LAUREL v. DESIERTO Exposition Project at the Clark Special Economic Zone.
This was referred to the
April 12, 2002 | Kapunan, J. | Public Officers Blue Ribbon Committee for investigation. Digester: Chua, Gian Angelo President Joseph Estrada issued AO 35, creating an ad hoc and independent citizens committee to investigate all the facts and circumstances surrounding the SUMMARY: The Ombudsman sought to indict petitioner former Vice President Philippine centennial projects, including its component activities. Former Senator Salvador Laurel for graft and corruption, among others, for alleged anomalies during his Rene Saguisag was appointed to chair the Committee (Saguisag Committee). tenure as Chair of the National Centennial Commission (NCC). NCC was mandated to The Blue Ribbon Committee and the Saguisag Committee, issuing separate reports, take charge of the nationwide preparations for the National Celebration of the recommended the further investigation by the Ombudsman and indictment of Philippine Centennial of the Declaration of Philippine Independence and the petitioner for violations of the Anti-Graft and Corrupt Practices Act (RA 3019), Inauguration of the Malolos Congress. Petitioner filed a petition with the SC arguing and Article 217 of the RPC, among others. that the Ombudsman had no jurisdiction over him because he, as Chair of the NCC, The Fact-finding and Intelligence Bureau of the Office of the Ombudsman was not a public officer because the following elements of a public office were missing: conducted preliminary investigation. It later issued a resolution finding probable (1) the delegation of sovereign functions; (2) salary, since he purportedly did not receive cause to indict petitioner. Ombudsman Aniano Desierto approved the resolution. any compensation; and (3) continuance, the life of the NCC being temporary (ad-hoc). Petitioner filed a petition for certiorari with the SC assailing the jurisdiction of the SC denied petitioner’s petition and held that the NCC was a public office and that Ombudsman alleging that he (petitioner), as Chair of the NCC, was not a public petitioner was therefore a public officer. officer. DOCTRINE: (1) Delegation of Sovereign Functions: We hold that the NCC performs executive functions. The executive power is generally defined as the power to enforce RULING: Petition denied. and administer the laws. It is the power of carrying the laws into practical operation and enforcing their due observance. The executive function, therefore, concerns the Whether petitioner, as Chair of NCC, was a public officer – YES. implementation of the policies as set forth by law. NCC implements policies set forth Neither the Constitution nor the Ombudsman Act of 1989 defines who public by the constitution and other issuances. officers are. A definition of public officers cited in jurisprudence is that provided by (2) Salary: A salary is a usual but not a necessary criterion for determining the nature of Mechem, a recognized authority on the subject: the position. It is not conclusive. The salary is a mere incident and forms no part of the o A public office is the right, authority and duty, created and conferred office. by law, by which, for a given period, either fixed by law or enduring (3) Continuance: The element of continuance cannot be considered as indispensable, at the pleasure of the creating power, an individual is invested with for, if the other elements are present it can make no difference, whether there be but some portion of the sovereign functions of the government, to be one act or a series of acts to be done, whether the office expires as soon as the one act exercised by him for the benefit of the public. The individual so is done, or is to be held for years or during good behavior. invested is a public officer. The characteristics of a public office, according to Mechem, include the delegation FACTS: of sovereign functions, its creation by law and not by contract, an oath, salary, President Corazon Aquino issued AO 223 constituting a Committee for the continuance of the position, scope of duties, and the designation of the position as preparation of the National Centennial Celebration in 1998. an office. Subsequently, President Fidel Ramos issued EO 128, reconstituting the Committee, Petitioner submits that some of these characteristics are not present in the position renaming it as National Centennial Commission (NCC). Appointed to chair of NCC Chair, namely: (1) the delegation of sovereign functions; (2) salary, since he was Vice President Salvador Laurel (petitioner). purportedly did not receive any compensation; and (3) continuance, the tenure of The NCC was mandated to take charge of the nationwide preparations for the the NCC being temporary. National Celebration of the Philippine Centennial of the Declaration of Philippine Independence and the Inauguration of the Malolos Congress. I. Delegation of Sovereign Functions Subsequently, a corporation named the Philippine Centennial Expo 98 Mechem describes the delegation to the individual of some of the sovereign Corporation (Expocorp) was created. Petitioner was an incorporator, a director, functions of government as the most important characteristic in determining and was elected Expocorp Chief Executive Officer. whether a position is a public office or not. Senator Ana Dominique Coseteng delivered a privilege speech in the Senate We hold that the NCC performs executive functions. The executive power is denouncing alleged anomalies in the construction and operation of the Centennial generally defined as the power to enforce and administer the laws. It is the power of carrying the laws into practical operation and enforcing their due observance. The executive function, therefore, concerns the implementation of the policies surrounding circumstances of a particular case are to be considered and will be as set forth by law. decisive. Surely, a town fiesta cannot compare to the National Centennial Celebrations. The (1) The NCC implements policies Centennial Celebrations was meant to commemorate the birth of our nation after Section 15, Article XIV, 1987 Constitution – Arts and letters shall enjoy the centuries of struggle against our former colonial master, to memorialize the patronage of the State. The State shall conserve, promote, and popularize the liberation of our people from oppression by a foreign power. 1998 marked 100 nations historical and cultural heritage and resources, as well as artistic creations. years of independence and sovereignty as one united nation. The Celebrations was Preamble, AO 223 – x x x Whereas, the centennial can effectively showcase an occasion to reflect upon our history and reinvigorate our patriotism and was a Filipino heritage and thereby strengthen Filipino values. x x x vehicle for fostering nationhood and a strong sense of Filipino identity, an EO 128 – Cited the need to strengthen the said Committee to ensure a more opportunity to showcase Filipino heritage and thereby strengthen Filipino values. coordinated and synchronized celebrations of the Philippine Centennial and wider participation from the government and non-government or private organizations. (3) Clearly, the NCC performs sovereign functions. It is, therefore, a public office, and petitioner, as its It also referred to the need to rationalize the relevance of historical links with other Chair, is a public officer. countries. The NCC was precisely created to execute the foregoing policies and II. Compensation objectives, to carry them into effect. Thus, the Commission was vested with the That petitioner allegedly did not receive any compensation during his tenure is of following functions – x x x (a) To undertake the overall study, conceptualization, little consequence. formulation and implementation of programs and projects on the utilization of A salary is a usual but not a necessary criterion for determining the nature of culture, arts, literature and media as vehicles for history, economic endeavors, and the position. It is not conclusive. The salary is a mere incident and forms no reinvigorating the spirit of national unity and sense of accomplishment in every part of the office. Where a salary or fees is annexed, the office is provided for it is Filipino in the context of the Centennial Celebrations. x x x (see notes for list) a naked or honorary office, and is supposed to be accepted merely for the public It bears noting the President, upon whom the executive power is vested, created good. the NCC by executive order. Book III, Chapter 2, Section 2, Administrative Code Hence, the office of petitioner as NCC Chair may be characterized as an honorary of 1987 describes the nature of executive orders – Acts of the President providing office, as opposed to a lucrative office or an office of profit, i.e., one to which for rules of a general or permanent character in implementation or execution of salary, compensation or fees are attached. But it is a public office, nonetheless. constitutional or statutory powers shall be promulgated in executive orders. Moreover, NCC had a role in the countrys economic development, especially in III. Continuance Central Luzon. Petitioner himself admitted in the oral arguments: x x x When I was Neither is the fact that the NCC was characterized by E.O. No. 128 as an ad-hoc made Chairman I wanted the Expo to be in Batangas because I am a Batangeno but body make said commission less of a public office. President Ramos said Mr. Vice President the Central Luzon is suffering, suffering The element of continuance cannot be considered as indispensable, for, if because of the eruption of Mt. Pinatubo let us try to catalize economic recovery in the other elements are present it can make no difference, whether there be that area by putting this Expo in Clark Field and so it was done I agreed and Your but one act or a series of acts to be done, whether the office expires as soon Honor if I may also mention we wanted to generate employment aside from as the one act is done, or is to be held for years or during good behavior. attracting business investments and employment. x x x There can hardly be any dispute that the promotion of industrialization and full IV. Conclusion employment is a fundamental state policy. Our conclusion that petitioner is a public officer finds support in In Re Corliss. There the Supreme Court of Rhode Island ruled that the office of Commissioner of (2) Petitioner invokes Torio vs. Fontanilla where it was held that the holding by a municipality of a the United States Centennial Commission is an office of trust as to disqualify its town fiesta is a proprietary rather than a governmental function. Petitioner argues that the holding of a holder as elector of the United States President and Vice-President. (Under Article nationwide celebration which marked the nations 100th birthday may be likened to a national fiesta II of the United States Constitution, a person holding an office of trust or profit which involved only the exercise of the national governments proprietary function. under the United States is disqualified from being appointed an elector.) Torio, however, did not intend to lay down an all-encompassing doctrine. Note that Having arrived at the conclusion that the NCC performs executive functions and is, the Court cautioned that there can be no hard and fast rule for purposes of therefore, a public office, we need no longer delve at length on the issue of whether determining the true nature of an undertaking or function of a municipality; the Expocorp is a private or a public corporation. Even assuming that Expocorp is a private corporation, petitioners position as Chief Executive Officer (CEO) of Expocorp arose from his Chairmanship of the NCC. Consequently, his acts or But the Court said that the ruling in Uy, however, was short-lived. Upon motion omissions as CEO of Expocorp must be viewed in the light of his powers and for clarification by the Ombudsman in the same case, the Court set aside the functions as NCC Chair. foregoing pronouncement in its Resolution dated March 20, 2001. The Court explained the rationale for this reversal: Whether petitioner is a public officer as defined in RA 3019 – TO BE o The power to investigate and to prosecute granted by law to the DETERMINED BY THE TRIAL COURT. Ombudsman is plenary and unqualified. It pertains to any act or Petitioner argues that since he supposedly did not receive any compensation for his omission of any public officer or employee when such act or services as NCC or Expocorp Chair, he is not a public officer as defined in RA omission appears to be illegal, unjust, improper or inefficient. 3019 and is, therefore, beyond the jurisdiction of the Ombudsman. The law does not make a distinction between cases cognizable by the A public officer, under R.A. No. 3019, is defined by Section 2 – Public officer Sandiganbayan and those cognizable by regular courts. includes elective and appointive officials and employees, permanent or temporary, o Section 15 of RA 6770 gives the Ombudsman primary jurisdiction whether in the classified or unclassified or exemption service receiving over cases cognizable by the Sandiganbayan. The law defines such compensation, even nominal, from the government as defined in the preceding primary jurisdiction as authorizing the Ombudsman to take over, at paragraph. any stage, from any investigatory agency of the government, the It is clear from Section 2 (b), above, that the definition of a public officer is investigation of such cases. The grant of this authority does not expressly limited to the application of RA 3019. Said definition does not apply for necessarily imply the exclusion from its jurisdiction of cases involving purposes of determining the Ombudsman’s jurisdiction, as defined by the public officers and employees by other courts. Constitution and the Ombudsman Act of 1989 o In sum, the Ombudsman has the power to investigate any Moreover, the question of whether petitioner is a public officer under the RA malfeasance, misfeasance and non-feasance by a public officer or 3019 involves the appreciation of evidence and interpretation of law, matters employee of the government, or of any subdivision, agency or that are best resolved at trial. instrumentality thereof, including government-owned or controlled corporations. The use of the term includes in Section 2 (b) indicates that the definition is not restrictive. The Anti-Graft and Corrupt Practices Act is just one of several laws that Functions of the NCC define public officers. The RPC, Administrative Code of 1987, and Code of o (a) To undertake the overall study, conceptualization, formulation Conduct and Ethical Standards for Public Officials and Employees also has and implementation of programs and projects on the utilization of definitions of public officer. culture, arts, literature and media as vehicles for history, economic endeavors, and reinvigorating the spirit of national unity and sense of But even assuming that the definition of public officer in R.A. No. 3019 is accomplishment in every Filipino in the context of the Centennial exclusive, the term compensation, which is not defined by said law, has many Celebrations. In this regard, it shall include a Philippine National meanings. Exposition 98 within Metro Manila, the original eight provinces, and How then is compensation, as the term is used in Section 2 (b) of RA 3019, to be Clark Air Base as its major venues; interpreted? Did petitioner receive any compensation at all as NCC Chair? o (b) To act as principal coordinator for all the activities related to Granting that petitioner did not receive any salary, the records do not reveal if he awareness and celebration of the Centennial; received any allowance, fee, honorarium, or some other form of compensation. o (c) To serve as the clearing house for the preparation and Notably, under the by-laws of Expocorp, the CEO is entitled to per diems and dissemination of all information about the plans and events for the compensation. Would such fact bear any significance? Centennial Celebrations; Obviously, this proceeding is not the proper forum to settle these issues lest we o (d) To constitute working groups which shall undertake the preempt the trial court from resolving them. implementation of the programs and projects; o (e) To prioritize the refurbishment of historical sites and structures NOTES: nationwide. In this regard, the Commission shall formulate schemes Petitioner, citing Uy v. Sandiganbayan, also argued that the jurisdiction of the (e.g. lease-maintained-and-transfer, build-operate-transfer, and similar Ombudsman was limited to cases cognizable by the Sandiganbayan i.e., over public arrangements) to ensure the preservation and maintenance of the officers of Grade 27 and higher. As petitioner’s position was purportedly not historical sites and structures; classified as Grade 27 or higher, the Sandiganbayan and, consequently, the o (f) To call upon any government agency or instrumentality and Ombudsman, would have no jurisdiction over him. corporation, and to invite private individuals and organizations to assist it in the performance of its tasks; and, o (g) Submit regular reports to the President on the plans, programs, projects, activities as well as the status of the preparations for the Celebration.