DANTE V.

LIBAN,
REYNALDO M. BERNARDO,
and SALVADOR M. VIARI,
Petitioners
,







- versus -








RICARD !. "ORDON,
Respondent.
".R. No. #$%&%'

Present:

PUNO, C.J.,
QUISUMBING,
YNARES-SANTIAGO,
CARPIO,
CORONA,
CARPIO MORALES,
CHICO-NAARIO,
!ELASCO, "R.,
NACHURA,
LEONAR#O-#E CASTRO,
BRION,
PERALTA, $nd
BERSAMIN, JJ.


Pro%&'($ted:
"&') *+, ,--.

/ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - /

D E C I S I O N

CARPIO, J.(

T)e Case

T01s 1s $ pet1t1on to de2'$re Sen$tor R120$rd ". Gordon 3respondent4
$s 0$51n( 6or6e1ted 01s se$t 1n t0e Sen$te.

T)e *a+ts

Pet1t1oners #$nte !. L17$n, Re)n$'do M. Bern$rdo, $nd S$'5$dor M.
!1$r1 3pet1t1oners4 61'ed 81t0 t01s Co&rt $ Petition to Declare Richard J.
Gordon as Having Forfeited His Seat in the Senate. Pet1t1oners $re o6612ers
o6 t0e Bo$rd o6 #1re2tors o6 t0e Q&e9on C1t) Red Cross C0$pter 801'e
respondent 1s C0$1r%$n o6 t0e P01'1pp1ne N$t1on$' Red Cross 3PNRC4
Bo$rd o6 Go5ernors.

#&r1n( respondent:s 1n2&%7en2) $s $ %e%7er o6 t0e Sen$te o6 t0e
P01'1pp1nes,
;*<
0e 8$s e'e2ted C0$1r%$n o6 t0e PNRC d&r1n( t0e ,=
>e7r&$r) ,--? %eet1n( o6 t0e PNRC Bo$rd o6 Go5ernors. Pet1t1oners
$''e(e t0$t 7) $22ept1n( t0e 20$1r%$ns01p o6 t0e PNRC Bo$rd o6
Go5ernors, respondent 0$s 2e$sed to 7e $ %e%7er o6 t0e Sen$te $s
pro51ded 1n Se2t1on *=, Art12'e !I o6 t0e Const1t&t1on, 80120 re$ds:

SEC. *=. No Sen$tor or Me%7er o6 t0e Ho&se o6
Represent$t15es %$) 0o'd $n) ot0er o6612e or e%p'o)%ent 1n t0e
Go5ern%ent, or $n) s&7d151s1on, $(en2), or 1nstr&%ent$'1t)
t0ereo6, 1n2'&d1n( (o5ern%ent-o8ned or 2ontro''ed 2orpor$t1ons
or t0e1r s&7s1d1$r1es, d&r1n( 01s ter% 81t0o&t 6or6e1t1n( 01s se$t.
Ne1t0er s0$'' 0e 7e $ppo1nted to $n) o6612e 80120 %$) 0$5e
7een 2re$ted or t0e e%o'&%ents t0ereo6 1n2re$sed d&r1n( t0e
ter% 6or 80120 0e 8$s e'e2ted.

Pet1t1oners 21te Camporedondo v. NLRC,
;,<
80120 0e'd t0$t t0e PNRC
1s $ (o5ern%ent-o8ned or 2ontro''ed 2orpor$t1on. Pet1t1oners 2'$1% t0$t 1n
$22ept1n( $nd 0o'd1n( t0e pos1t1on o6 C0$1r%$n o6 t0e PNRC Bo$rd o6
Go5ernors, respondent 0$s $&to%$t12$'') 6or6e1ted 01s se$t 1n t0e Sen$te,
p&rs&$nt to Flores v. Drilon,
;=<
80120 0e'd t0$t 1n2&%7ent n$t1on$' 'e(1s'$tors
'ose t0e1r e'e2t15e posts &pon t0e1r $ppo1nt%ent to $not0er (o5ern%ent
o6612e.

In 01s Co%%ent, respondent $sserts t0$t pet1t1oners 0$5e no
st$nd1n( to 61'e t01s pet1t1on 80120 $ppe$rs to 7e $n $2t1on 6or @&o 8$rr$nto,
s1n2e t0e pet1t1on $''e(es t0$t respondent 2o%%1tted $n $2t 80120, 7)
pro51s1on o6 '$8, 2onst1t&tes $ (ro&nd 6or 6or6e1t&re o6 01s p&7'12 o6612e.
Pet1t1oners do not 2'$1% to 7e ent1t'ed to t0e Sen$te o6612e o6 respondent.
Under Se2t1on +, R&'e ?? o6 t0e R&'es o6 C151' Pro2ed&re, on') $ person
2'$1%1n( to 7e ent1t'ed to $ p&7'12 o6612e &s&rped or &n'$86&'') 0e'd 7)
$not0er %$) 7r1n( $n $2t1on 6or @&o 8$rr$nto 1n 01s o8n n$%e. I6 t0e
pet1t1on 1s one 6or @&o 8$rr$nto, 1t 1s $'re$d) 7$rred 7) pres2r1pt1on
s1n2e &nder Se2t1on **, R&'e ?? o6 t0e R&'es o6 C151' Pro2ed&re, t0e $2t1on
s0o&'d 7e 2o%%en2ed 81t01n one )e$r $6ter t0e 2$&se o6 t0e p&7'12 o6612er:s
6or6e1t&re o6 o6612e. In t01s 2$se, respondent 0$s 7een 8orA1n( $s $ Red
Cross 5o'&nteer 6or t0e p$st B- )e$rs. Respondent 8$s $'re$d) C0$1r%$n
o6 t0e PNRC Bo$rd o6 Go5ernors 80en 0e 8$s e'e2ted Sen$tor 1n M$)
,--B, 0$51n( 7een e'e2ted C0$1r%$n 1n ,--= $nd re-e'e2ted 1n ,--+.

Respondent 2ontends t0$t e5en 16 t0e present pet1t1on 1s tre$ted $s $
t$/p$)er:s s&1t, pet1t1oners 2$nnot 7e $''o8ed to r$1se $ 2onst1t&t1on$'
@&est1on 1n t0e $7sen2e o6 $n) 2'$1% t0$t t0e) s&66ered so%e $2t&$'
d$%$(e or t0re$tened 1nC&r) $s $ res&'t o6 t0e $''e(ed') 1''e($' $2t o6
respondent. >&rt0er%ore, t$/p$)ers $re $''o8ed to s&e on') 80en t0ere 1s
$ 2'$1% o6 1''e($' d1s7&rse%ent o6 p&7'12 6&nds, or t0$t p&7'12 %one) 1s 7e1n(
d15erted to $n) 1%proper p&rpose, or 80ere pet1t1oners seeA to restr$1n
respondent 6ro% en6or21n( $n 1n5$'1d '$8 t0$t res&'ts 1n 8$st$(e o6 p&7'12
6&nds.

Respondent $'so %$1nt$1ns t0$t 16 t0e pet1t1on 1s tre$ted $s one 6or
de2'$r$tor) re'1e6, t01s Co&rt 8o&'d 0$5e no C&r1sd12t1on s1n2e or1(1n$'
C&r1sd12t1on 6or de2'$r$tor) re'1e6 '1es 81t0 t0e Re(1on$' Tr1$' Co&rt.

Res,ondent -urt)er insists t)at t)e PNRC is not a .overn/ent-
o0ned or +ontro11ed +or,oration and t)at t)e ,ro)i2ition under
Se+tion #&, Arti+1e VI o- t)e Constitution does not a,,13 in t)e ,resent
+ase sin+e vo1unteer servi+e to t)e PNRC is neit)er an o--i+e nor an
e/,1o3/ent.

In t0e1r Rep'), pet1t1oners 2'$1% t0$t t0e1r pet1t1on 1s ne1t0er $n $2t1on
6or @&o 8$rr$nto nor $n $2t1on 6or de2'$r$tor) re'1e6. Petitioners /aintain
t)at t)e ,resent ,etition is a ta4,a3er5s suit 6uestionin. t)e un1a0-u1
dis2urse/ent o- -unds, +onsiderin. t)at res,ondent )as 2een
dra0in. )is sa1aries and ot)er +o/,ensation as a Senator even i- )e
is no 1on.er entit1ed to )is o--i+e. Petitioners ,oint out t)at t)is Court
)as 7urisdi+tion over t)is ,etition sin+e it invo1ves a 1e.a1 or
+onstitutiona1 issue 0)i+) is o- trans+endenta1 i/,ortan+e.

T)e Issues

Pet1t1oners r$1se t0e 6o''o81n( 1ss&es:

*. D0et0er t0e P01'1pp1ne N$t1on$' Red Cross 3PNRC4 1s $
(o5ern%ent- o8ned or 2ontro''ed 2orpor$t1onE

,. D0et0er Se2t1on *=, Art12'e !I o6 t0e P01'1pp1ne Const1t&t1on
$pp'1es to t0e 2$se o6 respondent 80o 1s C0$1r%$n o6 t0e
PNRC $nd $t t0e s$%e t1%e $ Me%7er o6 t0e Sen$teE

=. D0et0er respondent s0o&'d 7e $&to%$t12$'') re%o5ed
$s $ Sen$tor p&rs&$nt to Se2t1on *=, Art12'e !I o6 t0e
P01'1pp1ne Const1t&t1onE $nd

B. D0et0er pet1t1oners %$) 'e($'') 1nst1t&te t01s pet1t1on
$($1nst respondent.
;B<



T0e s&7st$nt1$' 1ss&e 7o1's do8n to 0)et)er t)e o--i+e o- t)e PNRC
C)air/an is a .overn/ent o--i+e or an o--i+e in a .overn/ent-o0ned
or +ontro11ed +or,oration -or ,ur,oses o- t)e ,ro)i2ition in Se+tion
#&, Arti+1e VI o- t)e Constitution.


T)e Court5s Ru1in.

De 61nd t0e pet1t1on 81t0o&t %er1t.

Petitioners Have No Standing to File this Petition

A 2$re6&' re$d1n( o6 t0e pet1t1on re5e$'s t0$t 1t 1s $n $2t1on 6or @&o
8$rr$nto. Se2t1on *, R&'e ?? o6 t0e R&'es o6 Co&rt pro51des:

Se2t1on *. A2t1on 7) Go5ern%ent $($1nst 1nd151d&$'s. F An
a+tion -or t)e usur,ation o- a ,u21i+ o--i+e, pos1t1on or
6r$n201se /a3 2e +o//en+ed 23 a veri-ied ,etition 2rou.)t
in t)e na/e o- t)e Re,u21i+ o- t)e P)i1i,,ines a.ainst:
3$4 A person 80o &s&rps, 1ntr&des 1nto, or &n'$86&'')
0o'ds or e/er21ses $ p&7'12 o6612e, pos1t1on or 6r$n201seE
374 A ,u21i+ o--i+er 0)o does or su--ers an a+t 0)i+) 23
,rovision o- 1a0, +onstitutes a .round -or t)e -or-eiture o- )is o--i+eE or
324 An $sso21$t1on 80120 $2ts $s $ 2orpor$t1on 81t01n t0e P01'1pp1nes
81t0o&t 7e1n( 'e($'') 1n2orpor$ted or 81t0o&t '$86&' $&t0or1t) so to $2t.
3E%p0$s1s s&pp'1ed4


Pet1t1oners $''e(e 1n t0e1r pet1t1on t0$t:

B. Respondent 7e2$%e t0e C0$1r%$n o6 t0e PNRC 80en
0e 8$s e'e2ted $s s&20 d&r1n( t0e >1rst Re(&'$r L&n20eon-
Meet1n( o6 t0e Bo$rd o6 Go5ernors o6 t0e PNRC 0e'd on
>e7r&$r) ,=, ,--?, t0e %1n&tes o6 80120 1s 0ereto $tt$20ed $nd
%$de 1nte(r$' p$rt 0ereo6 $s Anne/ GA.H
+. Respondent 8$s e'e2ted $s C0$1r%$n o6 t0e PNRC
Bo$rd o6 Go5ernors, d&r1n( 01s 1n2&%7en2) $s $ Me%7er o6 t0e
Ho&se o6 Sen$te o6 t0e Con(ress o6 t0e P01'1pp1nes, 0$51n(
7een e'e2ted $s s&20 d&r1n( t0e n$t1on$' e'e2t1ons '$st M$)
,--B.

?. S1n2e 01s e'e2t1on $s C0$1r%$n o6 t0e PNRC Bo$rd o6 Go5ernors,
80120 pos1t1on 0e d&') $22epted, respondent 0$s 7een e/er21s1n( t0e
po8ers $nd d1s20$r(1n( t0e 6&n2t1ons $nd d&t1es o6 s$1d o6612e, desp1te t0e
6$2t t0$t 0e 1s st1'' $ sen$tor.
I. It 1s t0e respe2t6&' s&7%1ss1on o6 t0e pet1t1oner;s< t0$t 23
a++e,tin. t)e +)air/ans)i, o- t)e Board o- "overnors o- t)e PNRC,
res,ondent )as +eased to 2e a Me/2er o- t)e ouse o- Senate as
,rovided in Se+tion #&, Arti+1e VI o- t)e P)i1i,,ine Constitution, / / /
/ / / /
*-. It 1s respe2t6&'') s&7%1tted t0$t in a++e,tin. t)e ,osition o-
C)air/an o- t)e Board o- "overnors o- t)e PNRC on *e2ruar3 '&,
'889, res,ondent )as auto/ati+a113 -or-eited )is seat in t)e ouse o-
Senate and, t)ere-ore, )as 1on. +eased to 2e a Senator, p&rs&$nt to t0e
r&'1n( o6 t01s Honor$7'e Co&rt 1n t0e 2$se o6 >LORES, ET AL. !S. #RILON
AN# GOR#ON, G.R. No. *-BI=,, / / /
**. #esp1te t0e 6$2t t0$t 0e 1s no 'on(er $ sen$tor, respondent
2ont1n&es to $2t $s s&20 $nd st1'' per6or%s t0e po8ers, 6&n2t1ons $nd d&t1es
o6 $ sen$tor, 2ontr$r) to t0e 2onst1t&t1on, '$8 $nd C&r1spr&den2e.
*,. Un'ess restr$1ned, t0ere6ore, respondent 81'' 2ont1n&e to 6$'se')
$2t $nd represent 01%se'6 $s $ sen$tor or %e%7er o6 t0e Ho&se o6 Sen$te,
2o''e2t1n( t0e s$'$r1es, e%o'&%ents $nd ot0er 2o%pens$t1ons, 7ene61ts $nd
pr151'e(es $ppert$1n1n( $nd d&e on') to t0e 'e(1t1%$te sen$tors, to t0e
d$%$(e, (re$t $nd 1rrep$r$7'e 1nC&r) o6 t0e Go5ern%ent $nd t0e >1'1p1no
peop'e.
;+<
3E%p0$s1s s&pp'1ed4


T0&s, pet1t1oners $re $''e(1n( t0$t 7) $22ept1n( t0e pos1t1on o6
C0$1r%$n o6 t0e PNRC Bo$rd o6 Go5ernors, respondent 0$s $&to%$t12$'')
6or6e1ted 01s se$t 1n t0e Sen$te. In s0ort, pet1t1oners 61'ed $n $2t1on 6or
&s&rp$t1on o6 p&7'12 o6612e $($1nst respondent, $ p&7'12 o6612er 80o
$''e(ed') 2o%%1tted $n $2t 80120 2onst1t&tes $ (ro&nd 6or t0e 6or6e1t&re o6
01s p&7'12 o6612e. C'e$r'), s&20 $n $2t1on 1s 6or @&o 8$rr$nto, spe21612$'')
&nder Se2t1on *374, R&'e ?? o6 t0e R&'es o6 Co&rt.

Q&o 8$rr$nto 1s (ener$'') 2o%%en2ed 7) t0e Go5ern%ent $s t0e
proper p$rt) p'$1nt166. Ho8e5er, &nder Se2t1on +, R&'e ?? o6 t0e R&'es o6
Co&rt, $n 1nd151d&$' %$) 2o%%en2e s&20 $n $2t1on 16 0e 2'$1%s to 7e
ent1t'ed to t0e p&7'12 o6612e $''e(ed') &s&rped 7) $not0er, 1n 80120 2$se 0e
2$n 7r1n( t0e $2t1on 1n 01s o8n n$%e. T0e person 1nst1t&t1n( @&o 8$rr$nto
pro2eed1n(s 1n 01s o8n 7e0$'6 %&st 2'$1% $nd 7e $7'e to s0o8 t0$t 0e 1s
ent1t'ed to t0e o6612e 1n d1sp&te, ot0er81se t0e $2t1on %$) 7e d1s%1ssed $t
$n) st$(e.
;?<
In t0e present 2$se, pet1t1oners do not 2'$1% to 7e ent1t'ed to
t0e Sen$te o6612e o6 respondent. C'e$r'), pet1t1oners 0$5e no st$nd1n( to 61'e
t0e present pet1t1on.

E5en 16 t0e Co&rt d1sre($rds t0e 1n61r%1t1es o6 t0e pet1t1on $nd tre$ts 1t
$s $ t$/p$)er:s s&1t, t0e pet1t1on 8o&'d st1'' 6$1' on t0e %er1ts.

PNRC is a Private Organization Performing Public Functions

On ,, M$r20 *.BI, Pres1dent M$n&e' A. Ro/$s s1(ned Rep&7'12 A2t
No. .+,
;I<
ot0er81se Ano8n $s t0e PNRC C0$rter. T0e PNRC 1s $ non-
pro61t, donor-6&nded, 5o'&nt$r), 0&%$n1t$r1$n or($n19$t1on, 80ose %1ss1on
1s to 7r1n( t1%e'), e66e2t15e, $nd 2o%p$ss1on$te 0&%$n1t$r1$n $ss1st$n2e 6or
t0e %ost 5&'ner$7'e 81t0o&t 2ons1der$t1on o6 n$t1on$'1t), r$2e, re'1(1on,
(ender, so21$' st$t&s, or po'1t12$' $661'1$t1on.
;J<
T0e PNRC pro51des s1/ %$Cor
ser512es: B'ood Ser512es, #1s$ster M$n$(e%ent, S$6et) Ser512es,
Co%%&n1t) He$'t0 $nd N&rs1n(, So21$' Ser512es $nd !o'&nt$r) Ser512e.
;.<


T0e Rep&7'12 o6 t0e P01'1pp1nes, $d0er1n( to t0e Gene5$
Con5ent1ons, est$7'1s0ed t0e PNRC $s $ 5o'&nt$r) or($n19$t1on 6or t0e
p&rpose 2onte%p'$ted 1n t0e Gene5$ Con5ent1on o6 ,I "&') *.,..
;*-<
T0e
D0ere$s 2'$&ses o6 t0e PNRC C0$rter re$d:

DHEREAS, t0ere 8$s de5e'oped $t Gene5$,
S81t9er'$nd, on A&(&st ,,, *J?B, $ 2on5ent1on 7) 80120 t0e
n$t1ons o6 t0e 8or'd 8ere 1n51ted to Co1n to(et0er 1n d1%1n1s01n(,
so 6$r '1es 81t01n t0e1r po8er, t0e e51's 1n0erent 1n 8$rE
DHEREAS, %ore t0$n s1/t) n$t1ons o6 t0e 8or'd 0$5e
r$t161ed or $d0ered to t0e s&7se@&ent re51s1on o6 s$1d
2on5ent1on, n$%e') t0e GCon5ent1on o6 Gene5$ o6 "&') ,. ;s12<,
*.,. 6or t0e A%e'1or$t1on o6 t0e Cond1t1on o6 t0e Do&nded $nd
S12A o6 Ar%1es 1n t0e >1e'dH 3re6erred to 1n t01s C0$rter $s t0e
Gene5$ Red Cross Con5ent1on4E
:EREAS, t)e "eneva Red Cross Convention envisa.es t)e
esta21is)/ent in ea+) +ountr3 o- a vo1untar3 or.ani;ation to assist
in +arin. -or t)e 0ounded and si+< o- t)e ar/ed -or+es and to
-urnis) su,,1ies -or t)at ,ur,ose=
:EREAS, t)e Re,u21i+ o- t)e P)i1i,,ines 2e+a/e
an inde,endent nation on !u13 >, #?>9 and ,ro+1ai/ed its
ad)eren+e to t)e "eneva Red Cross Convention on
*e2ruar3 #>, #?>$, and 23 t)at a+tion indi+ated its desire to
,arti+i,ate 0it) t)e nations o- t)e 0or1d in /iti.atin. t)e
su--erin. +aused 23 0ar and to esta21is) in t)e P)i1i,,ines
a vo1untar3 or.ani;ation -or t)at ,ur,ose as +onte/,1ated
23 t)e "eneva Red Cross Convention=
DHEREAS, t0ere e/1sted 1n t0e P01'1pp1nes s1n2e *.*I
$ C0$rter o6 t0e A%er12$n N$t1on$' Red Cross 80120 %&st 7e
ter%1n$ted 1n 51e8 o6 t0e 1ndependen2e o6 t0e P01'1pp1nesE $nd
DHEREAS, t0e 5o'&nteer or($n19$t1ons est$7'1s0ed 1n
t0e ot0er 2o&ntr1es 80120 0$5e r$t161ed or $d0ered to t0e
Gene5$ Red Cross Con5ent1on $ss1st 1n pro%ot1n( t0e 0e$'t0
$nd 8e'6$re o6 t0e1r peop'e 1n pe$2e $nd 1n 8$r, $nd t0ro&(0
t0e1r %&t&$' $ss1st$n2e $nd 2ooper$t1on d1re2t') $nd t0ro&(0
t0e1r 1ntern$t1on$' or($n19$t1ons pro%ote 7etter &nderst$nd1n(
$nd s)%p$t0) $%on( t0e peop'es o6 t0e 8or'd. 3E%p0$s1s
s&pp'1ed4


T0e PNRC 1s $ %e%7er N$t1on$' So21et) o6 t0e Intern$t1on$' Red
Cross $nd Red Cres2ent Mo5e%ent 3Mo5e%ent4, 80120 1s 2o%posed o6 t0e
Intern$t1on$' Co%%1ttee o6 t0e Red Cross 3ICRC4, t0e Intern$t1on$'
>eder$t1on o6 Red Cross $nd Red Cres2ent So21et1es 3Intern$t1on$'
>eder$t1on4, $nd t0e N$t1on$' Red Cross $nd Red Cres2ent So21et1es
3N$t1on$' So21et1es4. T0e Mo5e%ent 1s &n1ted $nd (&1ded 7) 1ts se5en
>&nd$%ent$' Pr1n21p'es:

*. HUMANITY F T0e Intern$t1on$' Red Cross $nd Red Cres2ent
Mo5e%ent, 7orn o6 $ des1re to 7r1n( $ss1st$n2e 81t0o&t
d1s2r1%1n$t1on to t0e 8o&nded on t0e 7$tt'e61e'd, ende$5ors,
1n 1ts 1ntern$t1on$' $nd n$t1on$' 2$p$21t), to pre5ent $nd
$''e51$te 0&%$n s&66er1n( 80ere5er 1t %$) 7e 6o&nd. Its
p&rpose 1s to prote2t '16e $nd 0e$'t0 $nd to ens&re respe2t 6or
t0e 0&%$n 7e1n(. It pro%otes %&t&$' &nderst$nd1n(,
6r1ends01p, 2ooper$t1on $nd '$st1n( pe$2e $%on(st $''
peop'es.
,. IMPARTIALITY F It %$Aes no d1s2r1%1n$t1on $s to n$t1on$'1t), r$2e,
re'1(1o&s 7e'1e6s, 2'$ss or po'1t12$' op1n1ons. It ende$5ors to re'1e5e t0e
s&66er1n( o6 1nd151d&$'s, 7e1n( (&1ded so'e') 7) t0e1r needs, $nd to (15e
pr1or1t) to t0e %ost &r(ent 2$ses o6 d1stress.
=. NE@TRALITY A In order to +ontinue to en7o3 t)e
+on-iden+e o- a11, t)e Move/ent /a3 not ta<e sides in
)osti1ities or en.a.e at an3 ti/e in +ontroversies o- a
,o1iti+a1, ra+ia1, re1i.ious or ideo1o.i+a1 nature.
B. INDEPENDENCE F T)e Move/ent is inde,endent. T)e
Nationa1 So+ieties, 0)i1e au4i1iaries in t)e )u/anitarian
servi+es o- t)eir .overn/ents and su27e+t to t)e 1a0s o-
t)eir res,e+tive +ountries, /ust a10a3s /aintain t)eir
autono/3 so t)at t)e3 /a3 2e a21e at a11 ti/es to a+t in
a++ordan+e 0it) t)e ,rin+i,1es o- t)e Move/ent.
+. !OLUNTARY SER!ICE F It 1s $ 5o'&nt$r) re'1e6 %o5e%ent
not pro%pted 1n $n) %$nner 7) des1re 6or ($1n.
?. UNITY F T0ere 2$n 7e on') one Red Cross or one Red Cres2ent
So21et) 1n $n) one 2o&ntr). It %&st 7e open to $''. It %&st 2$rr) on 1ts
0&%$n1t$r1$n 8orA t0ro&(0o&t 1ts terr1tor).
I. UNI!ERSALITY F T0e Intern$t1on$' Red Cross $nd Red Cres2ent
Mo5e%ent, 1n 80120 $'' So21et1es 0$5e e@&$' st$t&s $nd s0$re e@&$'
respons171'1t1es $nd d&t1es 1n 0e'p1n( e$20 ot0er, 1s 8or'd81de. 3E%p0$s1s
s&pp'1ed4



T)e *unda/enta1 Prin+i,1es ,rovide a universa1 standard o-
re-eren+e -or a11 /e/2ers o- t)e Move/ent. T)e PNRC, as a /e/2er
Nationa1 So+iet3 o- t)e Move/ent, )as t)e dut3 to u,)o1d t)e
*unda/enta1 Prin+i,1es and idea1s o- t)e Move/ent. In order to 2e
re+o.ni;ed as a Nationa1 So+iet3, t)e PNRC )as to
2e autono/ous and /ust o,erate in +on-or/it3 0it) t)e *unda/enta1
Prin+i,1es o- t)e Move/ent.
B##C

T)e reason -or t)is autono/3 is -unda/enta1. To 2e a++e,ted
23 0arrin. 2e11i.erents as neutra1 0or<ers durin. internationa1 or
interna1 ar/ed +on-1i+ts, t)e PNRC vo1unteers /ust not 2e seen as
2e1on.in. to an3 side o- t)e ar/ed +on-1i+t. In t)e P)i1i,,ines 0)ere
t)ere is a +o//unist insur.en+3 and a Mus1i/ se,aratist re2e11ion,
t)e PNRC +annot 2e seen as .overn/ent-o0ned or +ontro11ed, and
neit)er +an t)e PNRC vo1unteers 2e identi-ied as .overn/ent
,ersonne1 or as instru/ents o- .overn/ent ,o1i+3. Ot)er0ise, t)e
insur.ents or se,aratists 0i11 treat PNRC vo1unteers as ene/ies 0)en
t)e vo1unteers tend to t)e 0ounded in t)e 2att1e-ie1d or t)e dis,1a+ed
+ivi1ians in +on-1i+t areas.

T)us, t)e PNRC /ust not on13 2e, 2ut /ust a1so 2e seen to 2e,
autono/ous, neutra1 and inde,endent in order to +ondu+t its
a+tivities in a++ordan+e 0it) t)e *unda/enta1 Prin+i,1es. T)e PNRC
/ust not a,,ear to 2e an instru/ent or a.en+3 t)at i/,1e/ents
.overn/ent ,o1i+3= ot)er0ise, it +annot /erit t)e trust o- a11 and
+annot e--e+tive13 +arr3 out its /ission as a Nationa1 Red Cross
So+iet3.
B#'C
It is i/,erative t)at t)e PNRC /ust 2e autono/ous,
neutra1, and inde,endent in re1ation to t)e State.

To ensure and /aintain its autono/3, neutra1it3, and
inde,enden+e, t)e PNRC +annot 2e o0ned or +ontro11ed 23 t)e
.overn/ent. Indeed, t)e P)i1i,,ine .overn/ent does not o0n t)e
PNRC. T)e PNRC does not )ave .overn/ent assets and does not
re+eive an3 a,,ro,riation -ro/ t)e P)i1i,,ine Con.ress.
B#&C
T)e PNRC
is -inan+ed ,ri/ari13 23 +ontri2utions -ro/ ,rivate individua1s and
,rivate entities o2tained t)rou.) so1i+itation +a/,ai.ns or.ani;ed 23
its Board o- "overnors, as ,rovided under Se+tion ## o- t)e PNRC
C)arter(

SECTION **. As $ n$t1on$' 5o'&nt$r) or($n19$t1on, t)e
P)i1i,,ine Nationa1 Red Cross s)a11 2e -inan+ed ,ri/ari13
23 +ontri2utions o2tained t)rou.) so1i+itation +a/,ai.ns
t)rou.)out t)e 3ear 0)i+) s)a11 2e or.ani;ed 23 t)e Board
o- "overnors and +ondu+ted 23 t)e C)a,ters in t)eir
res,e+tive 7urisdi+tions. T0ese 6&nd r$1s1n( 2$%p$1(ns s0$''
7e 2ond&2ted 1ndependent') o6 ot0er 6&nd dr15es 7) ot0er
or($n19$t1ons. 3E%p0$s1s s&pp'1ed4


T0e (o5ern%ent does not 2ontro' t0e PNRC. Under t0e PNRC
C0$rter, $s $%ended, on13 si4 o- t)e t)irt3 /e/2ers o- t)e PNRC Board
o- "overnors are a,,ointed 23 t)e President o- t)e P)i1i,,ines. T0&s,
t8ent)-6o&r %e%7ers, or 6o&r-616t0s 3BK+4, o6 t0e PNRC Bo$rd o6 Go5ernors
$re not $ppo1nted 7) t0e Pres1dent. Se2t1on ? o6 t0e PNRC C0$rter, $s
$%ended, pro51des:

SECTION ?. T0e (o5ern1n( po8ers $nd $&t0or1t) s0$''
7e 5ested 1n $ Bo$rd o6 Go5ernors 2o%posed o6 t01rt)
%e%7ers, s1/ o6 80o% s0$'' 7e $ppo1nted 7) t0e Pres1dent o6
t0e P01'1pp1nes, e1(0teen s0$'' 7e e'e2ted 7) 20$pter de'e($tes
1n 71enn1$' 2on5ent1ons $nd t0e re%$1n1n( s1/ s0$'' 7e se'e2ted
7) t0e t8ent)-6o&r %e%7ers o6 t0e Bo$rd $'re$d) 20osen. / /
/.

T0&s, o6 t0e t8ent)-6o&r %e%7ers o6 t0e PNRC Bo$rd, e1(0teen $re
e'e2ted 7) t0e 20$pter de'e($tes o6 t0e PNRC, $nd s1/ $re e'e2ted 7) t0e
t8ent)-6o&r %e%7ers $'re$d) 20osen L $ se'e2t (ro&p 80ere t0e pr15$te
se2tor %e%7ers 0$5e t0ree-6o&rt0s %$Cor1t). C1ear13, an over0)e1/in.
/a7orit3 o- -our--i-t)s o- t)e PNRC Board are e1e+ted or +)osen 23 t)e
,rivate se+tor /e/2ers o- t)e PNRC.

T0e PNRC Bo$rd o6 Go5ernors, 80120 e/er21ses $'' 2orpor$te po8ers
o6 t0e PNRC, e'e2ts t0e PNRC C0$1r%$n $nd $'' ot0er o6612ers o6 t0e
PNRC. T0e 1n2&%7ent C0$1r%$n o6 PNRC, respondent Sen$tor Gordon,
8$s e'e2ted, $s $'' PNRC C0$1r%en $re e'e2ted, 7) $ ,rivate se+tor-
+ontro11ed PNRC Board 6o&r-616t0s o6 80o% $re pr15$te se2tor %e%7ers o6
t0e PNRC. T)e PNRC C)air/an is not a,,ointed 23 t)e President or
23 an3 su2ordinate .overn/ent o--i+ia1.

Under Se2t1on *?, Art12'e !II o6 t0e Const1t&t1on,
;*B<
t0e Pres1dent
$ppo1nts $'' o66121$'s $nd e%p'o)ees 1n t0e E/e2&t15e 7r$n20 80ose
$ppo1nt%ents $re 5ested 1n t0e Pres1dent 7) t0e Const1t&t1on or 7)
'$8. T0e Pres1dent $'so $ppo1nts t0ose 80ose $ppo1nt%ents $re not
ot0er81se pro51ded 7) '$8. Under t01s Se2t1on *?, t0e '$8 %$) $'so
$&t0or19e t0e G0e$ds o6 dep$rt%ents, $(en21es, 2o%%1ss1ons, or 7o$rdsH to
$ppo1nt o6612ers 'o8er 1n r$nA t0$n s&20 0e$ds o6 dep$rt%ents, $(en21es,
2o%%1ss1ons or 7o$rds.
;*+<
In Rufino v. Endriga,
B#9C
t)e Court e4,1ained
a,,oint/ents under Se+tion #9 in t)is 0ise(


@nder Se+tion #9, Arti+1e VII o- t)e #?D$
Constitution, t)e President a,,oints t)ree .rou,s o-
o--i+ers. T)e -irst .rou, re-ers to t)e )eads o- t)e
E4e+utive de,art/ents, a/2assadors, ot)er ,u21i+
/inisters and +onsu1s, o--i+ers o- t)e ar/ed -or+es -ro/
t)e ran< o- +o1one1 or nava1 +a,tain, and ot)er o--i+ers
0)ose a,,oint/ents are vested in t)e President 23 t)e
Constitution. T)e se+ond .rou, re-ers to t)ose 0)o/ t)e
President /a3 2e aut)ori;ed 23 1a0 to a,,oint. T)e t)ird
.rou, re-ers to a11 ot)er o--i+ers o- t)e "overn/ent 0)ose
a,,oint/ents are not ot)er0ise ,rovided 23 1a0.

Under t0e s$%e Se2t1on *?, t0ere 1s $ 6o&rt0 (ro&p o6 'o8er-r$nAed
o6612ers 80ose $ppo1nt%ents Con(ress %$) 7) '$8 5est 1n t0e 0e$ds o6
dep$rt%ents, $(en21es, 2o%%1ss1ons, or 7o$rds. / / /

/ / /

In $ dep$rt%ent 1n t0e E/e2&t15e 7r$n20, t0e 0e$d 1s t0e Se2ret$r).
T0e '$8 %$) not $&t0or19e t0e Underse2ret$r), $2t1n( $s s&20
Underse2ret$r), to $ppo1nt 'o8er-r$nAed o6612ers 1n t0e E/e2&t15e
dep$rt%ent. In $n $(en2), t0e po8er 1s 5ested 1n t0e 0e$d o6 t0e $(en2) 6or
1t 8o&'d 7e prepostero&s to 5est 1t 1n t0e $(en2) 1tse'6. In $ 2o%%1ss1on, t0e
0e$d 1s t0e 20$1rperson o6 t0e 2o%%1ss1on. In $ 7o$rd, t0e 0e$d 1s $'so t0e
20$1rperson o6 t0e 7o$rd. In t0e '$st t0ree s1t&$t1ons, t0e '$8 %$) not $'so
$&t0or19e o6612ers ot0er t0$n t0e 0e$ds o6 t0e $(en2), 2o%%1ss1on, or 7o$rd
to $ppo1nt 'o8er-r$nAed o6612ers.

/ / /

T0e Const1t&t1on $&t0or19es Con(ress to 5est t0e po8er to $ppo1nt
'o8er-r$nAed o6612ers spe21612$'') 1n t0e G0e$dsH o6 t0e spe2161ed o6612es, $nd
1n no ot0er person. T0e 8ord G0e$dsH re6ers to t0e 20$1rpersons o6 t0e
2o%%1ss1ons or 7o$rds $nd not to t0e1r %e%7ers, 6or se5er$' re$sons.


T)e President does not a,,oint t)e C)air/an o- t)e PNRC.
Neit)er does t)e )ead o- an3 de,art/ent, a.en+3, +o//ission or
2oard a,,oint t)e PNRC C)air/an. T)us, t)e PNRC C)air/an is not
an o--i+ia1 or e/,1o3ee o- t)e E4e+utive 2ran+) sin+e )is a,,oint/ent
does not -a11 under Se+tion #9, Arti+1e VII o- t)e
Constitution. Certain13, t)e PNRC C)air/an is not an o--i+ia1 or
e/,1o3ee o- t)e !udi+iar3 or Le.is1ature. T)is 1eads us to t)e
o2vious +on+1usion t)at t)e PNRC C)air/an is not an o--i+ia1 or
e/,1o3ee o- t)e P)i1i,,ine "overn/ent. Not 2ein. a .overn/ent
o--i+ia1 or e/,1o3ee, t)e PNRC C)air/an, as su+), does not )o1d a
.overn/ent o--i+e or e/,1o3/ent.

@nder Se+tion #$, Arti+1e VII o- t)e Constitution,
B#$C
t)e President
e4er+ises +ontro1 over a11 .overn/ent o--i+es in t)e E4e+utive
2ran+). I- an o--i+e is 1e.a113 not under t)e +ontro1 o- t)e President,
t)en su+) o--i+e is not ,art o- t)e E4e+utive 2ran+) . In Rufino v.
ndriga,
;*J<
t0e Co&rt e/p'$1ned t0e Pres1dent:s po8er o6 2ontro' o5er $''
(o5ern%ent o6612es $s 6o''o8s:

E5er) (o5ern%ent o6612e, ent1t), or $(en2) %&st 6$''
&nder t0e E/e2&t15e, Le(1s'$t15e, or "&d121$' 7r$n20es, or %&st
7e'on( to one o6 t0e 1ndependent 2onst1t&t1on$' 7od1es, or %&st
7e $ @&$s1-C&d121$' 7od) or 'o2$' (o5ern%ent &n1t. Ot0er81se,
s&20 (o5ern%ent o6612e, ent1t), or $(en2) 0$s no 'e($' $nd
2onst1t&t1on$' 7$s1s 6or 1ts e/1sten2e.

T0e CCP does not 6$'' &nder t0e Le(1s'$t15e or "&d121$' 7r$n20es o6
(o5ern%ent. T0e CCP 1s $'so not one o6 t0e 1ndependent 2onst1t&t1on$'
7od1es. Ne1t0er 1s t0e CCP $ @&$s1-C&d121$' 7od) nor $ 'o2$' (o5ern%ent
&n1t. T0&s, t0e CCP %&st 6$'' &nder t0e E/e2&t15e 7r$n20. Under t0e
Re51sed Ad%1n1str$t15e Code o6 *.JI, $n) $(en2) Gnot p'$2ed 7) '$8 or
order 2re$t1n( t0e% &nder $n) spe21612 dep$rt%entH 6$''s G&nder t0e O6612e
o6 t0e Pres1dent.H

S1n2e t0e Pres1dent e/er21ses 2ontro' o5er G$'' t0e e/e2&t15e
dep$rt%ents, 7&re$&s, $nd o6612es,H t0e Pres1dent ne2ess$r1') e/er21ses
2ontro' o5er t0e CCP 80120 1s $n o6612e 1n t0e E/e2&t15e 7r$n20. In
%$nd$t1n( t0$t t0e Pres1dent Gs0$'' 0$5e 2ontro' o6 $'' e/e2&t15e . . .
o6612es,H Se2t1on *I, Art12'e !II o6 t0e *.JI Const1t&t1on does not e/e%pt
$n) e/e2&t15e o6612e L one per6or%1n( e/e2&t15e 6&n2t1ons o&ts1de o6 t0e
1ndependent 2onst1t&t1on$' 7od1es L 6ro% t0e Pres1dent:s po8er o6 2ontro'.
T0ere 1s no d1sp&te t0$t t0e CCP per6or%s e/e2&t15e, $nd not 'e(1s'$t15e,
C&d121$', or @&$s1-C&d121$' 6&n2t1ons.

T)e President5s ,o0er o- +ontro1 a,,1ies to t)e a+ts or
de+isions o- a11 o--i+ers in t)e E4e+utive 2ran+). T)is is true 0)et)er
su+) o--i+ers are a,,ointed 23 t)e President or 23 )eads o-
de,art/ents, a.en+ies, +o//issions, or 2oards. T)e ,o0er o- +ontro1
/eans t)e ,o0er to revise or reverse t)e a+ts or de+isions o- a
su2ordinate o--i+er invo1vin. t)e e4er+ise o- dis+retion.

In s0ort, t0e Pres1dent s1ts $t t0e $pe/ o6 t0e E/e2&t15e 7r$n20, $nd
e/er21ses G2ontro' o6 $'' t0e e/e2&t15e dep$rt%ents, 7&re$&s, $nd o6612es.H
T0ere 2$n 7e no 1nst$n2e &nder t0e Const1t&t1on 80ere $n o6612er o6 t0e
E/e2&t15e 7r$n20 1s o&ts1de t0e 2ontro' o6 t0e Pres1dent. T0e E/e2&t15e
7r$n20 1s &n1t$r) s1n2e t0ere 1s on') one Pres1dent 5ested 81t0 e/e2&t15e
po8er e/er21s1n( 2ontro' o5er t0e ent1re E/e2&t15e 7r$n20. An) o6612e 1n t0e
E/e2&t15e 7r$n20 t0$t 1s not &nder t0e 2ontro' o6 t0e Pres1dent 1s $ 'ost
2o%%$nd 80ose e/1sten2e 1s 81t0o&t $n) 'e($' or 2onst1t&t1on$'
7$s1s. 3E%p0$s1s s&pp'1ed4


An o5er80e'%1n( 6o&r-616t0s %$Cor1t) o6 t0e PNRC Bo$rd $re pr15$te
se2tor 1nd151d&$'s e'e2ted to t0e PNRC Bo$rd 7) t0e pr15$te se2tor
%e%7ers o6 t0e PNRC. T0e PNRC Bo$rd e/er21ses $'' 2orpor$te po8ers
o6 t0e PNRC. T0e PNRC 1s 2ontro''ed 7) pr15$te se2tor 1nd151d&$'s.
#e21s1ons or $2t1ons o6 t0e PNRC Bo$rd $re not re51e8$7'e 7) t0e
Pres1dent. T)e President +annot reverse or /odi-3 t)e de+isions or
a+tions o- t)e PNRC Board. Neit)er +an t)e President reverse or
/odi-3 t)e de+isions or a+tions o- t)e PNRC C)air/an. It 1s t0e
PNRC Bo$rd t0$t 2$n re51e8, re5erse or %od16) t0e de21s1ons or $2t1ons o6
t0e PNRC C0$1r%$n. T01s pro5es $($1n t0$t t0e o6612e o6 t0e PNRC
C0$1r%$n 1s $ pr15$te o6612e, not $ (o5ern%ent o6612e.

A't0o&(0 t0e St$te 1s o6ten represented 1n t0e (o5ern1n( 7od1es o6 $
N$t1on$' So21et), t01s 2$n 7e C&st161ed 7) t0e need 6or proper 2oord1n$t1on
81t0 t0e p&7'12 $&t0or1t1es, $nd t0e (o5ern%ent represent$t15es %$) t$Ae
p$rt 1n de21s1on-%$A1n( 81t01n $ N$t1on$' So21et). Ho8e5er, t0e 6ree')-
e'e2ted represent$t15es o6 $ N$t1on$' So21et):s $2t15e %e%7ers %&st
re%$1n 1n $ '$r(e %$Cor1t) 1n $ N$t1on$' So21et):s (o5ern1n( 7od1es.
;*.<

T0e PNRC 1s not (o5ern%ent-o8ned 7&t pr15$te') o8ned. T)e vast
/a7orit3 o- t)e t)ousands o- PNRC /e/2ers are ,rivate individua1s,
in+1udin. students. Under t0e PNRC C0$rter, t0ose 80o 2ontr17&te to t0e
$nn&$' 6&nd 2$%p$1(n o6 t0e PNRC $re ent1t'ed to %e%7ers01p 1n t0e
PNRC 6or one )e$r. T0&s, $n) one 7et8een ? $nd ?+ )e$rs o6 $(e 2$n 7e
$ PNRC %e%7er 6or one )e$r &pon 2ontr17&t1n( P=+, P*--, P=--, P+--
or P*,--- 6or t0e )e$r.
;,-<
E5en 6ore1(ners, 80et0er res1dents or not, 2$n 7e
%e%7ers o6 t0e PNRC. Se2t1on + o6 t0e PNRC C0$rter, $s $%ended 7)
Pres1dent1$' #e2ree No. *,?B,
;,*<
re$ds:

SEC. +. Me%7ers01p 1n t0e P01'1pp1ne N$t1on$' Red
Cross s0$'' 7e open to t0e ent1re pop&'$t1on 1n t0e P01'1pp1nes
re($rd'ess o6 21t19ens01p. An) 2ontr17&t1on to t0e P01'1pp1ne
N$t1on$' Red Cross Ann&$' >&nd C$%p$1(n s0$'' ent1t'e t0e
2ontr17&tor to %e%7ers01p 6or one )e$r $nd s$1d 2ontr17&t1on
s0$'' 7e ded&2t17'e 1n 6&'' 6or t$/$t1on p&rposes.

T)us, t)e PNRC is a ,rivate13 o0ned, ,rivate13 -unded, and ,rivate13
run +)arita21e or.ani;ation. T)e PNRC is not a .overn/ent-o0ned or
+ontro11ed +or,oration.

Pet1t1oners $n20or t0e1r pet1t1on on t0e *... 2$se o6 Camporedondo
v. NLRC,
;,,<
80120 r&'ed t0$t t0e PNRC 1s $ (o5ern%ent-o8ned or
2ontro''ed 2orpor$t1on. In r&'1n( t0$t t0e PNRC 1s $ (o5ern%ent-o8ned or
2ontro''ed 2orpor$t1on, t0e s1%p'e test &sed 8$s 80et0er t0e 2orpor$t1on
8$s 2re$ted 7) 1ts o8n spe21$' 20$rter 6or t0e e/er21se o6 $ p&7'12 6&n2t1on
or 7) 1n2orpor$t1on &nder t0e (ener$' 2orpor$t1on '$8. S1n2e t0e PNRC
8$s 2re$ted &nder $ spe21$' 20$rter, t0e Co&rt t0en r&'ed t0$t 1t 1s $
(o5ern%ent 2orpor$t1on. Ho8e5er, t0e Camporedondo r&'1n( 6$1'ed to
2ons1der t0e de61n1t1on o6 $ (o5ern%ent-o8ned or 2ontro''ed 2orpor$t1on $s
pro51ded &nder Se2t1on ,3*=4 o6 t0e Introd&2tor) Pro51s1ons o6 t0e
Ad%1n1str$t15e Code o6 *.JI:



SEC. ,. General !erms Defined. F / / /
E#&F overnment!o"ned or controlled
cor#oration re-ers to an3 a.en+3 or.ani;ed as a sto+< or
non-sto+< +or,oration, vested 0it) -un+tions re1atin. to
,u21i+ needs 0)et)er .overn/enta1 or ,ro,rietar3 in
nature, and o0ned 23 t)e "overn/ent dire+t13 or t)rou.)
its instru/enta1ities eit)er 0)o113, or 0)ere a,,1i+a21e as in
t)e +ase o- sto+< +or,orations, to t)e e4tent o- at 1east -i-t3-
one E%#F ,er+ent o- its +a,ita1 sto+<: Provided, T0$t
(o5ern%ent-o8ned or 2ontro''ed 2orpor$t1ons %$) 7e 6&rt0er
2$te(or19ed 7) t0e #ep$rt%ent o6 t0e B&d(et, t0e C151' Ser512e
Co%%1ss1on, $nd t0e Co%%1ss1on on A&d1t 6or p&rposes o6 t0e
e/er21se $nd d1s20$r(e o6 t0e1r respe2t15e po8ers, 6&n2t1ons
$nd respons171'1t1es 81t0 respe2t to s&20 2orpor$t1ons.
3Bo'd6$21n( $nd &nders2or1n( s&pp'1ed4


A (o5ern%ent-o8ned or 2ontro''ed 2orpor$t1on %&st 7e o0ned 7)
t0e (o5ern%ent, $nd 1n t0e 2$se o6 $ sto2A 2orpor$t1on, $t 'e$st $ %$Cor1t)
o6 1ts 2$p1t$' sto2A %&st 7e o8ned 7) t0e (o5ern%ent. In t0e 2$se o6 $
non-sto2A 2orpor$t1on, 7) $n$'o() $t 'e$st $ %$Cor1t) o6 t0e %e%7ers %&st
7e (o5ern%ent o66121$'s 0o'd1n( s&20 %e%7ers01p 7) $ppo1nt%ent or
des1(n$t1on 7) t0e (o5ern%ent. Under t01s 2r1ter1on, $nd $s d1s2&ssed
e$r'1er, t0e (o5ern%ent does not o8n or 2ontro' PNRC.

$he PNRC Charter is %iolative of the Constitutional Proscri#tion
against the Creation of Private Cor#orations b& S#ecial 'a"

T0e *.=+ Const1t&t1on, $s $%ended, 8$s 1n 6or2e 80en t0e
PNRC 8$s 2re$ted 7) spe21$' 20$rter on ,, M$r20 *.BI. Se2t1on I, Art12'e
MI! o6 t0e *.=+ Const1t&t1on, $s $%ended, re$ds:

SEC. I. T0e Con(ress s0$'' not, e/2ept 7) (ener$' '$8,
pro51de 6or t0e 6or%$t1on, or($n19$t1on, or re(&'$t1on o6 pr15$te
2orpor$t1ons, &n'ess s&20 2orpor$t1ons $re o8ned or 2ontro''ed
7) t0e Go5ern%ent or $n) s&7d151s1on or 1nstr&%ent$'1t)
t0ereo6.


T0e s&7se@&ent *.I= $nd *.JI Const1t&t1ons 2ont$1n s1%1'$r pro51s1ons
pro0171t1n( Con(ress 6ro% 2re$t1n( pr15$te 2orpor$t1ons e/2ept 7)
(ener$' '$8. Se2t1on * o6 t0e PNRC C0$rter, $s $%ended, 2re$tes t0e
PNRC $s $ G7od) 2orpor$te $nd po'1t12,H t0&s:

SECTION *. T)ere is )ere23 +reated in t)e Re,u21i+
o- t)e P)i1i,,ines a 2od3 +or,orate and ,o1iti+ to 2e t)e
vo1untar3 or.ani;ation o--i+ia113 desi.nated to assist t)e
Re,u21i+ o- t)e P)i1i,,ines in dis+)ar.in. t)e o21i.ations
set -ort) in t)e "eneva Conventions and to ,er-or/ su+)
ot)er duties as are in)erent u,on a Nationa1 Red Cross
So+iet3. T0e n$t1on$' 0e$d@&$rters o6 t01s Corpor$t1on s0$'' 7e
'o2$ted 1n Metropo'1t$n M$n1'$. 3E%p0$s1s s&pp'1ed4


In Feliciano v. Commission on "udit,
;,=<
t0e Co&rt e/p'$1ned t0e
2onst1t&t1on$' pro51s1on pro0171t1n( Con(ress 6ro% 2re$t1n( pr15$te
2orpor$t1ons 1n t01s 81se:

De 7e(1n 7) e/p'$1n1n( t0e (ener$' 6r$%e8orA &nder t0e
6&nd$%ent$' '$8. T0e Const1t&t1on re2o(n19es t8o 2'$sses o6
2orpor$t1ons. T0e 61rst re6ers to pr15$te 2orpor$t1ons 2re$ted
&nder $ (ener$' '$8. T0e se2ond re6ers to (o5ern%ent-o8ned
or 2ontro''ed 2orpor$t1ons 2re$ted 7) spe21$' 20$rters. Se2t1on
*?, Art12'e MII o6 t0e Const1t&t1on pro51des:

Se2. *?. T0e Con(ress s0$'' not, e/2ept 7) (ener$'
'$8, pro51de 6or t0e 6or%$t1on, or($n19$t1on, or
re(&'$t1on o6 pr15$te 2orpor$t1ons. Go5ern%ent-
o8ned or 2ontro''ed 2orpor$t1ons %$) 7e 2re$ted or
est$7'1s0ed 7) spe21$' 20$rters 1n t0e 1nterest o6 t0e
2o%%on (ood $nd s&7Ce2t to t0e test o6 e2ono%12
51$71'1t).

T0e Const1t&t1on e%p0$t12$'') pro0171ts t0e 2re$t1on o6
pr15$te 2orpor$t1ons e/2ept 7) (ener$' '$8 $pp'12$7'e to $''
21t19ens. T0e p&rpose o6 t01s 2onst1t&t1on$' pro51s1on 1s to 7$n
pr15$te 2orpor$t1ons 2re$ted 7) spe21$' 20$rters, 80120
01stor12$'') ($5e 2ert$1n 1nd151d&$'s, 6$%1'1es or (ro&ps spe21$'
pr151'e(es den1ed to ot0er 21t19ens.

In s0ort, Con.ress +annot ena+t a 1a0 +reatin. a
,rivate +or,oration 0it) a s,e+ia1 +)arter. Su+) 1e.is1ation
0ou1d 2e un+onstitutiona1. Private +or,orations /a3 e4ist
on13 under a .enera1 1a0. I- t)e +or,oration is ,rivate, it
/ust ne+essari13 e4ist under a .enera1 1a0. St$ted
d166erent'), on') 2orpor$t1ons 2re$ted &nder $ (ener$' '$8 2$n
@&$'16) $s pr15$te 2orpor$t1ons. Under e/1st1n( '$8s, t0e (ener$'
'$8 1s t0e Corpor$t1on Code, e/2ept t0$t t0e Cooper$t15e Code
(o5erns t0e 1n2orpor$t1on o6 2ooper$t15es.


T0e Const1t&t1on $&t0or19es Con(ress to 2re$te
(o5ern%ent-o8ned or 2ontro''ed 2orpor$t1ons t0ro&(0 spe21$'
20$rters. S1n2e pr15$te 2orpor$t1ons 2$nnot 0$5e spe21$'
20$rters, 1t 6o''o8s t0$t Con(ress 2$n 2re$te 2orpor$t1ons 81t0
spe21$' 20$rters on') 16 s&20 2orpor$t1ons $re (o5ern%ent-
o8ned or 2ontro''ed.
;,B<
3E%p0$s1s s&pp'1ed4


In Feliciano, t0e Co&rt 0e'd t0$t t0e Lo2$' D$ter #1str12ts $re
(o5ern%ent-o8ned or 2ontro''ed 2orpor$t1ons s1n2e t0e) e/1st 7) 51rt&e o6
Pres1dent1$' #e2ree No. *.J, 80120 2onst1t&tes t0e1r spe21$' 20$rter. T0e
seed 2$p1t$' $ssets o6 t0e Lo2$' D$ter #1str12ts, s&20 $s 8$ter8orAs $nd
se8er$(e 6$21'1t1es, 8ere p&7'12 propert) 80120 8ere %$n$(ed, oper$ted 7)
or &nder t0e 2ontro' o6 t0e 21t), %&n121p$'1t) or pro51n2e 7e6ore t0e $ssets
8ere tr$ns6erred to t0e Lo2$' D$ter #1str12ts. T0e Lo2$' D$ter #1str12ts $'so
re2e15e s&7s1d1es $nd 'o$ns 6ro% t0e Lo2$' D$ter Ut1'1t1es Ad%1n1str$t1on
3LDUA4. In 6$2t, &nder t0e ,--. Gener$' Appropr1$t1ons A2t,
;,+<
t0e LDUA
0$s $ 7&d(et $%o&nt1n( to PB--,---,--- 6or 1ts s&7s1d) re@&1re%ents.
;,?<
T)ere is no ,rivate +a,ita1 invested in t)e Lo+a1 :ater
Distri+ts. T0e 2$p1t$' $ssets $nd oper$t1n( 6&nds o6 t0e Lo2$' D$ter
#1str12ts $'' 2o%e 6ro% t0e (o5ern%ent, e1t0er t0ro&(0 tr$ns6er o6 $ssets,
'o$ns, s&7s1d1es or t0e 1n2o%e 6ro% s&20 $ssets or 6&nds.

T0e (o5ern%ent $'so 2ontro's t0e Lo2$' D$ter #1str12ts 7e2$&se t0e
%&n121p$' or 21t) %$)or, or t0e pro51n21$' (o5ernor, $ppo1nts $'' t0e 7o$rd
d1re2tors o6 t0e Lo2$' D$ter #1str12ts. >&rt0er%ore, t0e 7o$rd d1re2tors
$nd ot0er personne' o6 t0e Lo2$' D$ter #1str12ts $re (o5ern%ent
e%p'o)ees s&7Ce2t to 2151' ser512e '$8s $nd $nt1-(r$6t '$8s. C'e$r'),
t0e Lo2$' D$ter #1str12ts $re 2ons1dered (o5ern%ent-o8ned or 2ontro''ed
2orpor$t1ons not on') 7e2$&se o6 t0e1r 2re$t1on 7) spe21$' 20$rter 7&t $'so
7e2$&se t0e (o5ern%ent 1n 6$2t o8ns $nd 2ontro's t0e Lo2$' D$ter
#1str12ts.
"&st '1Ae t0e Lo2$' D$ter #1str12ts, t0e PNRC 8$s 2re$ted t0ro&(0 $
spe21$' 20$rter. o0ever, un1i<e t)e Lo+a1 :ater Distri+ts, t)e
e1e/ents o- .overn/ent o0ners)i, and +ontro1 are +1ear13 1a+<in. in
t)e PNRC. T)us, a1t)ou.) t)e PNRC is +reated 23 a s,e+ia1 +)arter, it
+annot 2e +onsidered a .overn/ent-o0ned or +ontro11ed +or,oration
in t)e a2sen+e o- t)e essentia1 e1e/ents o- o0ners)i, and +ontro1 23
t)e .overn/ent. In +reatin. t)e PNRC as a +or,orate entit3, Con.ress
0as in -a+t +reatin. a ,rivate +or,oration. o0ever, t)e +onstitutiona1
,ro)i2ition a.ainst t)e +reation o- ,rivate +or,orations 23 s,e+ia1
+)arters ,rovides no e4+e,tion even -or non-,ro-it or +)arita21e
+or,orations. Conse6uent13, t)e PNRC C)arter, inso-ar as it +reates
t)e PNRC as a ,rivate +or,oration and .rants it +or,orate ,o0ers,
B'$C
is void -or 2ein. un+onstitutiona1. T0&s, Se2t1ons *,
;,J<
,,
;,.<
=,
;=-<
B3$4,
;=*<
+,
;=,<
?,
;==<
I,
;=B<
J,
;=+<
.,
;=?<
*-,
;=I<
**,
;=J<
*,,
;=.<
$nd *=
;B-<
o6 t0e PNRC
C0$rter, $s $%ended, $re 5o1d.

T0e ot0er pro51s1ons
;B*<
o6 t0e PNRC C0$rter re%$1n 5$'1d $s t0e) 2$n
7e 2ons1dered $s $ re2o(n1t1on 7) t0e St$te t0$t t0e &n1n2orpor$ted PNRC
1s t0e 'o2$' N$t1on$' So21et) o6 t0e Intern$t1on$' Red Cross $nd Red
Cres2ent Mo5e%ent, $nd t0&s ent1t'ed to t0e 7ene61ts, e/e%pt1ons $nd
pr151'e(es set 6ort0 1n t0e PNRC C0$rter. T0e ot0er pro51s1ons o6 t0e PNRC
C0$rter 1%p'e%ent t0e P01'1pp1ne Go5ern%ent:s tre$t) o7'1($t1ons &nder
Art12'e B3+4 o6 t0e St$t&tes o6 t0e Intern$t1on$' Red Cross $nd Red
Cres2ent Mo5e%ent, 80120 pro51des t0$t to 7e re2o(n19ed $s $ N$t1on$'
So21et), t0e So21et) %&st 7e Gd&') re2o(n19ed 7) t0e 'e($' (o5ern%ent o6
1ts 2o&ntr) on t0e 7$s1s o6 t0e Gene5$ Con5ent1ons $nd o6 t0e n$t1on$'
'e(1s'$t1on $s $ 5o'&nt$r) $1d so21et), $&/1'1$r) to t0e p&7'12 $&t0or1t1es 1n
t0e 0&%$n1t$r1$n 61e'd.H

In su/, 0e )o1d t)at t)e o--i+e o- t)e PNRC C)air/an is not a
.overn/ent o--i+e or an o--i+e in a .overn/ent-o0ned or +ontro11ed
+or,oration -or ,ur,oses o- t)e ,ro)i2ition in Se+tion #&, Arti+1e VI o-
t)e #?D$ Constitution. o0ever, sin+e t)e PNRC C)arter is void
inso-ar as it +reates t)e PNRC as a ,rivate +or,oration, t)e PNRC
s)ou1d in+or,orate under t)e Cor,oration Code and re.ister 0it) t)e
Se+urities and E4+)an.e Co//ission i- it 0ants to 2e a ,rivate
+or,oration.

:ERE*ORE, 8e de2'$re t0$t t0e o6612e o6 t0e C0$1r%$n o6 t0e
P01'1pp1ne N$t1on$' Red Cross 1s not $ (o5ern%ent o6612e or $n o6612e 1n $
(o5ern%ent-o8ned or 2ontro''ed 2orpor$t1on 6or p&rposes o6 t0e pro0171t1on
1n Se2t1on *=, Art12'e !I o6 t0e *.JI Const1t&t1on. De $'so de2'$re t0$t
Se2t1ons *, ,, =, B3$4, +, ?, I, J, ., *-, **, *,, $nd *= o6 t0e C0$rter o6 t0e
P01'1pp1ne N$t1on$' Red Cross, or Rep&7'12 A2t No. .+, $s $%ended 7)
Pres1dent1$' #e2ree Nos. *,?B $nd *?B=, $re !OI# 7e2$&se t0e)
2re$te t0e PNRC $s $ pr15$te 2orpor$t1on or (r$nt 1t 2orpor$te po8ers.

SO ORDERED.




ANTONIO T. CARPIO
Asso+iate !usti+e