thePhilippineNationalRedCrosstobeknownasChapters.Saidrulesandregulationsshallfixtherelationshipof
theChapterstotheCorporation,definetheirterritorialjurisdictions,anddeterminethenumberofdelegatesforeach
chapterbasedonpopulation,fundcampaignpotentialsandserviceneeds.
SECTION13.TheCorporationshall,attheendofeverycalendaryearsubmittothePresidentofthePhilippinesan
annual report containing the activities of the Corporation showing its financial condition, the receipts and
disbursements.
SECTION 14. It shall be unlawful for any person to solicit, collect or receive money, materials, or property of any
kindbyfalselyrepresentingorpretendinghimselftobeamember,agentorrepresentativeofthePhilippineNational
RedCross.
SECTION15.TheuseofthenameRedCrossisreservedexclusivelytothePhilippineNationalRedCrossandthe
useoftheemblemoftheredGreekcrossonawhitegroundisreservedexclusivelytothePhilippineNationalRed
Cross,medicalservicesoftheArmedForcesofthePhilippinesandsuchothermedicalfacilitiesorotherinstitutions
as may be authorized by the Philippine National Red Cross as provided under Article 44 of the Geneva
Conventions.ItshallbeunlawfulforanyotherpersonorentitytousethewordsRedCrossorGenevaCrossorto
use the emblem of the red Greek cross on a white ground or any designation, sign, or insignia constituting an
imitationthereofforanypurposewhatsoever.
SECTION 16. As used in this Decree, the term person shall include any legal person, group, or legal entity
whatsoevernature,andanypersonviolatinganysectionofthisArticleshall,uponconvictionthereforebeliabletoa
find of not less than one thousand pesos or imprisonment for a term not exceeding one year, or both, at the
discretionofthecourt,foreachandeveryoffense.Incasetheviolationiscommittedbyacorporationorassociation,
thepenaltyshalldevolveuponthepresident,directororanyotherofficerresponsibleforsuchviolation.
SECTION17.AllactsorpartsofactswhichareinconsistentwiththeprovisionsofthisDecreeareherebyrepealed.
Sections 2 to 17 of R.A. No. 95, as amended, are not separable from Section 1, the provision creating and
incorporating the PNRC, and cannot, by themselves, stand independently as law. The PNRC Charter obviously
doesnotcontainaseparabilityclause.
Theconstitutionalityof
alawispresumed
Two other important points militate against the declaration of Section 1 of the PNRC Charter as invalid and
unconstitutional,namely:(1)respondentdoesnotquestiontheconstitutionalityofthesaidprovisionand(2)every
lawenjoysthepresumptionofconstitutionality.
Settledisthedoctrinethatallreasonabledoubtsshouldberesolvedinfavoroftheconstitutionalityofastatute. 33
Thepresumptionisthatthelegislatureintendedtoenactavalid,sensibleandjustlawandonewhichoperatesno
further than may be necessary to effectuate the specific purpose thereof.34 Justice Carpio, in Kapisanan ng mga
KawaningEnergyRegulatoryBoardv.Barin,35evenechoestheprinciplethat"tojustifythenullificationofalaw,
theremustbeaclearandunequivocalbreachoftheConstitution."
Here, as in Camporedondo and Baluyot, there is no clear showing that the PNRC Charter runs counter to the
Constitution.And,againinthesametoneasinMontesclarosv.CommissiononElections,"[theparties]arenoteven
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assailingtheconstitutionalityof[thePNRCCharter]."Abecomingcourtesytoacoequalbranchshouldthusimpel
thisCourttorefrainfromunceremoniouslyinvalidatingalegislativeact.
Deleteriouseffectswillresult
ifPNRCisdeclaredaprivate
corporation,amongwhichare
itsconsequentdestructionas
aninstitutionandtheRepublics
shirkingitsobligationunder
theGenevaConvention
ThehypothesisthatPNRCisaprivatecorporationhasfarreachingimplications.Asmentionedearlier,itwillbea
reversalofthedoctrineslaiddowninCamporedondoandBaluyot,anditwillhaveanunsettlingrippleeffectonother
numerous decisions of the Court, including those dealing with the jurisdiction of the CSC and the authority of the
COA.
Not only that. If PNRC is considered as a private corporation, then, this will lead to its ultimate demise as an
institution.ItsemployeeswillnolongerbecoveredbytheGovernmentServiceInsuranceSystem.Itcannolonger
beextendedtaxexemptionsandofficialimmunityanditcannotanymorebegivensupport,financialorotherwise,by
theNationalGovernment,thelocalgovernmentunitsandthePCSObecausethesewillviolatenotonlytheequal
protectionclauseintheConstitution,butalsopenalstatutes.
AndifPNRCisconsequentlyobliterated,theRepublicwillbeshirkingitsresponsibilitiesandobligationsunderthe
GenevaConvention.
This Court then has to be very careful in the resolution of this case and in making a declaration that will have
unintendedyetdeleteriousconsequences.TheCourtmustnotarbitrarilydeclarealawunconstitutionaljusttosave
a single individual from the unavoidable consequences of his transgression of the Constitution, even if it be
unintentionalanddoneingoodfaith.
Therespondentholdstwo
incompatibleoffices
inviolationoftheConstitution
Section 13, Article VI of the Constitution explicitly provides that "no Senator or Member of the House of
Representatives may hold any other office or employment in the government, or any subdivision, agency or
instrumentality thereof, including [GOCCs] or their subsidiaries, during his term without forfeiting his seat."36 In
Adazav.Pacana,Jr.,37theCourt,construingaparallelprovisioninthe1973Constitution,hasruledthat
The language used in the abovecited section is plain, certain and free from ambiguity. The only exceptions
mentioned therein are the offices of prime minister and cabinet member. The wisdom or expediency of the said
provisionisamatterwhichisnotwithintheprovinceoftheCourttodetermine.
Apublicofficeisapublictrust.Itiscreatedfortheinterestandthebenefitofthepeople.Assuch,aholderthereof
"issubjecttosuchregulationsandconditionsasthelawmayimpose"and"hecannotcomplainofanyrestrictions
whichpublicpolicymaydictateonhisholdingofmorethanoneoffice."Itisthereforeofnoavailtopetitionerthatthe
systemofgovernmentinotherstatesallowsalocalelectiveofficialtoactasanelectedmemberoftheparliamentat
thesametime.Thedictateofthepeopleinwhomlegalsovereigntyliesisexplicit.Itprovidesnoexceptionssavethe
twoofficesspecificallycitedintheabovequotedconstitutionalprovision.Thus,whileitmaybesaidthatwithinthe
purely parliamentary system of government no incompatibility exists in the nature of the two offices under
consideration,asincompatibilityisunderstoodincommonlaw,theincompatibilityhereinpresentisonecreatedby
nolessthantheconstitutionitself.Inthecaseatbar,thereisnoquestionthatpetitionerhastakenhisoathofoffice
asanelectedMambabatasPambansaandhasbeendischarginghisdutiesassuch.Inthelightoftheoftmentioned
constitutional provision, this fact operated to vacate his former post and he cannot now continue to occupy the
same,norattempttodischargeitsfunctions.38
ThereisnodoubtthatthelanguageinSection13,ArticleVIisunambiguousitrequiresnoindepthconstruction.
However,astheconstitutionalprovisioniswordedatpresent,thethenrecognizedexceptionadvertedtoinAdaza,
i.e., offices of prime minister and cabinet member, no longer holds true given the reversion to the presidential
systemandabicameralCongressinthe1987Constitution.Thereremains,however,asingleexceptiontotherule.
Civil Liberties Union v. Executive Secretary,39 reiterated in the fairly recent Public Interest Center, Inc. v. Elma,40
recognizesthatapositionheldinanexofficiocapacitydoesnotviolatetheconstitutionalproscriptionontheholding
of multiple offices. Interpreting the equivalent section in Article VII on the Executive Department,41 the Court has
decreedinCivilLibertiesthat
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The prohibition against holding dual or multiple offices or employment under Section 13, Article VII of the
Constitution must not, however, be construed as applying to posts occupied by the Executive officials specified
thereinwithoutadditionalcompensationinanexofficiocapacityasprovidedbylawandasrequiredbytheprimary
functions of said officials office. The reason is that these posts do not comprise "any other office" within the
contemplation of the constitutional prohibition but are properly an imposition of additional duties and functions on
saidofficials.xxx
xxxx
xxxxThetermexofficiomeans"fromofficebyvirtueofoffice."Itreferstoan"authorityderivedfromofficial
character merely, not expressly conferred upon the individual character, but rather annexed to the official
position."Exofficiolikewisedenotesan"actdoneinanofficialcharacter,orasaconsequenceofoffice,and
withoutanyotherappointmentorauthorityotherthanthatconferredbytheoffice."Anexofficiomemberofa
board is one who is a member by virtue of his title to a certain office, and without further warrant or
appointment.xxx
xxxx
Theexofficiopositionbeingactuallyandinlegalcontemplationpartoftheprincipaloffice,itfollowsthattheofficial
concernedhasnorighttoreceiveadditionalcompensationforhisservicesinthesaidposition.Thereasonisthat
theseservicesarealreadypaidforandcoveredbythecompensationattachedtohisprincipaloffice.xxx42
In the instant case, therefore, we must decide whether the respondent holds the chairmanship of PNRC in an ex
officio capacity. Presidential Decree (P.D.) No. 1264, amending R.A. No. 95, provides for the composition of the
governingauthorityofthePNRCandthemanneroftheirappointmentorelection,thus:
Section 6. The governing powers and authority shall be vested in a Board of Governors composed of thirty
delegatesinbiennialconventionsandtheremainingsixshallbeelectedbythetwentyfourmembersoftheBoard
alreadychosen.AtleastonebutnotmorethanthreeofthePresidentialappointeesshallbechosenfromtheArmed
ForcesofthePhilippines.
a.ThetermofofficeofallmembersoftheboardofGovernorsshallbefouryears.AnymemberoftheBoard
ofGovernorwhohasservedtwoconsecutivefulltermsoffouryearseachshallbeineligibleformembership
ontheBoardforatleasttwoyearsanytermservedtocoverunexpiredtermsofofficeofanygovernorwillnot
be considered in this prohibition in serving two consecutive full terms, and provided, however, that terms
servedformorethantwoyearsshallbeconsideredafullterm.
b.VacanciesintheBoardofGovernorscausedbydeathorresignationshallbefilledbyelectionbytheBoard
ofGovernorsatitsnextmeeting,exceptthatvacanciesamongthePresidentialappointeesshallbefilledby
thePresident.
Section7.ThePresidentofthePhilippinesshallbetheHonoraryPresidentofthePhilippineNationalRedCross.
The officers shall consist of a Chairman, a ViceChairman, a Secretary, a Treasurer, a Counselor, an Assistant
Secretary and an Assistant Treasurer, all of whom shall be elected by the Board of Governors from among its
membershipforatermoftwoyearsandmaybereelected.Theelectionofofficersshalltakeplacewithinsixtydays
afterallthemembersoftheBoardofGovernorshavebeenchosenandhavequalified.
Nowhere does it say in the law that a member of the Senate can sit in an ex officio capacity as chairman of the
PNRCBoardofGovernors.ChairmanshipofthePNRCBoardisneitheranextensionofthelegislativepositionnor
isitinaidoflegislativeduties.43Likewise,thepositionisneitherderivedfromonebeingamemberoftheSenate
nor is it annexed to the Senatorial position. Stated differently, the PNRC chairmanship does not flow from ones
election as Senator of the Republic. Applying Civil Liberties, we can then conclude that the chairmanship of the
PNRCBoardisnotheldinanexofficiocapacitybyamemberofCongress.
ThefactthatthePNRCChairmanoftheBoardisnotappointedbythePresident44andthefactthattheformerdoes
notreceiveanycompensation45donotatallgivethesaidpositionanexofficiocharactersuchthattheoccupant
thereof becomes exempt from the constitutional proscription on the holding of multiple offices. As held in Public
InterestCenter,theabsenceofadditionalcompensationbeingreceivedbyvirtueofthesecondpostisnotenough,
what matters is that the second post is held by virtue of the functions of the first office and is exercised in an ex
officiocapacity.46 Hence, Senator Gordon, in assuming the chairmanship of the PNRC Board of Governors while
being a member of the Senate, is clearly violating Section 13, Article VI of the Constitution. While we can only
hypothesize on the extent of the incompatibility between the two officesas stated in petitioners memorandum,
SenatorGordonsholdingofbothofficesmayresultinadividedfocusofhislegislativefunctions,andinaconflictof
interest as when a possible amendment of the PNRC Charter is lobbied in Congress or when the PNRC and its
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officials become subjects of legislative inquiries.47 Let it be stressed that, as in Adaza, the incompatibility herein
presentisonecreatedbynolessthantheConstitutionitself.48
I hasten to add that Senator Gordons chairmanship of the PNRC Board cannot be likened to the membership of
severallegislatorsintheLegislativeExecutiveDevelopmentAdvisoryCouncil,intheCouncilofState,intheBoard
ofRegentsofstateuniversities,andintheJudiciary,ExecutiveandLegislativeAdvisoryandConsultativeCouncil,
because,inthesebodies,themembershipofthelegislatorsisheldinanexofficiocapacityorasanextensionof
theirlegislativefunctions.49
INVIEWOFTHEFOREGOING,IvotetoGRANTthepetition.
ANTONIOEDUARDOB.NACHURA
Footnotes
1Rollo,pp.35.
2SeeDelRosariov.Montaa,G.R.No.134433,May28,2004,430SCRA109,116DelMarv.Philippine
AmusementandGamingCorp.,400Phil.307,326327Sen.DefensorSantiagov.Guingona,Jr.,359Phil.
276,295296(1998).
3G.R.No.170338,December23,2008.
4G.R.No.168338,February15,2008,545SCRA441.
5Id.
6 Garcillano v. the House of Representatives Committees on Public Information, Public Order and Safety,
National Defense and Security, Information and Communications Technology, and Suffrage and Electoral
Reforms,supranote3.
7<http://www.redcross.org.ph/Site/PNRC/History.aspx>(visitedJuly9,2009).
8<http://www.icrc.org/ihl.nsf/INTRO/120?OpenDocument>(visitedJuly9,2009).
9Supranote7.
10Entitled"AnActToIncorporatethePhilippineNationalRedCross."
11464Phil.439(2004).
12Id.at454455citationsomittedandemphasissupplied.
13Id.at455.
14 The amendatory laws are Republic Act No. 855 (January 11, 1953), Republic Act No. 6373 (August 16,
1971)andPresidentialDecreeNo.1264(December15,1977).
15370Phil.901,906(1999).
16382Phil.131(2000)
17Id.at136137.
18Emphasissupplied.
19377Phil.1019(1999).
20SeeforinstanceProclamationNo.50,whichcategorizedGOCCsintoparentandsubsidiarycorporations,
citedinPhilippineNationalConstructionCorporationv.Pabion,etal.,supra.
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21 See also the definition of a GOCC in Section 2(a) of Administrative Order No. 59 (December 5, 1988),
whichprovides:
"xxx
(a)Governmentownedand/orcontrolledcorporation,hereinafterreferredtoasGOCCorgovernment
corporation,isacorporationwhichiscreatedbyspeciallawororganizedundertheCorporationCode
inwhichtheGovernment,directlyorindirectly,hasownershipofthemajorityofthecapitalorhasvoting
control Provided that an acquired asset corporation as defined in the next paragraph shall not be
consideredasGOCCorgovernmentcorporation."
22Underscoringsupplied.
23Emphasissupplied.
24SeeSection4(c)ofR.A.No.95,asamended.
25
<http://www.redcross.org/portal/site/en/menuitem.86f46a12f382290517a8f210b80f78a0/?vgnextoi
d=271a2aebdaadb110VgnVCM10000089f0870aRCRD>(visitedJuly9,2009).
26385U.S.355,35836087S.Ct.464,467(1966).
27Id.
28829F.Supp.1290,1311(1993)
29826F.Supp.412,413414(1993).
30Suprenote27.
3143F.3d67891994)516U.S.822(1995)516U.S.1002,116S.Ct.550(1995).
32Section16,ArticleXII,PhilippineConstitution.
33 Beltran v. Secretary of Health, G.R. Nos. 133640, 133661 and 139147, November 25, 2005, 476 SCRA
168,199.
34Perezv.People,G.R.No.164763,February12,2008,544SCRA532,565.
35G.R.No.150974,June29,2007,526SCRA1,8.
36Thefulltextoftheprovisionreads:
"Section 13. No Senator or Member of the House of Representatives may hold any other office or
employment in the government, or any subdivision, agency or instrumentality thereof, including
governmentownedorcontrolledcorporationsortheirsubsidiaries,duringhistermwithoutforfeitinghis
seat. Neither shall he be appointed to any office which may have been created or the emoluments
thereofincreasedduringthetermforwhichhewaselected."
37No.L68159,March18,1985,135SCRA431.
38Id.at434435emphasissupplied.
39G.R.No.83896,February22,1991,194SCRA317.
40G.R.No.138965,June30,2006,494SCRA53,6364.
41Section13,ArticleVIIoftheConstitutionprovidesinfull:
"Section 13. The President, VicePresident, the Members of the Cabinet, and their deputies or
assistantsshallnot,unlessotherwiseprovidedinthisConstitution,holdanyotherofficeoremployment
during their tenure. They shall not, during said tenure, directly or indirectly, practice any other
profession, participate in any business, or be financially interested in any contract with, or in any
franchise,orspecialprivilegegrantedbytheGovernmentoranysubdivision,agencyorinstrumentality
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G.R. No. 175352
thereof,includinggovernmentownedorcontrolledcorporationsortheirsubsidiaries.Theyshallstrictly
avoidconflictofinterestintheconductoftheiroffice.
"The spouse and relatives by consanguinity or affinity within the fourth civil degree of the President
shallnotduringhistenurebeappointedasMembersoftheConstitutionalCommissions,ortheOffice
of the Ombudsman, or as Secretaries, Undersecretaries, chairmen or head of bureaus or offices,
includinggovernmentownedorcontrolledcorporationsandtheirsubsidiaries."
42CivilLibertiesUnionv.ExecutiveSecretary,supranote5,at331335emphasissupplied.
43SeeCruz,PhilippinePoliticalLaw,1998ed.,p.129.
44SeeSection7ofP.D.No.1264.
45Section10ofP.D.No.1264provides:
"Section10.ThemembersoftheBoardofGovernors,aswellastheofficersofthecorporation,shall
servewithoutcompensation.Thecompensationofthepaidstaffofthecorporationshallbedetermined
bytheBoardofGovernorsupontherecommendationoftheSecretaryGeneral."
46PublicInterestCenterv.Elma,supranote6,at63.
47Rollo,p.28.
48Adazav.Pacana,Jr.,supranote3.
49SeeR.A.No.7640,ExecutiveOrder(E.O.)No.305,Seriesof1987R.A.No.8292,R.A.No.9500,and
theJELACMemorandumofAgreement
TheLawphilProjectArellanoLawFoundation
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