G.R. No.

145368 April 12, 2002

SALVADOR H. LAUREL, petitioner,

vs.

HON. ANIANO A. DESIERTO, in his capacity as Ombudsman, respondent.

KAPUNAN, J.:

On June 13, 1991, President Corazon C. Aquino issued Administrative Order No. 223 "constituting a Committee for the
preparation of the National Centennial Celebration in 1998." The Committee was mandated "to take charge of the
nationwide preparations for the National Celebration of the Philippine Centennial of the Declaration of Philippine
Independence and the Inauguration of the Malolos Congress."1

Subsequently, President Fidel V. Ramos issued Executive Order No. 128, "reconstituting the Committee for the
preparation of the National Centennial Celebrations in 1988." It renamed the Committee as the "National Centennial
Commission." Appointed to chair the reconstituted Commission was Vice-President Salvador H. Laurel. Presidents
Diosdado M. Macapagal and Corazon C. Aquino were named Honorary Chairpersons.2

Characterized as an "i body," the existence of the Commission "shall terminate upon the completion of all activities
related to the Centennial Celebrations."3 Like its predecessor Committee, the Commission was tasked to "take charge
of the nationwide preparations for the National Celebration of the Philippine Centennial of the Declaration of Philippine
Independence and the Inauguration of the Malolos Congress."

Per Section 6 of the Executive Order, the Commission was also charged with the responsibility to "prepare, for approval
of the President, a Comprehensive Plan for the Centennial Celebrations within six (6) months from the effectivity of" the
Executive Order.

E.O. No. 128 also contained provisions for staff support and funding:

Sec. 3. The Commission shall be provided with technical and administrative staff support by a Secretariat to be
composed of, among others, detailed personnel from the Presidential Management Staff, the National Commission for
Culture and the Arts, and the National Historical Institute. Said Secretariat shall be headed by a full time Executive
Director who shall be designated by the President.

Sec. 4. The Commission shall be funded with an initial budget to be drawn from the Department of Tourism and the
president’s Contingent Fund, in an amount to be recommended by the Commission, and approved by the President.
Appropriations for succeeding years shall be incorporated in the budget of the Office of the President.

Subsequently, a corporation named the Philippine Centennial Expo ’98 Corporation (Expocorp) was created.4 Petitioner
was among the nine (9) Expocorp incorporators, who were also its first nine (9) directors. Petitioner was elected
Expocorp Chief Executive Officer.

On August 5, 1998, Senator Ana Dominique Coseteng delivered a privilege speech in the Senate denouncing alleged
anomalies in the construction and operation of the Centennial Exposition Project at the Clark Special Economic Zone.
Upon motion of Senator Franklin Drilon, Senator Coseteng’s privilege speech was referred to the Committee on
Accountability of Public Officers and Investigation (The Blue Ribbon Committee) and several other Senate Committees
for investigation.

On February 24, 1999, President Joseph Estrada issued Administrative Order No. 35, creating an ad hoc and
independent citizens’ committee to investigate all the facts and circumstances surrounding the Philippine centennial
projects, including its component activities. Former Senator Rene A.V. Saguisag was appointed to chair the Committee.

On March 23, 1999, the Senate Blue Ribbon Committee filed with the Secretary of the Senate its Committee Final
Report No. 30 dated February 26, 1999. Among the Committee’s recommendations was "the prosecution by the
Ombudsman/DOJ of Dr. Salvador Laurel, chair of NCC and of EXPOCORP for violating the rules on public bidding,
relative to the award of centennial contracts to AK (Asia Construction & Development Corp.); for exhibiting manifest bias
in the issuance of the NTP (Notice to Proceed) to AK to construct the FR (Freedom Ring) even in the absence of a valid
contract that has caused material injury to government and for participating in the scheme to preclude audit by COA of
the funds infused by the government for the implementation of the said contracts all in violation… of the anti-graft law."5

Later, on November 5, 1999, the Saguisag Committee issued its own report. It recommended "the further investigation
by the Ombudsman, and indictment, in proper cases of," among others, NCC Chair Salvador H. Laurel for violations of
Section 3(e) of R.A. No. 3019, Section 4(a) in relation to Section 11 of R.A. No. 6713, and Article 217 of the Revised
Penal Code.

The Reports of the Senate Blue Ribbon and the Saguisag Committee were apparently referred to the Fact-finding and
Intelligence Bureau of the Office of the Ombudsman. On January 27, 2000, the Bureau issued its Evaluation Report,
recommending:

1. that a formal complaint be filed and preliminary investigation be conducted before the Evaluation and Preliminary
Investigation Bureau (EPIB), Office of the Ombudsman against former NCC and EXPOCORP chair Salvador H. Laurel,
former EXPOCORP President Teodoro Q. Peña and AK President Edgardo H. Angeles for violation of Sec. 3(e) and (g)
of R.A. No. 3019, as amended in relation to PD 1594 and COA Rules and Regulations;

2. That the Fact Finding and Intelligence Bureau of this Office, act as the nominal complainant.6

In an Order dated April 10, 2000, Pelagio S. Apostol, OIC-Director of the Evaluation and Preliminary Investigation
Bureau, directed petitioner to submit his counter-affidavit and those of his witnesses.

On April 24, 2000, petitioner filed with the Office of the Ombudsman a Motion to Dismiss questioning the jurisdiction of
said office.

In an Order dated June 13, 2000, the Ombudsman denied petitioner’s motion to dismiss.

On July 3, 2000, petitioner moved for a reconsideration of the June 13, 2000 Order but the motion was denied in an
Order dated October 5, 2000.

On October 25, 2000, petitioner filed the present petition for certiorari.

On November 14, 2000, the Evaluation and Preliminary Investigation Bureau issued a resolution finding "probable cause
to indict respondents SALVADOR H. LAUREL and TEODORO Q. PEÑA before the Sandiganbayan for conspiring to
violate Section 3(e) of Republic Act No. 3019, in relation to Republic Act No. 1594." The resolution also directed that an
information for violation of the said law be filed against Laurel and Peña. Ombudsman Aniano A. Desierto approved the
resolution with respect to Laurel but dismissed the charge against Peña.

In a Resolution dated September 24, 2001, the Court issued a temporary restraining order, commanding respondents to
desist from filing any information before the Sandiganbayan or any court against petitioner for alleged violation of
Section 3(e) of the Anti-Graft and Corrupt Practices Act.

On November 14, 2001, the Court, upon motion of petitioner, heard the parties in oral argument.

Petitioner assails the jurisdiction of the Ombudsman on the ground that he is not a public officer because:

A.

EXPOCORP, THE CORPORATION CHAIRED BY PETITIONER LAUREL WHICH UNDERTOOK THE FREEDOM
RING PROJECT IN CONNECTION WITH WHICH VIOLATIONS OF THE ANTI-GRAFT AND CORRUPT PRACTICES
WERE ALLEGEDLY COMMITTED, WAS A PRIVATE CORPORATION, NOT A GOVERNMENT-OWNED OR
CONTROLLED CORPORATION.

B.

THE NATIONAL CENTENNIAL COMMISSION (NCC) WAS NOT A PUBLIC OFFICE.

C.

PETITIONER, BOTH AS CHAIRMAN OF THE NCC AND OF EXPOCORP WAS NOT A "PUBLIC OFFICER" AS
DEFINED UNDER THE ANTI-GRAFT & CORRUPT PRACTICES ACT.7

In addition, petitioner in his reply8 invokes this Court’s decision in Uy vs. Sandiganbayan,9 where it was held that the
jurisdiction of the Ombudsman was limited to cases cognizable by the Sandiganbayan, i.e., over public officers of Grade
27 and higher. As petitioner’s position was purportedly not classified as Grade 27 or higher, the Sandiganbayan and,
consequently, the Ombudsman, would have no jurisdiction over him.

This last contention is easily dismissed. In the Court’s decision in Uy, we held that "it is the prosecutor, not the
Ombudsman, who has the authority to file the corresponding information/s against petitioner in the regional trial court.
The Ombudsman exercises prosecutorial powers only in cases cognizable by the Sandiganbayan."

In its Resolution of February 22, 2000, the Court expounded:

The clear import of such pronouncement is to recognize the authority of the State and regular provincial and city
prosecutors under the Department of Justice to have control over prosecution of cases falling within the jurisdiction of
the regular courts. The investigation and prosecutorial powers of the Ombudsman relate to cases rightfully falling within
the jurisdiction of the Sandiganbayan under Section 15 (1) of R.A. 6770 ("An Act Providing for the Functional and
Structural Organization of the Office of the Ombudsman, and for other purposes") which vests upon the Ombudsman
"primary jurisdiction over cases cognizable by the Sandiganbayan…" And this is further buttressed by Section 11 (4a) of
R.A. 6770 which emphasizes that the Office of the Special Prosecutor shall have the power to "conduct preliminary
investigation and prosecute criminal cases within the jurisdiction of the Sandiganbayan." Thus, repeated references to
the Sandiganbayan’s jurisdiction clearly serve to limit the Ombudsman’s and Special Prosecutor’s authority to cases
cognizable by the Sandiganbayan. [Emphasis in the original.]

The foregoing ruling in Uy, however, was short-lived. Upon motion for clarification by the Ombudsman in the same case,
the Court set aside the foregoing pronouncement in its Resolution dated March 20, 2001. The Court explained the
rationale for this reversal:
The power to investigate and to prosecute granted by law to the Ombudsman is plenary and unqualified. It pertains to
any act or omission of any public officer or employee when such act or omission appears to be illegal, unjust, improper
or inefficient. The law does not make a distinction between cases cognizable by the Sandiganbayan and those
cognizable by regular courts. It has been held that the clause "any illegal act or omission of any public official" is broad
enough to embrace any crime committed by a public officer or employee.

The reference made by RA 6770 to cases cognizable by the Sandiganbayan, particularly in Section 15(1) giving the
Ombudsman primary jurisdiction over cases cognizable by the Sandiganbayan, and Section 11(4) granting the Special
Prosecutor the power to conduct preliminary investigation and prosecute criminal cases within the jurisdiction of the
Sandiganbayan, should not be construed as confining the scope of the investigatory and prosecutory power of the
Ombudsman to such cases.

Section 15 of RA 6770 gives the Ombudsman primary jurisdiction over cases cognizable by the Sandiganbayan. The
law defines such primary jurisdiction as authorizing the Ombudsman "to take over, at any stage, from any investigatory
agency of the government, the investigation of such cases." The grant of this authority does not necessarily imply the
exclusion from its jurisdiction of cases involving public officers and employees by other courts. The exercise by the
Ombudsman of his primary jurisdiction over cases cognizable by the Sandiganbayan is not incompatible with the
discharge of his duty to investigate and prosecute other offenses committed by public officers and employees. Indeed, it
must be stressed that the powers granted by the legislature to the Ombudsman are very broad and encompass all kinds
of malfeasance, misfeasance and non-feasance committed by public officers and employees during their tenure of
office.

Moreover, the jurisdiction of the Office of the Ombudsman should not be equated with the limited authority of the Special
Prosecutor under Section 11 of RA 6770. The Office of the Special Prosecutor is merely a component of the Office of
the Ombudsman and may only act under the supervision and control and upon authority of the Ombudsman. Its power
to conduct preliminary investigation and to prosecute is limited to criminal cases within the jurisdiction of the
Sandiganbayan. Certainly, the lawmakers did not intend to confine the investigatory and prosecutory power of the
Ombudsman to these types of cases. The Ombudsman is mandated by law to act on all complaints against officers and
employees of the government and to enforce their administrative, civil and criminal liability in every case where the
evidence warrants. To carry out this duty, the law allows him to utilize the personnel of his office and/or designate any
fiscal, state prosecutor or lawyer in the government service to act as special investigator or prosecutor to assist in the
investigation and prosecution of certain cases. Those designated or deputized to assist him work under his supervision
and control. The law likewise allows him to direct the Special Prosecutor to prosecute cases outside the
Sandiganbayan’s jurisdiction in accordance with Section 11 (4c) of RA 6770.

The prosecution of offenses committed by public officers and employees is one of the most important functions of the
Ombudsman. In passing RA 6770, the Congress deliberately endowed the Ombudsman with such power to make him a
more active and effective agent of the people in ensuring accountability in public office. A review of the development of
our Ombudsman law reveals this intent. [Emphasis in the original.]

Having disposed of this contention, we proceed to the principal grounds upon which petitioner relies. We first address
the argument that petitioner, as Chair of the NCC, was not a public officer.

The Constitution10 describes the Ombudsman and his Deputies as "protectors of the people," who "shall act promptly
on complaints filed in any form or manner against public officials or employees of the government, or any subdivision,
agency or instrumentality thereof, including government-owned or controlled corporations." Among the awesome
powers, functions, and duties vested by the Constitution11 upon the Office of the Ombudsman is to "[i]nvestigate… any
act or omission of any public official, employee, office or agency, when such act or omission appears to be illegal, unjust,
improper, or inefficient."

The foregoing constitutional provisions are substantially reproduced in R.A. No. 6770, otherwise known as the
"Ombudsman Act of 1989." Sections 13 and 15(1) of said law respectively provide:

SEC. 13. Mandate. – The Ombudsman and his Deputies, as protectors of the people shall act promptly on complaints
file in any form or manner against officers or employees of the Government, or of any subdivision, agency or
instrumentality thereof, including government-owned or controlled corporations, and enforce their administrative, civil
and criminal liability in every case where the evidence warrants in order to promote efficient service by the Government
to the people.

SEC. 15. Powers, Functions and Duties. – The Office of the Ombudsman shall have the following powers, functions and
duties:

(1) Investigate and prosecute on its own or on complaint by any person, any act or omission of any public officer or
employee, office or agency, when such act or omission appears to be illegal unjust, improper or inefficient. It has primary
jurisdiction over cases cognizable by the Sandiganbayan and, in the exercise of this primary jurisdiction, it may take
over, at any stage, from any investigatory agency of Government, the investigation of such cases;

x x x.

The coverage of the law appears to be limited only by Section 16, in relation to Section 13, supra:

SEC 16. Applicability. – The provisions of this Act shall apply to all kinds of malfeasance, misfeasance and non-
feasance that have been committed by any officer or employee as mentioned in Section 13 hereof, during his tenure of
office.
In sum, the Ombudsman has the power to investigate any malfeasance, misfeasance and non-feasance by a public
officer or employee of the government, or of any subdivision, agency or instrumentality thereof, including government-
owned or controlled corporations.12

Neither the Constitution nor the Ombudsman Act of 1989, however, defines who public officers are. A definition of public
officers cited in jurisprudence13 is that provided by Mechem, a recognized authority on the subject:

A public office is the right, authority and duty, created and conferred by law, by which, for a given period, either fixed by
law or enduring at the pleasure of the creating power, an individual is invested with some portion of the sovereign
functions of the government, to be exercised by him for the benefit of the public. The individual so invested is a public
officer.14

The characteristics of a public office, according to Mechem, include the delegation of sovereign functions, its creation by
law and not by contract, an oath, salary, continuance of the position, scope of duties, and the designation of the position
as an office.15

Petitioner submits that some of these characteristics are not present in the position of NCC Chair, namely: (1) the
delegation of sovereign functions; (2) salary, since he purportedly did not receive any compensation; and (3)
continuance, the tenure of the NCC being temporary.

Mechem describes the delegation to the individual of some of the sovereign functions of government as "[t]he most
important characteristic" in determining whether a position is a public office or not.

The most important characteristic which distinguishes an office from an employment or contract is that the creation and
conferring of an office involves a delegation to the individual of some of the sovereign functions of government, to be
exercised by him for the benefit of the public; – that some portion of the sovereignty of the country, either legislative,
executive or judicial, attaches, for the time being, to be exercised for the public benefit. Unless the powers conferred are
of this nature, the individual is not a public officer.16

Did E.O. 128 delegate the NCC with some of the sovereign functions of government? Certainly, the law did not delegate
upon the NCC functions that can be described as legislative or judicial. May the functions of the NCC then be described
as executive?

We hold that the NCC performs executive functions. The executive power "is generally defined as the power to enforce
and administer the laws. It is the power of carrying the laws into practical operation and enforcing their due
observance."17 The executive function, therefore, concerns the implementation of the policies as set forth by law.

The Constitution provides in Article XIV (Education, Science and Technology, Arts, Culture, and Sports) thereof:

Sec. 15. Arts and letters shall enjoy the patronage of the State. The State shall conserve, promote, and popularize the
nation’s historical and cultural heritage and resources, as well as artistic creations.

In its preamble, A.O. No. 223 states the purposes for the creation of the Committee for the National Centennial
Celebrations in 1998:

Whereas, the birth of the Republic of the Philippines is to be celebrated in 1998, and the centennial presents an
important vehicle for fostering nationhood and a strong sense of Filipino identity;

Whereas, the centennial can effectively showcase Filipino heritage and thereby strengthen Filipino values;

Whereas, the success of the Centennial Celebrations may be insured only through long-range planning and continuous
developmental programming;

Whereas, the active participation of the private sector in all areas of special expertise and capability, particularly in
communication and information dissemination, is necessary for long-range planning and continuous developmental
programming;

Whereas, there is a need to create a body which shall initiate and undertake the primary task of harnessing the
multisectoral components from the business, cultural, and business sectors to serve as effective instruments from the
launching and overseeing of this long-term project;

x x x.

E.O. No. 128, reconstituting the Committee for the National Centennial Celebrations in 1998, cited the "need to
strengthen the said Committee to ensure a more coordinated and synchronized celebrations of the Philippine Centennial
and wider participation from the government and non-government or private organizations." It also referred to the "need
to rationalize the relevance of historical links with other countries."

The NCC was precisely created to execute the foregoing policies and objectives, to carry them into effect . Thus, the
Commission was vested with the following functions:

(a) To undertake the overall study, conceptualization, formulation and implementation of programs and projects on the
utilization of culture, arts, literature and media as vehicles for history, economic endeavors, and reinvigorating the spirit
of national unity and sense of accomplishment in every Filipino in the context of the Centennial Celebrations . In this
regard, it shall include a Philippine National Exposition ’98 within Metro Manila, the original eight provinces, and Clark Air
Base as its major venues;

(b) To act as principal coordinator for all the activities related to awareness and celebration of the Centennial;

(c) To serve as the clearing house for the preparation and dissemination of all information about the plans and events for
the Centennial Celebrations;

(d) To constitute working groups which shall undertake the implementation of the programs and projects;

(e) To prioritize the refurbishment of historical sites and structures nationwide. In this regard, the Commission shall
formulate schemes (e.g. lease-maintained-and-transfer, build-operate-transfer, and similar arrangements) to ensure the
preservation and maintenance of the historical sites and structures;

(f) To call upon any government agency or instrumentality and corporation, and to invite private individuals and
organizations to assist it in the performance of its tasks; and,

(g) Submit regular reports to the President on the plans, programs, projects, activities as well as the status of the
preparations for the Celebration.18

It bears noting the President, upon whom the executive power is vested,19 created the NCC by executive order. Book III
(Office of the President), Chapter 2 (Ordinance Power), Section 2 describes the nature of executive orders:

SEC. 2. Executive Orders. – Acts of the President providing for rules of a general or permanent character in
implementation or execution of constitutional or statutory powers shall be promulgated in executive orders.
[Underscoring ours.]

Furthermore, the NCC was not without a role in the country’s economic development, especially in Central Luzon.
Petitioner himself admitted as much in the oral arguments before this Court:

MR. JUSTICE REYNATO S. PUNO:

And in addition to that expounded by Former President Ramos, don’t you agree that the task of the centennial
commission was also to focus on the long term over all socio economic development of the zone and Central Luzon by
attracting investors in the area because of the eruption of Mt. Pinatubo.

FORMER VICE PRESIDENT SALVADOR H. LAUREL:

I am glad Your Honor touched on that because that is something I wanted to touch on by lack of material time I could not
but that is a very important point. When I was made Chairman I wanted the Expo to be in Batangas because I am a
Batangeño but President Ramos said Mr. Vice President the Central Luzon is suffering, suffering because of the
eruption of Mt. Pinatubo let us try to catalize [sic] economic recovery in that area by putting this Expo in Clark Field and
so it was done I agreed and Your Honor if I may also mention we wanted to generate employment aside from attracting
business investments and employment. And the Estrada administration decided to junk this project there 48, 40
thousand people who lost job, they were employed in Expo. And our target was to provide 75 thousand jobs. It would
have really calibrated, accelerated the development of Central Luzon. Now, I think they are going back to that because
they had the airport and there are plan to revive the Expo site into key park which was the original plan.

There can hardly be any dispute that the promotion of industrialization and full employment is a fundamental state
policy.20

Petitioner invokes the ruling of this Court in Torio vs. Fontanilla21 that the holding by a municipality of a town fiesta is a
proprietary rather than a governmental function. Petitioner argues that the "holding of a nationwide celebration which
marked the nation’s 100th birthday may be likened to a national fiesta which involved only the exercise of the national
government’s proprietary function."22 In Torio, we held:

[Section 2282 of the Chapter on Municipal Law of the Revised Administrative Code] simply gives authority to the
municipality to [celebrate] a yearly fiesta but it does not impose upon it a duty to observe one. Holding a fiesta even if the
purpose is to commemorate a religious or historical event of the town is in essence an act for the special benefit of the
community and not for the general welfare of the public performed in pursuance of a policy of the state. The mere fact
that the celebration, as claimed, was not to secure profit or gain but merely to provide entertainment to the town
inhabitants is not a conclusive test. For instance, the maintenance of parks is not a source of income for the town,
nonetheless it is [a] private undertaking as distinguished from the maintenance of public schools, jails, and the like which
are for public service.

As stated earlier, there can be no hard and fast rule for purposes of determining the true nature of an undertaking or
function of a municipality; the surrounding circumstances of a particular case are to be considered and will be decisive.
The basic element, however beneficial to the public the undertaking may be, is that it is government in essence,
otherwise, the function becomes private or propriety in character. Easily, no governmental or public policy of the state is
involved in the celebration of a town fiesta.

Torio, however, did not intend to lay down an all-encompassing doctrine. Note that the Court cautioned that "there can
be no hard and fast rule for purposes of determining the true nature of an undertaking or function of a municipality; the
surrounding circumstances of a particular case are to be considered and will be decisive." Thus, in footnote 15 of Torio,
the Court, citing an American case, illustrated how the "surrounding circumstances plus the political, social, and cultural
backgrounds" could produce a conclusion different from that in Torio:

We came across an interesting case which shows that surrounding circumstances plus the political, social, and cultural
backgrounds may have a decisive bearing on this question. The case of Pope v. City of New Haven, et al. was an action
to recover damages for personal injuries caused during a Fourth of July fireworks display resulting in the death of a
bystander alleged to have been caused by defendants’ negligence. The defendants demurred to the complaint invoking
the defense that the city was engaged in the performance of a public governmental duty from which it received no
pecuniary benefit and for negligence in the performance of which no statutory liability is imposed. This demurrer was
sustained by the Superior Court of New Haven Country. Plaintiff sought to amend his complaint to allege that the
celebration was for the corporate advantage of the city. This was denied. In affirming the order, the Supreme Court of
Errors of Connecticut held inter alia:

Municipal corporations are exempt from liability for the negligent performance of purely public governmental duties,
unless made liable by statute….

A municipality corporation, which under permissive authority of its charter or of statute, conducted a public Fourth of July
celebration, including a display of fireworks, and sent up a bomb intended to explode in the air, but which failed to
explode until it reached the ground, and then killed a spectator, was engaged in the performance of a governmental
duty. (99 A.R. 51)

This decision was concurred in by three Judges while two dissented.

At any rate the rationale of the Majority Opinion is evident from [this] excerpt:

"July 4th, when that date falls upon Sunday, July 5th, is made a public holiday, called Independence Day, by our
statutes. All or nearly all of the other states have similar statutes. While there is no United States statute making a
similar provision, the different departments of the government recognize, and have recognized since the government
was established, July 4th as a national holiday. Throughout the country it has been recognized and celebrated as such.
These celebrations, calculated to entertain and instruct the people generally and to arouse and stimulate patriotic
sentiments and love of country, frequently take the form of literary exercises consisting of patriotic speeches and the
reading of the Constitution, accompanied by a musical program including patriotic air sometimes preceded by the firing
of cannon and followed by fireworks. That such celebrations are of advantage to the general public and their promotion a
proper subject of legislation can hardly be questioned. x x x"

Surely, a town fiesta cannot compare to the National Centennial Celebrations. The Centennial Celebrations was meant
to commemorate the birth of our nation after centuries of struggle against our former colonial master, to memorialize the
liberation of our people from oppression by a foreign power. 1998 marked 100 years of independence and sovereignty
as one united nation. The Celebrations was an occasion to reflect upon our history and reinvigorate our patriotism. As
A.O. 223 put it, it was a "vehicle for fostering nationhood and a strong sense of Filipino identity," an opportunity to
"showcase Filipino heritage and thereby strengthen Filipino values." The significance of the Celebrations could not have
been lost on petitioner, who remarked during the hearing:

Oh, yes, certainly the State is interested in the unity of the people, we wanted to rekindle the love for freedom, love for
country, that is the over-all goal that has to make everybody feel proud that he is a Filipino, proud of our history, proud of
what our forefather did in their time. x x x.

Clearly, the NCC performs sovereign functions. It is, therefore, a public office, and petitioner, as its Chair, is a public
officer.

That petitioner allegedly did not receive any compensation during his tenure is of little consequence. A salary is a usual
but not a necessary criterion for determining the nature of the position. It is not conclusive. The salary is a mere incident
and forms no part of the office. Where a salary or fees is annexed, the office is provided for it is a naked or honorary
office, and is supposed to be accepted merely for the public good.23 Hence, the office of petitioner as NCC Chair may
be characterized as an honorary office, as opposed to a lucrative office or an office of profit, i.e., one to which salary,
compensation or fees are attached.24 But it is a public office, nonetheless.

Neither is the fact that the NCC was characterized by E.O. No. 128 as an "ad-hoc body" make said commission less of a
public office.

The term office, it is said, embraces the idea of tenure and duration, and certainly a position which is merely temporary
and local cannot ordinarily be considered an office. "But," says Chief Justice Marshall, "if a duty be a continuing one,
which is defined by rules prescribed by the government and not by contract, which an individual is appointed by
government to perform, who enters on the duties pertaining to his station without any contract defining them, if those
duties continue though the person be changed, -- it seems very difficult to distinguish such a charge or employment from
an office of the person who performs the duties from an officer."

At the same time, however, this element of continuance can not be considered as indispensable, for, if the other
elements are present "it can make no difference," says Pearson, C.J., "whether there be but one act or a series of acts
to be done, -- whether the office expires as soon as the one act is done, or is to be held for years or during good
behavior."25

Our conclusion that petitioner is a public officer finds support in In Re Corliss.26 There the Supreme Court of Rhode
Island ruled that the office of Commissioner of the United States Centennial Commission is an "office of trust" as to
disqualify its holder as elector of the United States President and Vice-President. (Under Article II of the United States
Constitution, a person holding an office of trust or profit under the United States is disqualified from being appointed an
elector.)

x x x. We think a Commissioner of the United States Centennial Commission holds an office of trust under the United
States, and that he is therefore disqualified for the office of elector of President and Vice-President of the United States.

The commission was created under a statute of the United States approved March 3, 1871. That statute provides for the
holding of an exhibition of American and foreign arts, products, and manufactures, "under the auspices of the
government of the United States," and for the constitution of a commission, to consist of more than one delegate from
each State and from each Territory of the United States, "whose functions shall continue until close of the exhibition,"
and "whose duty it shall be to prepare and superintend the execution of the plan for holding the exhibition." Under the
statute the commissioners are appointed by the President of the United States, on the nomination of the governor of the
States and Territories respectively. Various duties were imposed upon the commission, and under the statute provision
was to be made for it to have exclusive control of the exhibit before the President should announce, by proclamation, the
date and place of opening and holding the exhibition. By an act of Congress approved June 1st, 1872, the duties and
functions of the commission were further increased and defined. That act created a corporation, called "The Centennial
Board of Finance," to cooperate with the commission and to raise and disburse the funds. It was to be organized under
the direction of the commission. The seventh section of the act provides "that the grounds for exhibition shall be
prepared and the buildings erected by the corporation, in accordance with plans which shall have been adopted by the
United States Centennial Commission; and the rules and regulations of said corporation, governing rates for entrance
and admission fees, or otherwise affecting the rights, privileges, or interests of the exhibitors, or of the public, shall be
fixed and established by the United States Centennial Commission; and no grant conferring rights or privileges of any
description connected with said grounds or buildings, or relating to said exhibition or celebration, shall be made without
the consent of the United States Centennial Commission, and said commission shall have power to control, change, or
revoke all such grants, and shall appoint all judges and examiners and award all premiums." The tenth section of the act
provides that "it shall be the duty of the United States Centennial Commission to supervise the closing up of the affairs
of said corporation, to audit its accounts, and submit in a report to the President of the United States the financial results
of the centennial exhibition."

It is apparent from this statement, which is but partial, that the duties and functions of the commission were various,
delicate, and important; that they could be successfully performed only by men of large experience and knowledge of
affairs; and that they were not merely subordinate and provisional, but in the highest degree authoritative, discretionary,
and final in their character. We think that persons performing such duties and exercising such functions, in pursuance of
statutory direction and authority, are not to be regarded as mere employees, agents, or committee men, but that they
are, properly speaking, officers, and that the places which they hold are offices. It appears, moreover, that they were
originally regarded as officers by Congress; for the act under which they were appointed declares, section 7, that "no
compensation for services shall be paid to the commissioners or other officers, provided for in this act, from the treasury
of the United States." The only other officers provided for were the "alternates" appointed to serve as commissioners
when the commissioners were unable to attend.

Having arrived at the conclusion that the NCC performs executive functions and is, therefore, a public office, we need no
longer delve at length on the issue of whether Expocorp is a private or a public corporation. Even assuming that
Expocorp is a private corporation, petitioner’s position as Chief Executive Officer (CEO) of Expocorp arose from his
Chairmanship of the NCC. Consequently, his acts or omissions as CEO of Expocorp must be viewed in the light of his
powers and functions as NCC Chair.27

Finally, it is contended that since petitioner supposedly did not receive any compensation for his services as NCC or
Expocorp Chair, he is not a public officer as defined in Republic Act No. 3019 (The Anti-Graft and Corrupt Practices Act)
and is, therefore, beyond the jurisdiction of the Ombudsman.

Respondent seeks to charge petitioner with violation of Section 3 (e) of said law, which reads:

SEC. 3. Corrupt practices of public officers. – In addition to acts or omissions of public officers already penalized by
existing law, the following shall constitute corrupt practices of any public officer and are hereby declared to be unlawful:

xxx

(e) Causing any undue injury to any party, including the Government, or giving any private party any unwarranted
benefits, advantage or preference in the discharge of his official, administrative or judicial functions through manifest
partiality, evident bad faith or gross inexcusable negligence. This provision shall apply to officers and employees of
offices or government corporations charged with the grant of licenses or permits or other concessions.

A "public officer," under R.A. No. 3019, is defined by Section 2 of said law as follows:

SEC. 2. Definition of terms. – As used in this Act, the term –

xxx

(b) "Public officer" includes elective and appointive officials and employees, permanent or temporary, whether in the
classified or unclassified or exemption service receiving compensation, even nominal, from the government as defined in
the preceding paragraph. [Emphasis supplied.]

It is clear from Section 2 (b), above, that the definition of a "public officer" is expressly limited to the application of R.A.
No. 3019. Said definition does not apply for purposes of determining the Ombudsman’s jurisdiction, as defined by the
Constitution and the Ombudsman Act of 1989.

Moreover, the question of whether petitioner is a public officer under the Anti-Graft and Corrupt Practices Act involves
the appreciation of evidence and interpretation of law, matters that are best resolved at trial.

To illustrate, the use of the term "includes" in Section 2 (b) indicates that the definition is not restrictive.28 The Anti-Graft
and Corrupt Practices Act is just one of several laws that define "public officers." Article 203 of the Revised Penal Code,
for example, provides that a public officer is:

x x x any person who, by direct provision of law, popular election or appointment by competent authority, takes part in
the performance of public functions in the Government of Philippines, or performs in said Government or in any of its
branches public duties as an employee, agent or subordinate official, of any rank or class.

Section 2 (14) of the Introductory Provisions of the Administrative Code of 1987,29 on the other hand, states:

Officer – as distinguished from "clerk" or "employee", refers to a person whose duties not being of a clerical or manual
nature, involves the exercise of discretion in the performance of the functions of the government. When used with
reference to a person having authority to do a particular act or perform a particular person in the exercise of
governmental power, "officer" includes any government employee, agent or body having authority to do the act or
exercise that function.

It bears noting that under Section 3 (b) of Republic Act No. 6713 (The Code of Conduct and Ethical Standards for Public
Officials and Employees), one may be considered a "public official" whether or not one receives compensation, thus:

"Public Officials" include elective and appointive officials and employees, permanent or temporary, whether in the career
or non-career service including military and police personnel, whether or not they receive compensation, regardless of
amount.

Which of these definitions should apply, if at all?

Assuming that the definition of public officer in R.A. No. 3019 is exclusive, the term "compensation," which is not defined
by said law, has many meanings.

Under particular circumstances, "compensation" has been held to include allowance for personal expenses,
commissions, expenses, fees, an honorarium, mileage or traveling expenses, payments for services, restitution or a
balancing of accounts, salary, and wages.30

How then is "compensation," as the term is used in Section 2 (b) of R.A. No. 3019, to be interpreted?

Did petitioner receive any compensation at all as NCC Chair? Granting that petitioner did not receive any salary, the
records do not reveal if he received any allowance, fee, honorarium, or some other form of compensation. Notably,
under the by-laws of Expocorp, the CEO is entitled to per diems and compensation.31 Would such fact bear any
significance?

Obviously, this proceeding is not the proper forum to settle these issues lest we preempt the trial court from resolving
them.

WHEREFORE, the petition is DISMISSED. The preliminary injunction issued in the Court’s Resolution dated September
24, 2001 is hereby LIFTED.

SO ORDERED.

Puno, and Ynares-Santiago, JJ., concur.

Davide, Jr., C.J., (Chairman), no part due to close relation to a party.

Footnotes

1 A.O. 223, Section 1. The same section provided for the Committee’s composition as follows:

x x x. The Committee shall be composed of six (6) representatives from the Presidential Commission for Culture and the
Arts (PCCA), and five (5) representatives from the Philippine Centennial Foundation, Inc. (PCFI). They shall be
appointed by the President upon their nomination by their respective groups.

The Committee members shall elect among themselves the Chairman and Vice-Chairman, and such other officers as
they may deem necessary.

The Committee was also granted the following duties and powers:

1. To undertake the overall study, formulation and implementation of programs and projects on the utilization of culture,
arts, and media as vehicles for value education in the context of the Centennial Celebration;

2. To act as principal coordinator for all the activities related to awareness and celebration of the centennial;
3. To constitute sub-committees and working groups which shall undertake the implementation of the program and
projects; and

4. To call upon the assistance of any government agency or instrumentality and corporation, and to invite private
individuals and organizations to assist it in the performance of its tasks. (Id., at Section 2.)

2 Other members of the Commission were the Secretaries of Education, Culture and Sports, National Defense, Interior
and Local Government, Tourism, Trade and Industry, Public Works and Highways, Transportation and Communications,
and Budget and Management, the Press Secretary, two (2) representatives each from the Senate and the House of
Representatives, two (2) representatives from the Judiciary, the Executive Director of the National Historical Institute,
three (3) representatives from the National Commission for Culture and Arts, three (3) representatives from the
Philippine Centennial Foundation, Inc., and other members from the government and the private sectors, "as may be
designated later." (E.O. No. 128, Section 1.)

3 Id., at Section 5.

4 The purposes of the corporation were set forth in Article 2 of the Articles of Incorporation, thus:

PRIMARY PURPOSE

To set up and establish the Philippine Centennial International Exposition 1998 (EXPO ’98), a project of the National
Centennial Commission envisioned and mandated under Executive Order No. 128, series of 1993, in the Clark Special
Economic Zone (CSEZ) within the Provinces of Pampanga and Tarlac, Philippines as created, defined and delineated
under Proclamation No. 163, series 1993, of the President of the Philippines and furtherance of said purpose;

1. To operate, administer, manage, implement, and develop EXPO ’98 conformably to and in accordance with the
Detailed Feasibility study and Master Plan for said Exposition prepared by DOUGLAS/GALLAGHER, INC. and approved
by the President of the Philippines;

2. To exercise oversight functions and overall jurisdiction over the operations of EXPO ’98 as well as manage and
oversee all plans, programs, and activities related to the implementation and operation of said Exposition;

3. To regulate the establishment, operation, and maintenance of utilities, services, and infrastructure works in all the site
components of EXPO ’98 and its support facilities;

4. To oversee the preparations for the implementation of the participation of countries, groups, organizations, and
entities at EXPO ’98;

5. To establish linkages with participating countries and coordinate their programs and activities relevant to the theme of
EXPO ’98;

6. To provide and prescribe the guidelines for the design and fabrication of the pavilions of participating countries that
played a significant role in Philippine historical development and of other participating groups, organizations, and entities
which would be reflective of the following objectives of EXPO ’98 --

a) showcase the national vision of the Philippines, highlighted by a rich history and culture, and its traditional heritage
and diverse cultural influences;

b) express eloquently the Filipinism sentiment of the Philippine Centennial;

c) strengthen cultural and historical linkages between Philippines and participating countries;

d) create an image of the Philippines as a country with rich trade and tourism potentials; and

e) project the Filipino character and strengthen the sense of national pride and patriotism among the Filipino people.

7. To conceive and devise varied promotional strategies towards creating awareness and appreciation of EXPO ’98 as
the centerpiece of the national celebrations in 1998 of the centennial of the declaration of Philippine Independence and
beyond that as a permanent site for the Filipino people to honor their rich heritage;

8. To encourage and invite the active and meaningful participation of the private sector in managing and overseeing
EXPO ’98; and

9. To forge strategic partnerships and joint ventures with local and international investors and developers in the
development, maintenance, operation, and management of EXPO ’98 on a turn-key basis.

SECONDARY PURPOSES

(1) To purchase, acquire, own, lease, sell and convey real properties such as lands, buildings, factories and warehouses
and machineries, equipment and other personal properties as may be necessary or incidental to the conduct of the
corporate business, and to pay in cash, shares of its capital stock, debentures and other evidences of indebtedness, or
other securities, as may be deemed expedient, for any business or property acquired by the corporation.
(2) To borrow or raise money necessary to meet the financial requirements of its business by the issuance of bonds,
promissory notes and other evidences of indebtedness, and to secure the repayment thereof by mortgage, pledge, deed
of trust or lien upon the properties of the corporation or to issue pursuant to law shares of its capital stock, debentures
and other evidences of indebtedness in payment for properties acquired by the corporation or for money borrowed in the
prosecution of its lawful business;

(3) To invest and deal with the money and properties of the corporation in such manner as may from time to time be
considered wise or expedient for the advancement of its interests and to sell, dispose of or transfer the business,
properties and goodwill of the corporation or any part thereof for such consideration and under such terms as it shall see
fit to accept;

(4) To aid in any manner any corporation, association, or trust estate, domestic or foreign, or any firm or individual, any
shares of stock in which or any bonds, debentures, notes, securities, evidences of indebtedness, contracts, or
obligations of which are held by or for this corporation, directly or indirectly or through other corporations or otherwise;

(5) To enter into any lawful arrangement for sharing profits, union of interest, unitization or farmout agreement, reciprocal
concession, or cooperation, with any corporation, association, partnership, syndicate, entity, person or governmental,
municipal or public authority, domestic or foreign, in the carrying on of any business or transaction deemed necessary,
convenient or incidental to carrying out any of the purposes of this corporation;

(6) To acquire or obtain from any government or authority, national, provincial, municipal or otherwise, or a corporation,
company or partnership or person, such charter, contracts, franchise, privileges, exemption, licenses and concessions
as may be conducive to any of the objects of the corporation;

(7) To establish and operate one or more branch offices of agencies and to carry on any or all of its operations and
business without any restrictions as to place or amount including the right to hold, purchase or otherwise acquire, lease,
mortgage, pledge and convey or otherwise deal in with real and personal property anywhere within the Philippines;

(8) To conduct and transact any and all lawful business, and to do or cause to be done any one or more of the acts and
things herein set forth as its purposes, within or without the Philippines, and in any and all foreign countries, and to do
everything necessary, desirable or incidental to the accomplishment of the purposes or the exercise of any one or more
of the powers herein enumerated, or which shall at any time appear conducive to or expedient for the protection or
benefit of this corporation.

5 Rollo, p. 10.

6 Id., at 134-135.

7 Id., at 15.

8 Id., at 296-297.

9 312 SCRA 77 (1999).

10 Art. XI, Sec. 12.

11 Art. XI, Sec. 13 (1).

12 Section 22 extends these investigatory powers, under certain conditions, to private persons:

SEC. 22. Investigatory Power. – The Office of the Ombudsman shall have the power to investigate any serious
misconduct in office allegedly committed by officials removable by impeachment, for the purpose of filing a verified
complaint for impeachment or over Members of Congress, and the Judiciary.

In all cases of conspiracy between an officer or employee of the government and a private person, the Ombudsman and
his Deputies shall have jurisdiction to include such private person as the evidence may warrant. The officer or employee
and the private person shall be tried jointly and shall be subject to the same penalties and liabilities.

13 E.g., Fernandez vs. Ledesma, 7 SCRA 620 (1963); Aparri vs. Court of Appeals, 127 SCRA 231 (1984).

14 F.R. MECHEM, A TREATISE ON THE LAW OF PUBLIC OFFICES AND OFFICERS, §1.

15 Id., at §§ 4-10. See also 63C Am Jur 2d, Public Officers and Employees §1.

16 Id., at §4.

17 Ople vs. Torres, 293 SCRA 141 (1998).

18 Id., at Sec. 2.

19 CONSTITUTION, ARTICLE VII, SECTION 1.

20 Article XII (National Economy and Patrimony) of the Constitution provides:

Section 1. x x x.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian
reform, through industries that make full and efficient use of human and natural resources, and which are competitive in
both domestic and foreign markets. x x x.

In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity
to develop. x x x.

21 85 SCRA 599 (1978).

22 Rollo, p. 466.

23 Id, at §§7, 15. See also Triste vs. Leyte State College Board of Trustees, 192 SCRA 326 (1990)

24 Id., at §13.

25 Id., at § 8. Emphasis supplied.

26 23 Am Rep. 538 (1876).

27 See Yasay vs. Desierto, 300 SCRA 494 (1998).

28 Preclaro vs. Sandiganbayan, 247 SCRA 454 (1995).

29 Executive Order No. 292.

30 15 C.J.S. Compensation, p. 654.

31 Rollo, p. 470.

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