9/3/2015 G.R. No.

175352

ENBANC

DANTEV.LIBAN, G.R.No.175352
REYNALDOM.BERNARDO,
andSALVADORM.VIARI, Present:
Petitioners,
PUNO,C.J.,
QUISUMBING,
YNARESSANTIAGO,
CARPIO,
CORONA,


CARPIOMORALES,
versus CHICONAZARIO,
VELASCO,JR.,
NACHURA,
LEONARDODECASTRO,
BRION,
PERALTA,and


BERSAMIN,JJ.

RICHARDJ.GORDON,
Respondent.
Promulgated:
July15,2009

xx

DECISION

CARPIO,J.:

TheCase

ThisisapetitiontodeclareSenatorRichardJ.Gordon(respondent)ashavingforfeitedhis
seatintheSenate.

TheFacts

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Petitioners Dante V. Liban, Reynaldo M. Bernardo, and Salvador M. Viari (petitioners)

filedwiththisCourtaPetitiontoDeclareRichardJ.GordonasHavingForfeitedHisSeat
in the Senate. Petitioners are officers of the Board of Directors of the Quezon City Red
CrossChapterwhilerespondentisChairmanofthePhilippineNationalRedCross(PNRC)
BoardofGovernors.

[1]
During respondents incumbency as a member of the Senate of the Philippines, he was
electedChairmanofthePNRCduringthe23February2006meetingofthePNRCBoardof
Governors. Petitioners allege that by accepting the chairmanship of the PNRC Board of
Governors,respondenthasceasedtobeamemberoftheSenateasprovidedinSection13,
ArticleVIoftheConstitution,whichreads:

SEC.13.NoSenatororMemberoftheHouseofRepresentativesmayholdany
otherofficeoremploymentintheGovernment,oranysubdivision,agency,or
instrumentality thereof, including governmentowned or controlled
corporations or their subsidiaries, during his term without forfeiting his seat.
Neithershallhebeappointedtoanyofficewhichmayhavebeencreatedorthe
emolumentsthereofincreasedduringthetermforwhichhewaselected.
[2]
Petitioners cite Camporedondo v. NLRC, which held that the PNRC is a government
owned or controlled corporation. Petitioners claim that in accepting and holding the
position of Chairman of the PNRC Board of Governors, respondent has automatically
[3]
forfeitedhisseatintheSenate,pursuanttoFloresv.Drilon, whichheldthatincumbent
nationallegislatorslosetheirelectivepostsupontheirappointmenttoanothergovernment
office.

In his Comment, respondent asserts that petitioners have no standing to file this petition
whichappearstobeanactionforquowarranto,sincethepetitionallegesthatrespondent
committed an act which, by provision of law, constitutes a ground for forfeiture of his
public office. Petitioners do not claim to be entitled to the Senate office of 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
quowarrantoinhisownname.Ifthepetitionisoneforquowarranto,itisalreadybarredby
prescription since under Section 11, Rule 66 of the Rules of Civil Procedure, the action
should be commenced within one year after the cause of the public officers forfeiture of

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office.Inthiscase,respondenthasbeenworkingasaRedCrossvolunteerforthepast40
years.RespondentwasalreadyChairmanofthePNRCBoardofGovernorswhenhewas
electedSenatorinMay2004,havingbeenelectedChairmanin2003andreelectedin2005.

Respondent contends that even if the present petition is treated as a taxpayers suit,
petitionerscannotbeallowedtoraiseaconstitutionalquestionintheabsenceofanyclaim
that they suffered some actual damage or threatened injury as a result of the allegedly
illegal act of respondent. Furthermore, taxpayers are allowed to sue only when there is a
claimofillegaldisbursementofpublicfunds,orthatpublicmoneyisbeingdivertedtoany
improper purpose, or where petitioners seek to restrain respondent from enforcing an
invalidlawthatresultsinwastageofpublicfunds.

Respondent also maintains that if the petition is treated as one for declaratory relief, this
Courtwouldhavenojurisdictionsinceoriginaljurisdictionfordeclaratoryrelieflieswith
theRegionalTrialCourt.

Respondent further insists that the PNRC is not a governmentowned or controlled
corporationandthattheprohibitionunderSection13,ArticleVIoftheConstitutiondoes
notapplyinthepresentcasesincevolunteerservicetothePNRCisneitheranofficenoran
employment.

IntheirReply,petitionersclaimthattheirpetitionisneitheranactionforquowarrantonor
anactionfordeclaratoryrelief.Petitionersmaintainthatthepresentpetitionisataxpayers
suitquestioningtheunlawfuldisbursementoffunds,consideringthatrespondenthasbeen
drawinghissalariesandothercompensationasaSenatorevenifheisnolongerentitledto
his office. Petitioners point out that this Court has jurisdiction over this petition since it
involvesalegalorconstitutionalissuewhichisoftranscendentalimportance.
TheIssues

Petitionersraisethefollowingissues:

1. Whether the Philippine National Red Cross (PNRC) is a government owned or
controlledcorporation

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2. Whether Section 13, Article VI of the Philippine Constitution applies to the case of
respondentwhoisChairmanofthePNRCandatthesametimeaMemberoftheSenate

3. Whether respondent should be automatically removed as a Senator pursuant to
Section13,ArticleVIofthePhilippineConstitutionand

[4]
4.Whetherpetitionersmaylegallyinstitutethispetitionagainstrespondent.



The substantial issue boils down to whether the office of the PNRC Chairman is a
government office or an office in a governmentowned or controlled corporation for
purposesoftheprohibitioninSection13,ArticleVIoftheConstitution.

TheCourtsRuling

Wefindthepetitionwithoutmerit.

PetitionersHaveNoStandingtoFilethisPetition

Acarefulreadingofthepetitionrevealsthatitisanactionforquowarranto.Section1,Rule
66oftheRulesofCourtprovides:

Section 1. Action by Government against individuals. An action for the

usurpationofapublicoffice,positionorfranchisemaybecommencedbya
verified petition brought in the name of the Republic of the Philippines
against:
(a) A person who usurps, intrudes into, or unlawfully holds or exercises a public office,
positionorfranchise
(b)Apublicofficerwhodoesorsuffersanactwhichbyprovisionoflaw,constitutesagroundforthe
forfeitureofhisofficeor
(c)AnassociationwhichactsasacorporationwithinthePhilippineswithoutbeinglegallyincorporatedor
withoutlawfulauthoritysotoact.(Emphasissupplied)

Petitionersallegeintheirpetitionthat:
4.RespondentbecametheChairmanofthePNRCwhenhewaselectedassuch
duringtheFirstRegularLuncheonMeetingoftheBoardofGovernorsofthe
PNRCheldonFebruary23,2006,theminutesofwhichisheretoattachedand
madeintegralparthereofasAnnexA.
5. Respondent was elected as Chairman of the PNRC Board of Governors, during his
incumbencyasaMemberoftheHouseofSenateoftheCongressofthePhilippines,having
beenelectedassuchduringthenationalelectionslastMay2004.

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6. Since his election as Chairman of the PNRC Board of Governors, which position he duly accepted,
respondenthasbeenexercisingthepowersanddischargingthefunctionsanddutiesofsaidoffice,despite
thefactthatheisstillasenator.
7.Itistherespectfulsubmissionofthepetitioner[s]thatbyacceptingthechairmanshipoftheBoardof
GovernorsofthePNRC,respondenthasceasedtobeaMemberoftheHouseofSenateasprovided
inSection13,ArticleVIofthePhilippineConstitution,xxx
xxxx
10.ItisrespectfullysubmittedthatinacceptingthepositionofChairmanoftheBoardofGovernorsof
the PNRC on February 23, 2006, respondent has automatically forfeited his seat in the House of
Senateand,therefore,haslongceasedtobeaSenator,pursuanttotherulingofthisHonorableCourtin
thecaseofFLORES,ETAL.VS.DRILONANDGORDON,G.R.No.104732,xxx
11.Despitethefactthatheisnolongerasenator,respondentcontinuestoactassuchandstillperformsthe
powers,functionsanddutiesofasenator,contrarytotheconstitution,lawandjurisprudence.
12.Unlessrestrained,therefore,respondentwillcontinuetofalselyactandrepresenthimselfasasenator
ormemberoftheHouseofSenate,collectingthesalaries,emolumentsandothercompensations,benefits
and privileges appertaining and due only to the legitimate senators, to the damage, great and irreparable
[5]
injuryoftheGovernmentandtheFilipinopeople. (Emphasissupplied)

Thus, petitioners are alleging that by accepting the position of Chairman of the PNRC
BoardofGovernors,respondenthasautomaticallyforfeitedhisseatintheSenate.Inshort,
petitionersfiledanactionforusurpationofpublicofficeagainstrespondent,apublicofficer
whoallegedlycommittedanactwhichconstitutesagroundfortheforfeitureofhispublic
office.Clearly,suchanactionisforquowarranto,specificallyunderSection1(b),Rule66
oftheRulesofCourt.

Quo warranto is generally commenced by the Government as the proper party plaintiff.
However, under Section 5, Rule 66 of the Rules of Court, an individual may commence
suchanactionifheclaimstobeentitledtothepublicofficeallegedlyusurpedbyanother,
inwhichcasehecanbringtheactioninhisownname.Thepersoninstitutingquowarranto
proceedings in his own behalf must claim and be able to show that he is entitled to the
[6]
officeindispute,otherwisetheactionmaybedismissedatanystage. Inthepresentcase,
petitionersdonotclaimtobeentitledtotheSenateofficeofrespondent.Clearly,petitioners
havenostandingtofilethepresentpetition.

EveniftheCourtdisregardstheinfirmitiesofthepetitionandtreatsitasataxpayerssuit,
thepetitionwouldstillfailonthemerits.

PNRCisaPrivateOrganizationPerformingPublicFunctions

[7]
On22March1947,PresidentManuelA.RoxassignedRepublicActNo.95, otherwise
known as the PNRC Charter. The PNRC is a nonprofit, donorfunded, voluntary,
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humanitarianorganization,whosemissionistobringtimely,effective,andcompassionate
humanitarianassistanceforthemostvulnerablewithoutconsiderationofnationality,race,
[8]
religion, gender, social status, or political affiliation. The PNRC provides six major
services: Blood Services, Disaster Management, Safety Services, Community Health and
[9]
Nursing,SocialServicesandVoluntaryService.

The Republic of the Philippines, adhering to the Geneva Conventions, established the
PNRCasavoluntaryorganizationforthepurposecontemplatedintheGenevaConvention
[10]
of27July1929. TheWhereasclausesofthePNRCCharterread:

WHEREAS, there was developed at Geneva, Switzerland, on August 22, 1864, a convention by which the
nations of the world were invited to join together in diminishing, so far lies within their power, the evils
inherentinwar
WHEREAS,morethansixtynationsoftheworldhaveratifiedoradheredtothesubsequent
revisionofsaidconvention,namelytheConventionofGenevaofJuly29[sic],1929forthe
AmeliorationoftheConditionoftheWoundedandSickofArmiesintheField(referredto
inthisCharterastheGenevaRedCrossConvention)
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
furnishsuppliesforthatpurpose
WHEREAS,theRepublicofthePhilippinesbecameanindependentnationonJuly4,
1946andproclaimeditsadherencetotheGenevaRedCrossConventiononFebruary
14,1947,andbythatactionindicateditsdesiretoparticipatewiththenationsofthe
world in mitigating the suffering caused by war and to establish in the Philippines a
voluntary organization for that purpose as contemplated by the Geneva Red Cross
Convention
WHEREAS,thereexistedinthePhilippinessince1917aCharteroftheAmericanNational
RedCrosswhichmustbeterminatedinviewoftheindependenceofthePhilippinesand
WHEREAS, the volunteer organizations established in the other countries which have
ratifiedoradheredtotheGenevaRedCrossConventionassistinpromotingthehealthand
welfare of their people in peace and in war, and through their mutual assistance and
cooperation directly and through their international organizations promote better
understandingandsympathyamongthepeoplesoftheworld.(Emphasissupplied)

ThePNRCisamemberNationalSocietyoftheInternationalRedCrossandRedCrescent
Movement (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
(National Societies). The Movement is united and guided by its seven Fundamental
Principles:

1.HUMANITYTheInternationalRedCrossandRedCrescentMovement,bornofadesire
tobringassistancewithoutdiscriminationtothewoundedonthebattlefield,endeavors,
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in its international and national capacity, to prevent and alleviate human suffering
whereveritmaybefound.Itspurposeistoprotectlifeandhealthandtoensurerespect
for the human being. It promotes mutual understanding, friendship, cooperation and
lastingpeaceamongstallpeoples.
2.IMPARTIALITYItmakesnodiscriminationastonationality,race,religiousbeliefs,classorpolitical
opinions. It endeavors to relieve the suffering of individuals, being guided solely by their needs, and to
giveprioritytothemosturgentcasesofdistress.
3.NEUTRALITY In order to continue to enjoy the confidence of all, the Movement
maynottakesidesinhostilitiesorengageatanytimeincontroversiesofapolitical,
racial,religiousorideologicalnature.
4. INDEPENDENCE The Movement is independent. The National Societies, while
auxiliaries in the humanitarian services of their governments and subject to the
laws of their respective countries, must always maintain their autonomy so that
they may be able at all times to act in accordance with the principles of the
Movement.
5.VOLUNTARYSERVICEItisavoluntaryreliefmovementnotpromptedinanymanner
bydesireforgain.
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
theMovement.ThePNRC,asamemberNationalSocietyoftheMovement,hasthedutyto
upholdtheFundamentalPrinciplesandidealsoftheMovement.Inordertoberecognized
as a National Society, the PNRC has to be autonomous and must operate in conformity
[11]
withtheFundamentalPrinciplesoftheMovement.
The reason for this autonomy is fundamental. To be accepted by warring belligerents as
neutralworkersduringinternationalorinternalarmedconflicts,thePNRCvolunteersmust
notbeseenasbelongingtoanysideofthearmedconflict.InthePhilippineswherethereis
a communist insurgency and a Muslim separatist rebellion, the PNRC cannot be seen as
governmentowned or controlled, and neither can the PNRC volunteers be identified as
governmentpersonnelorasinstrumentsofgovernmentpolicy.Otherwise,theinsurgentsor
separatistswilltreatPNRCvolunteersasenemieswhenthevolunteerstendtothewounded
inthebattlefieldorthedisplacedciviliansinconflictareas.

Thus, the PNRC must not only be, but must also be seen to be, autonomous, neutral and
independent in order to 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
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[12]
outitsmissionasaNationalRedCrossSociety. ItisimperativethatthePNRCmustbe
autonomous,neutral,andindependentinrelationtotheState.

To ensure and maintain its autonomy, neutrality, and independence, the PNRC cannot be
ownedorcontrolledbythegovernment.Indeed,thePhilippinegovernmentdoesnotown
the PNRC. The PNRC does not have government assets and does not receive any
[13]
appropriation from the Philippine Congress. The PNRC is financed primarily by
contributions from private individuals and private entities obtained through solicitation
campaignsorganizedbyitsBoardofGovernors,asprovidedunderSection11ofthePNRC
Charter:

SECTION11.Asanationalvoluntaryorganization, the Philippine National
RedCrossshallbefinancedprimarilybycontributionsobtainedthrough
solicitation campaigns throughout the year which shall be organized by
theBoardofGovernorsandconductedbytheChaptersintheirrespective
jurisdictions.Thesefundraisingcampaignsshallbeconductedindependently
ofotherfunddrivesbyotherorganizations.(Emphasissupplied)

ThegovernmentdoesnotcontrolthePNRC.UnderthePNRCCharter,asamended,only
six of the thirty members of the PNRC Board of Governors are appointed by the
President of the Philippines. Thus, twentyfour members, or fourfifths (4/5), of the
PNRC Board of Governors are not appointed by the President. Section 6 of the PNRC
Charter,asamended,provides:

SECTION6.ThegoverningpowersandauthorityshallbevestedinaBoardofGovernors
composed of thirty members, six of whom shall be appointed by the President of the
Philippines,eighteenshallbeelectedbychapterdelegatesinbiennialconventionsandthe
remainingsixshallbeselectedbythetwentyfourmembersoftheBoardalreadychosen.xx
x.

Thus,ofthetwentyfourmembersofthePNRCBoard,eighteenareelectedbythechapter
delegatesofthePNRC,andsixareelectedbythetwentyfourmembersalreadychosen a
select group where the private sector members have threefourths majority. Clearly, an
overwhelmingmajorityoffourfifthsofthePNRCBoardareelectedorchosenbythe
privatesectormembersofthePNRC.

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ThePNRCBoardofGovernors,whichexercisesallcorporatepowersofthePNRC,elects
the PNRC Chairman and all other officers of the PNRC. The incumbent Chairman of
PNRC,respondentSenatorGordon,waselected,asallPNRCChairmenareelected,bya
privatesectorcontrolledPNRCBoardfourfifthsofwhomareprivatesectormembersof
thePNRC. The PNRC Chairman is not appointed by the President or by any subordinate
governmentofficial.

[14]
UnderSection16,ArticleVIIoftheConstitution, thePresidentappointsallofficialsand
employeesintheExecutivebranchwhoseappointmentsarevestedinthePresidentbythe
Constitution or by law. The President also appoints those whose appointments are not
otherwiseprovidedbylaw.UnderthisSection16,thelawmayalsoauthorizetheheadsof
departments,agencies,commissions,orboardstoappointofficerslowerinrankthansuch
[15] [16]
heads of departments, agencies, commissions or boards. In Rufino v. Endriga, the
CourtexplainedappointmentsunderSection16inthiswise:


UnderSection16,ArticleVIIofthe1987Constitution,thePresidentappointsthreegroups
ofofficers.ThefirstgroupreferstotheheadsoftheExecutivedepartments,ambassadors,
otherpublicministersandconsuls,officersofthearmedforcesfromtherankofcolonelor
naval captain, and other officers whose appointments are vested in the President by the
Constitution. The second group refers to those whom the President may be authorized by
law to appoint. The third group refers to all other officers of the Government whose
appointmentsarenototherwiseprovidedbylaw.

UnderthesameSection16,thereisafourthgroupoflowerrankedofficerswhoseappointmentsCongress
maybylawvestintheheadsofdepartments,agencies,commissions,orboards.xxx

xxx

In a department in the Executive branch, the head is the Secretary. The law may not authorize the
Undersecretary, acting as such Undersecretary, to appoint lowerranked officers in the Executive
department.Inanagency,thepowerisvestedintheheadoftheagencyforitwouldbepreposteroustovest
itintheagencyitself.Inacommission,theheadisthechairpersonofthecommission.Inaboard,thehead
is also the chairperson of the board. In the last three situations, the law may not also authorize officers
otherthantheheadsoftheagency,commission,orboardtoappointlowerrankedofficers.

xxx

TheConstitutionauthorizesCongresstovestthepowertoappointlowerrankedofficersspecificallyinthe
heads of the specified offices, and in no other person. The word heads refers to the chairpersons of the
commissionsorboardsandnottotheirmembers,forseveralreasons.

ThePresidentdoesnotappointtheChairmanofthePNRC.Neitherdoestheheadofany
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department, agency, commission or board appoint the PNRC Chairman. Thus, the PNRC
ChairmanisnotanofficialoremployeeoftheExecutivebranchsincehisappointmentdoes
notfallunderSection16,ArticleVIIoftheConstitution.Certainly,thePNRCChairmanis
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 government official or employee, the PNRC Chairman, as
such,doesnotholdagovernmentofficeoremployment.

[17]
UnderSection17,ArticleVIIoftheConstitution, thePresidentexercisescontrolover
all government offices in the Executive branch. If an office is legally not under the
controlofthePresident,thensuchofficeisnotpartoftheExecutivebranch.InRufino
[18]
v. Endriga, the Court explained the Presidents power of control over all government
officesasfollows:

Every government office, entity, or agency must fall under the Executive, Legislative, or
Judicialbranches,ormustbelongtooneoftheindependentconstitutionalbodies,ormustbe
aquasijudicialbodyorlocalgovernmentunit.Otherwise,suchgovernmentoffice,entity,
oragencyhasnolegalandconstitutionalbasisforitsexistence.

TheCCPdoesnotfallundertheLegislativeorJudicialbranchesofgovernment.TheCCPisalsonotone
oftheindependentconstitutionalbodies.NeitheristheCCPaquasijudicialbodynoralocalgovernment
unit.Thus,theCCPmustfallundertheExecutivebranch.UndertheRevisedAdministrativeCodeof1987,
anyagencynotplacedbylaworordercreatingthemunderanyspecificdepartmentfallsundertheOffice
ofthePresident.

SincethePresidentexercisescontroloveralltheexecutivedepartments,bureaus,andoffices,thePresident
necessarilyexercisescontrolovertheCCPwhichisanofficeintheExecutivebranch.Inmandatingthat
the President shall have control of all executive . . . offices, Section 17, Article VII of the 1987
Constitution does not exempt any executive office one performing executive functions outside of the
independentconstitutionalbodiesfromthePresidentspowerofcontrol.ThereisnodisputethattheCCP
performsexecutive,andnotlegislative,judicial,orquasijudicialfunctions.

The Presidents power of control applies to the acts or decisions of all officers in the Executive
branch. This is true whether such officers are appointed by the President or by heads of
departments,agencies,commissions,orboards.Thepowerofcontrolmeansthepowertoreviseor
reversetheactsordecisionsofasubordinateofficerinvolvingtheexerciseofdiscretion.

Inshort,thePresidentsitsattheapexoftheExecutivebranch,andexercisescontrolofalltheexecutive
departments,bureaus,andoffices.TherecanbenoinstanceundertheConstitutionwhereanofficerofthe
ExecutivebranchisoutsidethecontrolofthePresident.TheExecutivebranchisunitarysincethereisonly
onePresidentvestedwithexecutivepowerexercisingcontrolovertheentireExecutivebranch.Anyoffice
intheExecutivebranchthatisnotunderthecontrolofthePresidentisalostcommandwhoseexistenceis
withoutanylegalorconstitutionalbasis.(Emphasissupplied)

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An overwhelming fourfifths majority of the PNRC Board are private sector individuals
electedtothePNRCBoardbytheprivatesectormembersofthePNRC.ThePNRCBoard
exercises all corporate powers of the PNRC. The PNRC is controlled by private sector
individuals.DecisionsoractionsofthePNRCBoardarenotreviewablebythePresident.
ThePresidentcannotreverseormodifythedecisionsoractionsofthePNRCBoard.
Neither can the President reverse or modify the decisions or actions of the PNRC
Chairman. It is the PNRC Board that can review, reverse or modify the decisions or
actionsofthePNRCChairman.ThisprovesagainthattheofficeofthePNRCChairmanis
aprivateoffice,notagovernmentoffice.
AlthoughtheStateisoftenrepresentedinthegoverningbodiesofaNationalSociety,this
can be justified by the need for proper coordination with the public authorities, and the
government representatives may take part in decisionmaking within a National Society.
However, the freelyelected representatives of a National Societys active members must
[19]
remaininalargemajorityinaNationalSocietysgoverningbodies.

The PNRC is not governmentowned but privately owned. The vast majority of the
thousands of PNRC members are private individuals, including students. Under the
PNRCCharter,thosewhocontributetotheannualfundcampaignofthePNRCareentitled
tomembershipinthePNRCforoneyear.Thus,anyonebetween6and65yearsofagecan
beaPNRCmemberforoneyearuponcontributingP35,P100, P300, P500 or P1,000 for
[20]
the year. Even foreigners, whether residents or not, can be members of the PNRC.
[21]
Section5ofthePNRCCharter,asamendedbyPresidentialDecreeNo.1264, reads:

SEC. 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
NationalRedCrossAnnualFundCampaignshallentitlethecontributortomembershipfor
oneyearandsaidcontributionshallbedeductibleinfullfortaxationpurposes.

Thus, the PNRC is a privately owned, privately funded, and privately run charitable
organization.ThePNRCisnotagovernmentownedorcontrolledcorporation.

[22]
Petitioners anchor their petition on the 1999 case of Camporedondo v. NLRC, which
ruled that the PNRC is a governmentowned or controlled corporation. In ruling that the
PNRCisagovernmentownedorcontrolledcorporation,thesimpletestusedwaswhether
thecorporationwascreatedbyitsownspecialcharterfortheexerciseofapublicfunction
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orbyincorporationunderthegeneralcorporationlaw.SincethePNRCwascreatedundera
special charter, the Court then ruled that it is a government corporation. However, the
Camporedondorulingfailedtoconsiderthedefinitionofagovernmentownedorcontrolled
corporation as provided under Section 2(13) of the Introductory Provisions of the
AdministrativeCodeof1987:



SEC.2.GeneralTermsDefined.xxx
(13) Governmentowned or controlled corporation refers to any agency
organized as a stock or nonstock corporation, vested with functions
relating to public needs whether governmental or proprietary in nature,
and owned by the Government directly or through its instrumentalities
eitherwholly,orwhereapplicableasinthecaseofstockcorporations,to
the extent of at least fiftyone (51) percent of its capital stock: Provided,
Thatgovernmentownedorcontrolledcorporationsmaybefurthercategorized
by the Department of the Budget, the Civil Service Commission, and the
Commission on Audit for purposes of the exercise and discharge of their
respective powers, functions and responsibilities with respect to such
corporations.(Boldfacingandunderscoringsupplied)

Agovernmentownedorcontrolledcorporationmustbeownedbythegovernment,andin
thecaseofastockcorporation,atleastamajorityofitscapitalstockmustbeownedbythe
government. In the case of a nonstock corporation, by analogy at least a majority of the
members must be government officials holding such membership by appointment or
designation by the government. Under this criterion, and as discussed earlier, the
governmentdoesnotownorcontrolPNRC.

ThePNRCCharterisViolativeoftheConstitutionalProscriptionagainsttheCreationof
PrivateCorporationsbySpecialLaw

The1935Constitution,asamended,wasinforcewhenthePNRCwascreatedbyspecial
charteron 22 March 1947. Section 7, Article XIV of the 1935 Constitution, as amended,
reads:

SEC. 7. The Congress shall not, except bygeneral law, provide for the formation,
organization, or regulation of private corporations, unless such corporations are owned or

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controlledbytheGovernmentoranysubdivisionorinstrumentalitythereof.


The subsequent 1973 and 1987 Constitutions contain similar provisions prohibiting
Congress from creating private corporations except by general law. Section 1 of the
PNRCCharter,asamended,createsthePNRCasabodycorporateandpolitic,thus:

SECTION 1. There is hereby created in the Republic of the Philippines a body
corporateandpolitictobethevoluntaryorganizationofficiallydesignatedtoassistthe
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 National Red
Cross Society. The national headquarters of this Corporation shall be located in
MetropolitanManila.(Emphasissupplied)


[23]
In Feliciano v. Commission on Audit, the Court explained the constitutional provision
prohibitingCongressfromcreatingprivatecorporationsinthiswise:

We begin by explaining the general framework under the fundamental law.

The Constitution recognizes two classes of corporations. The first refers to
private corporations created under a general law. The second refers to
governmentowned or controlled corporations created by special charters.
Section16,ArticleXIIoftheConstitutionprovides:

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
becreatedorestablishedbyspecialchartersintheinterestofthe
commongoodandsubjecttothetestofeconomicviability.

The Constitution emphatically prohibits the creation of private corporations except by
generallawapplicabletoallcitizens.Thepurposeofthisconstitutionalprovisionistoban
privatecorporationscreatedbyspecialcharters,whichhistoricallygavecertainindividuals,
familiesorgroupsspecialprivilegesdeniedtoothercitizens.

Inshort,Congresscannotenactalawcreatingaprivatecorporationwitha
special charter. Such legislation would be unconstitutional. Private
corporations may exist only under a general law. If the corporation is
private, it must necessarily exist under a general law. Stated differently,
only corporations created under a general law can qualify as private
corporations. Under existing laws, the general law is the Corporation Code,
exceptthattheCooperativeCodegovernstheincorporationofcooperatives.


The Constitution authorizes Congress to create governmentowned or
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controlled corporations through special charters. Since private corporations

cannothavespecialcharters,itfollowsthatCongresscancreatecorporations
with special charters only if such corporations are governmentowned or
[24]
controlled. (Emphasissupplied)


In Feliciano, the Court held that the Local Water Districts are governmentowned or
controlled corporations since they exist by virtue of Presidential Decree No. 198, which
constitutestheirspecialcharter.TheseedcapitalassetsoftheLocalWaterDistricts,suchas
waterworksandseweragefacilities,werepublicpropertywhichweremanaged,operatedby
orunderthecontrolofthecity,municipalityorprovincebeforetheassetsweretransferred
to the Local Water Districts. The Local Water Districts also receive subsidies and loans
from the Local Water Utilities Administration (LWUA). In fact, under the 2009 General
[25]
AppropriationsAct, theLWUAhasabudgetamountingtoP400,000,000foritssubsidy
[26]
requirements. ThereisnoprivatecapitalinvestedintheLocalWaterDistricts.The
capital assets and operating funds of the Local Water Districts all come from the
government, either through transfer of assets, loans, subsidies or the income from such
assetsorfunds.

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,theboarddirectorsandotherpersonneloftheLocalWaterDistricts
are government employees subject to civil service laws and antigraft laws. Clearly, the
LocalWaterDistrictsareconsideredgovernmentownedorcontrolledcorporationsnotonly
becauseoftheircreationbyspecialcharterbutalsobecausethegovernmentinfactowns
andcontrolstheLocalWaterDistricts.
Just like the Local Water Districts, the PNRC was created through a special charter.
However,unliketheLocalWaterDistricts,theelementsofgovernmentownershipand
controlareclearlylackinginthePNRC.Thus,althoughthePNRCiscreatedbyaspecial
charter, it cannot be considered a governmentowned or controlled corporation in the
absenceoftheessentialelementsofownershipandcontrolbythegovernment.Increating
the PNRC as a corporate entity, Congress was in fact creating a private corporation.
However, the constitutional prohibition against the creation of private corporations by
special charters provides no exception even for nonprofit or charitable corporations.
Consequently, the PNRC Charter, insofar as it creates the PNRC as a private corporation
[27] [28]
andgrantsitcorporatepowers, isvoidforbeingunconstitutional.Thus,Sections 1,
[29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40]
2, 3, 4(a), 5, 6, 7, 8, 9, 10, 11, 12, and13 of the
PNRCCharter,asamended,arevoid.



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[41]
Theotherprovisions ofthePNRCCharterremainvalidastheycanbeconsideredasa
recognitionbytheStatethattheunincorporatedPNRCisthelocalNationalSocietyofthe
International Red Cross and Red Crescent Movement, and thus entitled to the benefits,
exemptionsandprivilegessetforthinthePNRCCharter.TheotherprovisionsofthePNRC
CharterimplementthePhilippineGovernmentstreatyobligationsunderArticle4(5)ofthe
StatutesoftheInternationalRedCrossandRedCrescentMovement,whichprovidesthatto
be recognized as a National Society, the Society must be duly recognized by the legal
government of its country on the basis of the Geneva Conventions and of the national
legislationasavoluntaryaidsociety,auxiliarytothepublicauthoritiesinthehumanitarian
field.

In sum, we hold that the office of the PNRC Chairman is not a government office or an
officeinagovernmentownedorcontrolledcorporationforpurposesoftheprohibitionin
Section13,ArticleVIofthe1987Constitution.However,sincethePNRCCharterisvoid
insofarasitcreatesthePNRCasaprivatecorporation,thePNRCshouldincorporateunder
theCorporationCodeandregisterwiththeSecuritiesandExchangeCommissionifitwants
tobeaprivatecorporation.

WHEREFORE,wedeclarethattheofficeoftheChairmanofthePhilippineNationalRed
Cross is not a government office or an office in a governmentowned or controlled
corporation for purposes of the prohibition in Section 13, Article VI of the 1987
Constitution.WealsodeclarethatSections1,2,3,4(a),5,6,7,8,9,10,11,12,and13of
theCharterofthePhilippineNationalRedCross,orRepublicActNo.95,asamendedby
Presidential Decree Nos. 1264 and 1643, are VOID because they create the PNRC as a
privatecorporationorgrantitcorporatepowers.

SOORDERED.




ANTONIOT.CARPIO
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AssociateJustice




WECONCUR:




REYNATOS.PUNO
ChiefJustice





LEONARDOA.QUISUMBING CONSUELOYNARESSANTIAGO
AssociateJustice AssociateJustice






RENATOC.CORONA CONCHITACARPIOMORALES
AssociateJustice AssociateJustice

MINITAV.CHICONAZARIO PRESBITEROJ.VELASCO,JR.
AssociateJustice AssociateJustice

ANTONIOEDUARDOB.NACHURA TERESITAJ.LEONARDODECASTRO
AssociateJustice AssociateJustice



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ARTUROD.BRION
AssociateJustice DIOSDADOM.PERALTA
AssociateJustice

LUCASP.BERSAMIN
AssociateJustice


CERTIFICATION

PursuanttoSection13,ArticleVIIIoftheConstitution,Icertifythattheconclusionsinthe
aboveDecisionhadbeenreachedinconsultationbeforethecasewasassignedtothewriter
oftheopinionoftheCourt.


REYNATOS.PUNO
CHIEFJUSTICE

[1]
RespondentwaselectedasaSenatorduringtheMay2004elections.
[2]
370Phil.901(1999).
[3]
G.R.No.104732,22June1993,223SCRA568.
[4]
Rollo,p.181.
[5]
Id.at35.
[6]
TheSecretaryofJusticeCuevasv.Atty.Bacal,400Phil.1115(2000)Garciav.Perez,188Phil.43(1980).
[7]
AnActtoIncorporatethePhilippineNationalRedCross,asamendedbyPresidentialDecreeNo.1264.
[8]
PNRC 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).
[9]
PNRC Website,HYPERLINK "http://www.redcross.org.ph/Site/PNRC/StrategicDirections.aspx" HYPERLINK
"http://www.redcross.org.ph/Site/PNRC/About.aspx" http://www.redcross.org.ph/Site/PNRC/About.aspx
(visited25March2009).
[10]
ConventionfortheAmeliorationoftheConditionoftheWoundedandSickinArmiesintheField.
[11]
Article4oftheStatutesoftheInternationalRedCrossandRedCrescentMovementreads:
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ARTICLE4
ConditionsforRecognitionofNationalSocieties

InordertoberecognizedintermsofArticle5,paragraph2b)asaNationalSociety,theSocietyshallmeetthe
followingconditions:

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
centralbodywhichshallalonebecompetenttorepresentitinitsdealingswithothercomponentsof
theMovement.
3.BedulyrecognizedbythelegalgovernmentofitscountryonthebasisoftheGenevaConventions
and of the national legislation as a voluntary aid society, auxiliary to the public authorities in the
humanitarianfield.
4.HaveanautonomousstatuswhichallowsittooperationinconformitywiththeFundamental
PrinciplesoftheMovement.
5. Use a name and distinctive emblem in conformity with the Geneva Conventions and their
AdditionalProtocols.
6. Be so organized as to be able to fulfill the tasks defined in its own statutes, including the
preparationinpeacetimeforitsstatutorytasksincaseofarmedconflicts.
7.ExtenditsactivitiestotheentireterritoryoftheState.
8.Recruititsvoluntarymembersanditsstaffwithoutconsiderationofrace,sex,class,religionorpoliticalopinions.
9.Adhere to the present Statutes, share in the fellowship which unites the components of the Movement and cooperate with
them.
10. Respect the Fundamental Principles of the Movement and be guided in its work by the
principlesofinternationalhumanitarianlaw.(Emphasissupplied)
[12]
TheFundamentalPrinciplesoftheRedCrossandRedCrescent,ICRCPublication,p.17.
[13]
Although under Section 4(c) of the PNRC Charter, as amended, the PNRC is allotted one lottery draw yearly by the
PhilippineCharitySweepstakesforthesupportofitsdisasterreliefoperations,inadditiontoitsexistinglotterydraws
fortheBloodProgram,suchallotmentsaredonationsgiventomostcharitableorganizations.
[14]
Section16,ArticleVIIoftheConstitutionprovides:

The President shall nominate and, with the consent of the Commission on Appointments, appoint the heads of the executive
departments,ambassadors,otherpublicministersandconsuls,orofficersofthearmedforcesfromtherankofcolonelornaval
captain,andotherofficerswhoseappointmentsarevestedinhiminthisConstitution.Heshallalsoappointallotherofficersof
theGovernmentwhoseappointmentsarenototherwiseprovidedforbylaw,andthosewhomhemaybeauthorizedbylawto
appoint.TheCongressmay,bylaw,vesttheappointmentofotherofficerslowerinrankinthePresidentalone,inthecourts,or
intheheadsofdepartments,agencies,commissions,orboards.
The President shall have the power to make appointments during the recess of the Congress, whether voluntary or
compulsory,butsuchappointmentsshallbeeffectiveonlyuntilafterdisapprovalbytheCommissiononAppointments
oruntilthenextadjournmentoftheCongress.
[15]
Endrigav.Rufino,G.R.Nos.139554&139565,21July2006,496SCRA13.
[16]
Id.at5057.
[17]
Section17,ArticleVIIoftheConstitutionprovides:

ThePresidentshallhavecontrolofalltheexecutivedepartments,bureaus,andoffices.Heshallensurethatthelawsbe
faithfullyexecuted.
[18]
Supranote15at6365.
[19]
Seenote12at20.
[20]
PNRCWebsite,http://202.57.124.158/Site/PNRC/membershipInfo.aspx#5(visited15June2009).

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[21]
Issuedon15December1977.
[22]
Supranote2.
[23]
464Phil.439(2004).
[24]
Id.at454455.
[25]
RepublicActNo.9524.
[26]
DBM 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).
[27]
Section36oftheCorporationCodeenumeratesthegeneralpowersofacorporation:

SEC.36.Corporatepowersandcapacity.EverycorporationincorporatedunderthisCodehasthepowerand
capacity:
1.Tosueandbesuedinitscorporatename
2. Of succession by its corporate name for the period of time stated in the articles of incorporation and the certificate of
incorporation
3.Toadoptanduseacorporateseal
4.ToamenditsarticlesofincorporationinaccordancewiththeprovisionsofthisCode
5.Toadoptbylaws,notcontrarytolaw,moralsorpublicpolicy,andtoamendorrepealthesameinaccordancewiththisCode
6.Incaseofstockcorporations,toissueorsellstockstosubscribersandtoselltreasurystocksinaccordancewiththeprovisions
ofthisCodeandtoadmitmemberstothecorporationifitbeanonstockcorporation
7.Topurchase,receive,takeorgrant,hold,convey,sell,lease,pledge,mortgageandotherwisedealwithsuchrealandpersonal
property, including securities and bonds of other corporations, as the transaction of the lawful business of the corporation
mayreasonablyandnecessarilyrequire,subjecttothelimitationsprescribedbylawandtheConstitution
8.ToadoptanyplanofmergerorconsolidationasprovidedinthisCode
9.Tomakereasonabledonations,includingthoseforthepublicwelfareorforhospital,charitable,cultural,scientific,civic,or
similar purposes: Provided, That no corporation, domestic or foreign, shall give donations in aid of any political party or
candidateorforpurposesofpartisanpoliticalactivity
10.Toestablishpension,retirementandotherplansforthebenefitofitsdirectors,trustees,officersandemployeesand
11.Toexercisesuchotherpowersasmaybeessentialornecessarytocarryoutitspurposeorpurposesasstatedinitsarticlesof
incorporation.
[28]
SECTION1.ThereisherebycreatedintheRepublicofthePhilippinesabodycorporateandpolitictobethevoluntary
organizationofficiallydesignatedtoassisttheRepublicofthePhilippinesindischargingtheobligationssetforthinthe
GenevaConventionsandtoperformsuchotherdutiesasareinherentuponanationalRedCrossSociety.Thenational
headquartersofthisCorporationshallbelocatedinMetroManila.
[29]
SEC.2.ThenameofthiscorporationshallbeThePhilippineNationalRedCrossandbythatnameshallhaveperpetual
succession with the power to sue and be sued to own and hold such real and personal estate as shall be deemed
advisable and to accept bequests, donations and contributions of property of all classes for the purpose of this
Corporationhereinaftersetforthtoadoptasealandtoalteranddestroythesameatpleasureandtohavetherightto
adoptandtouse,incarryingoutitspurposeshereinafterdesignated,asanemblemandbadge,aredGreekcrossona
whiteground,thesameashasbeendescribedintheGenevaConventions,andadoptedbytheseveralnationsratifying
oradheringtheretotoordainandestablishbylawsandregulationsnotinconsistentwiththelawsoftheRepublicof
thePhilippines,andgenerallytodoallsuchactsandthingsasmaybenecessarytocarryintoeffecttheprovisionsof
this Act and promote the purposes of said organization and the corporation hereby created is designated as the
organization which is authorized to act in matters of relief under said Convention. In accordance with the Geneva
Conventions, the issuance of the distinctive Red Cross emblem to medical units and establishments, personnel and
materialsneutralizedintimeofwarshallbelefttothemilitaryauthorities.TheredGreekcrossonawhiteground,as
hasbeendescribedbytheGenevaConventionsisnot,andshallnotbeconstruedasareligioussymbol,andshallhave
equalefficacyandapplicabilitytopersonsofallfaiths,creedsandbeliefs.TheoperationaljurisdictionofthePhilippine
NationalRedCrossshallbeovertheentireterritoryofthePhilippines.
[30]
SEC.3.ThatthepurposesofthisCorporationshallbeasfollows:
a.Toprovidevolunteeraidtothesickandwoundedofthearmedforcesintimeofwar,inaccordancewiththespiritofand
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under the conditions prescribed by the Geneva Conventions to which the Republic of the Philippines proclaimed its
adherence
b.Forthepurposesmentionedintheprecedingsubsection,toperformalldutiesdevolvingupontheCorporationasaresultof
theadherenceoftheRepublicofthePhilippinestothesaidConvention
c.Toactinmattersofvoluntaryreliefandinaccordancewiththeauthoritiesofthearmedforcesasamediumofcommunication
betweenthepeopleoftheRepublicofthePhilippinesandtheirArmedForces,intimeofpeaceandintimeofwar,andtoact
in such matters between similar national societies of other governments and the Government and people and the Armed
ForcesoftheRepublicofthePhilippines
d.Toestablishandmaintainasystemofnationalandinternationalreliefintimeofpeaceandintimeofwarandapplythesame
inmeetingtheemergencyneedscausedbytyphoons,flood,fires,earthquakes,andothernaturaldisastersandtodeviseand
carryonmeasuresforminimizingthesufferingcausedbysuchdisasters
e.Todeviseandpromotesuchotherservicesintimeofpeaceandintimeofwarasmaybefounddesirableinimprovingthe
health,safetyandwelfareoftheFilipinopeople
f.Todevisesuchmeansastomakeeverycitizenand/orresidentofthePhilippinesamemberoftheRedCross.
[31]
SEC.4.Infurtheranceofthepurposesmentionedintheprecedingsubparagraphs,thePhilippineNationalRedCrossshall:
a.Beauthorizedtosecureloansfromanyfinancialinstitutionwhichshallnotexceeditsbudgetofthepreviousyear.
[32]
SEC. 5. Membership in the Philippine National Red Cross shall be open to the entire population in the Philippines
regardlessofcitizenship.AnycontributiontothePhilippineNationalRedCrossAnnualFundCampaignshallentitle
thecontributortomembershipforoneyearandsaidcontributionshallbedeductibleinfullfortaxationpurposes.
[33]
SEC.6.ThegoverningpowersandauthorityshallbevestedintheBoardofGovernorscomposedofthirtymembers,sixof
whomshallbeappointedbythePresidentofthePhilippines,eighteenshallbeelectedbychapterdelegatesinbiennial
conventionsandtheremainingsixshallbeselectedbythetwentyfourmembersoftheBoardalreadychosen.Atleast
onebutnotmorethanthreeofthePresidentialappointeesshallbechosenfromtheArmedForcesofthePhilippines.
a. The term of office of all members of the Board shall be four years, including those appointed by the President of the
Philippines,renewableatthepleasureoftheappointingpowerorelectivebodies.
b.VacanciesintheBoardofGovernorscausedbydeathorresignationshallbefilledbyelectionbytheBoardofGovernorsat
itsnextmeeting,exceptthatvacanciesamongthePresidentialappointeesshallbefilledbythePresident.
[34]
SEC.7.ThePresidentofthePhilippinesshallbetheHonoraryPresidentofthePhilippineNationalRedCross.Theofficers
shall consist of a Chairman, a ViceChairman, a Secretary, a Treasurer, a Counselor, an Assistant Secretary and an
AssistantTreasurer,allofwhomshallbeelectedbytheBoardofGovernorsfromamongitsmembershipforatermof
twoyearsandmaybereelected.Theelectionofofficersshalltakeplacewithinsixtydaysafterallthemembersofthe
BoardofGovernorshavebeenchosenandhavequalified.
[35]
SEC.8.The Biennial meeting of chapter delegates shall be held on such date and such place as may be specified by the
BoardofGovernorstoelectmembersoftheBoardofGovernorsandadvicetheBoardofGovernorsontheactivitiesof
thePhilippineNationalRedCrossProvided,however,thatduringperiodsofgreatemergency,theBoardofGovernors
in its discretion may determine that the best interest of the corporation shall be served by postponing such biennial
meeting.
[36]
SEC.9.Thepowertoordain,adoptandamendbylawsandregulationsshallbevestedintheBoardofGovernors.
[37]
SEC. 10. The members of the Board of Governors, as well as the officers of the corporation, shall serve without
compensation.ThecompensationofthepaidstaffofthecorporationshallbedeterminedbytheBoardofGovernors
upontherecommendationoftheSecretaryGeneral.
[38]
SEC. 11. As a national voluntary organization, the Philippine National Red Cross shall be financed primarily by
contributions obtained through solicitation campaigns throughout the year which shall be organized by the Board of
Governors and conducted by the Chapters in their respective jurisdictions. These fund raising campaigns shall be
conductedindependentlyofotherfunddrivesbyotherorganizations.
[39]
SEC.12.TheBoardofGovernorsshallpromulgaterulesandregulationsfortheorganizationoflocalunitsofthePhilippine
NationalRedCrosstobeknownasChapters.SaidrulesandregulationsshallfixtherelationshipoftheChapterstothe
Corporation, define their territorial jurisdictions, and determine the number of delegates for each chapter based on
population,fundcampaignpotentialsandserviceneeds.
[40]
SEC.13.TheCorporationshall,attheendofeverycalendaryearsubmittothePresidentofthePhilippinesanannualreport
containingtheactivitiesoftheCorporationshowingitsfinancialcondition,thereceiptsanddisbursements.

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[41]
ThevalidprovisionsareSections4(b)and(c),14,15,16,and17:
SEC.4.Infurtheranceofthepurposesmentionedintheprecedingsubparagraphs,thePhilippineNationalRedCrossshall:
xxx
b.Beexemptfrompaymentofallduties,taxes,fees,andotherchargesofallkindsonallimportationsandpurchases
foritsexclusiveuse,ondonationsforitsdisasterreliefworkandotherRedCrossservices,andinitsbenefitsandfund
raisingdrivesallprovisionsoflawtothecontrarynotwithstanding.
c. Be allotted by the Philippine Charity Sweepstakes Office one lottery draw yearly for the support of its disaster relief
operationsinadditiontoitsexistinglotterydrawsfortheBloodProgram.
SEC.14.Itshallbeunlawfulforanypersontosolicit,collectorreceivemoney,materials,orpropertyofanykindbyfalsely
representingorpretendinghimselftobeamember,agentorrepresentativeofthePhilippineNationalRedCross.
SEC.15.TheuseofthenameRedCrossisreservedexclusivelytothePhilippineNationalRedCrossandtheuseoftheemblem
oftheredGreekcrossonawhitegroundisreservedexclusivelytothePhilippineNationalRedCross,medicalservices
oftheArmedForcesofthePhilippinesandsuchothermedicalfacilitiesorotherinstitutionsasmaybeauthorizedby
thePhilippineNationalRedCrossasprovidedunderArticle44oftheGenevaConventions.Itshallbeunlawfulforany
otherpersonorentitytousethewordsRedCrossorGenevaCrossortousetheemblemoftheredGreekcrossona
whitegroundoranydesignation,sign,orinsigniaconstitutinganimitationthereofforanypurposewhatsoever.
SEC.16.AsusedinthisDecree,thetermpersonshallincludeanylegalperson,group,orlegalentitywhatsoevernature,and
any person violating any section of this Article shall, upon conviction therefore be liable to a fin[e] of not less than one
thousandpesosorimprisonmentforatermnotexceedingoneyear,orboth,atthediscretionofthecourt,foreachandevery
offense.In case the violation is committed by a corporation or association, the penalty shall devolve upon the president,
directororanyotherofficerresponsibleforsuchviolation.
SEC.17.AllactsorpartsofactswhichareinconsistentwiththeprovisionsofthisDecreeareherebyrepealed.

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