PHILCOMSAT VS.

Senate
G.R. No. 180308
June 19, 2012
Facts: Philippine Communications Satellite Corporation (PHILCOMSAT), is a
wholly-owned subsidiary of the Philippine Overseas Telecommunications
Corporation (POTC) which the government holds a 35% interest in shares of
stocks. Petitioner PHILCOMSAT Holdings Corporation (PHC) is a private
corporation whose main operation is collecting the money market interest
income of PHILCOMSAT. The government, through the PCGG, regularly
received cash dividends from 1986 to 1996. However, POTC started to incur
losses in 1998 and ballooned tremendously in 2005.
In view of the losses being incurred by the government and to protect
its interest in POTC, Sen. Miriam Santiago introduced Proposed Senate
Resolution (PSR) No. 455 to conduct an inquiry, in aid of legislation, to the
anomalous losses by POTC, PHILCOMSAT AND PHC. PSR No. 455 was referred
to Committee on Government Corporations and Public Enterprises. The
committee found overwhelming mismanagement over the POTC,
PHILCOMSAT and PHC.
Issue: Is the power to conduct legislative inquiries vested only on the Senate
or also on its committees?
Ruling:
Section 21, Article VI clearly states that the Senate or the House
of Representatives or any of its respective committees may conduct inquiries
in aid of legislation. The Court explained that such conferral of the legislative
power of inquiry upon any committee of Congress must carry with it all
powers necessary and proper for its effective discharge.
A Senate or a House of Representatives committee has a constitutional
mandate to conduct legislative inquiries.