Liban v. Gordon - GR No. 175352, Jul 15, 2009

EN BANC
[G.R. No. 175352. July 15, 2009.]
DANTE V. LIBAN, REYNALDO M. BERNARDO, and SALVADOR M.

VIARI , petitioners, vs . RICHARD J. GORDON , respondent.
DECISION
CARPIO , J : p
The Case
This is a petition to declare Senator Richard J. Gordon (respondent) as having
forfeited his seat in the Senate.
The Facts
Petitioners Dante V. Liban, Reynaldo M. Bernardo, and Salvador M. Viari
(petitioners) led with this Court a Petition to Declare Richard J. Gordon as Having
Forfeited His Seat in the Senate. Petitioners are o cers of the Board of Directors of the
Quezon City Red Cross Chapter while respondent is Chairman of the Philippine National
Red Cross (PNRC) Board of Governors.
During respondent's incumbency as a member of the Senate of the Philippines, 1
he was elected Chairman of the PNRC during the 23 February 2006 meeting of the
PNRC Board of Governors. Petitioners allege that by accepting the chairmanship of the
PNRC Board of Governors, respondent has ceased to be a member of the Senate as
provided in Section 13, Article VI of the Constitution, which reads:
SEC. 13. No Senator or Member of the House of Representatives may hold
any other o ce or employment in the Government, or any subdivision, agency, or
instrumentality thereof, including government-owned or controlled corporations or
their subsidiaries, during his term without forfeiting his seat. Neither shall he be
appointed to any o ce which may have been created or the emoluments thereof
increased during the term for which he was elected.
Petitioners cite Camporedondo v. NLRC, 2 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 forfeited his seat in the Senate, pursuant to Flores v. Drilon, 3 which held
that incumbent national legislators lose their elective posts upon their appointment to
another government office. caITAC
In his Comment, respondent asserts that petitioners have no standing to le 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, constitutes a ground for
forfeiture of his public o ce. Petitioners do not claim to be entitled to the Senate o ce
of respondent. Under Section 5, Rule 66 of the Rules of Civil Procedure, only a person
claiming to be entitled to a public o ce usurped or unlawfully held by another may bring
an action for quo warranto in his own name. If the petition is one for quo warranto, it is
already barred by prescription since under Section 11, Rule 66 of the Rules of Civil
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Procedure, the action should be commenced within one year after the cause of the
public o cer's forfeiture of o ce. In this case, respondent has been working as a Red
Cross volunteer for the past 40 years. Respondent was already Chairman of the PNRC
Board of Governors when he was elected Senator in May 2004, having been elected
Chairman in 2003 and re-elected in 2005.
Respondent contends that even if the present petition is treated as a taxpayer's
suit, petitioners cannot be allowed to raise a constitutional question in the absence of
any claim 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 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 public funds.
Respondent also maintains that if the petition is treated as one for declaratory
relief, this Court would have no jurisdiction since original jurisdiction for declaratory
relief lies with the Regional Trial Court.
Respondent further insists that the PNRC is not a government-owned or
controlled corporation and that the prohibition under Section 13, Article VI of the
Constitution does not apply in the present case since volunteer service to the PNRC is
neither an office nor an employment.
In their Reply, petitioners claim that their petition is neither an action for quo
warranto nor an action for declaratory relief. Petitioners maintain that the present
petition is a taxpayer's suit questioning the unlawful disbursement of funds, considering
that respondent has been drawing his salaries and other compensation as a Senator
even if he is no longer entitled to his o ce. Petitioners point out that this Court has
jurisdiction over this petition since it involves a legal or constitutional issue which is of
transcendental importance.
The Issues
Petitioners raise the following issues:
1. Whether the Philippine National Red Cross (PNRC) is a government-owned or
controlled corporation;
2. Whether Section 13, Article VI of the Philippine Constitution applies to the case
of respondent who is Chairman of the PNRC and at the same time a
Member of the Senate; cDCIHT
3. Whether respondent should be automatically removed as a Senator pursuant to

Section 13, Article VI of the Philippine Constitution; and
4. Whether petitioners may legally institute this petition against respondent. 4
The substantial issue boils down to whether the o ce of the PNRC Chairman is a
government o ce or an o ce in a government-owned or controlled corporation for
purposes of the prohibition in Section 13, Article VI of the Constitution.
The Court's Ruling
We find the petition without merit.
Petitioners Have No Standing to File this Petition
A careful reading of the petition reveals that it is an action for quo warranto.
Section 1, Rule 66 of the Rules of Court provides:
Section 1. Action by Government against individuals. — An action for the
usurpation of a public o ce , position or franchise may be commenced by
a veri ed 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, position or franchise;
(b) A public o cer who does or suffers an act which by provision

of law, constitutes a ground for the forfeiture of his o ce ;
or
(c) An association which acts as a corporation within the Philippines

without being legally incorporated or without lawful authority so to
act. (Emphasis supplied)
Petitioners allege in their petition that:

4. Respondent became the Chairman of the PNRC when he was
elected as such during the First Regular Luncheon-Meeting of the Board
of Governors of the PNRC held on February 23, 2006, the minutes of
which is hereto attached and made integral part hereof as Annex "A".
5. Respondent was elected as Chairman of the PNRC Board of Governors,

during his incumbency as a Member of the House of Senate of the Congress of
the Philippines, having been elected as such during the national elections last May
2004.
6. Since his election as Chairman of the PNRC Board of Governors, which

position he duly accepted, respondent has been exercising the powers and
discharging the functions and duties of said o ce, despite the fact that he is still
a senator. TCIHSa
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 Section
13, Article VI of the Philippine Constitution , . . .
xxx xxx xxx
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, ET AL. VS. DRILON AND GORDON,
G.R. No. 104732, . . .
11. Despite the fact that he is no longer a senator, respondent continues to

act as such and still performs the powers, functions and duties of a senator,
contrary to the constitution, law and jurisprudence.
12. Unless restrained, therefore, respondent will continue to falsely act and
represent himself as a senator or member of the House of Senate, collecting the
salaries, emoluments and other compensations, bene ts and privileges
appertaining and due only to the legitimate senators, to the damage, great and
irreparable injury of the Government and the Filipino people. 5 (Emphasis
supplied)
Thus, petitioners are alleging that by accepting the position of Chairman of the
PNRC Board of Governors, respondent has automatically forfeited his seat in the
Senate. In short, petitioners led an action for usurpation of public o ce against
respondent, a public o cer who allegedly committed an act which constitutes a ground
for the forfeiture of his public o ce. Clearly, such an action is for quo warranto,
specifically under Section 1 (b), Rule 66 of the Rules of Court.
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 such an action if he claims to be entitled to the public o ce allegedly
usurped by another, in which case he can bring the action in his own name. The person
instituting quo warranto proceedings in his own behalf must claim and be able to show
that he is entitled to the o ce in dispute, otherwise the action may be dismissed at any
stage. 6 In the present case, petitioners do not claim to be entitled to the Senate o ce
of respondent. Clearly, petitioners have no standing to file the present petition.
Even if the Court disregards the in rmities of the petition and treats it as a
taxpayer's suit, the petition would still fail on the merits.
PNRC is a Private Organization Performing Public Functions
On 22 March 1947, President Manuel A. Roxas signed Republic Act No. 95, 7
otherwise known as the PNRC Charter. The PNRC is a non-pro t, donor-funded,
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, social status, or political a liation. 8 The PNRC
provides six major services: Blood Services, Disaster Management, Safety Services,
Community Health and Nursing, Social Services and Voluntary Service. 9 HScDIC
The Republic of the Philippines, adhering to the Geneva Conventions, established

the PNRC as a voluntary organization for the purpose contemplated in the Geneva
Convention of 27 July 1929. 1 0 The Whereas clauses of the PNRC Charter read:
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 inherent in war;
WHEREAS, more than sixty nations of the world have rati ed 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 Wounded and Sick
of Armies in the Field' (referred to in this Charter as the Geneva Red Cross
Convention);
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 adherence to the Geneva Red
Cross Convention on February 14, 1947, and by that action indicated its
desire to participate with the nations of the 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, there existed in the Philippines since 1917 a Charter of the

American National Red Cross which must be terminated in view of the
independence of the Philippines; and
WHEREAS, the volunteer organizations established in the other countries

which have rati ed or adhered to the Geneva Red Cross Convention assist in
promoting the health and welfare of their people in peace and in war, and through
their mutual assistance and cooperation directly and through their international
organizations promote better understanding and sympathy among the peoples of
the world. (Emphasis supplied)
The PNRC is a member * National Society of the International Red Cross and Red
Crescent 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. HUMANITY — The International Red Cross and Red Crescent Movement, born of
a desire to bring assistance without discrimination to the wounded on the
battle eld, endeavors, in its international and national capacity, to prevent
and alleviate human suffering wherever it may be found. Its purpose is to
protect life and health and to ensure respect for the human being. It
promotes mutual understanding, friendship, cooperation and lasting peace
amongst all peoples. AcCTaD
2. IMPARTIALITY — It makes no discrimination as to nationality, race, religious

beliefs, class or political opinions. It endeavors to relieve the suffering of
individuals, being guided solely by their needs, and to give priority to the
most urgent cases of distress.
3. NEUTRALITY — In order to continue to enjoy the con dence of all, the

Movement may not take sides in hostilities or engage at any time
in controversies of a political, racial, religious or ideological
nature.
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. VOLUNTARY SERVICE — It is a voluntary relief movement not prompted in any

manner by desire for gain.
6. UNITY — There can be only one Red Cross or one Red Crescent Society in any
one country. It must be open to all. It must carry on its humanitarian work
throughout its territory.
7. UNIVERSALITY — The International Red Cross and Red Crescent Movement, in

which all Societies have 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 ideals of the Movement. In order
to be recognized as a National Society, the PNRC has to be autonomous and must
operate in conformity with the Fundamental Principles of the Movement. 1 1
The reason for this autonomy is fundamental. To be accepted by warring
belligerents as neutral workers during international or internal armed con icts, the
PNRC volunteers must not be seen as belonging to any side of the armed con ict. In the
Philippines where there is a communist insurgency and a Muslim separatist rebellion,
the PNRC cannot be seen as government-owned or controlled, and neither can the PNRC
volunteers be identi ed as government personnel or as instruments of government
policy. Otherwise, the insurgents or separatists will treat PNRC volunteers as enemies
when the volunteers tend to the wounded in the battle eld or the displaced civilians in
conflict areas.
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 out its mission as a National Red Cross Society. 1 2 It is imperative that
the PNRC must be autonomous, neutral, and independent in relation to the State. ITAaHc
To ensure and maintain its autonomy, neutrality, and independence, the PNRC
cannot be owned or controlled by the government. Indeed, the Philippine government
does not own the PNRC. The PNRC does not have government assets and does not
receive any appropriation from the Philippine Congress. 1 3 The PNRC is nanced
primarily by contributions from private individuals and private entities obtained through
solicitation campaigns organized by its Board of Governors, as provided under Section
11 of the PNRC Charter:
SEC. 11. As a national voluntary organization, the Philippine National
Red Cross shall be nanced 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 conducted
independently of other fund drives by other organizations. (Emphasis supplied)
The government does not control the PNRC. Under the PNRC Charter, as
amended, only six of the thirty members of the PNRC Board of Governors are
appointed by the President of the Philippines . Thus, twenty-four members, or four-
fths (4/5), of the PNRC Board of Governors are not appointed by the President.
Section 6 of the PNRC Charter, as amended, provides:
SEC. 6. The governing powers and authority shall be vested in a Board of
Governors composed of thirty members, six of whom shall be appointed by the
President of the Philippines, eighteen shall be elected by chapter delegates in
biennial conventions and the remaining six shall be selected by the twenty-four
members of the Board already chosen. . . . .
Thus, of the twenty-four members of the PNRC Board, eighteen are elected by the
chapter delegates of the PNRC, and six are elected by the twenty-four members already
chosen — a select group where the private sector members have three-fourths majority.
Clearly, an overwhelming majority of four-fifths of the PNRC Board are elected
or chosen by the private sector members of the PNRC .
The PNRC Board of Governors, which exercises all corporate powers of the PNRC,
elects the PNRC Chairman and all other o cers of the PNRC. The incumbent Chairman
of PNRC, respondent Senator Gordon, was elected, as all PNRC Chairmen are elected, by
a private sector-controlled PNRC Board four- fths of whom are private sector
members of the PNRC. The PNRC Chairman is not appointed by the President or by any
subordinate government official.
Under Section 16, Article VII of the Constitution, 1 4 the President appoints all
o cials and employees in the Executive branch whose appointments are vested in the
President by the Constitution or by law. The President also appoints those whose
appointments are not otherwise provided by law. Under this Section 16, the law may
also authorize the 'heads of departments, agencies, commissions, or boards' to appoint
o cers lower in rank than such heads of departments, agencies, commissions or
boards. 1 5 In Ru no v. Endriga , 1 6 the Court explained appointments under Section 16 in
this wise: TIESCA
Under Section 16, Article VII of the 1987 Constitution, the President
appoints three groups of o cers. The rst group refers to the heads of the
Executive departments, ambassadors, other public ministers and consuls, o cers
of the armed forces from the rank of colonel or naval captain, and other o cers
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 o cers of the Government whose appointments
are not otherwise provided by law.
Under the same Section 16, there is a fourth group of lower-ranked o cers
whose appointments Congress may by law vest in the heads of departments,
agencies, commissions, or boards. . . .
xxx 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
lower-ranked o cers 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 o cers other than the heads of the agency,
commission, or board to appoint lower-ranked officers. HIACac
xxx xxx xxx

The Constitution authorizes Congress to vest the power to appoint lower-
ranked o cers speci cally in the 'heads' of the speci ed o ces, and in no other
person. The word 'heads' refers to the chairpersons of the commissions or boards
and not to their members, for several reasons.
The President does not appoint the Chairman of the PNRC. Neither does the head
of any department, agency, commission or board appoint the PNRC Chairman. Thus, the
PNRC Chairman is not an o cial or employee of the Executive branch since his
appointment does not fall under Section 16, Article VII of the Constitution. Certainly, the
PNRC Chairman is not an o cial or employee of the Judiciary or Legislature. This leads
us to the obvious conclusion that the PNRC Chairman is not an o cial or employee of
the Philippine Government. Not being a government o cial or employee, the
PNRC Chairman, as such, does not hold a government office or employment .
Under Section 17, Article VII of the Constitution, 1 7 the President exercises
control over all government o ces in the Executive branch. If an o ce is legally not
under the control of the President, then such o ce is not part of the
Executive branch . In Ru no v. Endriga , 1 8 the Court explained the President's power of
control over all government offices as follows:
Every government o ce, entity, or agency must fall under the Executive,
Legislative, or Judicial branches, or must belong to one of the independent
constitutional bodies, or must be a quasi-judicial body or local government unit.
Otherwise, such government o ce, entity, or agency has no legal and
constitutional basis for its existence.
The CCP does not fall under the Legislative or Judicial branches of
government. The CCP is also not one of the independent constitutional bodies.
Neither is the CCP a quasi-judicial body nor a local government unit. Thus, the CCP
must fall under the Executive branch. Under the Revised Administrative Code of
1987, any agency "not placed by law or order creating them under any speci c
department" falls "under the Office of the President".
Since the President exercises control over "all the executive departments,
bureaus, and o ces", the President necessarily exercises control over the CCP
which is an o ce in the Executive branch. In mandating that the President "shall
have control of all executive . . . o ces", Section 17, Article VII of the 1987
Constitution does not exempt any executive o ce — one performing executive
functions outside of the independent constitutional bodies — from the President's
power of control. There is no dispute that the CCP performs executive, and not
legislative, judicial, or quasi-judicial functions.
The President's power of control applies to the acts or decisions
of all o cers in the Executive branch. This is true whether such o cers
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 o cer involving
the exercise of discretion. SaICcT
In short, the President sits at the apex of the Executive branch, and
exercises 'control of all the executive departments, bureaus, and o ces.' 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 o ce in the Executive branch that is not under the control
of the President is a lost command whose existence is without any legal or
constitutional basis. (Emphasis supplied)
An overwhelming four- fths majority of the PNRC Board are private sector
individuals elected to the PNRC Board by the private sector members of the PNRC. The
PNRC Board exercises all corporate powers of the PNRC. The PNRC 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 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 actions of the PNRC Chairman. This proves again that the o ce
of the PNRC Chairman is a private office, not a government office.
Although the State is often represented in the governing bodies of a National
Society, this can be justi ed by the need for proper coordination with the public
authorities, and the government representatives may take part in decision-making within
a National Society. However, the freely-elected representatives of a National Society's
active members must remain in a large majority in a National Society's governing
bodies. 1 9
The PNRC is not government-owned 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. 2 0 Even foreigners, whether residents or not, can be
members of the PNRC. Section 5 of the PNRC Charter, as amended by Presidential
Decree No. 1264, 2 1 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 National Red Cross Annual Fund Campaign shall entitle the
contributor to membership for one year and said contribution shall be deductible
in full for taxation purposes.
Thus, the PNRC is a privately owned, privately funded, and privately run charitable
organization. The PNRC is not a government-owned or controlled corporation.
Petitioners anchor their petition on the 1999 case of Camporedondo v. NLRC, 2 2
which ruled that the PNRC is a government-owned or controlled corporation. In ruling
that the PNRC is a government-owned 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 under a special charter, the Court then ruled that it is a government
corporation. However, the Camporedondo ruling failed to consider the de nition of a
government-owned or controlled corporation as provided under Section 2 (13) of the
Introductory Provisions of the Administrative Code of 1987: aHTDAc
SEC. 2. General Terms Defined. — . . .
(13) Government-owned or controlled corporation refers to any

agency organized as a stock or non-stock corporation, vested with
functions relating to public needs whether governmental or proprietary
in nature, and owned by the Government directly or through its
instrumentalities either wholly, or where applicable as in the case of
stock corporations, to the extent of at least fty-one (51) percent of its
capital stock : Provided, That government-owned or controlled corporations may
be further categorized 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.(Boldfacing and underscoring supplied)
A government-owned 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 non-stock corporation, by
analogy at least a majority of the members must be government o cials holding such
membership by appointment or designation by the government. Under this criterion, and
as discussed earlier, the government does not own or control PNRC.
The P NRC Cha rter is Violative of the Constitutional Proscription against the
Creation of Private Corporations by Special Law
The 1935 Constitution, as amended, was in force when the PNRC was created by
special charter on 22 March 1947. Section 7, Article XIV of the 1935 Constitution, as
amended, 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
instrumentality thereof.
The subsequent 1973 and 1987 Constitutions contain similar provisions prohibiting
Congress from creating private corporations except by general law. Section 1 of the
PNRC Charter, as amended, creates the PNRC as a "body corporate and politic", thus:
SEC. 1. There is hereby created in the Republic of the Philippines a
body corporate and politic to be the voluntary organization o cially
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 National Red Cross Society . The
national headquarters of this Corporation shall be located in Metropolitan Manila.
(Emphasis supplied)
In Feliciano v. Commission on Audit , 2 3 the Court explained the constitutional provision

prohibiting Congress from creating private corporations in this wise: IDATCE
We begin by explaining the general framework under the fundamental law.

The Constitution recognizes two classes of corporations. The rst refers to private
corporations created under a general law. The second refers to government-owned
or controlled corporations created by special charters. Section 16, Article XII of the
Constitution provides:
Sec. 16. The Congress shall not, except by general law, provide for the
formation, organization, or regulation of private corporations. Government-owned
or controlled corporations may be created or established by special charters in the
interest of the common good and subject to the test of economic viability.
The Constitution emphatically prohibits the creation of private corporations
except by general law applicable to all citizens. The purpose of this constitutional
provision is to ban private corporations created by special charters, which
historically gave certain individuals, families or groups special privileges denied to
other citizens.
In short, Congress cannot enact a law creating a private

corporation with a 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,
except that the Cooperative Code governs the incorporation of cooperatives.
The Constitution authorizes Congress to create government-owned or
controlled corporations through special charters. Since private corporations
cannot have special charters, it follows that Congress can create corporations with
special charters only if such corporations are government-owned or controlled. 2 4
(Emphasis supplied)
In Feliciano, the Court held that the Local Water Districts are government-owned
or controlled corporations since they exist by virtue of Presidential Decree No. 198,
which constitutes their special charter. The seed capital assets of the Local Water
Districts, such as waterworks and sewerage facilities, were public property which were
managed, operated by or under the control of the city, municipality or province before
the assets were transferred 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 Appropriations Act, 2 5 the LWUA has a budget amounting
to P400,000,000 for its subsidy requirements. 2 6 There is no private capital
invested in the Local Water Districts . 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 assets or funds.
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 personnel of the Local
Water Districts are government employees subject to civil service laws and anti-graft
laws. Clearly, the Local Water Districts are considered government-owned or controlled
corporations not only because of their creation by special charter but also because the
government in fact owns and controls the Local Water Districts. CDEaAI
Just like the Local Water Districts, the PNRC was created through a special
charter. However, unlike the Local Water Districts, the elements of government
ownership and control are clearly lacking in the PNRC . Thus, although the PNRC
is created by a special charter, it cannot be considered a government-owned or
controlled corporation in the absence of the essential elements of ownership and
control by the government. In creating 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 non-
pro t or charitable corporations. Consequently, the PNRC Charter, insofar as it creates
the PNRC as a private corporation and grants it corporate powers, 2 7 is void for being
unconstitutional. Thus, Sections 1, 2 8 2, 2 9 3, 3 0 4 (a), 3 1 5, 3 2 6, 3 3 7, 3 4 8, 3 5 9, 3 6 10, 3 7
11, 3 8 12, 3 9 and 13 4 0 of the PNRC Charter, as amended, are void.
The other provisions 4 1 of the PNRC Charter remain valid as they can be
considered as a recognition by the State that the unincorporated PNRC is the local
National Society of the International Red Cross and Red Crescent Movement, and thus
entitled to the bene ts, exemptions and privileges set forth in the PNRC Charter. The
other provisions of the PNRC Charter implement the Philippine Government's treaty
obligations under Article 4 (5) of the 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 Geneva Conventions and of the national legislation as a voluntary aid society,
auxiliary to the public authorities in the humanitarian field."
In sum, we hold that the o ce of the PNRC Chairman is not a government o ce
or an o ce in a government-owned or controlled corporation for purposes of the
prohibition in Section 13, Article VI of the 1987 Constitution. However, since the PNRC
Charter is void insofar as it creates the PNRC as a private corporation, the PNRC should
incorporate under the Corporation Code and register with the Securities and Exchange
Commission if it wants to be a private corporation.
WHEREFORE , we declare that the o ce of the Chairman of the Philippine
National Red Cross is not a government o ce or an o ce in a government-owned or
controlled corporation for purposes of the prohibition in Section 13, Article VI of the
1987 Constitution. We also declare that Sections 1, 2, 3, 4 (a), 5, 6, 7, 8, 9, 10, 11, 12, and
13 of the Charter of the Philippine National Red Cross, or Republic Act No. 95, as
amended by Presidential Decree Nos. 1264 and 1643, are VOID because they create the
PNRC as a private corporation or grant it corporate powers.
SO ORDERED .
Puno, C.J., Quisumbing, Carpio Morales, Chico-Nazario, Velasco, Jr., and Leonardo-De
Castro, JJ., concur.
Corona, J., took no part.
Ynares-Santiago, Brion, Peralta and Bersamin, JJ., join the dissenting opinion of J.
Nachura.
Nachura, J., please see dissent.
Separate Opinions
NACHURA , J., dissenting:
I am constrained to register my dissent because the ponencia does not only

endorse an unmistakably agrant transgression of the Constitution but also unwittingly
espouses the destruction of the Philippine National Red Cross (PNRC) as an institution.
With all due respect, I disagree with the principal arguments advanced in the ponencia
to justify Senator Richard J. Gordon's unconstitutional holding of the chairmanship of
the PNRC Board of Governors while concurrently sitting as a member of the Senate of
the Philippines.
Procedurally, I maintain that the petition is one for prohibition and that petitioners
have standing to le the same. On the merits, I remain earnestly convinced that PNRC is
a government owned or controlled corporation (GOCC), if not a government
instrumentality; that its charter does not violate the constitutional proscription against
the creation of private corporations by special law; and that Senator Gordon's
continuous occupancy of two incompatible positions is a clear violation of the
Constitution.
Allow me to elucidate.
I.
The petition should be treated
as one for prohibition; and
petitioners have locus standi
I submit that the present petition should be treated as one for prohibition rather
than for quo warranto . In the main, the petitioners seek from this Court the declaration
that Senator Gordon has forfeited his seat in the Senate, and the consequent
proscription from further acting or representing himself as a Senator and from receiving
the salaries, emoluments, compensations, privileges and bene ts thereof. 1 Hence, the
remedy sought is preventive and restrictive — an injunction against an alleged
continuing violation of the fundamental law. Furthermore, the petitioners raise a
constitutional issue , without claiming any entitlement to either the Senate seat or the
chairmanship of PNRC.
Considering that the issue involved is of fundamental constitutional
signi cance and of paramount importance, i.e., whether the Senator continues to
commit an infringement of the Constitution by holding two positions claimed to be
incompatible, the Court has full authority, nay the bounden duty, to treat the
vaguely worded petition as one for prohibition and assume jurisdiction . 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 Defense and Security, Information
and Communications Technology, and Suffrage and Electoral Reforms 3 echoes 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 Court's responsibility
under the Constitution to determine whether or not other branches of government have
kept themselves within the limits of the Constitution and the laws, and that they have
not abused the discretion given them. 5
Finally, as aforementioned, petitioners advance a constitutional issue which
deserves the attention of this Court in view of its seriousness, novelty and weight as
precedent. 6 Considering that Senator Gordon is charged with continuously violating the
Constitution by holding incompatible o ces, the institution of the instant action by the
petitioners is proper.
II.
A brief history of the PNRC
A historical account of the PNRC's creation is imperative in order to comprehend
the nature of the institution and to put things in their proper perspective.
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 with International Committee of the Red Cross (ICRC) President
Gustave Moynier to lobby for the recognition of the Filipino Red Cross Society and the
application of the 1864 Geneva Convention to the country during the Filipino-American
war. 7 The Geneva Convention of August 22, 1864 dealt mainly on the relief to wounded
soldiers without any distinction as to nationality, on the neutrality and inviolability of
medical personnel and medical establishments and units; and on the adoption of the
distinctive sign of the red cross on a white ground by hospitals, ambulances and
evacuation parties and personnel. 8
On August 30, 1905, a Philippine branch of the American National Red Cross
(ANRC) was organized. This was later o cially recognized as an ANRC chapter on
December 4, 1917. In 1934, President Manuel L. Quezon initiated the 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-controlled Philippine Red Cross was created to
take care of internment camps in the country. After the liberation of Manila in 1945,
local Red Cross officials and the ANRC undertook to reconstitute the organization. 9 The
Republic of 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 o cially created when President Manuel A. Roxas signed
Republic Act (R.A.) No. 95. 10
PNRC is a GOCC
Section 16, Article XII, of the Philippine Constitution, provides the in exible
imperative for the formation or organization of private corporations, as follows:
Sec. 16. The Congress shall not, except by general law, provide for the
formation, organization or regulation of private corporations. Government-owned
or controlled corporations may be created or established by special charters in
the interest of the common good and subject to the test of economic viability.
Delineating the nature of a GOCC, compared to a private corporation, Justice
Carpio explains this inviolable rule in Feliciano v. Commission on Audit 11 in this wise:
We begin by explaining the general framework under the fundamental
law. The Constitution recognizes two classes of corporations. The rst refers to
private corporations created under a general law. The second refers to
government-owned or controlled corporations created by special charters.
Section 16, Article XII of the Constitution provides:
Section 16. The Congress shall not, except by general law,
provide for the formation, organization, or regulation of private
corporations. Government-owned or controlled corporations may
be created or established by special charters in the interest of the
common good and subject to the test of economic viability.
The Constitution emphatically prohibits the creation of private
corporations except by a general law applicable to citizens. The purpose of this
constitutional provision is to ban private corporations created by special
charters, which historically gave certain individuals, families or groups special
privileges denied to other citizens.
In short, Congress cannot enact a law creating a private
corporation with a 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, that general law is the
Corporation Code, except that the Cooperative Code governs the incorporation of
cooperatives.
The Constitution authorizes Congress to create government-owned or
controlled corporations through special charters. Since private corporations
cannot have special charters, it follows that Congress can create
corporations with special charters only if such corporations are
government-owned or controlled. 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 government-owned or controlled. 13 To hold otherwise would run
directly against our fundamental law or, worse, authorize implied amendment to it,
which this Court cannot allow.
The PNRC was incorporated under R.A. No. 95, a special law. Following the logic
in Feliciano, it cannot be anything but a GOCC.
R.A. No. 95 has undergone amendment through the years. 14 Did the amendment
of the PNRC Charter have the effect of transforming it into a private corporation?
In Camporedondo v. National Labor Relations Commission, 15 we answered this
in the negative. The Court's ruling in that case, reiterated in Baluyot v. Holganza, 16 is
direct, definite and clear, viz.:
Resolving the issue set out in the opening paragraph of this opinion, we
rule that the Philippine National Red Cross (PNRC) is a government owned and
controlled corporation, with an original charter under Republic Act No. 95, as
amended. The test to determine whether a corporation is government owned or
controlled, or private in nature is simple. Is it created by its own charter for the
exercise of a public function, or by 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 Government Service
Insurance System. The PNRC was not "impliedly converted into a private
corporation" simply because its charter was amended to vest in it the authority
to secure loans, be exempted from payment of all duties, taxes, fees and other
charges of all kinds on all importations and purchases for its exclusive use, on
donations for its disaster relief work and other services and in its bene ts and
fund raising drives and be allotted one lottery draw a year by the Philippine
Charity Sweepstakes O ce for the support of its disaster relief operation in
addition to its existing lottery draws for blood programs. 17
In an effort to avoid the inescapable command of Camporedondo, the ponencia
asserts that the decision has failed to consider the de nition of a GOCC under Section 2
(13) of the Introductory Provisions of Executive Order No. 292 (Administrative Code of
1987), which provides:
SEC. 2. General Terms Defined. . . .
(13) Government-owned or controlled corporation refers to any agency
organized as a stock or non-stock corporation, vested with functions relating to
public needs whether governmental or proprietary in nature, and owned by the
Government directly or through its instrumentalities either wholly, or, where
applicable as in the case of stock corporations, to the extent of at least fty-one
(51) per cent of its capital stock: Provided, That government-owned or
controlled corporations may be further categorized 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. 18
The ponencia then argues that, based on the criterion in the cited provision, PNRC is not
owned or controlled by the government and, thus, is not a GOCC.
I respectfully differ. The quoted Administrative Code provision does not
pronounce a de nition of a GOCC that strays from Section 16, Article XII of the
Constitution. As explained in Philippine National Construction Corporation v. Pabion, et
al., 19 it merely declares that a GOCC may either be a stock or non-stock corporation, or
that it "may be further categorized," 20 suggesting that the de nition provided in the
Administrative Code is broad enough to admit of other distinctions as to the kinds of
GOCCs. 21
Rather, crucial in this de nition is the reference to the corporation being "vested
with functions relating to public needs whether governmental or proprietary."
When we relate this to the PNRC Charter, as amended, we note that Section 1 of the
charter starts with the phrase, "(T)here is hereby created in the Republic of the
Philippines a body corporate and politic to be the voluntary organization
o cially designated to assist the Republic of the Philippines in discharging
the obligations set forth in the Geneva Conventions . . .". 22 It is beyond cavil that
the obligations of the Republic of the Philippines set forth in the Geneva
Conventions are public or governmental in character. If the PNRC is "o cially
designated to assist the Republic," then the PNRC is, perforce, engaged in the
performance of the government's public functions.
PNRC is, at the very least,
a government instrumentality
Further, applying the de nition of terms used in the Administrative Code of 1987,
as Justice Carpio urges this Court to do, will lead to the inescapable conclusion that
PNRC is an instrumentality of the government. Section 2 (10) of the said code de nes a
government instrumentality as:
(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 regulatory agencies, chartered
institutions and government-owned or controlled corporations. 23
The PNRC is vested with the special function of assisting the Republic of the
Philippines in discharging its obligations under the Geneva Conventions. It is endowed
with corporate powers. It administers special funds — the contributions of its members,
the aid given by the government, the support extended to it by the Philippine Charity
Sweepstakes O ce (PCSO) in terms of allotment of lottery draws. 24 It enjoys
operational autonomy, as emphasized by Justice Carpio himself. And all these
attributes exist by virtue of its charter.
Signi cantly, in the United States, the ANRC, the precursor of the PNRC and
likewise a member of the International Federation of Red Cross and Red Crescent
Societies, 25 is considered as a federal instrumentality. Addressing the issue of
whether the ANRC was an entity exempt from paying unemployment compensation tax,
the US Supreme Court, in Department of Employment v. United States, 26 characterized
the Red Cross as an instrumentality of the federal government not covered by the
enforcement of the tax statute and entitled to a refund of taxes paid —
On the merits, we hold that the Red Cross is an instrumentality of the
United States for purposes of immunity from state taxation levied on its
operations, and that this immunity has not been waived by congressional
enactment. Although there is no simple test for ascertaining whether an
institution is so closely related to governmental activity as to become a tax-
immune instrumentality, the Red Cross is clearly such an instrumentality. See
generally, Sturges, The Legal Status of the Red Cross, 56 Mich.L.Rev. 1 (1957).
Congress chartered the present Red Cross in 1905, subjecting it to governmental
supervision and to a regular nancial audit by the Defense, then War,
Department. 33 Stat. 599, as amended, 36 U.S.C. s 1 et seq. Its principal o cer
is appointed by the President, who also appoints seven (all government o cers)
of the remaining 49 Governors. 33 Stat. 601, as amended, 36 U.S.C. s 5. By
statute 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 nanced primarily from voluntary private
contributions, the Red Cross does receive substantial material assistance from
the Federal Government. And time and time again, both the President and the
Congress have recognized and acted in reliance upon the Red Cross' status
virtually as an arm of the Government. In those respects in which the Red Cross
differs from the usual government agency — e.g., in that its employees are not
employees of the United States, and that government o cials do not direct its
everyday affairs — the Red Cross is like other institutions — e.g., national banks
— whose status as tax-immune instrumentalities of the United States is beyond
dispute. 27
The same conclusion was reached in R.A. Barton v. American Red Cross. 28 In that
case, a transfusion recipient and her family brought action against American Red Cross
and its state medical director under Alabama Medical Liability Act as well as Alabama
tort law for failing to properly test blood sample and failing to timely notify recipient
that donor had tested positive for human immunode ciency virus (HIV). The US District
Court concluded that the Red Cross was a federal instrumentality and was so
intertwined with and was essential to the operation of the federal government, both
internationally and domestically; 29 thus, its personnel were exempt from tort liability if
the conduct complained of were within the scope of o cial duties and were
discretionary in nature. 30 The US Court of Appeals later a rmed the decision, and the
US Supreme Court denied certiorari and rehearing on the case. 31
Interestingly, while the United States considers the ANRC as its arm and the US
courts uphold its status as a federal instrumentality, ANRC remains an independent,
volunteer-led organization that works closely with the ICRC on matters of international
con ict and social, political, and military unrest. There is, therefore, no su cient basis
for Justice Carpio to assume that if this Court will consider PNRC as a GOCC, then "it
cannot merit the trust of all and cannot effectively carry out its mission as a National
Red Cross Society."
Let it be stressed that, in much the same way as the ANRC, the PNRC has been
chartered and incorporated by the Philippine Government to aid it in the ful llment of its
obligations under the Geneva Convention. The President of the Republic appoints six of
the 36 PNRC governors. Though it depends primarily on voluntary contributions for its
funding, PNRC receives nancial assistance not only from the National Government and
the PCSO but also through the local government units. PNRC further submits to the
President an annual report containing its activities and showing its nancial condition,
as well as the receipts and disbursements. PNRC has further been recognized by the
Philippine Government to be an essential component in its international and domestic
operation. There is no doubt therefore that PNRC is a GOCC or, if not, at least a
government instrumentality.
The fact that the Philippine or the American National Red Cross is a governmental
instrumentality does not affect its autonomy and operation in conformity with the
Fundamental Principles of the International Red Cross. The PNRC, like the ANRC,
remains autonomous, neutral and independent from the Government, and vice versa,
consonant with the principles laid down in the Geneva Convention.
A similar standing obtains in the case of the Commission on Human Rights (CHR).
While it is a governmental o ce, it is independent. Separatists and insurgents do not
consider the CHR, or the PNRC in this case, as the enemy, but rather as the entity to turn
to in the event of injury to their constitutional rights, for the CHR, or to their physical
being, for the PNRC.
The PNRC Charter does not violate
the constitutional proscription
against the creation of private
corporations by special law

Considering that the PNRC is not a private corporation, but a GOCC or a
government instrumentality, then its charter does not violate the constitutional provision
that Congress cannot, except by a general law, provide for the formation, organization or
regulation of private corporations, unless such corporations are owned or controlled by
the Government. 32 We have already settled this issue in Camporedondo and in Baluyot.
Let it be emphasized that, in those cases, this Court has found nothing wrong with the
PNRC Charter. We have simply applied the Constitution, and in Feliciano, this Court has
explained the meaning of the constitutional provision.
I respectfully submit that we are not prepared to reverse the ruling of this Court in
the said cases. To rule otherwise will create an unsettling ripple effect in numerous
decisions of this Court, including those dealing with the jurisdiction of the Civil Service
Commission (CSC) and the authority of the Commission on Audit (COA), among others.
Furthermore, to subscribe to the proposition that Section 1 of the PNRC Charter,
which deals with the creation and incorporation of the organization, is invalid for being
violative of the aforesaid constitutional proscription, but the rest of the provisions in the
PNRC Charter remains valid, is to reach an absurd situation in which obligations are
imposed on and a framework for its operation is laid down for a legally non-existing
entity. If Section 1 of the PNRC Charter were impulsively invalidated, what will remain are
the following provisions, which will have no specific frame of reference —
SECTION 2. The name of this corporation shall be "The Philippine
National Red Cross" and by that name shall have perpetual 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 Corporation hereinafter set forth;
to adopt a seal and to alter and destroy the same at pleasure; and to have the
right to adopt and to use, in carrying out its purposes hereinafter designated, as
an emblem and badge, a red Greek cross on a white ground, the same as has
been described in the Geneva Conventions, and adopted by the several nations
ratifying or adhering thereto; to ordain and establish by-laws and regulations not
inconsistent with the laws of the Republic of the Philippines, and generally to do
all such acts and things as may be necessary to carry into effect the provisions
of 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 materials neutralized in time of war shall be
left to the military authorities. The red Greek cross on a white ground, as has
been described by the Geneva Conventions is not, and shall not be construed as
a religious symbol, and shall have equal e cacy and applicability to persons of
all faiths, creeds and beliefs. The operational jurisdiction of the Philippine
National Red Cross shall be over the entire territory of the Philippines.
SECTION 3. That the purposes of this Corporation shall be as follows:
a. To provide volunteer aid to the sick and wounded of armed forces in
time of war, in accordance with the spirit of and under the conditions prescribed
by the Geneva Conventions to which the Republic of the Philippines proclaimed
its adherence;
b. For the purposes mentioned in the preceding sub-section, to perform all
duties devolving upon the Corporation as a result of the adherence of the
Republic of the Philippines to the said Convention;
c. To act in matters of voluntary relief and in accordance with the
authorities of the armed forces as a medium of communication between 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 societies of
other governments and the Governments and people and the Armed Forces of
the Republic of the Philippines;
d. To establish and maintain a system of national and international relief
in time of peace and in time of war and apply the same in meeting and
emergency needs caused by typhoons, ood, res, earthquakes, and other
natural disasters and to devise and carry on measures for minimizing the
suffering caused by such disasters;
e. To devise and promote such other services in time of peace and in time
of war as may be found desirable in improving the health, safety and welfare of
the Filipino people;
f. To devise such means as to make every citizen and/or resident of the
Philippines a member of the Red Cross.
SECTION 4. In furtherance of the purposes mentioned in the preceding
sub-paragraphs, the Philippine National Red Cross shall:
a. Be authorized to secure loans from any nancial institution which shall
not exceed its budget of the previous year.
b. Be exempt from payment of all duties, taxes, fees, and other charges of
all kinds on all importations and purchases for its exclusive use, on donations
for its disaster relief work and other Red Cross services, and in its bene ts and
fund raising drives all provisions of law to the contrary notwithstanding.
c. Be allotted by the Philippine Charity Sweepstakes O ce one lottery
draw yearly for the support of its disaster relief operations in addition to its
existing lottery draws for the Blood Program.
SECTION 5. Membership in the Philippine National Red Cross shall be
open to entire population in the Philippines regardless of citizenship. Any
contribution to the Philippine National Red Cross Annual Fund Campaign shall
entitle the contributor to membership for one year and said contribution shall be
deductible in full for taxation purposes.
SECTION 6. The governing powers and authority shall be vested in a
Board of Governors composed of thirty members, six of whom shall be
appointed by the President of the Philippines, eighteen shall be elected by
chapter delegates in biennial conventions and the remaining six shall be elected
by the twenty-four members of the Board already chosen. At least one but not
more than three of the Presidential appointees shall be chosen from the Armed
Forces of the Philippines.
a. The term of o ce of all members of the board of Governors shall be
four years. Any member of the Board of Governor who has served two
consecutive full terms of four years each shall be ineligible for membership on
the Board for at least two years; any term served to cover unexpired terms of
o ce of any governor will not be considered in this prohibition in serving two
consecutive full terms, and provided, however, that terms served for more than
two years shall be considered a full term.
b. Vacancies in the Board of Governors caused by death or resignation
shall be lled by election by the Board of Governors at its next meeting, except
that vacancies among the Presidential appointees shall be lled by the
President.
SECTION 7. The President of the Philippines shall be the Honorary
President of the Philippine National Red Cross. The o cers shall consist of a
Chairman, a Vice-Chairman, 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 membership for a term of two years and may be re-
elected. The election of o cers shall take place within sixty days after all the
members of the Board of Governors have been chosen and have qualified.
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, the Board of Governors in its discretion may
determine that the best interest of the corporation shall be served by postponing
such biennial meeting.
SECTION 9. The power to ordain, adopt and amend by-laws and
regulations shall be vested in the Board of Governors.
SECTION 10. The members of the Board of Governors, as well as the
officers of the corporation, shall serve without compensation. The compensation
of the paid staff of the corporation shall be determined by the Board of
Governors upon the recommendation of the Secretary General.
SECTION 11. As a national voluntary organization, the Philippine National
Red Cross shall be nanced 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 conducted independently of
other fund drives and service needs.
SECTION 12. The Board of Governors shall promulgate rules and
regulations for the organization of local units of the Philippine National Red
Cross to be known as Chapters. Said rules and regulations shall x the
relationship of the Chapters to the Corporation, de ne their territorial
jurisdictions, and determine the number of delegates for each chapter based on
population, fund campaign potentials and service needs.
SECTION 13. The Corporation shall, at the end of every calendar year
submit to the President of the Philippines an annual report containing the
activities of the Corporation showing its nancial 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 kind by falsely representing or
pretending himself to be a member, agent or representative of the Philippine
National Red Cross.
SECTION 15. The use of the name Red Cross is reserved exclusively to the
Philippine National Red Cross and the use of the emblem of the red Greek cross
on a white ground is reserved exclusively to the Philippine National Red Cross,
medical services of the Armed Forces of the Philippines and such other medical
facilities or other institutions as may be authorized by the Philippine National
Red Cross as provided under Article 44 of the Geneva Conventions. It shall be
unlawful for any other person or entity to use the words Red Cross or Geneva
Cross or to use the emblem of the red Greek cross on a white ground or any
designation, sign, or insignia constituting an imitation thereof for any purpose
whatsoever.
SECTION 16. As used in this Decree, the term person shall include any
legal person, group, or legal entity whatsoever nature, and any person violating
any section of this Article shall, upon conviction therefore be liable to a nd of
not less than one thousand pesos or imprisonment for a term not exceeding one
year, or both, at the discretion of the court, for each and every offense. In case
the violation is committed by a corporation or association, the penalty shall
devolve upon the president, director or any other o cer responsible for such
violation.
SECTION 17. All acts or parts of acts which are inconsistent with the
provisions of this Decree are hereby repealed.
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 does not contain a separability
clause.
The constitutionality of
a law is presumed
Two other important points militate against the declaration of Section 1 of the
PNRC Charter as invalid and unconstitutional, namely: (1) respondent does not
question the constitutionality of the said provision; and (2) every law enjoys
the presumption of constitutionality.
Settled is the doctrine that all reasonable doubts should be resolved in favor of
the constitutionality of a statute. 33 The presumption is that the legislature intended to
enact a valid, sensible and just law and one which operates no further than may be
necessary to effectuate the speci c purpose thereof. 34 Justice Carpio, in Kapisanan ng
mga Kawani ng Energy Regulatory Board v. Barin, 35 even echoes the principle that "to
justify the nulli cation of a law, there must be a clear and unequivocal breach of the
Constitution."
Here, as in Camporedondo and Baluyot, there is no clear showing that the PNRC
Charter runs counter to the Constitution. And, again in the same tone as in Montesclaros
v. Commission on Elections, "[the parties] are not even assailing the constitutionality of
[the PNRC Charter]." A becoming courtesy to a co-equal branch should thus impel this
Court to refrain from unceremoniously invalidating a legislative act.
Deleterious effects will result
if PNRC is declared a private
corporation, among which are
its consequent destruction as
an institution and the Republic's
shirking its obligation under
the Geneva Convention
The hypothesis that PNRC is a private corporation has far-reaching implications.
As mentioned earlier, it will be a reversal of the doctrines laid down in Camporedondo
and Baluyot, and it will have an unsettling ripple effect on other 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. Its employees will no longer be covered by the
Government Service Insurance System. It can no longer be extended tax exemptions
and o cial immunity and it cannot anymore be given support, nancial or otherwise, by
the National Government, the local government units and the PCSO; because these will
violate not only the equal protection clause in the Constitution, but also penal statutes.
And if PNRC is consequently obliterated, the Republic will be shirking its
responsibilities and obligations under the Geneva Convention.
This Court then has to be very careful in the resolution of this case and in making
a declaration that will have unintended yet deleterious consequences. The Court must
not arbitrarily declare a law unconstitutional just to save a single individual from the
unavoidable consequences of his transgression of the Constitution, even if it be
unintentional and done in good faith.
The respondent holds two
incompatible offices
in violation of the Constitution
Section 13, Article VI of the Constitution explicitly provides that "no Senator or
Member of the House of Representatives may hold any other o ce 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 Adaza v. Pacana,
Jr., 37 the Court, construing a parallel provision in the 1973 Constitution, has ruled that —
The language used in the above-cited section is plain, certain
and free from ambiguity. The only exceptions mentioned therein are the
o ces of prime minister and cabinet member. The wisdom or expediency of
the said provision is a matter which is not within the province of the
Court to determine.
A public o ce is a public trust. It is created for the interest and
the bene t of the people. As such, a holder thereof "is subject to such
regulations and conditions as the law may impose" and "he cannot
complain of any restrictions which public policy may dictate on his
holding of more than one o ce." It is therefore of no avail to petitioner that
the system of government in other states allows a local elective o cial to act as
an elected member of the parliament at the same time. The dictate of the
people in whom legal sovereignty lies is explicit. It provides no
exceptions save the two o ces speci cally cited in the above-quoted
constitutional provision. Thus, while it may be said that within the purely
parliamentary system of government no incompatibility exists in the nature of
the two o ces under consideration, as incompatibility is understood in common
law, the incompatibility herein present is one created by no less than
the constitution itself. In the case at bar, there is no question that petitioner
has taken his oath of o ce as an elected Mambabatas Pambansa and has
been discharging his duties as such. In the light of the oft-mentioned
constitutional provision, this fact operated to vacate his former post and he
cannot now continue to occupy the same, nor attempt to discharge its functions.
38
There is no doubt that the language in Section 13, Article VI is unambiguous; it

requires no in-depth construction. However, as the constitutional provision is worded at
present, the then recognized exception adverted to in Adaza, i.e., o ces of prime
minister and cabinet member, no longer holds true given the reversion to the
presidential system and a bicameral Congress in the 1987 Constitution. There remains,
however, a single exception to the rule. Civil Liberties Union v. Executive Secretary, 39
reiterated in the fairly recent Public Interest Center, Inc. v. Elma , 40 recognizes that a
position held in an ex officio capacity does not violate the constitutional proscription on
the holding of multiple o ces. Interpreting the equivalent section in Article VII on the
Executive Department, 41 the Court has decreed in Civil Liberties that —
The prohibition against holding dual or multiple o ces 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 therein without
additional compensation in an ex o cio capacity as provided by law and as
required by the primary functions of said o cials' o ce. The reason is that
these posts do not comprise "any other o ce" within the
contemplation of the constitutional prohibition but are properly an
imposition of additional duties and functions on said officials . . . .
xxx xxx xxx
. . . The term ex officio means "from o ce; by virtue of o ce." It
refers to an "authority derived from o cial character merely, not
expressly conferred upon the individual character, but rather annexed
to the o cial position." Ex officio likewise denotes an "act done in an
o cial character, or as a consequence of o ce, and without any
other appointment or authority other than that conferred by the o ce."
A n ex o cio member of a board is one who is a member by virtue of
his title to a certain office, and without further warrant or appointment .
...
xxx xxx xxx
The ex officio position being actually and in legal contemplation
part of the principal o ce, it follows that the o cial concerned has
no right to receive additional compensation for his services in the said
position. The reason is that these services are already paid for and
covered by the compensation attached to his principal office . . . . 42
In the instant case, therefore, we must decide whether the respondent holds the
chairmanship of PNRC in an ex o cio capacity. Presidential Decree (P.D.) No. 1264,
amending R.A. No. 95, provides for the composition of the governing authority of the
PNRC and the manner of their appointment or election, thus:
Section 6. The governing powers and authority shall be vested in a Board
of Governors composed of thirty members, six of whom shall be appointed by
the President of the Philippines, eighteen shall be elected by chapter delegates in
biennial conventions and the remaining six shall be elected by the twenty-four
members of the Board already chosen. At least one but not more than three of
the Presidential appointees shall be chosen from the Armed Forces of the
Philippines.
a. The term of o ce of all members of the board of Governors shall be
four years. Any member of the Board of Governor who has served two
consecutive full terms of four years each shall be ineligible for membership on
the Board for at least two years; any term served to cover unexpired terms of
o ce of any governor will not be considered in this prohibition in serving two
consecutive full terms, and provided, however, that terms served for more than
two years shall be considered a full term.
b. Vacancies in the Board of Governors caused by death or resignation
shall be lled by election by the Board of Governors at its next meeting, except
that vacancies among the Presidential appointees shall be lled by the
President.
Section 7. The President of the Philippines shall be the Honorary
President of the Philippine National Red Cross. The o cers shall consist of a
Chairman, a Vice-Chairman, 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 membership for a term of two years and may be re-
elected. The election of o cers shall take place within sixty days after all the
members of the Board of Governors have been chosen and have qualified.
Nowhere does it say in the law that a member of the Senate can sit in an ex o cio
capacity as chairman of the PNRC Board of Governors. Chairmanship of the PNRC
Board is neither an extension of the legislative position nor is it in aid of legislative
duties. 43 Likewise, the position is neither derived from one being a member of the
Senate nor is it annexed to the Senatorial position. Stated differently, the PNRC
chairmanship does not ow from one's election as Senator of the Republic. Applying
Civil Liberties, we can then conclude that the chairmanship of the PNRC Board is not
held in an ex officio capacity by a member of Congress.
The fact that the PNRC Chairman of the Board is not appointed by the President
44 and the fact that the former does not receive any compensation 45 do not at all give
the said position an ex o cio character such that the occupant thereof becomes
exempt from the constitutional proscription on the holding of multiple o ces. As held
i n Public Interest Center, the absence of additional compensation being received by
virtue of the second post is not enough, what matters is that the second post is held by
virtue of the functions of the rst o ce and is exercised in an ex o cio capacity. 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 o ces — as stated in petitioners' memorandum, Senator Gordon's holding of
both o ces may result in a divided focus of his legislative functions, and in a con ict of
interest as when a possible amendment of the PNRC Charter is lobbied in Congress or
when the PNRC and its o cials become subjects of legislative inquiries. 47 Let it be
stressed that, as in Adaza, the incompatibility herein present is one created by no less
than the Constitution itself. 48
I hasten to add that Senator Gordon's chairmanship of the PNRC Board cannot be
likened to the membership of several legislators in the Legislative-Executive
Development Advisory Council, in the Council of State, in the Board of Regents of state
universities, and in the Judiciary, Executive and Legislative Advisory and Consultative
Council, because, in these bodies, the membership of the legislators is held in an ex
officio capacity or as an extension of their legislative functions. 49
IN VIEW OF THE FOREGOING, I vote to GRANT the petition.
Footnotes
1. Respondent was elected as a Senator during the May 2004 elections.

2. 370 Phil. 901 (1999).
3. G.R. No. 104732, 22 June 1993, 223 SCRA 568.

4. Rollo, p. 181.
5. Id. at 3-5.
6. The Secretary of Justice Cuevas v. Atty. Bacal, 400 Phil. 1115 (2000); Garcia v. Perez, 188
Phil. 43 (1980).
7. An Act to Incorporate the Philippine National Red Cross, as amended by Presidential Decree
No. 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" (visited 25 March
2009).
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 (visited 25 March 2009).
10. Convention for the Amelioration of the Condition of the Wounded and Sick in Armies in the
Field.
11. Article 4 of the Statutes of the International Red Cross and Red Crescent Movement reads:
ARTICLE 4
Conditions for Recognition of National Societies

In order to be recognized in terms of Article 5, paragraph 2 b) as a National Society, the
Society shall meet the following conditions:
1. Be constituted on the territory of an independent State where the Geneva Convention

for the Amelioration of the Condition of the Wounded and Sick in Armed Forces in the
Field is in force.
2. Be the only National Red Cross or Red Crescent Society of the said State and be
directed by a central body which shall alone be competent to represent it in its dealings
with other components of the Movement.
3. Be duly recognized by the legal government of its country on the basis of the Geneva
Conventions and of the national legislation as a voluntary aid society, auxiliary to the
public authorities in the humanitarian field.
4 . Have an autonomous status which allows it to operation * in conformity

with the Fundamental Principles of the Movement .
5. Use a name and distinctive emblem in conformity with the Geneva Conventions and
their Additional Protocols.
6. Be so organized as to be able to ful ll the tasks de ned in its own statutes, including
the preparation in peace time for its statutory tasks in case of armed conflicts.
7. Extend its activities to the entire territory of the State.
8. Recruit its voluntary members and its staff without consideration of race, sex, class,
religion or political opinions.
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 principles of international humanitarian law . (Emphasis supplied)

12. The Fundamental Principles of the Red Cross and Red Crescent, ICRC Publication, p. 17.
13. Although under Section 4 (c) of the PNRC Charter, as amended, the PNRC is allotted one
lottery draw yearly by the Philippine Charity Sweepstakes for the support of its
disaster relief operations, in addition to its existing lottery draws for the Blood
Program, such allotments are donations given to most charitable organizations.
14. Section 16, Article VII of the Constitution provides:
The President shall nominate and, with the consent of the Commission on Appointments,
appoint the heads of the executive departments, ambassadors, other public ministers
and consuls, or o cers of the armed forces from the rank of colonel or naval captain,
and other o cers whose appointments are vested in him in this Constitution. He shall
also appoint all other o cers of the Government whose appointments are not otherwise
provided for by law, and those whom he may be authorized by law to appoint. The
Congress may, by law, vest the appointment of other o cers lower in rank in the
President alone, in the courts, or in the heads of departments, agencies, commissions, or
boards.
The President shall have the power to make appointments during the recess of the
Congress, whether voluntary or compulsory, but such appointments shall be effective
only until after disapproval by the Commission on Appointments or until the next
adjournment of the Congress.
15. Rufino v. Endriga, G.R. Nos. 139554 & 139565, 21 July 2006, 496 SCRA 13.
16. Id. at 50-57.
17. Section 17, Article VII of the Constitution provides:
The President shall have control of all the executive departments, bureaus, and o ces.
He shall ensure that the laws be faithfully executed.
18. Supra note 15 at 63-65.
19. See note 12 at 20.
20. PNRC Website, http://202.57.124.158/Site/PNRC/membershipInfo.aspx#5 (visited 15

June 2009).
21. Issued on 15 December 1977.
22. Supra note 2.

23. 464 Phil. 439 (2004).
24. Id. at 454-455.
25. Republic Act No. 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. Section 36 of the Corporation Code enumerates the general powers of a corporation:
SEC. 36. Corporate powers and capacity. — Every corporation incorporated under this
Code has the power and capacity:
1. To sue and be sued in its corporate name;
2. Of succession by its corporate name for the period of time stated in the articles of
incorporation and the certificate of incorporation;
3. To adopt and use a corporate seal;

4. To amend its articles of incorporation in accordance with the provisions of this Code;
5. To adopt by-laws, not contrary to law, morals or public policy, and to amend or repeal
the same in accordance with this Code;
6. In case of stock corporations, to issue or sell stocks to subscribers and to sell treasury
stocks in accordance with the provisions of this Code; and to admit members to the
corporation if it be a non-stock corporation;
7. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage and
otherwise deal with such real and personal property, including securities and bonds of
other corporations, as the transaction of the lawful business of the corporation may
reasonably and necessarily require, subject to the limitations prescribed by law and the
Constitution;
8. To adopt any plan of merger or consolidation as provided in this Code;
9. To make reasonable donations, including those for the public welfare or for hospital,
charitable, cultural, scienti c, civic, or similar purposes: Provided, That no corporation,
domestic or foreign, shall give donations in aid of any political party or candidate or for
purposes of partisan political activity;
10. To establish pension, retirement and other plans for the bene t of its directors,
trustees, officers and employees; and
11. To exercise such other powers as may be essential or necessary to carry out its
purpose or purposes as stated in its articles of incorporation.
28. SEC. 1. There is hereby created in the Republic of the Philippines a body corporate and
politic to be 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 national Red Cross Society. The
national headquarters of this Corporation shall be located in Metro Manila.
29. SEC. 2. The name of this corporation shall be "The Philippine National Red Cross" and by
that name shall have perpetual 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 Corporation hereinafter set forth; to adopt a seal and to alter and destroy the
same at pleasure; and to have the right to adopt and to use, in carrying out its
purposes hereinafter designated, as an emblem and badge, a red Greek cross on a
white ground, the same as has been described in the Geneva Conventions, and
adopted by the several nations ratifying or adhering thereto; to ordain and establish
by-laws and regulations not inconsistent with the laws of the Republic of the
Philippines, and generally to do all such acts and things as may be necessary to carry
into effect the provisions of 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 materials neutralized in time of war shall be
left to the military authorities. The red Greek cross on a white ground, as has been
described by the Geneva Conventions is not, and shall not be construed as a religious
symbol, and shall have equal efficacy and applicability to persons of all faiths, creeds
and beliefs. The operational jurisdiction of the Philippine National Red Cross shall be
over the entire territory of the Philippines.
30. SEC. 3. That the purposes of this Corporation shall be as follows:
a. To provide volunteer aid to the sick and wounded of the armed forces in time of war, in
accordance with the spirit of and under the conditions prescribed by the Geneva
Conventions to which the Republic of the Philippines proclaimed its adherence;
b. For the purposes mentioned in the preceding sub-section, to perform all duties
devolving upon the Corporation as a result of the adherence of the Republic of the
Philippines to the said Convention;
c. To act in matters of voluntary relief and in accordance with the authorities of the
armed forces as a 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 societies of other governments and the
Government and people and the Armed Forces of the Republic of the Philippines;
d. To establish and maintain a system of national and international relief in time of
peace and in time of 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 suffering caused by such disasters;
e. To devise and promote such other services in time of peace and in time of war as may
be found desirable in improving the health, safety and welfare of the Filipino people;
f. To devise such means as to make every citizen and/or resident of the Philippines a
member of the Red Cross.
31. SEC. 4. In furtherance of the purposes mentioned in the preceding sub-paragraphs, the
Philippine National Red Cross shall:
a. Be authorized to secure loans from any nancial institution which shall not exceed its
budget of the previous year.
32. 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 National Red Cross Annual Fund Campaign shall entitle the contributor to
membership for one year and said contribution shall be deductible in full for taxation
purposes.
33. SEC. 6. The governing powers and authority shall be vested in the Board of Governors
composed of thirty members, six of whom shall be appointed by the President of the
Philippines, eighteen shall be elected by chapter delegates in biennial conventions
and the remaining six shall be selected by the twenty-four members of the Board
already chosen. At least one but not more than three of the Presidential appointees
shall be chosen from the Armed Forces of the Philippines.
a. The term of o ce of all members of the Board shall be four years, including those
appointed by the President of the Philippines, renewable at the pleasure of the appointing
power or elective bodies.
b. Vacancies in the Board of Governors caused by death or resignation shall be lled by

election by the Board of Governors at its next meeting, except that vacancies among the
Presidential appointees shall be filled by the President.

34. SEC. 7. The President of the Philippines shall be the Honorary President of the Philippine
National Red Cross. The officers shall consist of a Chairman, a Vice-Chairman, 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
membership for a term of two years and may be re-elected. The election of officers
shall take place within sixty days after all the members of the Board of Governors
have been chosen and have qualified.
35. SEC. 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, the
Board of Governors in its discretion may determine that the best interest of the
corporation shall be served by postponing such biennial meeting.
36. SEC. 9. The power to ordain, adopt and amend by-laws and regulations shall be vested in
the Board of Governors.
37. SEC. 10. The members of the Board of Governors, as well as the officers of the
corporation, shall serve without compensation. The compensation of the paid staff of
the corporation shall be determined by the Board of Governors upon the
recommendation of the Secretary General.
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 conducted independently of other fund drives by other
organizations.
39. SEC. 12. The Board of Governors shall promulgate rules and regulations for the
organization of local units of the Philippine National Red Cross to be known as
Chapters. Said rules and regulations shall fix the relationship of the Chapters to the
Corporation, define their territorial jurisdictions, and determine the number of
delegates for each chapter based on population, fund campaign potentials and
service needs.
40. SEC. 13. The Corporation shall, at the end of every calendar year submit to the President of
the Philippines an annual report containing the activities of the Corporation showing
its financial condition, the receipts and disbursements.
41. The valid provisions are Sections 4 (b) and (c), 14, 15, 16, and 17:
SEC. 4. In furtherance of the purposes mentioned in the preceding sub-paragraphs, the
Philippine National Red Cross shall:
xxx xxx xxx
b. Be exempt from payment of all duties, taxes, fees, and other charges of all kinds on all
importations and purchases for its exclusive use, on donations for its disaster relief work
and other Red Cross services, and in its bene ts and fund raising drives all provisions of
law to the contrary notwithstanding.
c. Be allotted by the Philippine Charity Sweepstakes O ce one lottery draw yearly for the
support of its disaster relief operations in addition to its existing lottery draws for the
Blood Program.

SEC. 14. It shall be unlawful for any person to solicit, collect or receive money, materials,
or property of any kind by falsely representing or pretending himself to be a member,
agent or representative of the Philippine National Red Cross.
SEC. 15. The use of the name Red Cross is reserved exclusively to the Philippine National
Red Cross and the use of the emblem of the red Greek cross on a white ground is
reserved exclusively to the Philippine National Red Cross, medical services of the Armed
Forces of the Philippines and such other medical facilities or other institutions as may be
authorized by the Philippine National Red Cross as provided under Article 44 of the
Geneva Conventions. It shall be unlawful for any other person or entity to use the words
Red Cross or Geneva Cross or to use the emblem of the red Greek cross on a white
ground or any designation, sign, or insignia constituting an imitation thereof for any
purpose whatsoever.
SEC. 16. As used in this Decree, the term person shall include any legal person, group, or
legal entity whatsoever nature, and any person violating any section of this Article shall,
upon conviction therefore be liable to a n[e] of not less than one thousand pesos or
imprisonment for a term not exceeding one year, or both, at the discretion of the court, for
each and every offense. In case the violation is committed by a corporation or
association, the penalty shall devolve upon the president, director or any other o cer
responsible for such violation.
SEC. 17. All acts or parts of acts which are inconsistent with the provisions of this Decree
are hereby repealed.
NACHURA, J., dis s enting:
1. Rollo, pp. 3-5.
2. See Del Rosario v. Montaña, G.R. No. 134433, May 28, 2004, 430 SCRA 109, 116; Del Mar v.
Philippine Amusement and Gaming Corp., 400 Phil. 307, 326-327; Sen. Defensor-
Santiago v. Guingona, Jr., 359 Phil. 276, 295-296 (1998).
3. G.R. No. 170338, December 23, 2008.
4. G.R. No. 168338, February 15, 2008, 545 SCRA 441.
5. Id.
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, supra note 3.
7. <http://www.redcross.org.ph/Site/PNRC/History.aspx> (visited July 9, 2009).
8. <http://www.icrc.org/ihl.nsf/INTRO/120?OpenDocument> (visited July 9, 2009).
9. Supra note 7.
10. Entitled "An Act to Incorporate the Philippine National Red Cross."
11. 464 Phil. 439 (2004).

12. Id. at 454-455; citations omitted and emphasis supplied.
13. Id. at 455.
14. The amendatory laws are Republic Act No. 855 (January 11, 1953), Republic Act No. 6373
(August 16, 1971) and Presidential Decree No. 1264 (December 15, 1977).
15. 370 Phil. 901, 906 (1999).
16. 382 Phil. 131 (2000).

17. Id. at 136-137.
18. Emphasis supplied.

19. 377 Phil. 1019 (1999).
20. See for instance Proclamation No. 50, which categorized GOCCs into parent and
subsidiary corporations, cited in Philippine National Construction Corporation v.
Pabion, et al., supra.
21. See also the definition of a GOCC in Section 2 (a) of Administrative Order No. 59
(December 5, 1988), which provides:
"xxx xxx xxx
(a) Government-owned and/or controlled corporation, hereinafter referred to as GOCC

or government corporation, is a corporation which is created by special law or
organized under the Corporation Code in which the Government, directly or indirectly,
has ownership of the majority of the capital or has voting control; Provided that an
acquired asset corporation as defined in the next paragraph shall not be considered
as GOCC or government corporation."
22. Underscoring supplied.
23. Emphasis supplied.

24. See Section 4 (c) of R.A. No. 95, as amended.
25. <http://www.redcross.org/portal/site/en/menuitem.86f46a12f382290517a8f210b80f78a0/?
vgnextoid=271a2aebdaadb110VgnVCM10000089f0870aRCRD> (visited July 9,
2009).
26. 385 U.S. 355, 358-360; 87 S.Ct. 464, 467 (1966).

27. Id.
28. 829 F.Supp. 1290, 1311 (1993).
29. 826 F.Supp. 412, 413-414 (1993).

30. Supra note 27.
31. 43 F.3d 678 (1994); 516 U.S. 822 (1995); 516 U.S. 1002, 116 S.Ct. 550 (1995).
32. Section 16, Article XII, Philippine Constitution.
33. Beltran v. Secretary of Health, G.R. Nos. 133640, 133661 and 139147, November 25, 2005,
476 SCRA 168, 199.
34. Perez v. People, G.R. No. 164763, February 12, 2008, 544 SCRA 532, 565.
35. G.R. No. 150974, June 29, 2007, 526 SCRA 1, 8.
36. The full text of the provision reads:
"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 government-owned or controlled corporations or
their subsidiaries, during his term without forfeiting his seat. Neither shall he be
appointed to any office which may have been created or the emoluments thereof
increased during the term for which he was elected."
37. No. L-68159, March 18, 1985, 135 SCRA 431.
38. Id. at 434-435; emphasis supplied.

39. G.R. No. 83896, February 22, 1991, 194 SCRA 317.
40. G.R. No. 138965, June 30, 2006, 494 SCRA 53, 63-64.
41. Section 13, Article VII of the Constitution provides in full:

"Section 13. The President, Vice-President, the Members of the Cabinet, and their
deputies or assistants shall not, unless otherwise provided in this Constitution, hold
any other office or employment 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, or special privilege
granted by the Government or any subdivision, agency or instrumentality thereof,
including government-owned or controlled corporations or their subsidiaries. They
shall strictly avoid conflict of interest in the conduct of their office.
"The spouse and relatives by consanguinity or affinity within the fourth civil degree of
the President shall not during his tenure be appointed as Members of the
Constitutional Commissions, or the Office of the Ombudsman, or as Secretaries,
Undersecretaries, chairmen or head of bureaus or offices, including government-
owned or controlled corporations and their subsidiaries."
42. Civil Liberties Union v. Executive Secretary , supra note 5, at 331-335; emphasis supplied.
43. See Cruz, Philippine Political Law, 1998 ed., p. 129.
44. See Section 7 of P.D. No. 1264.

45. Section 10 of P.D. No. 1264 provides:
"Section 10. The members of the Board of Governors, as well as the officers of the
corporation, shall serve without compensation. The compensation of the paid staff of
the corporation shall be determined by the Board of Governors upon the
recommendation of the Secretary General. "
46. Public Interest Center v. Elma, supra note 6, at 63.

47. Rollo, p. 28.
48. Adaza v. Pacana, Jr., supra note 3.
49. See R.A. No. 7640, Executive Order (E.O.) No. 305, Series of 1987; R.A. No. 8292, R.A. No.
9500, and the JELAC Memorandum of Agreement.

Liban v. Gordon - GR No. 175352, Jul 15, 2009

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Liban v. Gordon - GR No. 175352, Jul 15, 2009

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EN BANC

[G.R. No. 175352. July 15, 2009.]

DANTE V. LIBAN, REYNALDO M. BERNARDO, and SALVADOR M.

Petitioners cite Camporedondo v. NLRC, 2 which held that the PNRC is a

In his Comment, respondent asserts that petitioners have no standing to le this

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

(a) A person who usurps, intrudes into, or unlawfully holds or exercises a

(b) A public o cer who does or suffers an act which by provision

(c) An association which acts as a corporation within the Philippines

Petitioners allege in their petition that:

5. Respondent was elected as Chairman of the PNRC Board of Governors,

6. Since his election as Chairman of the PNRC Board of Governors, which

7. It is the respectful submission of the petitioner[s] that by accepting the

xxx xxx xxx

10. It is respectfully submitted that in accepting the position of

11. Despite the fact that he is no longer a senator, respondent continues to

The Republic of the Philippines, adhering to the Geneva Conventions, established

WHEREAS, the Geneva Red Cross Convention envisages the

WHEREAS, the Republic of the Philippines became an independent

WHEREAS, there existed in the Philippines since 1917 a Charter of the

WHEREAS, the volunteer organizations established in the other countries

2. IMPARTIALITY — It makes no discrimination as to nationality, race, religious

3. NEUTRALITY — In order to continue to enjoy the con dence of all, the

4. INDEPENDENCE — The Movement is independent. The National

5. VOLUNTARY SERVICE — It is a voluntary relief movement not prompted in any

7. UNIVERSALITY — The International Red Cross and Red Crescent Movement, in

The Fundamental Principles provide a universal standard of reference for all

xxx xxx xxx

SEC. 2. General Terms Defined. — . . .

(13) Government-owned or controlled corporation refers to any

A government-owned or controlled corporation must be owned by the

In Feliciano v. Commission on Audit , 2 3 the Court explained the constitutional provision

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

In short, Congress cannot enact a law creating a private

I am constrained to register my dissent because the ponencia does not only

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There is no doubt that the language in Section 13, Article VI is unambiguous; it

1. Respondent was elected as a Senator during the May 2004 elections.

3. G.R. No. 104732, 22 June 1993, 223 SCRA 568.

8. PNRC Website, HYPERLINK

9. PNRC Website, HYPERLINK

Conditions for Recognition of National Societies

1. Be constituted on the territory of an independent State where the Geneva Convention

4 . Have an autonomous status which allows it to operation * in conformity

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14. Section 16, Article VII of the Constitution provides:

17. Section 17, Article VII of the Constitution provides:

19. See note 12 at 20.

20. PNRC Website, http://202.57.124.158/Site/PNRC/membershipInfo.aspx#5 (visited 15

22. Supra note 2.

24. Id. at 454-455.

25. Republic Act No. 9524.

3. To adopt and use a corporate seal;

b. Vacancies in the Board of Governors caused by death or resignation shall be lled by

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xxx xxx xxx

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1. Rollo, pp. 3-5.

6. Garcillano v. The House of Representatives Committees on Public Information, Public Order

8. <http://www.icrc.org/ihl.nsf/INTRO/120?OpenDocument> (visited July 9, 2009).

11. 464 Phil. 439 (2004).

13. Id. at 455.

16. 382 Phil. 131 (2000).